Document:

Exhibit 10.7

 

FORM OF AMENDMENT TO
EMPLOYMENT AGREEMENT

 

THIS AMENDMENT to the
Employment Agreement by and between OfficeMax Incorporated, a Delaware
corporation (the “Company”), and Sam Duncan (the “Executive”), dated April 18,
2005 (the “Agreement”) is made as of                       ,
2008.

 

W I T N E S S E T H:

 

WHEREAS, the Executive is
currently employed by Company as Chairman of the Board and Chief Executive
Officer;

 

WHEREAS, Executive and Company
originally entered into the Agreement dated April 18, 2005;

 

WHEREAS, the parties now desire
to amend the Agreement solely to comply with Section 409A of the Internal
Revenue Code of 1986, as amended, with such changes effective January 1,
2009.

 

NOW, THEREFORE, it is agreed that the following amendments are
effective as of January 1, 2009:

 

1.             Section 4(c) of
the Agreement is amended in its entirety to read as follows:

 

“(c)         GOOD  REASON.

 

(i)            The Executive may terminate employment for
Good Reason or without Good Reason. ‘Good Reason’ shall mean, without the
Executive’s consent, (a) a reduction in the Executive’s title or the
assignment to him of any duties inconsistent in any material respect with his
position, authority, duties or responsibilities as contemplated by this
Agreement; (b) any material failure by the Company to comply with any of
the provisions of this Agreement; (c) a material reduction in the Annual
Base Salary (other than in connection with an across the board reduction
similarly affecting all of the Company’s executive officers); (d) a material
reduction in the Executive’s target annual incentive award (other than in
connection with an across the board reduction affecting all of the Company’s
executive officers or a reduction due to a demonstrable change in comparable
market data) or (d) a delivery by the Company of a notice of non-renewal
as contemplated by Section 1.

 

(ii)           A termination of employment by the Executive
for Good Reason shall be effectuated by giving the Company written notice (“Notice
of Termination for 

 

1

 

Good Reason”) of the termination within ninety (90) days of the initial
existence of the condition, setting forth in reasonable detail the specific
conduct of the Company that constitutes Good Reason and the specific provision(s) of
this Agreement on which the Executive relies. 
A termination of employment by the Executive for Good Reason shall be
effective thirty (30) days following the date when the Notice of Termination
for Good Reason is given, unless the event constituting Good Reason is remedied
by the Company.

 

(iii)          A termination of the Executive’s employment
by the Executive without Good Reason shall be effected by giving the Company 30
days written notice of the termination.”

 

2.             A new paragraph (d) is
added at the end of Section 5 of the Agreement to read as follows:

 

“(d)         SECTION 409A PROVISION.  Notwithstanding anything in this Agreement to
the contrary, in all cases, if the Executive is a “specified employee” of the
Company for purposes of Section 409A of the Code at the time of his
separation from service (as determined pursuant to Section 409A of the
Code) with the Company and if an exception under Section 409A of the Code
does not apply, any severance payment(s) that are otherwise scheduled to
be paid immediately after the Executive’s separation from service shall be
delayed in their entirety by 6 months from the date of his separation from
service.  On the first regularly
scheduled payroll date following the 6-month anniversary of the date of the
Executive’s separation from service, the Company shall pay the Executive a lump
sum payment equal to the severance payment(s) that he would otherwise have
received through such payroll date.  The
Company believes such delay in payment shall prevent the application of adverse
taxation to the Executive under Section 409A of the Code.  However, the Company does not guarantee such
tax treatment and the Executive is strongly encouraged to consult his own tax,
financial and legal advisors regarding the effects of this Agreement on his
personal tax situation.

 

*  
*   *

 

2

 

IN WITNESS WHEREOF, the
Executive has hereunto set the Executive’s hand and, pursuant to the
authorization of its Board, the Company has caused this Amendment to be
executed in its name on its behalf, all as of the day and year first above
written.

 

	
   

  	
   

  	
  OFFICEMAX INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  EXECUTIVE

  
					

 

3Exhibit 10.8

 

AMENDMENT TO

OFFICEMAX INCORPORATED

2005 Restricted Stock Unit Award Agreement

 

WHEREAS, OfficeMax
Incorporated (the “Company”) granted Sam Duncan (“Awardee”) a Restricted Stock
Unit Award (the “Award”) on April 18, 2005, pursuant to the 2003 OfficeMax
Incentive and Performance Plan; and

 

WHEREAS,
the Company and Awardee desire to amend the Award in order to comply with
Internal Revenue Code Section 409A.

 

NOW,
THEREFORE, the Award is hereby amended, effective January 1,
2009, to read as follows:

 

1.             Section 5 is amended by adding a
paragraph at the end thereof to read as follows:

 

“Payment
shall be made as soon as practical but in no event later than March 15 of
the year following the year in which the Change in Control or Qualifying
Termination (as applicable) occurred. 
However, if you are a “specified employee,” as determined pursuant to
Code Section 409A and regulations issued thereunder, to the extent amounts
are (i) payable to you upon a Qualifying Termination and (ii) such
amounts are subject to Code Section 409A, payment shall be made on the
first day following the six month anniversary of your termination of
employment.

 

Notwithstanding
the foregoing definition of “Change in Control,” to the extent any amount is
payable because the continuing entity does not continue or replace the award
and such amount constitutes deferred compensation subject to Code Section 409A,
the definition of “Change in Control” provided in Appendix A shall apply.”

 

2.             The Award is amended by adding an
Appendix A at the end thereof to read as follows:

 

“APPENDIX A

 

To the
extent any amount payable under this Award constitutes deferred compensation
subject to Code Section 409A, the following definition of “Change in
Control” shall apply:

 

1.             Change in Control.  A “Change in Control” means, with respect to
OfficeMax or Subsidiary, the occurrence of any one of the following dates,
interpreted consistent with Treasury Regulation Section 1.409A-3(i)(5).

 

a.             Change in
Ownership.  The date any one Person,
or more than one Person Acting as a Group, acquires ownership of stock of
OfficeMax or Subsidiary that, together with stock held by such Person or Group,
constitutes more than 50% of the total fair market value or total voting power
of the stock of OfficeMax or Subsidiary, as the case may be.  Notwithstanding the foregoing, for purposes
of this paragraph, if any one Person, or more than one Person Acting as a
Group, is considered to own more than 50% of the total fair market value or
total voting 

 

 

power
of the stock of OfficeMax or Subsidiary, as the case may be, the acquisition of
additional stock by the same Person or Persons is not considered to cause a
Change in Control.

 

b.             Change in
Effective Control.

 

i.              The date any one
Person, or more than one Person Acting as a Group, acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by
such Person or Persons) ownership of stock of OfficeMax or Subsidiary
possessing 30% or more of the total voting power of the stock of OfficeMax or
Subsidiary, as the case may be. 
Notwithstanding the foregoing, for purposes of this subparagraph, if any
one Person, or more than one Person Acting as a Group, is considered to
effectively control OfficeMax or Subsidiary, as the case may be, the acquisition
of additional control of OfficeMax or Subsidiary, as the case may be, by the
same Person or Persons is not considered to cause a Change in Control; or

 

ii.             The date a majority
of the members of OfficeMax’s Board is replaced during any one year period by
directors whose appointment or election is not endorsed by a majority of the
members of OfficeMax’s Board before the date of the appointment or election.

 

c.             Change in
Ownership of a Substantial Portion of OfficeMax’s or Subsidiary’s Assets.  The date any one Person, or more than one
Person Acting as a Group, acquires (or has acquired during the one year period
ending on the date of the most recent acquisition by such Person or Persons)
assets from OfficeMax or Subsidiary that have a total gross fair market value
equal to or more than 40% of the total gross fair market value of all of the
assets of OfficeMax or Subsidiary, as the case may be, immediately before such
acquisition or acquisitions.  For
purposes of this paragraph (c), “gross fair market value” means the value of
the assets of OfficeMax or Subsidiary, as the case may be, or the value of the
assets being disposed of, determined without regard to any liabilities
associated with such assets. 
Notwithstanding the foregoing, a transfer of assets is not treated as a
Change in Control if the assets are transferred to:

 

i.              An entity that is
controlled by the shareholders of the transferring corporation;

 

ii.             A shareholder of
OfficeMax or Subsidiary, as the case may be, (immediately before the asset
transfer) in exchange for or with respect to its stock;

 

iii.            An entity, 50% or more
of the total value or voting power of which is owned, directly or indirectly,
by OfficeMax or Subsidiary, as the case may be;

 

iv.            A Person, or more than
one Person Acting as a Group, that owns, directly or indirectly, 50% or more of
the total value or voting power of all the outstanding stock of OfficeMax or
Subsidiary, as the case may be; or

 

2

 

v.             An entity, at least
50% of the total value or voting power of which is owned, directly or
indirectly, by a Person described in clause iv.

 

2.             Definitions of “Person”
and “Acting as a Group.”  For
purposes of this Appendix, “Person” shall have the meaning set forth in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”).  For
purposes of this Appendix, Persons shall be considered to be “Acting as a Group”
if they are owners of a corporation that enter into a merger, consolidation,
purchase or acquisition of stock, or similar business transaction with
OfficeMax or Subsidiary.  If a Person,
including an entity, owns stock in both corporations that enter into a merger,
consolidation, purchase or acquisition of stock, or similar transaction, such
shareholder is considered to be Acting as a Group with the other shareholders
only with respect to the ownership in that corporation before the transaction
giving rise to the change and not with respect to the ownership interest in the
other corporation.  Notwithstanding the
foregoing, Persons shall not be considered to be Acting as a Group solely
because they purchase or own stock of the same corporation at the same time, or
as a result of the same public offering.”

 

IN
WITNESS WHEREOF, the Company and Awardee have caused this
Amendment to be executed on this             
day of                   ,
2008.

 

	
  OfficeMax Incorporated  

  	
   

  	
  Awardee  

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Sam Duncan

  
	
  Its:

  	
   

  	
   

  	
   

  

 

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