Document:

Exhibit 10.1

September 19, 2005

 

Mr. Don Civgin

555 Summerset Lane

Northfield, IL  60093

 

Dear Don:

 

We are pleased to offer you the employment opportunity to join
OfficeMax Incorporated (“OfficeMax”) as Executive Vice President, Finance, with
a start date of October 3, 2005. 
Immediately following the filing of our 3rd quarter 10Q ,
which we expect to file the first week of November, you will also assume the
title of Chief Financial Officer.  The
terms of this employment offer are summarized below.

 

•                  Base Salary – Your compensation will
include an initial base salary at the rate of $475,000 gross per annum, payable
bi-weekly.  You will be reviewed on a
Management-by-Objective format and be eligible for base salary increases, predicated
on performance, in the spring of each year. 
Your first performance review will be scheduled for the spring of 2006.

 

•                  Short-Term Incentive – In your role of
Executive Vice President and Chief Financial Officer, you will be eligible for
an annual target incentive bonus of 55% of your base salary.  This incentive is based on the performance of
OfficeMax.  The performance measures in
the 2005 short-term incentive plan are: 
return on sales, operating earnings before interest and taxes (EBIT),
and same store sales growth.  You will be
guaranteed a 2005 bonus (at not less than a 55% target) which will be pro-rated
based on your start date.  More
information regarding this program will be provided to you shortly.

 

•                  Long-Term Incentive – On the first date of
your employment, OfficeMax will award to you 23,000 restricted stock units
pursuant to the OfficeMax Incentive and Performance Plan and 32,000 stock
options pursuant to the OfficeMax Incentive and Performance Plan.  Both of these grants will vest 33 1/3% per
year from the date of grant, and the stock options will be exercisable at a
price equal to the fair market value of OfficeMax common stock on the first
date of your employment and will have a 10 year exercise period.  In 2006 and forward, and as an executive of
the company, you will be eligible to participate in the OfficeMax Incentive and
Performance Plan in a manner commensurate with your position with OfficeMax and
consistent with awards granted to other senior executives of OfficeMax.  The next review of long-term incentives will
be in the Spring of 2006.

 

•                  Sign-On Equity Grant – On the first date of
your employment, OfficeMax will award to you 15,000 restricted stock units
pursuant to the OfficeMax Incentive and Performance Plan which will vest 33
1/3% per year from the date of grant and 18,200 stock options pursuant to the
OfficeMax Incentive and Performance Plan that also vest 33 1/3% per year from
the date of grant, will be exercisable at a price equal to the fair market
value of OfficeMax common stock on the first date of your employment and will
have a 10 year exercise period.

 

 

•                  Severance  –
You will be eligible for 12 months severance under the OfficeMax Executive
Officer Severance Pay Policy, as in effect on the date hereof, if you are
terminated involuntarily, and not for disciplinary reasons. The severance
provisions include base pay and medical benefits continuation through the 12
month severance period, plus ) a pro rata annual bonus based on the number of
days employed during the performance period, in an amount (before proration)
based on actual performance achieved under the applicable plan and payable when
such bonuses are paid to other senior executives.

 

•                  Change in Control – You will receive a
Change in Control agreement as approved by the Executive Compensation Committee
of the Board of Directors.

 

•                  Vacation – OfficeMax has a time off policy
referred to as Your Time Off (YTO).  As
an experienced executive joining OfficeMax, we will establish your eligibility
for YTO at a 5-11 year service level equal to 25 YTO days per year.

 

•                  Benefit Programs – OfficeMax offers a
comprehensive benefit package, the key elements of which are outlined in a
Benefits brochure that will follow.  In
addition, you will be eligible for participation in the Executive Benefit Program,
which includes life insurance, an annual physical and financial counseling. The
Company will pay your professional fees incurred to negotiate and prepare these
arrangements, not to exceed $10,000.

 

•                  Non-compete Provisions – As an executive
with OfficeMax, you will be required to sign the attached non-compete agreement
restricting you from obtaining employment with another business entity or
person whose principal activity is the sale or distribution of office supplies,
office furniture, computer consumables or related office products or services
in North America.  Additionally, this
offer of employment is contingent on your written confirmation that you
currently do not have a non-compete agreement that restricts you from
employment with OfficeMax.

 

•                  Employment at Will – Your employment with
OfficeMax is at-will.  This means that
both you and OfficeMax are free to terminate the employment relationship within
such party’s discretion at any time.  No
supervisor or other OfficeMax representative, except the Board of Directors (or
the Executive Compensation Committee thereof) or the Vice President of Human
Resources, has the authority to alter this relationship and then only if the
agreement is in writing, signed by both parties, and is specific to you.  You should never interpret any OfficeMax
representative or supervisor’s remarks as a guarantee of continued
employment.  Nothing herein or in any of
the attachments to this offer letter alters this at-will relationship.

 

•                  Contingent Offer – An important part of our
hiring process is our completion of a background check, a drug screening,
reference checks, verification of education, and proof of your ability to work
in the U.S.  All of our employment offers
are contingent upon your successful completion of these important steps.

 

1

 

In connection with the criminal background check, it is OfficeMax’s
obligation to inform you of your rights under the Fair Credit Reporting Act and
to obtain authorization from you for the request of information.  Upon your authorization, OfficeMax will
employ the resources of a consumer-reporting agency to provide information
about you.  A copy of your rights under
the Act, as well as a copy of the authorization form, has previously been
provided.

 

Don, we are
pleased to make this offer of employment to you and are excited to know that
you will soon be joining the OfficeMax team. 
Please sign and return one copy of this offer letter to me by September 23,
2005 to signify both your acceptance of this offer and your understanding of
its contents.

 

Don, we look
forward to having you on board.

 

	
  Sincerely,

  
	
   

  
	
  /s/ Sam Duncan

  	
   

  
	
   

  
	
  Sam Duncan

  
	
  Chairman of the Board and Chief Executive Officer

  
	
  OfficeMax Incorporated

  

 

Enclosures

 

	
   

  	
  I understand and accept the terms of the

  offer contained in this letter. I also

  understand that my employment is at will.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Don Civgin

  	
   

  
	
   

  	
  Don CivginExhibit 10.2

 

OFFICEMAX INCORPORATED

Restricted Stock Unit Award Agreement

 

This
Restricted Stock Unit Award (the “Award”), is granted on October 4, 2005
(the “Award Date”), by OfficeMax Incorporated (“OfficeMax”) to Don Civgin (“Awardee”
or “you”) pursuant to the 2003 OfficeMax Incentive and Performance Plan (the “Plan”)
and pursuant to the following terms of this Agreement (the “Agreement”):

 

1.                                       Your Award is
subject to all the terms and conditions of the Plan.  All capitalized terms not defined in this Agreement
shall have the meaning stated in the Plan.

 

2.                                       You are hereby
awarded 38,000 restricted stock units, at no cost to you, subject to the
restrictions set forth in the Plan and this Agreement.

 

3.                                       Your Award is
subject to a three-year restriction period (the “Restriction Period”).   Subject to the provisions of this Agreement
and the Plan, 33.3% of the restricted stock units granted pursuant to this
Award shall vest and immediately be paid on each of the first three
anniversaries of the Award Date; provided, however, that if, in the good faith
determination of OfficeMax (which shall be made immediately prior to the
scheduled vesting date), some or all of the remuneration attributable to the
payment of the Award shall fail to be deductible by OfficeMax for federal
income tax purposes pursuant to Section 162(m) of the Internal Revenue
Code, as amended (the “Code”), the nondeductible amount of such payment shall
be automatically deferred (the “Automatic Deferral”) until the day following
the six month anniversary of your termination of employment; provided further,
however, that if, in the good faith determination of the OfficeMax, such
Automatic Deferral can reasonably be expected to result in the imposition of
tax to you with respect to any portion of the Award prior to payment being made
to you with respect to such portion of the Award, this provision shall be
reformed to provide that all of the Award shall be paid out on the day
following the six month anniversary of your termination of employment.  Upon your voluntary or involuntary
termination of employment for any reason prior to completing three years of
service, all restricted stock units not yet vested at the time of termination
will be immediately forfeited.

 

4.                                       In the event of
a Change in Control prior to the third anniversary of the Award Date, the
continuing entity may either continue this Award or replace this Award with an
award of at least equal value with terms and conditions not less favorable than
the terms and conditions provided in this Agreement, in which case the new
award will vest according to the terms of the applicable award agreement.  If the continuing entity does not so continue
or replace this Award, or if you experience a “qualifying termination”, the
Restriction Period will lapse with respect to all units not vested at the time
of the Change in Control or your termination (as applicable), and all units
will vest immediately.  “Change in
Control” and “qualifying termination” shall be defined in an agreement
providing specific benefits upon a change in control or in the Plan.

 

5.                                       This Award
cannot be sold, assigned, pledged, hypothecated, transferred, or otherwise
encumbered prior to vesting.  Any attempt
to transfer your rights in this Award prior to vesting will result in the immediate
forfeiture of the units.

 

 

6.                                       You
will not receive dividends or dividend units on the awarded units.  With respect to the awarded units, you are
not a shareholder and do not have any voting rights.

 

7.                                       Vested
restricted stock units will be paid to you in whole shares of OfficeMax common
stock.  Partial shares, if any, will be
paid in cash.

 

You must sign this Agreement and return it to OfficeMax’s Compensation
Department on or before November 4, 2005, or the Award will be
forfeited.  Return your executed
Agreement to:  Linda VanDeventer,
OfficeMax Incorporated, 150 Pierce Road, Itasca, IL  60143, or fax your signed form to 630-438-2463.

 

	
  OfficeMax
  Incorporated

  	
  Awardee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Matt Broad

  	
   

  	
  By:

  	
  /s/
  Don Civgin

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