Document:

Exhibit 10.25

 

REVOLVING NOTE

(LIBOR and/or Prime)

 

	
   

  	
  655787/00003

  
	
  $10,000,000.00

  	
  La Palma, California

  
	
   

  	
  April 29, 2005

  

 

On May
1, 2006 (“Termination Date”), SM&A, a
California corporation (“Borrower”),
promises to pay to the order of City National Bank,
a national banking association (“CNB”), at its office in this city, in United
States Dollars and in immediately available funds, the principal sum of Ten Million and no/100 Dollars ($10,000,000.00) (“Revolving
Credit Commitment”) or so much thereof as may be advanced and then outstanding,
plus interest on the unpaid balance, until fully repaid, at a rate computed on
the basis of a 360-day year, actual days elapsed, at the rates, times and in
accordance with the terms set forth below.

 

As
provided herein, the principal of this Note may be borrowed, repaid and
reborrowed from time to time prior to the Termination Date, provided at the
time of any borrowing no Event of Default (as hereinafter defined) exists, and
provided further that the total borrowings outstanding at any one time shall
not exceed the lesser of (i) the Revolving Credit Commitment or (ii) the
Revolving Credit Commitment, less Letters of Credit issued and outstanding
under that certain Agreement for Issuance of Letters of Credit of even date herewith
between Borrower and CNB.  Each borrowing
and repayment shall be noted in the books and records of CNB.  The excess of borrowings over repayments
shall evidence the principal balance due hereon from time to time and at any
time.  Borrowings hereunder shall be
conclusively presumed to have been made to or for the benefit of Borrower when
made as noted in such books and records.

 

For
purposes of this Note, the following definitions shall apply:

 

“Business Day” means a day that CNB’s Head Office is open and
conducts a substantial portion of its business.

 

“Eurocurrency Reserve Requirement” means the aggregate
(without duplication) of the rates (expressed as a decimal) of reserves
(including, without limitation, any basic, marginal, supplemental, or emergency
reserves) that are required to be maintained by banks during the Interest
Period under any regulations of the Board of Governors of the Federal Reserve
System, or any other governmental authority having jurisdiction with respect
thereto, applicable to funding based on so-called “Eurocurrency Liabilities”,
including Regulation D (12 CFR 204).

 

“Interest Period” means the period commencing on the date a
LIBOR Loan is made (including the date a Prime Loan is converted to a LIBOR
Loan, or a LIBOR Loan is renewed as a LIBOR Loan, which, in the latter case,
shall be the last day of the expiring Interest Period) and ending on the first
day of the month occurring prior to or on the date which is one (1), two (2),
three (3), six (6), nine (9), or  twelve
(12) months thereafter, as selected by the Borrower; provided, however, no
Interest Period may extend beyond the Termination Date.

 

“LIBOR Base Rate” means the British Banker’s Association
definition of the London InterBank Offered Rates as made available by Bloomberg
LP, or such other information service available to CNB, for the applicable
monthly period upon which the Interest Period is based for the LIBOR Loan
selected by Borrower and as quoted by CNB on the Business Day Borrower requests
a LIBOR Loan or on the last Business Day of an expiring Interest Period.

 

“LIBOR Interest Rate” means the rate per year (rounded upward
to the next one-sixteenth (1/16th) of one percent (0.0625%), if necessary)
determined by CNB to be the quotient of (a) the LIBOR Base Rate divided by (b)
one minus the Eurocurrency Reserve Requirement for the Interest Period; which
is expressed by the following formula:

 

LIBOR Base Rate

1 - Eurocurrency Reserve Requirement

 

“LIBOR Loan” means any Loan tied to the LIBOR Interest Rate.

 

“Loan(s)” means a borrowing under this Note.

 

“Prime Loan” means any Loan tied to the Prime Rate.  A Loan hereunder shall be a Prime Loan any
time it is not a LIBOR Loan.

 

1

 

“Prime Rate” means the rate most recently announced by CNB at
its principal office in Beverly Hills, California, as its “Prime Rate.”  Any change in the interest rate resulting
from a change in the Prime Rate shall be effective on the day on which each
change in the Prime Rate is announced by CNB.

 

1.                                       Interest
on Loans.  Each Loan shall bear
interest from disbursement until due (whether at stated maturity, by
acceleration or otherwise) at a rate equal to, at Borrower’s option, either (a)
for a LIBOR Loan, the LIBOR Interest Rate plus two and one quarter of one  percent (2.25%) per annum, or (b) for a Prime
Loan, the fluctuating Prime Rate minus one half of one percent (-0.50%) per
annum.  Interest on the Loans shall
accrue daily and be payable (a) monthly, in arrears, on the first day of the next month, commencing on the first such date following
disbursement; and (b) if a LIBOR Loan, upon any prepayment of any LIBOR Loan
(to the extent accrued on the amount prepaid.) 
Anything herein to the contrary notwithstanding, all principal and
interest remaining unpaid on the Termination Date shall be immediately due and
payable.

 

2.                                       Procedure
for LIBOR Loans.  Borrower may
request that a Loan be a LIBOR Loan, if 
herein allowed (including conversion of a Prime Loan to a LIBOR Loan, or
continuation of a LIBOR Loan as a LIBOR Loan upon the expiration of the
Interest Period).  Borrower’s request
shall be irrevocable, shall be made to CNB, orally or in writing or using the
form “Notice of Borrowing/Interest Selection” form attached hereto as Exhibit “A”,
no earlier than two (2) Business Days before and no later than 1:00 p.m.
Pacific Time on the date the LIBOR Loan is to be made, and shall specify the
Interest Period, the amount of the LIBOR Loan, and such other information as
CNB requests.  If Borrower fails to select
a LIBOR Loan in accordance herewith, the Loan shall be a Prime Loan, and any
LIBOR Loan shall be deemed a Prime Loan upon expiration of the Interest Period.

 

3.                                       Availability
of LIBOR Loans.  Notwithstanding
anything herein to the contrary, each LIBOR Loan must be in the minimum amount
of $500,000.00 and increments of $100,000.00. 
Borrower may not have more than five (5) LIBOR Loans outstanding at any
one time under the Revolving Credit Commitment. 
Borrower may have Prime Loans and LIBOR Loans outstanding
simultaneously.

 

4.                                       Prepayment
of Principal.  Borrower may prepay
the principal amount outstanding on a Prime Loan at any time and in any amount
without a prepayment fee.  Borrower may
not make a partial principal prepayment on a LIBOR Loan.  Borrower may prepay the full outstanding
principal balance on a LIBOR Loan prior to the end of the Interest Period,
provided, however, that such prepayment is accompanied by a fee (“LIBOR
Prepayment Fee”) equal to the amount, if any, by which (a)  the additional interest which would have been
earned by CNB had the LIBOR Loan not been prepaid exceeds (b) the interest
which would have been recoverable by CNB by placing the amount of the LIBOR
Loan on deposit in the LIBOR market for a period starting on the date on which
it was prepaid and ending on the last day of the applicable Interest
Period.  CNB’s calculation of the LIBOR
Prepayment Fee shall be conclusive absent manifest error.

 

5.                                       Suspension
of LIBOR Loans.  In the event CNB, on
any Business Day, is unable to determine the LIBOR Base Rate applicable for a
new, continued, or converted LIBOR Loan for any reason, or any law, regulation,
or governmental order, rule or determination, makes it unlawful for CNB to make
a LIBOR Loan, Borrower’s right to select LIBOR Loans shall be suspended until
CNB is again able to determine the LIBOR Base Rate or make LIBOR Loans, as the
case may be.  During such suspension, new
Loans, outstanding Prime Loans and LIBOR Loans whose Interest Periods terminate
may only be Prime Loans.

 

6.                                       Late Charge.  Borrower
shall pay to CNB a late charge of 5% or $10.00, whichever is greater, of any
payment not received by CNB on or before the 10th day after the
payment is due.

 

The
occurrence of any of the following with respect to any Borrower or guarantor of
this Note or any general partner of such Borrower or guarantor shall constitute
an “Event of Default” hereunder:

 

1.                                       Failure
to make any payment of principal or interest when due under this Note;

 

2.                                       Filing
of a petition by or against any of such parties under any provision of the Bankruptcy Code;

 

3.                                       Appointment
of a receiver or an assignee for the benefit of creditors;

 

4.                                       Commencement
of dissolution or liquidation proceedings or the disqualification (under any
applicable law or regulation) of any of such parties which is a corporation,
partnership, joint venture or any other type of entity;

 

5.                                       Death
or incapacity of any of such parties which is an individual;

 

2

 

6.                                       Revocation
of any guaranty of this Note, or any guaranty of this Note becomes
unenforceable as to any future advances under this Note;

 

7.                                       Any
financial statement provided by any of such parties to CNB is false or
materially misleading;

 

8.                                       Any
material default in the payment or performance of any obligation, or any
default under any provision of any contract or instrument pursuant to which any
of such parties has incurred any obligation for borrowed money, any purchase
obligation or any other liability of any kind to any person or entity,
including CNB;

 

9.                                       Any
sale or transfer of all or a substantial part of the assets of any of such
parties other than in the ordinary course of business; or

 

10.                                 Any
violation, breach or default under this Note, any letter agreement, guaranty,
security agreement, deed of trust, subordination agreement or any other
contract or instrument executed in connection with this Note or securing this
Note.

 

Upon
the occurrence of any Event of Default, CNB, at its option, may declare all
sums of principal and interest outstanding hereunder to be immediately due and
payable without presentment, demand, protest or notice of dishonor, all of
which are expressly waived by Borrower, and CNB shall have no obligation to
make any further advances hereunder. 
Borrower agrees to pay all costs and expenses, including reasonable
attorneys’ fees, expended or incurred by CNB (or allocable to CNB’s in-house
counsel) in connection with the enforcement of this Note or the collection of
any sums due hereunder and irrespective of whether suit is filed.

 

Upon
the occurrence of any Event of Default (and without constituting a waiver of
the Event of Default), and until the Event of Default has been cured, the
outstanding principal (and interest, to the extent permitted by law) shall bear
additional interest at a fluctuating rate equal to five percent (5%) per annum
higher than the interest rate as determined above; provided, however, for
purposes hereof, a LIBOR Loan shall be treated as a Prime Loan upon the
termination of the Interest Period.

 

This
Note and all matters related hereto shall be governed by the laws of the State
of California.  If this Note is executed
by more than one Borrower, all obligations are joint and several.

 

 

SM&A,
a California corporation

 

 

	
  By:

  	
  /s/ Steven S.
  Myers

  	
   

  
	
   

  	
  Steven S. Myers,
  COB/President

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Cathy L.
  Wood

  	
   

  
	
   

  	
  Cathy L. Wood,
  CFO/Secretary

  
				

 

 

	
  BANK USE ONLY

  	
   

  
	
   

  	
   

  	
   

  
			

 

3

 

EXHIBIT A

NOTICE OF
BORROWING/INTEREST SELECTION

 

This
Notice of Borrowing/Interest Selection (“Notice”) is executed and delivered by SM&A, a California corporation (“Borrower”),
to City National Bank, a national banking
association (“CNB”), pursuant to that Revolving Note (“Note”) in the principal
sum of $10,000,000.00, dated April 29, 2005, executed by Borrower in favor of
CNB.  Any terms not defined herein shall
have the meanings defined in the Note or the Interest Rate Provision.

 

1.                                      Request
for a Loan. Borrower requests a Loan under the Note as follows:

 

1.1           Interest
Selection- State “LIBOR” or “Prime”:                                     

 

1.2           Principal
Amount of Loan: $                                    
(If LIBOR Loan, minimum of $500,000.00)

 

1.3           LIBOR
Loan- Effective Date of Interest Period:                                                 ,
20      

 

1.4           LIBOR
Loan - Interest Period:             
month(s) (1, 2, 3, 6, 9 or 12 months only)

 

2.                                      Conversion
to LIBOR Loan.  Borrower requests
conversion of the outstanding Prime Loan to a LIBOR Loan.

 

2.1           Effective
Date of Conversion:                                                  ,
20      

 

2.2           Principal
Amount of Conversion: $                                          
[minimum of $500,000.00]

 

2.3           Interest
Period:                 
month(s) [1, 2, 3, 6, 9 or 12 months only]

 

3.   Renewal of
LIBOR Loan.  Borrower requests
renewing an outstanding LIBOR Loan as follows:

 

3.1           Principal Amount of
Renewal of LIBOR Loan: $                                      
[minimum of $500,000.00] (Amount of
LIBOR Loan not renewed as a LIBOR Loan will be a Prime Loan)

 

3.2           Date
of Renewal:                                                    ,
20       [last date of current
Interest Period]

 

3.3           Interest
Period:                  
month(s) [1, 2, 3, 6, 9 or 12 months only]

 

4.   Conversion
to Prime Loan.  LIBOR Loans
shall automatically convert to a Prime Loan at the end of an Interest Period if
CNB fails to timely receive a Notice for an outstanding LIBOR Loan.

 

5.   Warranty.  In connection with the action requested
herein, Borrower hereby represents and warrants to CNB that, as of the date of
such request, no Event of Default has occurred and is continuing.

 

This
Notice is executed on                                               ,
20            .

 

SM&A, a
California corporation

 

 

	
  By:

  	
   

  	
   

  
	
  Steven
  S. Myers, COB/President

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Cathy
  L. Wood, CFO/SecretaryExhibit 10.1

 

Lorene Flewellen

Sr. Vice President, Human Resources

Loreneflewellen@officemax.com

 

June 28, 2005

 

Mr. Christopher C. Milliken

511 Oakwood Ave Apt 2C

Lake Forest, IL 60045-1900

 

Dear Chris:

 

This letter will confirm our agreement regarding the benefits you will
receive as a result of your separation from OfficeMax and outlines how certain
compensation and benefits items will be handled.

 

1.                                            Separation
from Employment:  We agreed that your
last day worked was February 11, 2005. 
Your status as an employee of the company ended on that date.  Because you had reached age 55 with more than
10 years of service with the company as of your termination, your separation is
considered a “retirement” for purposes of certain employee benefits, as
explained in the following paragraphs.

 

2.                                            Severance.  We agree to pay you severance pay of
$4,417,000, less all amounts paid to you between February 11 (the “Separation
Date”) and the effective date of this Agreement as determined in accordance
with Section 23 of this Agreement (the “Effective Date”).  The severance payment will be paid in a lump
sum within 5 business days from the effective date of this Agreement.  As you know, on the good faith belief that we
would reach a resolution, we have in good faith continued to pay you on regular
pay periods, and will continue to do so until the earlier of (i) the
Effective Date or (ii) 21 days following the date of this Agreement.  If you do not sign and return this letter
within 45 days from the date of this letter or if you revoke such acceptance,
we will cease payments immediately and seek reimbursement for amounts paid
after the Separation Date.

 

3.                                            Annual
Incentive:  As a participant in the
2003 OfficeMax Incentive and Performance Plan, you received an annual incentive
award grant for 2005.  Because your
separation is  considered a retirement,
you will be eligible for a pro rata payment of the 2005 annual incentive award,
if and when any payment amount is declared by the company’s board of directors
in 2006. The proration shall be calculated by multiplying 42/365 times what you
would have received had you remained employed for all of 2005;  other than the proration, you will not
be treated differently than other executives participating in the 2003
OfficeMax Incentive and Performance Plan.

 

 

4.                                            Key
Executive Stock Option Plan:  Our
records show that you have the following unexercised options as of January 31,
2005:

 

	
  GRANT DATE

  	
   

  	
  GRANT PRICE

  	
   

  	
  # UNEXERCISED

  
	
  7/26/2001

  	
   

  	
  $

  	
  35.60

  	
   

  	
  61900

  
						

 

Each of these options will remain subject to
the terms and conditions set forth in the KESOP and the individual grants.  Because you meet the age and service
requirements for your separation to be considered a retirement, these options
will expire, according to their terms, upon the earlier of 5 years from the
Separation Date, 10 years after the grant date, or the date upon which you
provide services to any competitor of OfficeMax.  You can continue to use the exercise
procedure through Charles Schwab & Co. 
You are of course always subject to rules prohibiting trading when
in possession of material undisclosed information about the company.

 

5.                                            Performance
Accelerated Restricted Stock Units: 
In 2004, you received a grant of 35,198 performance accelerated
restricted stock units under the 2003 Boise Incentive and Performance
Plan.  The number of units will be
adjusted based on company performance, according to the terms of the
grant.  Subject to the terms of the
award, because your separation is considered a retirement due to your age and
years of service, you will receive 6 / 24ths of the percentage of the unvested
units which would have otherwise vested August 1, 2006, (based on the
number of full months worked since the Award Date of July 31, 2004, over
24 months), plus 6 / 36ths of the percentage of unvested units which
would have otherwise vested August 1, 2007 (based on the number of full
months worked since the Award Date over 36 months).

 

The restrictions on any units you receive under this section 5
will lapse and the units will vest as soon as practical after the Performance
Period has ended and the performance multiplier has been determined and applied
to your Award as described in the award agreement.  Any unvested units remaining after payout will
be forfeited.

 

6.                                            2005
Long Term Incentive:  You will not be
eligible for any long term incentive awards under the 2003 OfficeMax Incentive
and Performance Plan or any other plan for 2005 or after.

 

7.                                            Deferred
Compensation:  All contributions to
deferred compensation plans ended as of the Separation Date.  Your balance under the 2001
Key Executive Deferred Compensation Plan (2001 Plan) as of June 1, 2005,
is $2,158,673.58 plus 20,309.  shares held in
the stock unit account.  This account
will continue to accrue interest until distribution, pursuant to the terms of
the plan.  Your balance
under the 2005 Deferred Compensation Plan (2005 Plan) as of June 1, 2005,
is $40,506.43.  Your balance under
the Executive Savings Deferral Plan (ESDP) as of June 1, 2005, is
$7,818.39.

 

In accordance with the terms of the plan(s), distribution of your
deferred compensation account balance will be made according to your
distribution election and the terms of the plan.  All payments are subject to state and federal
income tax withholding.

 

8.                                            Pension
Benefits:  You are vested in the
company’s Pension Plan for Salaried Employees and in the nonqualified
Supplemental Pension Plan (SPP).  You are
also eligible to receive

 

 

benefits under
the nonqualified Supplemental Early Retirement Plan for Executive Officers
(SERP).

 

Geoff Bridges in the Boise Milliman office sent you on February 24,
2005, pension benefit calculation information. 
The Seattle Milliman Pension Service Center sent you on March 8,
2005, a retirement packet.  If you have
additional questions, please contact Milliman toll-free at 800 558
6194.  Your pension may begin on the
first of the month following your retirement date, subject to receipt of your
election form, completion of any other requisite paperwork, and the terms of
the plan.  In order for your pension to
begin on the first of the month, you must contact Milliman no later than the 15th
of the preceding month (for example, in order for your pension to begin on July 1st,
2005, you must contact Milliman no later than June 15th, 2005).

 

You are responsible for the FICA and Medicare taxes payable on the
present value of your benefit under the SPP. 
These taxes will be deducted from your severance pay once we have been
informed of your election with respect to converting your Supplemental benefit
into a lump sum or certain annuity.

 

Under IRS Code section 409A, adopted in 2004, distributions to a “key
employee” under nonqualified plans cannot occur within 6 months of the employee’s
termination date.  You meet the
definition of a “key employee.”  Therefore,
any distributions to you under the SPP or the SERP that would normally commence
within 6 months of your termination will be delayed for that 6-month period.

 

9.                                            OfficeMax
Savings Plan:  All contributions to
this plan ended as of the 
Separation Date.  Contributions
will be taken from your final paycheck according to your election.  You may choose to either leave your funds in
the plan or request a distribution of your account.  If you choose to request a distribution of
your account, you may elect a direct rollover of taxable funds to an individual
retirement account or another qualified plan, a distribution paid directly to
you, or installment distributions taken quarterly, semiannually or
annually.  The distribution option you
choose can significantly affect the taxes (and any penalties) which may
apply.  Any actions you choose to take
may be accomplished by calling an OfficeMax savings plan customer service
representative toll-free at 1-877-OMX-401K (1 877-669-4015).

 

10.                                      Financial
Counseling:  You may utilize the
financial counseling benefits provided to executive officers through May 1,
2006.  Your current account balance is
$10,000.  Please verify the services
performed by submitting signed invoices to Rosie Wenger, Benefits Analyst, in
Itasca.

 

11.                                      Club
Memberships:  Your club membership
payments ceased to be paid as of the Separation Date.

 

12.                                      Your Time Off:  As of February 11, 2005, you had 284.87
hours of accrued and negotiated YTO, which will be paid to you once you have
signed and returned this letter.

 

13.                                      Healthcare:  On the Separation Date, coverage provided
under the Supplemental Healthcare Plan for Executive Officers ended.  Your group healthcare benefits also ended on
the Separation Date, provided, however, that if you agree to the terms of this
letter, you and your eligible dependents will receive healthcare coverage
through February 10, 2006.  If you
agree to the terms of this letter, coverage for you and your eligible
dependents will be reinstated in

 

 

the OfficeMax
Choice Plus Medical Plan, the Delta Dental program and the VSP vision
program.  Since an agreement had not been
reached at the time of your separation, you enrolled in the Retiree Medical
Plan and paid for the partial month of February and the months of March and
April in the amount of $1,113.25. 
The Company will ensure that there were no periods of non-coverage for
you or your dependent from the Separation Date through the effective date of
this agreement. The required contributions for healthcare coverage beginning
with the Separation Date through the end of 2005 are $3,156.96.  Once we have received your agreement to the
terms of this letter, a deduction from your severance pay in the amount of
$2,043.71 will made for these required contributions ($3,156.96 minus $1,113.25
equals $2,043.71).  You will be notified
of the 2006 contribution amounts and required payment for your 2006 coverage in
December 2005.  If you do not sign
and return this letter within the applicable time frame or you revoke such
acceptance, your healthcare coverage will continue under the Retiree Medical
Plan provided you send payment for any outstanding amounts.

 

14.                                      Retiree
Medical Coverage:  OfficeMax’s  Retiree Medical Program offers
healthcare coverage for you and your eligible dependents during retirement.  Based on your age and service, you became
eligible for and elected to participate in this program upon your
separation.  Assuming you return this
letter within the applicable time frame, medical coverage under this program
will start on February 11, 2006.

 

A monthly contribution is required for your coverage and your dependent
coverage.  You will be informed of the
cost of Retiree Medical Program at that time.

 

15.                                      Flexible
Spending Accounts:  If you were
enrolled in a Flexible Spending Account (Healthcare or Dependent Day Care),
your participation ended on the Separation Date.

 

16.                                      Supplemental
Life Insurance:  You have a life
insurance policy under this plan.  The
company will continue paying the premiums on your supplemental life policy
through December 31, 2013, or until your death, if earlier.  The company-paid amounts will continue to be
imputed as income to you.  After the
company stops paying the premiums, you will have three options:  continue to pay premiums to increase the
policy benefit level, cease premium payments and maintain the insurance at a
face value of one times your final base pay, or terminate the policy and retain
the cash value.

 

17.                                      General Life
Insurance:  Contributory and non
contributory life insurance coverage ended on your separation date.  You were previously notified of the time
period during which you could have elected to convert group life coverage
(company paid and optional life for yourself and dependent life for spouse) to personal
life insurance policies.

 

18.                                      Disability and
AD&D Coverage:  If you were
enrolled in the optional Short Term Disability insurance, your coverage ended
on the Separation Date.  Accidental Death
and Dismemberment coverage and any Long Term Disability coverage ended on the
Separation Date.

 

19.                                      Executive
Outplacement Assistance:  We will
provide you with outplacement assistance to assist you in locating another
career position.  The company retained
the firm of Drake, Beam and Morin to assist you for up to 12 months, beginning
with the execution of this Agreement.

 

20.                                      Social
Security:  Social Security benefits
do not start automatically.  Once you are
eligible, you must file an application to begin receiving Social Security
benefits.  To get started,

 

 

contact your
local Social Security office or, for more information on benefits and how to
apply, you can visit the Social Security website at www.socialsecurity.gov, or
call Social Security toll-free at 800 772 1213.

 

21.                                      Medicare:  Medicare becomes available at the beginning
of the month in which you turn 65 and may also be available if you are
disabled.  You automatically apply for
Medicare when you apply for Social Security benefits; however, you will need to
decide whether you wish to enroll in “Part B” or “Medicare + Choice.”  For more information on Medicare and your
options, you can visit the Medicare website at www.medicare.gov or call
toll-free 800 MEDICARE (800 633 4227).

 

22.                                      Release and
Waiver:  In consideration for
payments and coverage detailed in Sections 2 through 5, 16 and 19 above, and
for other good and valuable consideration, the receipt of which you
acknowledge, you hereby fully, absolutely, and unconditionally remise, release,
acquit, and forever discharge and covenant not to sue the company, its parent,
and any and all of their predecessors, successors and assigns, affiliates, or
subsidiaries, as well as all of their respective directors, officers, and
employees, past, present or future, from any and all claims, losses,
liabilities, demands, actions, causes of action, costs, fees (including
attorneys’ fees, expenses, and costs), back pay, front pay, separation pay,
right of reinstatement or reemployment, or any other obligation or liability,
either known or unknown, arising out your status as an employee of OfficeMax or
the termination thereof. This waiver includes but is not limited to any
claims you may have under the Fair Labor Standards Act, Age
Discrimination in Employment Act (“ADEA”), the Family Medical Leave
Act, the Americans with Disabilities Act, Employee Retirement Income Security
Act, Title VII of the Civil Rights Act of 1991, any federal, state or local
discrimination laws, claims relating to harassment, breach of contract or
wrongful discharge, or breach of express or implied covenants, or any other
federal, state or municipal statute or regulation concerning your relationship
with and separation from OfficeMax prior to and including the date of this
agreement.  Notwithstanding anything
to the contrary in this Section 22, you shall not be obligated to release
and shall not be deemed to have released the company for claims relating solely
to the performance of its obligations pursuant to this agreement.

 

Nothing set forth in this paragraph or in this Agreement shall preclude
you from raising any counterclaims or cross claims not released in this Section 22,
in any action brought against you by the Company, its parent, and any and all
of their predecessors, successors and assigns, affiliates, shareholders or
subsidiaries, as well as all of their respective directors, officers, and
employees, past present, or future.

 

23.                                      Advice to Seek
Counsel, Revocation of the Agreement, and Effective Date:  Based on federal law, we are required to
advise you to seek legal counsel.  You
affirm that you have been advised to seek counsel before signing this agreement
and have been given up to 21 days to seek counsel and consider this
agreement.  You understand that you have
7 days after signing this agreement to revoke your acceptance.  Revocation must be in writing, sent certified
mail, return receipt requested to the following address:  OfficeMax, Attention:  General Counsel, 150 Pierce Rd., Itasca,
IL  60143 and received within that 7-day
period.  The effective date of this
agreement shall be the day on which the 7-day period expires provided that you
have not effectively revoked your acceptance. 
If you choose to revoke this agreement, the company will not be
obligated to make payment of any benefits specified herein, except as may be
specifically required under the terms of the appropriate plan documents or
other governing documents.  If you need a
copy of any plan document (or summary) for the plans addressed in this letter,
please let me know.  The company shall
not be obligated to pay any of your

 

 

legal fees.

 

24.                                      Sole Agreement:  You affirm that the only consideration for
your entry into this agreement is the terms stated above and no other promise
or agreement of any kind has been made to or with you by any persons or entity
to cause you to sign this agreement.

 

25.                                      Confidentiality,
Nondisclosure, and Nondisparagement: 
The Company is a leader in a highly competitive market.  During the course of your employment, you had
access to information and knowledge about the Company, including but not
limited to marketing plans, sales and/or cost information, salaries,
operational systems, financial data and customer names, buying histories and
other related or like information, that the Company considers confidential and
which, if disclosed to a competitor of the Company, could be harmful to the
Company’s business and competitive position (all of which is referred to in
this agreement as “Competitive Information”). 
Other than in connection with pending litigation or as required by law
or by order of a court of competent jurisdiction, you agree not to disclose,
and confirm that you have not disclosed, Competitive Information to any person
who has not been authorized by the Company to receive such information.  If the Company utilizes the services of
in-house counsel or outside attorneys for the purposes of enforcing any of the
provisions of this paragraph, the Company shall be entitled to recover its
attorneys’ fees, costs, and expenses of such enforcement efforts, in addition
to all damages and other remedies recoverable by the Company.

 

You further agree not to communicate, discuss, or otherwise make any
reference, express or implied, either orally or in writing, to any of the
specific terms, covenants, or conditions of this agreement; provided that you
shall be permitted to disclose this agreement to your spouse, attorney, tax
preparer, and/or accountant, whom you will instruct to preserve
confidentiality, and the Company shall be permitted to disclose this agreement
as required or advisable under law.

 

You also agree not to make any oral or written communication to any
person or entity which disparages, or has the effect of damaging the reputation
of, the Company.  Company,
as well as all of its respective directors and officers acting in their
official corporate capacity, agree not to make any oral or written
communication to any person or entity which disparages, or has the effect of
damaging your reputation.

 

Nothing in this Section 25 shall in any way be understood or
interpreted to preclude or limit you  (i) from
pursuing any legal rights which you have not released in Section 22 of
this agreement; or preclude you or the Company: (ii) from communicating
with governmental agencies pursuant to legislation, regulations, or agency
action permitting or requiring such communications; or (iii) from
complying with any valid and enforceable subpoena or other legal process, or
from testifying in deposition or at trial in any proceeding.  You agree that in the event you receive a
subpoena or other legal process requesting that you provide or disclose any
information of the Company which you learned during the course of your
employment, you will promptly notify the Company in writing of the request,
provide the Company with a copy of the subpoena or other legal process, take
all steps necessary to permit the assertion of any applicable rights or
privileges with regard to the information requested, and will not waive any
privilege or objection to the production or disclosure of such information
without the consent of the Company.

 

26.                                      Noncompete
Agreement:  Please review the
continuing obligations that you have to the company under the Boise Cascade
Office Products Corporation Confidential Information and

 

 

Noncompetition Agreement which you executed
on April 10, 1995. Please note that you have
continuing obligations for a minimum period of 12 months from February 11,
2005.  Further, several of the executive
compensation plans discussed above contain provisions which could impact your
benefits if you accept employment with a competitor of OfficeMax.

 

27.                                      Return of
Company Property:  To the extent you
have not already done so, you agree to arrange to have all files, records,
documents, drawings, specifications, computers and other equipment, software,
data relating to the business or personnel of OfficeMax, keys, credit and
security cards, and other such property returned to the company immediately.

 

28.                                      Further
Communications:  Further
correspondence, such as W 2s, will be mailed to the most current address we
have on file.  Let OfficeMax know of any
address changes by contacting HR Services at 1-888-466-2947 (888-4-OMX-HR).

 

29.                                      Choice of Law.  You and the company agree that all matters
relative to the construction and interpretation of this Agreement shall be
construed and interpreted in accordance with the laws of the State of Illinois.

 

 

If the foregoing accurately reflects your understanding of the
agreement between you and the company regarding your separation and the various
compensation and benefit programs in which you participate, please indicate
your acceptance by signing this letter and returning it to me.  A copy is enclosed for your file.

 

	
  Very truly yours,

  
	
   

  
	
   

  
	
  /s/ Lorene Flewellen

  	
   

  
	
   

  
	
   

  
	
  Lorene Flewellen

  
	
  SVP Human Resources

  
	
   

  
	
  Enclosures

  
	
   

  
	
  LF/db

  
	
   

  
	
   

  
	
  ACCEPTED AND AGREED THIS 6TH DAY OF JULY, 2005

  
	
   

  
	
   

  
	
  /s/ Christopher C. Milliken

  	
   

  
	
  Christopher C. Milliken

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