Document:

Exhibit 10.1

EXECUTION COPY

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

THIS
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (this “Second Amendment”) is made as
of the 11th day of August, 2009, between Boise Cascade, L.L.C., a Delaware
limited liability company (the “Company”), and Duane C. McDougall (“Executive”)
with the intention that it be effective on August 16, 2009 (the “Second
Amendment Effective Date”).

 

WHEREAS,
Company and Executive are parties to an Employment Agreement dated November 20,
2008 (as the same has been and may be amended from time to time, the “Employment
Agreement”); and

 

WHEREAS,
Company and Executive have agreed to make certain changes to the Employment
Agreement.

 

NOW
THEREFORE, the parties do hereby agree as follows:

 

1.  Definitions.  All terms specifically defined in the
Employment Agreement shall have the same meaning when used herein.

 

2.  Position and Duties.  Section 2 of the Employment Agreement is
amended and restated in its entirety to read as follows:

 

2.  Position and Duties.  During the Employment Period, Executive shall
serve as Chairman of the Board of Directors of Holdings and shall have the
normal duties, responsibilities, functions and authority of such position,
subject always to the power and authority of the Board of Directors of Holdings
as determined by its Operating Agreement, as from time to time in effect, and
applicable law.

 

3.  Compensation—Salary and Incentive Plans.  Section 3(a) of the Employment
Agreement is amended and restated in its entirety to read as follows:

 

(a) 
From and after August 16, 2009 and until termination of the Employment
Period, Executive’s base salary shall be $180,000 per annum (as adjusted from
time to time in accordance with the following sentence, the “Base Salary”),
which Base Salary shall be payable by the Company in regular installments in
accordance with the Company’s general payroll practices (in effect from time to
time).  Executive and the Company shall
review the Base Salary each year during the Employment Period (beginning January 1,
2010), and Executive may receive increases in his Base Salary from time to
time, based upon his performance, subject to approval of the Compensation
Committee of the Holdings Board of Directors (the “Compensation Committee”).  Executive shall not participate in any short
term or long term incentive compensation plan or 

 

program
made available to any of the Company’s other executives except as provided for
in clause 3(c) below .  In addition,
Executive shall not receive fees for participation in meetings of the Holdings
Board of Directors or any committees thereof.

 

4.  Compensation—Benefits.  Section 3(b) of the Employment
Agreement is amended and restated in its entirety to read as follows:

 

(b) 
During the Employment Period, Executive shall be entitled to participate in any
of the Company’s health and welfare and retirement plans that are generally
available to the Company’s salaried employees so long as the structure of his
employment arrangement permits him to meet the qualifications for such participation.  Notwithstanding the foregoing, neither
Executive nor his dependents shall participate in the Consumerwise Medical
Benefits Program under the Company’s Comprehensive Welfare Benefit Plan or any
successor plan thereto and the Company-provided life insurance available to
Executive shall be limited in accordance with Section 3 of the First
Amendment to the Employment Agreement between Company and Executive dated February 20,
2009.

 

5.  Compensation—Management Equity.  Section 3(c) of the Employment
Agreement is amended and restated in its entirety to read as follows:

 

(c) 
Executive shall continue to participate in the Management Equity Program of
Company’s parent company, Forest Products Holdings, L.L.C. (“FPH”), in
accordance with the Directors Equity Agreement dated April 3, 2006, as
amended from time to time, between Executive and FPH and the Management Equity
Agreement between Executive and FPH dated November 20, 2008, as amended
from time to time (including the amendment effected concurrently herewith by an
agreement between Executive and FPH of even date herewith titled Amendment  No. 1 to Management Equity Agreement).

 

6.  Compensation—Boise Lodging and Travel.  Section 3(e) of the Employment
Agreement is deleted in its entirety; provided that the tax reimbursement and
gross up provisions of Section 3(e) of the Employment Agreement shall
remain in effect solely in respect of taxes incurred for the Executive’s
current tax year for benefits provided to Executive under Section 3(e) prior
to the Second Amendment Effective Date. 
Such provisions shall survive any termination of the Employment
Agreement until they are fully satisfied. 
Notwithstanding the foregoing, the Company shall reimburse the Executive’s
reasonable costs and expenses of travel on Company business in accordance with
the Company’s policies respecting reimbursement of salaried employee business
travel expenses as from time to time in effect.

 

7.  Term. 
Section 5 of the Employment Agreement is revised in its entirety to
read as follows:

 

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5.  Term. 
From and after August 16, 2009, the Company’s employment of
Executive and his tenure as the Chairman of the Board of Directors of Holdings
and as a member of the Board of Directors of Holdings shall be governed by
principles of employment at will which shall permit either party to terminate
Executive’s employment by the Company, membership on the Holdings Board of
Directors, and position as the Chairman of the Holdings Board of Directors with
or without cause on 30 days’ written notice. 
Termination by the Company shall be effected only by duly taken action
of the Holdings Board of Directors (or Holdings’ voting equity holders in
respect of termination of Executive’s membership in the Holdings Board of
Directors) which is communicated in writing to Executive.  Executive shall likewise give 30 days’
written notice to the Company, Holdings and Madison Dearborn Partners, L.L.C.
of his resignation from the employment relationship.

 

8.  Intellectual Property, Inventions and
Patents.  Section 7 of the
Employment Agreement is hereby deleted in its entirety.  Such change shall be effective from and after
August 16, 2009.  No amendment
effected by Section 8 of this Second Amendment shall limit or waive any
rights or remedies for breach of Section 7 of the Employment Agreement
prior to the Second Amendment Effective Date or any common law or other
contractual duties that Executive may owe to Holdings or any of its
subsidiaries from time to time.

 

9.
 Non-Compete, Non-Solicitation.  Section 8(a) of the Employment
Agreement is hereby amended by deleting from the first sentence thereof the
following language “during the Employment Period and for two years thereafter
(the “Noncompete Period”)” and replacing the same with “during the
two-year period beginning on August 16, 2009 and ending on the later of
the termination of the Employment Period and August 16, 2011 (the “Noncompete
Period”)”.  No amendment effected by Section 9
of this Second Amendment shall limit or waive any rights or remedies for breach
of Section 8 of the Employment Agreement prior to the Second Amendment
Effective Date or any common law or other contractual duties that Executive may
owe to Holdings or any of its subsidiaries from time to time.

 

10.  Survival.  Section 10 of the Employment Agreement
is modified by inserting after the words “5 through 24 inclusive,” the words, “as
amended from time to time”.

 

11.  Additional Provisions.  This Second Amendment shall be made part of,
and construed in accordance with, the Employment Agreement.

 

-3-

 

IN
WITNESS WHEREOF, the parties have executed this Second Amendment to Employment
Agreement as of the date first set forth above.

 

 

	
  BOISE CASCADE, L.L.C.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ John T. Sahlberg

  	
   

  
	
  Title:

  	
  Vice
  President, Human Resources and

  	
   

  
	
   

  	
  Communications

  	
   

  

 

 

	
  /s/
  Duane C. McDougall

  	
   

  
	
  Duane
  C. McDougall

  	
   

  

 

-4-Exhibit 10.2

EXECUTION
COPY

 

AMENDMENT
NO. 1 TO MANAGEMENT EQUITY AGREEMENT

 

THIS
AMENDMENT NO. 1 TO MANAGEMENT EQUITY AGREEMENT (this “Agreement”) is
made and entered into as of AUGUST 11, 2009, by and among Forest Products
Holdings, L.L.C., a Delaware limited liability company (the “Company”)
and Duane C. McDougall (the “Management Investor”) with the intention that it
be effective as of August 16, 2009 (the “Effective Date”).

 

Pursuant
to that certain Management Equity Agreement, dated as of November 20,
2008, by and between the Company and the Management Investor the “Original
Agreement”), the Management Investor received on February 20, 2009 a grant
of 8,972,980 Series C Common Units of the Company.  Capitalized terms used, but not otherwise
defined, herein shall have the meanings given to such terms in the Original
Agreement.

 

The
Company and the Management Investor are executing and delivering this Agreement
in order to provide for certain amendments to the Original Agreement, as set
forth herein.

 

NOW,
THEREFORE, the parties agree as follows:

 

1.  Units
Granted.  The parties hereby agree
that, by his execution and delivery hereof, the Management Investor is
forfeiting a number of Series C Common Units granted pursuant to the
Original Agreement equal to  2,900,854
units (the “Forfeited Units”), all of which were unvested as of the
Effective Date. The Forfeited Units  are
forfeited by the Management Investor without any consideration other than the
provisions of this Agreement and the agreements reached in connection with that
certain Second Amendment to Employment Agreement, dated as of the date hereof,
by and between Boise Cascade Holdings, L.L.C. and the Executive and Executive
acknowledges and agrees that, from and after the Effective Date, Executive has
no further right, title and interest in or to the Forfeited Units (including
any increased appreciation in value thereof). 
As a result, from and after the Effective Date, the total number of Series C
Common Units held by the Management Investor pursuant to the Original Agreement
is 6,072,126; provided that, for greater certainty, the foregoing total is
exclusive of an additional 400,000 Series C Common Units granted to the
Management Investor pursuant to a Director Equity Agreement among the parties
dated April 3, 2006, as amended (the “Director Equity Agreement”), it
being the intention of the parties that this Agreement shall have no effect on
the terms of the Director Equity Agreement and the grant of Series C
Common Units made thereunder.  Executive represents
and warrants, that immediately prior to the forfeiture of the Forfeited Units
accomplished hereby, Executive owned all right, title and interest in and to
the Forfeited Units, free and clear of all liens and encumbrances, other than
those liens and encumbrances created by the Operating Agreement and the
Original Agreement.

 

 

2.  Vesting.

 

a.  The
parties acknowledge and agree that the number of Series C Common Units
which have vested pursuant to the terms of the Original Agreement to the
Effective Date is  3,171,272 Units.

 

b.  The remaining unvested Series C common
Units held by the Management Investor pursuant to the Original Agreement, as
revised by Section 1 hereof, which totals 2,900,854 units, shall vest in
accordance with the vesting schedule contained in Section 2(c) of the
Original Agreement between the date hereof and December 1, 2010.  For purposes of the preceding sentence the
Management Investor shall be deemed to be a continuing employee of the Company
or its Subsidiaries so long as he continues to act as the Chairman of the Board
of Directors of its subsidiary, Boise Cascade Holdings, L.L.C.

 

3.  Continued Existence of Operating Agreement
and Original Agreement.  Each of the
Company and the Management Investor acknowledge and agree that, subject solely
to the express amendments to the Original Agreement contained herein, the
Operating Agreement and the Original Agreement remain in full force and effect
and that the Management Investor remains bound by the terms of such agreements
with respect to the Series C Common Units granted to him pursuant to the
Original Agreement.

 

4.  Complete
Agreement.  This Agreement, together
with the Original Agreement and the Operating Agreement, constitute the entire
agreement between the parties hereto regarding the subject matter of this
Agreement and supersede and preempt any prior understandings, agreements or
representations, written or oral, which may have related to the subject matter
hereof.  When used herein, “including”
means “including, without limitation” regardless of whether such or similar
terminology is actually used.

 

5.  Counterparts.  This Agreement may be executed in separate
counterparts (including by means of facsimile transmission or other electronic
transmission), each of which shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.

 

6.  Further Assurances.  When and as requested by the Company, the
Management Investor shall, without further consideration, execute and deliver
all such instruments of conveyance and transfer and shall take such further
actions as the Company may reasonably deem necessary or desirable in order to
effect the partial forfeiture of his Series C Common Units provided for
herein and to otherwise carry out fully the provisions and purposes of this
Agreement.

 

7.  Successors and Assigns.  This Agreement is intended to bind, inure to
the benefit of and be enforceable by the Company and the Management Investor
and their respective successors and permitted assigns.

 

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8.   Governing
Law.  All issues and questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by, and construed in accordance with the law of the
State of Idaho, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of Idaho or any other jurisdiction) that would
cause the applications of the law of any jurisdiction other than the State of
Idaho.

 

9.   Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in a manner to be effective and valid under
applicable law, but if any provision shall be held to be prohibited or invalid
under applicable law, such provision shall be ineffective only to the extent of
such prohibition or invalidity, without invalidating or affecting the remainder
of such provision or any of the remaining provisions of this Agreement.

 

10.  Notices.  Any notice provided for in this Agreement must
be in writing and given in accordance with the notice provisions of the
Original Agreement.

 

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IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.

 

 

COMPANY

 

FOREST
PRODUCTS HOLDINGS, L.L.C.

 

 

By:  /s/
David G. Gadda

Its:
Vice President and Secretary

 

 

MANAGEMENT
INVESTOR:

 

 

/s/ Duane C. McDougall

Name: Duane C. McDougall

 

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