Document:

Exhibit 10.1

 

OFFICEMAX INCORPORATED

 

EXECUTIVE LIFE INSURANCE PROGRAM

 

Effective February 10, 2005

 

 

OFFICEMAX INCORPORATED

EXECUTIVE LIFE INSURANCE PROGRAM

 

1.             Purpose
of the Plan.  The purpose of the
Executive Life Insurance Program (the “Plan”) is to provide officers who
participate in the Plan with an insured death benefit during employment.  Officers who become Participants may purchase
a life insurance policy from a designated insurance carrier.  Policy premiums will be paid by OfficeMax
Incorporated (“OfficeMax”), as described in this Plan.

 

2.             Definitions.

 

2.1           “Base
Salary” means the Participant’s annual base salary in effect on the April 15th
preceding the Participant’s death if the Participant dies while an active
employee of OfficeMax.

 

2.2           “Code”
means the Internal Revenue Code of 1986, as amended.

 

2.3           “Committee”
means the Executive Compensation Committee of OfficeMax’s Board of Directors.

 

2.4           “Insurance
Carrier” means the life insurance company or companies selected to issue
policies under the Plan.

 

2.5           “Insurance
Policy” means any individually purchased Insurance Policy, together with
additional policy benefits and riders, if any, issued by the Insurance Carrier
pursuant to the Plan.  Unless required
otherwise by the Plan, any Insurance Policy terms used in this Plan shall have
the same meaning as in the Insurance Policy. 
For example, the Insurance Policy terms “policy year,” “dividend,” and “policy
loan” shall have the same meaning for purposes of this Plan as for purposes of
the Insurance Policy.

 

2.6           “Participant”
means an elected officer who is designated by the Committee as eligible to
participate in the Plan and who chooses to participate.  For purposes of this Plan, “elected officer”
means any officer holding the title of Senior Vice President of OfficeMax
Incorporated or higher.

 

2.7           “Plan
Administrator” means the Committee. 
The Committee may delegate day-to-day administrative functions to
OfficeMax’s management.

 

3.             Administration
and Interpretation of the Plan.

 

3.1           Plan
Administrator. The Committee shall have final discretion, responsibility,
and authority to administer and interpret the Plan.  This includes the discretion and authority to
determine all questions of fact, eligibility, or benefits relating to the Plan,
except as delegated to the Insurance Carrier pursuant to Sections 3.2 and 

 

 

8.3.  The Committee may also adopt any rules
it deems necessary to administer the Plan. 
The Committee’s responsibilities for administration and interpretation
of the Plan shall be exercised by OfficeMax associates who have been assigned
those responsibilities by OfficeMax’s management.  Any OfficeMax associate exercising
responsibilities relating to the Plan in accordance with this section shall
be deemed to have been delegated the discretionary authority vested in the
Committee with respect to those responsibilities, unless limited in writing by
the Committee.  Any Participant may
appeal any action or decision of these employees to OfficeMax’s General Counsel
and may request that the Committee reconsider decisions of the General
Counsel.  Claims for benefits under the
Plan and appeals of claim denials shall be in accordance with Section 8.  Any interpretation by the Committee shall be
final and binding on the Participants.

 

3.2           Insurance
Carrier.  The Insurance Carrier shall
be responsible for all matters relating to any Insurance Policy, including
interpretation of the policy terms.  For
example, the Insurance Carrier shall decide whether it will issue an Insurance
Policy on the life of a Participant who has otherwise met all of the Plan’s
eligibility requirements, whether benefits are payable on an Insurance Policy,
and to whom any benefits are payable.

 

4.             Eligibility.  In order to become a Participant in the Plan,
an individual must meet all of the following requirements:

 

4.1           Be
an elected officer who is designated by the Committee as eligible to
participate in the Plan;

 

4.2           Complete
an application for insurance as required by the Insurance Carrier; and

 

4.3           Meet
any applicable insurability requirements of the Insurance Carrier.

 

5.             Benefits.

 

5.1           Target
Death Benefit During Employment.  The
target benefit for a Participant who dies while employed by OfficeMax is a
death benefit equal to two times Base Salary [three times Base Salary – for CEO] (less any amount payable under any company-paid
group term life insurance program sponsored by OfficeMax).

 

5.2           Purchase
of Insurance.  The right of a
Participant to purchase an Insurance Policy under the Plan is granted only upon
the initial adoption of the Plan or, for a Participant who meets the
eligibility requirements under the Plan after adoption of the Plan, the date of
initial eligibility under the Plan.  The
face amount of the Insurance Policy shall be rounded up to the nearest multiple
of $1,000, where necessary.  To the
extent the Insurance Policy relates to the target benefit(s) as described in Section 5.1,
the Insurance Policy is guaranteed to be issued, without regard to the
Participant’s 

 

 

insurability.  To the extent that a Participant desires to
purchase additional insurance by paying additional premiums as permitted under Section 6.2,
insurance participation will be subject to the Participant’s insurability, and
OfficeMax does not guarantee that each otherwise eligible Participant will be
able to purchase additional insurance pursuant to this Plan.

 

5.3           Actual
Amount of Benefit.  The death benefit
shall be paid from the Insurance Policy. 
The amount of the death benefit payable to the Participant’s beneficiary
shall be determined by the Insurance Carrier pursuant to the terms of the
Insurance Policy.  The actual benefit
provided by the Insurance Policy may be greater or less than the target
benefit, based on the investment performance of the Insurance Policy.  If the Insurance Policy does not ultimately
provide the target benefit, OfficeMax will not make up any benefit shortfall.

 

5.4           Beneficiary
Designation.  The death benefit is
payable to the beneficiary or beneficiaries designated by the Participant.  If no beneficiary is designated, the
beneficiary shall be the person or persons entitled to the death benefit under
the terms of the Insurance Policy or applicable state law, whichever governs.

 

5.6           Payment
of Death Benefit.  All death benefits
provided under the Plan will be paid from the Insurance Policies.  Death benefits shall be paid upon submission
to the Insurance Carrier of the appropriate proof of death and a claim for
benefits in the form required by the Insurance Carrier, and any other
documentation required by the Insurance Carrier in its sole discretion.

 

6.             Premium
Payment.

 

6.1           Target
Benefit Premium Payment.  The
Insurance Carrier shall establish an annual premium for each Insurance Policy
based on the target benefit(s) established for that Insurance Policy.  OfficeMax shall pay the premium on behalf of
the Participant, and the amount of the premium will be treated as taxable
compensation to the Participant.

 

6.2           Additional
Benefit Premium Payment. 
Participants may have the option to obtain an additional Insurance
Policy in addition to the Insurance Policy under which the target benefit(s)
are to be provided, subject to the requirements of the Insurance Carrier,
including any insurability or underwriting requirements and subject to a
minimum death benefit amount of $50,000. 
Premiums for any additional Insurance Policy will be the Participant’s
responsibility.  Participants must make
arrangements for any additional Insurance Policy and premium payment with the
Insurance Carrier.

 

6.3           Premium
Allocation.  The target benefit
premium will be allocated among the investment funds offered by the Insurance
Carrier by OfficeMax in its sole discretion. 
Premiums for any additional Insurance Policy purchased according to Section 6.2
shall be allocated by the Participant.

 

 

6.4           Cessation
of Premium Payment.  OfficeMax shall
cease paying premiums on the Participant’s behalf upon the earlier of:

 

(a)           The
death of the Participant; or

 

(b)           The
termination of the Participant’s employment other than by death.

 

Upon
the cessation of premium payment by OfficeMax, OfficeMax shall have no further
involvement in the Insurance Policy. 
From that date forward, the Participant shall be solely responsible for
the payment of any future premiums.

 

7.             Continuation,
Reduction, or Termination of the Insurance Policy and/or Benefits.

 

7.1           If
the Plan is terminated, whether as to all Participants or as to an individual
Participant, a Participant shall be able to continue the Insurance Policy on
his or her life by paying future premiums. Thereafter, the Participant will be
responsible for all future premiums and OfficeMax shall have no further
involvement in the Insurance Policy.

 

7.2           After
cessation of premium payment by OfficeMax, policy benefits may be reduced or
terminated with respect to a Participant if not properly funded by the
Participant.

 

7.3           The
amount of a Participant’s death benefits may vary each year based on investment
results of the Insurance Policy and the target benefit.

 

8.             Claims
Procedure.

 

8.1           Claims regarding eligibility for, participation
in, and payment of premiums under the Plan shall be filed in writing, within
90 days after the event giving rise to a claim, with OfficeMax’s
compensation manager, who shall have absolute discretion to interpret and apply
the Plan, evaluate the facts and circumstances, and make a determination with
respect to the claim in the name and on behalf of OfficeMax.  The claim must include a statement of all
facts the Participant believes relevant to the claim and copies of all
documents, materials, or other evidence that the Participant believes relevant
to the claim.  Written notice of the
disposition of a claim shall be furnished to the Participant within
90 days after the application is filed. 
This 90-day period may be extended an additional 90 days for special
circumstances by the compensation manager, in his or her sole discretion, by
providing written notice of the extension to the claimant prior to the
expiration of the original 90-day period. 
If the claim is denied, the Manager shall notify the claimant in
writing.  This written notice shall:

 

•                                          state the specific reasons for the denial,

 

 

•                                          refer to the provisions of the Plan
on which the determination is based,

 

•                                          describe any additional material or information
necessary for the claimant to perfect the claim and explain why the information
is necessary,

 

•                                          explain how the claimant may submit the claim for
review and state applicable time limits, and

 

•                                          state the claimant’s right to bring an action under section 502(a)
of ERISA following an adverse determination on review.

 

8.2           Any Participant, former Participant, or
beneficiary who has been denied a claim brought under Section 8.1 shall be
entitled, upon written request, to access to or copies of all documents and
records relevant to his or claim, and to a review of his or her denied
claim.  A request for review, together
with a written statement of the claimant’s position and any other comments,
documents, records, or information that the claimant believes relevant to his
or her claim, shall be filed no later than 60 days after receipt of the
written notification provided for in Section 8.1, and shall be filed with
OfficeMax’s compensation manager.  The
Manager shall promptly inform OfficeMax’s senior human resources officer, who
shall be the named fiduciary of the Plan for purposes of claim review.  The senior human resources officer shall make
his or her decision, in writing, within 60 days after receipt of the
claimant’s request for review.  This
60-day period may be extended an additional 60 days if, in the senior
human resources officer’s sole discretion, special circumstances warrant the
extension and if the senior human resources officer provides written notice of
the extension to the claimant prior to the expiration of the original 60-day
period.  The written decision shall be
final and binding on all parties and shall:

 

•                                          state the facts and specific reasons for the
decision,

 

•                                          refer to the Plan provisions
upon which the decision is based,

 

•                                          state that the Participant is entitled to receive
at no charge and upon request reasonable access to and copies of all documents,
records, and other information relevant to the claim, and

 

•                                          state the claimant’s right to bring an action under section 502(a)
of ERISA.

 

8.3           For
claims regarding benefits under the Insurance Policies, OfficeMax has adopted
the claim procedure established by the Insurance Carrier as a claim
procedure.  The beneficiary of the policy
proceeds must file a claim for benefits with the Insurance Carrier in the form
the Insurance Carrier requires.  If the
Insurance Carrier denies the 

 

 

claim
and the beneficiary desires to have the denial reviewed, the beneficiary must
follow the Insurance Carrier’s claims review procedure.  The Insurance Carrier’s determination shall
be final and binding on all participants. 
OfficeMax shall have no liability if the Insurance Carrier denies a
claim for benefits.

 

9.             Miscellaneous.

 

9.1           Employment
Not Guaranteed by Plan.  This Plan is
not intended to and does not create a contract of employment in any manner.  Employment with OfficeMax is at will, which
means that either the employee or OfficeMax may end the employment relationship
at any time and for any reason.  Nothing
in this Plan changes or should be construed as changing that at-will
relationship.

 

9.2           Taxes.  OfficeMax shall deduct from each Participant’s
compensation all applicable federal or state taxes that may be required by law
to be withheld resulting from OfficeMax’s premium payments under the Plan.

 

9.3           Governing
Law, Jurisdiction, and Venue.  The
Plan shall be construed according to the laws of the state of Idaho to the
extent not preempted by federal law. 
Legal action to enforce or interpret the Plan may be brought only in
federal district court for the District of Illinois in Du Page County,
Illinois.

 

9.4           Form
of Communication.  Any election,
application, claim, notice, or other communication required or permitted to be
made by a Participant to the Committee or OfficeMax shall be made in writing
and in the form OfficeMax prescribes. 
Communication shall be effective upon receipt by OfficeMax’s
Compensation Manager at 150 Pierce Road, Itasca, IL  60143.

 

9.5           Amendment
and Termination.  The Committee may,
at any time, amend or terminate the Plan, provided that the Committee may not
reduce or modify the target benefit(s) provided to the Participant prior to the
amendment or termination without the Participant’s prior written consent.  Upon termination of the Plan, a Participant
shall be entitled to continue the Insurance Policy in accordance with Section 7.

 

9.6           Agent
for Service of Process.  OfficeMax’s
General Counsel is designated as the agent to receive service of legal process
on behalf of the Plan.

 

9.7           Effective
Date.  The Plan became effective February 10,
2005.Exhibit
10.2

 

OFFICER ANNUAL PHYSICAL PROGRAM

Effective January 1, 2005

 

The
Company shall provide benefits related to an annual physical examination to its
officers, as described in this program, to encourage a regular program of
health maintenance.  This program is in
addition to healthcare benefits provided under the Company’s Comprehensive
Welfare Benefit Plan.

 

WHO
IS ELIGIBLE

 

Officers
of OfficeMax Incorporated holding the title of Senior Vice President or above are automatically eligible for coverage under this
policy.  Spouses and dependents are not
eligible.

 

WHAT
THE POLICY COVERS

 

Expenses
incurred by eligible officers for covered services provided by a physician of
the officer’s choice will be reimbursed. 
Reimbursement payments will be “grossed up” for taxes.  Reimbursement under the program, including
the tax gross-up amount, is limited to a maximum of $1,000 each calendar year.

 

The
program provides reimbursement (up to the $1,000 limit, including tax gross-up)
for a complete medical history and a comprehensive physical examination.  Covered services include:

 

•                  Medical history and physical examination

•                  Resting electrocardiogram

•                  Cholesterol blood study

•                  General survey (urinalysis and blood tests)

•                  Spirometry (lung function)

•                  Tonometry (eye pressure)

•                  Special fats study

•                  Proctoscopic examination

•                  Pap test and pelvic for women

•                  Mammogram for women

 

Additional
diagnostic procedures, such as colonoscopy and bone density tests, may be
covered if the examining physician orders the procedure.  At the conclusion of the examination and upon
receiving the results of any tests, the physician will generally advise the
officer about the medical findings and may make recommendations for corrective
or additional subsequent actions.  Any
subsequent actions are not covered by this program, but may be covered under
the Comprehensive Welfare Benefit Plan.

 

 

WHAT
THE POLICY DOES NOT COVER

 

Expenses
for items in the following list are not covered under the policy:

 

•                  Items payable by workers’ compensation or any
other government program.

•                  Items for which no charge would have been
made in the absence of medical coverage, or items for which the officer is not
legally obligated to pay.

•                  Prescription drugs.

•                  Items for which the Company, by law or
regulation, may not provide benefits.

•                  Services rendered prior to the date an
individual became eligible for coverage under this program.

•                  Charges which are applied to the deductible
and co-payments under the Company’s Comprehensive Welfare Benefit Plan.

 

HOW
TO FILE A CLAIM

 

If
covered services are received from a provider in the UnitedHealthcare network,
the provider will submit the claim on the officer’s behalf.  If an out-of-network provider is used, the
officer should submit the claim together with all documentation of covered
expenses to:

 

UnitedHealthcare

P.O.
Box 981502

El
Paso, TX  79998

 

The
claim form is available from HR Services in Itasca, Illinois.

 

PLAN
ADMINISTRATION AND ERISA RIGHTS

 

The
summary plan description (SPD) for the Company’s Comprehensive Welfare Benefits
Plan identifies the Plan Administrator and explains the ERISA rights under this
policy.  If a dispute or disagreement
arises regarding terms of coverage or benefits provided under this policy, the
claims and appeal processes described in the SPD apply.  The Company has the sole authority to make
final determinations regarding any claim for benefits and the interpretation of
this program.

 

CONTINUATION
OF COVERAGE

 

The
policy is subject to the requirements of federal law as they relate to continuation
of healthcare benefits pursuant to provisions of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (COBRA). 
These requirements are described in more detail in the SPD.

 

 

SOURCE
OF FUNDING

 

This
is an unfunded, self-insured program.  The
benefits provided under this policy are paid from the general assets of the
Company as they become payable.

 

TAXABILITY

 

All
benefits paid under this policy are considered taxable income to the officer,
are subject to tax withholding requirements, and will be reflected in Form W-2
earnings.

 

COVERAGE
DURING A LEAVE OF ABSENCE

 

Coverage
may be continued while the officer is still employed by the Company but is not
actively at work due to an accident or illness or other Company-approved leave
of absence.  Under such conditions,
coverage will continue in keeping with the provisions of the leave.

 

MISCELLANEOUS

 

The
Company reserves the right to change, modify or discontinue the benefits
offered under this program at any time. 
Eligible officers do not have any ongoing rights to any benefit other
than reimbursement for covered expenses incurred before the date of the change,
modification or discontinuance.

 

Neither
this program nor any of the Company’s other policies or benefits programs
should be considered a contract for purposes of employment or payment of
benefits.  Employment with OfficeMax is “at
will” and may be terminated at any time, with or without cause, by the
associate or the Company.

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