<PAGE>
                                                                    EXHIBIT 10.1

                              BOWATER INCORPORATED
                      NON-QUALIFIED STOCK OPTION AGREEMENT

                             To: ((First)) ((Last))

                                                             US $
    Grant Date    Expiration Date    Number of Shares    Option Price per Share

This stock option is granted to you by the Human Resources and Compensation
Committee (the "Committee") of the Board of Directors of Bowater Incorporated, a
Delaware corporation (the "Company"), upon the terms and conditions set forth
below and those contained in the Bowater Incorporated 2002 Stock Option Plan
(the "Plan").

1.   The Company hereby grants you a non-qualified stock option (the "Option")
     to purchase, subject to the provisions of this Agreement and the Plan, on
     or before the Expiration Date indicated above, at the Option Price per
     Share stated above, the Number of Shares (the "Shares") of the Common Stock
     of the Company, par value $1.00 per share, set forth above. This grant is
     subject to the condition that you execute and return this Agreement to the
     Company within sixty (60) days of the date you receive it; if you do not so
     execute and return this Agreement, the grant shall be null and void and
     without effect. This Agreement may only be modified by a writing signed by
     both you and the Company.

2.   No shares may be purchased hereunder unless you remain in the continuous
     employ of the Company or one of its Subsidiaries (as that term is defined
     in the Plan) for one year following the grant date except as provided in
     paragraphs 7 and 8. Thereafter, the Option may be exercised in the manner
     hereinafter set forth, provided that (a) you are at the time of such
     exercise in the employ of the Company or one of its Subsidiaries (except as
     provided in paragraphs 7 and 8), and (b) the Option may be exercised only
     to the extent of 50% of the number of Shares to which it relates on or
     after the first anniversary of the grant date, and may be exercised to the
     extent of the remaining 50% of such Shares on or after the second
     anniversary of such date. The Option shall become immediately exercisable
     in the event of your death or a Change in Control (as that term may be
     defined from time to time in the Plan) while you are employed by the
     Company or one of its Subsidiaries. In the event of a Change in Control,
     this Option may be exercised only in accordance with the procedures set
     forth in the Plan.

3.   You may exercise the Option, in whole or in part, by complying with
     notification procedures specified by the Company's Human Resources
     Department at its corporate headquarters. Contemporaneously with the
     delivery of notice with respect to exercise of the Option you must pay the
     full purchase price of the Shares purchased pursuant to the exercise of the
     Option in cash, or by tender of Share certificates in proper form for
     transfer to the Company valued at the Fair Market Value of the Shares (as
     defined in the Plan) on the preceding day, or by any combination of the
     foregoing, or with any other consideration acceptable to the Committee. You
     may also make payment upon the exercise of the Option by means of a
     properly executed exercise notice together with irrevocable instructions to
     a broker to deliver promptly to the Company the portion of the sale or loan
     proceeds sufficient to pay such purchase price. The Option may not be
     exercised with respect to a fractional share or with respect to fewer than
     100 Shares (unless it is being exercised in full). No Shares shall be sold
     or delivered hereunder until full payment for such Shares has been made.

4.   The Company shall not be required to issue or deliver any certificate or
     certificates for Shares purchased upon the exercise of any part of the
     Option prior to (i) the admission of such Shares to listing on any stock
     exchange on which the Shares may then be listed, (ii) the completion of any
     registration or other qualification of such Shares under any applicable
     law, rule or regulation, (iii) the obtaining of any consent or approval or
     other clearance from any governmental agency that the Company determines to
     be necessary or advisable, and (iv) the payment to the Company, upon its
     demand, of any amount requested by the Company for the purpose of
     satisfying its liability, if any, to withhold federal, state or local
     income or earnings tax or any other applicable tax or assessment (plus
     interest or penalties thereon, if any, caused by a delay in making such
     payment) incurred by reason of the exercise of the Option or the transfer
     of such Shares thereupon.

5.   The Option shall be exercised and Shares issued only upon compliance with
     the Securities Act of 1933, as amended (the "Act"), and any other
     applicable securities laws, and you agree to comply with any requirements
     imposed by the Committee under such laws. You agree that you will not
     transfer any Shares acquired upon exercise of the Option at any time during
     which you are in possession of any material, nonpublic information about
     the Company, its business affairs, financial condition or prospects. If you
     are an officer of the Company subject to Section 16 of the Securities
     Exchange Act of 1934, as amended, you are required to obtain prior approval
     of any exercise of the Option or transfer of the Shares acquired thereby
     from the Section 16 Compliance Officer or General Counsel of the Company.
     If you are an "affiliate" of the Company (as that term is defined in Rule
     144 promulgated under the Act, and which generally includes directors and
     certain officers), by accepting this Agreement, you agree that you will
     dispose of the Shares acquired upon exercise of the Option only in
     compliance with Rule 144 or in such other manner as will not violate the
     Act and the rules and regulations promulgated thereunder, and any other
     applicable securities law.

<PAGE>

                                                                    EXHIBIT 10.1

6.   The Option is not transferable by you otherwise than by will or by the laws
     of descent and distribution, and is exercisable, during your life, only by
     you or by your guardian or legal representative. Any attempted assignment,
     transfer, pledge, hypothecation or other disposition of the Option contrary
     to the provisions hereof shall be null and void. The Option does not confer
     upon you any right with respect to continuation of employment with the
     Company or any of its Subsidiaries, and will not interfere in any way with
     the right of the Company or any of its Subsidiaries to terminate your
     employment.

7.   To the extent that the Option has not become exercisable it shall terminate
     on the earlier of (i) the Expiration Date, or (ii) at the date of the
     termination of your employment with the Company or its Subsidiaries for any
     reason other than for death, Disability (as defined in the Plan) or
     Retirement (as defined in the Plan). Except as provided in the last
     sentence of this paragraph, to the extent that the Option has become
     exercisable, it shall terminate on the earlier of (i) the Expiration Date,
     or (ii) three months after the termination of your employment with the
     Company or its Subsidiaries for any reason other than death, Disability or
     Retirement. Subject to paragraph 8, and the condition that the Option may
     not be exercised in whole or in part after the Expiration Date or its
     expiration as otherwise provided in this paragraph, the Option may be
     exercised in whole or in part within a period of five years after the
     termination of your employment due to Disability or Retirement and any
     period of Disability or Retirement shall be considered continued employment
     for purposes of paragraph 2. The Option terminates immediately upon
     termination of your employment for good cause (as determined by the
     Company).

8.   If you die while employed or during a period of Disability or Retirement
     described above, the legal representative to whom your rights hereunder are
     transferred by will or the laws of descent and distributions may exercise
     some or all of this Option at any time prior to the earlier of (i) the
     Expiration Date, or (ii) twenty-four months from the date of your death,
     regardless of whether the requirements of paragraph 2 have been satisfied.
     As of the earlier of such dates, the Option shall terminate and expire.

9.   If a stock dividend, stock split, recapitalization, merger, consolidation,
     combination, exchange of shares or other similar corporate change occurs,
     the Committee may adjust the terms of this Option in such manner as it
     deems equitable.

10.  The Option shall be irrevocable during the Option period and its validity
     and construction shall be governed by the laws of the State of Delaware.
     The terms and conditions herein set forth are subject in all respects to
     the terms and conditions of the Plan, which shall be controlling. You agree
     to execute such other agreements, documents or assignments as may be
     necessary or desirable to effect the purposes of this Agreement.




                                         BOWATER INCORPORATED


                                         ---------------------------------------
                                         James T. Wright
                                         Senior Vice President - Human Resources

--------------------------------------------------------------------------------


I hereby acknowledge receipt of the Non-Qualified Stock Option (the "Option")
granted on the date shown above, which has been issued to me under the terms and
conditions of the Bowater Incorporated 2002 Stock Option Plan (the "Plan"). I
agree to conform to all of the terms and conditions of the Option and the Plan.


Date: ________________________ Your Signature: _________________________________


[NQO-2 YEAR VESTING]

[020304]