Exhibit 10.7



 






EXHIBIT 10.7




 




October 17, 2007




Mr. Jim T. Wright

10 Hillswick Rd

 Tryon, NC 28782




Re: Offer letter




Dear Jim,



We are pleased to offer you the position of Senior Vice-President, Human Resources, in the new
AbitibiBowater, Inc. The following are details as agreed upon on this date:




Location:



For the time being, you may maintain an office in the Greenville, South Carolina area and you
will continue to be an employee of Bowater Incorporated, as well as AbitibiBowater. During this
interim time, you will be paid by Bowater Incorporated. However, you will be required eventually
to relocate to the head office located in Montreal. The effective relocation date will be
discussed and determined in the year 2008.




Effective Date:



The effective date is the closing of the merger (the “Closing Date”). This offer is contingent
on the conclusion of the merger and your being authorized to work in Canada.




Compensation:



Your annual base salary, effective on the Closing Date, will be US$340,000. You will be eligible
to participate in a short-term incentive plan with a target level of 50% of your base salary.



We will request that the Human Resources and Compensation Committee (“HRCC”) of the new company
approve base compensation and incentive targets for the new executive team and approve several
compensation redesigns. We expect to terminate the current 2007 Annual Incentive Plan on the
Closing Date and to pay the resulting bonus as soon as practicable. We will substitute a new plan
for the remainder of 2007 and all of 2008 emphasizing the achievement of synergies.



Additionally, for executives at your level, we will request an equity award tied to synergy
achievement. We anticipate continuing annual equity grants of similar value as you currently
receive and a target level of ownership of common shares may be required. Previous equity awards
will roll-over into the new company and will be paid according to the initial payout schedule.




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You will also be eligible for a perquisite allowance of US$12,000 per year as well as a complete
annual medical examination and an additional benefit value of up to US$5,000 for US tax
preparation.




Others:





	 	(1)	 	You will participate in the company’s benefit plans.
	 
	 	(2)	 	Following the merger, the new company intends to harmonize certain benefits offered to
salaried employees, including senior executives, which may lead to changes in the current
benefits. You will be informed about any changes at the appropriate time.
	 
	 	(3)	 	Subject to the approval of the HRCC, you will be covered by an employment agreement
and a new Change in Control agreement.
	 
	 	(4)	 	In addition, you will be eligible for the company’s international relocation policy to
assist you with your move to Montreal. In order to facilitate the process, we have assigned
Paula Ferreira to facilitate and coordinate all aspects of your relocation. Please feel
free to contact her at your earliest convenience at (514) 954-2988 or
ferreirap@bowater.com. Please refer to the enclosed policy for more details. The
relocation benefits will include a lump sum of $104,649 as a housing and cost of living
offset, which will be payable only when you begin the relocation process, and will be
subject to Canadian taxes. This payment includes an amount attributable to the higher
Canadian tax rate.




We are excited about the prospects of the combination of the two companies and look forward to
having you joining us on the leadership team. It will be a challenge.



Please acknowledge receipt of this offer letter and agreement with its terms by signing the two
originals and returning one copy.




	 	 	 	 	 	 	 
	/s/ John W. Weaver

	 	 
	 	/s/ David J. Paterson
	 	 
	 

	 	 	 	 	 	 
	John W. Weaver

	 	 	 	David J. Paterson	 	 
	Executive Chairman

	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	I accept this offer:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Jim T. Wright

	 	 
	 	 
	 	 
	 

	 	 	 	 	 	 
	Jim T. Wright

	 	 	 	Date	 	 







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