Exhibit 10.16
 
 Catalyst Paper Corporation16th Floor, 250 Howe StreetVancouver, British ColumbiaCanada V6C 3R8Tel: 604.654.4000Fax: 604.654.4048
  Personal & Confidential
 
   Effective Date:
 th
 Location:
  Base Salary:
  Short Term Incentive Program:




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Mid-Term and Long-Term Incentive Program:
   
    
    50% of the annual maximum value of the MLTIP or $556,000 will be granted in the form of
PSUs. The PSUs will vest three years after their date of grant, subject to the attainment of
corporate and/or personal performance criteria established by the Board at the time the PSUs
are granted. At the end of the three year period, actual performance will be compared against
the performance targets to determine the actual number of PSUs which will vest. PSUs which do
not vest will expire.
 
    
    The three year PSU pool is established at year one with the number of units to be granted
determined by the deemed share price on the first day of your employment. 0% to 100% of the
units in the pool will be distributed at the end of year three based on the results of the
performance evaluation.
 
    
    The remaining 50% of the annual maximum value of the MLTIP ($556,000) will be provided in
the form of Stock Options which will vest and be distributed using the same methodology
described above.
 
    
    The three year LTIP Stock Option pool is established in year one with the number of options
determined by the deemed share price on the date of grant factored by the Hay Modified Black
Scholes method of options valuation.
 
    
    Should you voluntarily leave the employ of the Company or have your employment terminated
by the Company for Cause, any PSUs or Stock Options that have not yet vested will be
forfeited.
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Automobile:
  Benefits:
  Pensions:
  Supplemental Executive Retirement Plan:
  
    
    An allocation of $300,000 will be made to a notational account in your name on January
1st of each year. On January 1, 2008 the allocation will be prorated based on the
number of months of your employment in 2007.
 
    
    Notational investment income (positive or negative) will be credited each month to your
account based on the change in the month end unit value of the balanced fund investment
option(s) offered under the defined contribution segment of the Companys basic pension plan.
 
    
    All allocated amounts will vest once the allocations have been made.
 
    
    The Plan is not registered with the Canada Revenue Agency and is not subject to pension
benefit standards legislation. The benefit is paid from general company revenues and is
secured by a Letter of Credit held in trust with CIBC Mellon.
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Vacation:
  Executive Health:
  Supplementary Compensation:
  Relocation Assistance:
   Termination of Employment for Cause:
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Termination of Employment without Cause:
  1.
    
    An amount equal to your base salary for two years following the date of termination.
 2.
    
    An amount in lieu of any cash entitlement during the two years following the date of
termination to STIP (Cash Bonus) such amount to be calculated as follows:
 (a)
    
    if you have been employed by the Company for less than one fiscal year at the
date of termination, an amount equal to the two times 25% of your maximum potential
payout of Cash Bonus for the then current fiscal year of the Company;
 (b)
    
    if you have been employed by the Company for longer than one fiscal year but
less than two fiscal years at the date of termination, an amount equal to two times
the amount of actual Cash Bonus paid to you in the fiscal year immediately prior to
fiscal year in which your employment is terminated; or
 (c)
    
    if you have been employed by the Company for longer than two fiscal years at
the date of termination, an amount equal to two times the average of the actual Cash
Bonus paid to you in the two fiscal years immediately prior to the fiscal year in
which your employment is terminated unless the date of termination is less than two
years from your normal retirement date, in which case an amount equal to the average
actual Cash Bonus paid to you in the two fiscal years immediately prior to the fiscal
year in which your employment is terminated multiplied by a fraction where the
numerator is the number of days between the date of termination and your normal
retirement date and the denominator is 365; and
 3.
    
    All benefits and perquisites shall terminate as of the date of termination and all
obligations, if any, of the Company to you in respect of any RSUs or LTIP shall terminate as
of the date of the termination and any further ability for you to exercise any RSUs or Rights
will be governed by the terms and conditions of the applicable plans.
 Privacy:
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Confidentiality:
       CATALYST PAPER CORPORATION
 
   (Signature)
    
    
    
    (Date)
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SCHEDULE A
 Schedule of Benefits on Termination without Cause
  1.
    
    Medical Services PlanThe Company will continue to provide coverage for you and your eligible dependents under the
Provincial Medical Services Plan.2.
    
    Extended Health and Dental PlansThe options you have selected under the Companys Selection Flex Benefits program will
continue to be in place during your Salary Continuance Period unless you make a written
request to cancel this coverage.3.
    
    Health Spending AccountYou will be able to continue charging eligible expenses to this account up to the current
balance in your account. You may not elect to direct additional funds to this account.4.
    
    Group Life and Optional Life InsuranceYour current level of Basic Group Life Insurance coverage will continue. You may not elect
to increase this insurance coverage. You will have 31 days after your Termination Date to
convert your Group Life Insurance to an individual life insurance policy without having to
provide medical evidence of insurability.While all Option Life Insurance coverage (employee, spousal or child) will cease at the
commencement of the Salary Continuance Period, you will have 31 days to convert this
coverage to an individual policy, without having to provide medical evidence of
insurability. If you wish to covert this coverage, contact Manulife Financial at:
 
 5.
    
    Long Term DisabilityOur Long Term Disability policy does not allow us to extend coverage to individuals during
periods of Salary Continuance. We will, however, for the period of Salary Continuance,
reimburse you for premiums associated with an individual Long Term Disability Insurance
policy should you wish to purchase this. If you wish to pursue this option, the Company
will assist with securing an appropriate provider of this benefit.6.
    
    Executive Health ServicesYou will continue to be eligible for Executive Health Services offered through Medisys
Health Group.7.
    
    Post-RetirementsYou will be eligible for post-retirement benefits, as per the terms of the Salaried Employee
Post-Retirement Benefit plan on your Termination Date.8.
    
    Change in Benefit Plans and ProgramsThe Company reserves the right to amend and discontinue any of the benefit plans and
programs referred to in this letter. Should the Company change any of these benefit plans
and programs, the benefits to which you will be entitled shall change in the same manner.
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