Document:

EX-10.11

EXHIBIT 10.11

AMENDMENT NO. ONE

TO THE ABITIBIBOWATER

(formerly ABITIBI CONSOLIDATED)

U.S. SUPPLEMENTAL EXECUTIVE

RETIREMENT PLAN (SERP)

FOR CERTAIN EXECUTIVES

CERTIFIED to be a true and complete copy of Amendment No. One to the AbitibiBowater (formerly
Abitibi Consolidated) U.S. Supplemental Executive Retirement Plan for Certain Executives. Each of
the changes in this Amendment No. One shall, except as otherwise indicated, be effective as of
July 1, 2008.

	 	 	 
	 

	 	ABITIBIBOWATER INC.
	 
	 	 
	December 17, 2008

	 	/s/ Allen Dea
	 

	 	 
	 

	 	Allen Dea
	 

	 	Title: Vice President and Treasurer
	 
	 	 
	 

	 	ABITIBI-CONSOLIDATED INC.
	 
	 	 
	December 17, 2008

	 	/s/ Allen Dea
	 

	 	 
	 

	 	Allen Dea
	 

	 	Title: Vice President and Treasurer

 

 

	(A)	 	Section 1.04 is amended, effective July 1, 2008, to read in its entirety as follows:
	 
	1.04	 	The name of the Plan shall be the “AbitibiBowater U.S. Supplemental Executive Retirement Plan
for Certain Executives” (formerly, the Abitibi Consolidated U.S. Supplemental Executive
Retirement Plan).
	 
	(B)	 	Section 2.03 is amended, effective January 1, 2009, to read in its entirety as follows:
	 
	2.03	 	“Average Pensionable Earnings” shall mean the average of the Participant’s annual base salary
and paid bonuses the Participant received during the five (5) consecutive calendar years
during the last ten (10) calendar years of his continuous employment, which results in the
highest average annual amount, disregarding any paid bonuses in excess of 125% of the
Participant’s target bonus prescribed by the AbitibiBowater board of directors for any such
year. For greater certainty, the term “bonus” shall refer to an award paid under the
Corporation’s annual incentive plan as may be adopted from time to time and shall exclude any
special bonus not paid under an annual incentive plan, any amount payable under any long-term
incentive plan of the Corporation, or any stock option benefit.
	 
	(C)	 	Section 2.04 is amended, effective January 1, 2009, to read in its entirety as follows:
	 
	2.04	 	“Basic Pension” shall mean the annual lifetime pension which the Participant would otherwise
be entitled to receive from time to time pursuant to any Qualified Pension Plan, in regards to
the period of Credited Service recognized for purposes of this SERP or that would be so
recognized for purposes of this SERP in absence of the 35 year limit on Credited Service as
per Section 2.08, but limited to the period of Credited Service actually recognized in the
Qualified Pension Plan. It shall be assumed that such annual pension is payable from the same
date as supplementary benefits commence to be paid under this SERP and is calculated on the
basis of the following assumptions:

	 	a)	 	where the Qualified Pension Plan is a defined benefit pension plan:

	 	i)	 	the annual pension is in the form of a pension payable under
the normal form provided for under the Qualified Pension Plan, or if the
Participant elects an optional form in accordance with Section 8.03 prior to
January 1, 2005, the annual pension payable under such optional form;

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	 	ii)	 	except as provided in subsection (c) of this Section 2.04, the
Participant has made no Additional Voluntary Contribution; and
	 
	 	iii)	 	the amount of the Basic Pension shall be determined according
to the formula under the Qualified Pension Plan regardless of any reduction in
benefits that may be applied, by operation of statute or otherwise, as a result
of the funded status of such Qualified Pension Plan on the date of such
determination (it being understood that, where the Qualified Pension Plan is a
defined benefit pension plan, the foregoing assumption shall also be applicable
to the determination of the amount of survivor pension payable to the Spouse
under the Qualified Pension Plan following the death of the Participant (or any
survivor pension that would have been payable had the benefits under the
Qualified Pension Plan not been commuted or paid in the form of a lump sum
payment) as referred to in Section 8, and any amount payable under the
Qualified Pension Plan to the Participant’s estate or any designated
beneficiary following the death of the Participant (or any amount that would
have been payable had the benefits under the Qualified Pension Plan not been
commuted or paid in a lump sum payment) as referred to in Section 8; and

	 	b)	 	where the Qualified Pension Plan is a defined contribution pension plan, an
annual pension which is the Actuarial Equivalent, based on the assumptions in Section
2.01 and the form of pension described in paragraph a) of this Section 2.04, of the
amount accumulated since January 1, 1999 by the Participant under the Qualified Pension
Plan, excluding, except as provided in subsection (c) of this Section 2.04, his
Additional Voluntary Contributions, as of the date of his Retirement, death or
Termination of Employment with the Corporation; and
	 
	 	c)	 	where the Qualified Pension Plan is the AbitibiBowater Retirement Savings Plan
(formerly the Bowater Incorporated Retirement Savings Plan), or the Abitibi
Consolidated U.S. 401(k) Plan for Salaried Employees or any other 401(k) plan
maintained by a sponsor listed in Appendix A of this document, an annual

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	 	 	 	pension which is the Actuarial Equivalent, based on the assumptions in Section 2.01
and the form of pension referred to in paragraph a) of this Section 2.04, of the
amount that would have accumulated since January 1, 1999 by the Participant under
such Qualified Pension Plans, excluding the elective deferral contributions he made
prior to January 1, 2009, but including deemed maximum elective deferral
contributions he could have made after December 31, 2008, except for Code Section
414(v) catch-up elective deferral contributions, as if he had participated in the
plan each year so as to receive the maximum contribution from the Corporation, and
invested all of his contributions in either the Stable Value Fund for the Abitibi
Consolidated U.S. 401(k) Plan for Salaried Employees or the Fixed Income Fund for
the AbitibiBowater Retirement Savings Plan, or a similar fund for any other 401(k)
plan, determined as of the date of his Retirement, death or Termination of
Employment with the Corporation; and
	 
	 	d)	 	in the case of an Executive Employee who is a former Abitibi-Price Inc.
employee who held a MSBA and who elected to convert his defined benefit entitlement
under Abitibi-Price Inc.’s Registered Pension Plan to a defined contribution
entitlement, a list of such Executive Employees being attached hereto as Appendix C,
the Basic Pension in respect of such Participant shall be determined as if the
Participant had elected to not convert his defined benefit entitlement under
Abitibi-Price Inc.’s Registered Pension Plan and such defined benefit entitlement has
been determined in accordance with the provisions in effect on January 1, 1996 of the
Abitibi-Price Inc.’s Registered Pension Plan and in accordance with the assumptions and
the form of pension described in paragraph a) of this Section 2.04; and
	 
	 	e)	 	in all cases, where a Participant’s entitlement under the Qualified Plan has
been divided between the Participant and his Spouse or former Spouse as a result of
divorce, separation or annulment of marriage, his Basic Pension shall be determined as
if no such division of his entitlement had occurred.

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	(D)	 	Section 2.07 is amended, effective July 1, 2008, to read in its entirety as follows:
	 
	2.07	 	“Corporation” means AbitibiBowater, Inc. (formerly Abitibi-Consolidated Inc.) and its
affiliated companies, or any subsidiary of the Corporation or associated company, provided
however, that any reference in this SERP to action to be taken, consent, approval or opinion
to be given, decision to be made or discretion to be exercised by the Corporation shall refer
to AbitibiBowater, Inc., or its successor, acting through its Board of Directors or any person
or persons authorized to act on behalf of the Corporation for the purposes of this SERP, in
accordance with the normal practices of the Corporation.
	 
	(E)	 	Section 2.16A is added, effective January 1, 2008, to read as follows:
	 
	2.16A “Retirement” shall have the same meaning as “separation from service”, as defined in Treas.
Reg. § 1.409A-1(h)(1).
	 
	(F)	 	Section 2.20 is added, effective January 1, 2008, to read as follows:
	 
	2.20	 	“Termination of Employment” shall have the same meaning as “separation from service”, as
defined in Treas. Reg. § 1.409A-1(h)(1).
	 
	(G)	 	Section 4.02 is amended to read in its entirety as follows:
	 
	4.02	 	The Corporation shall pay the full costs of the benefits provided under the SERP. The
Corporation may set aside funds or Corporation assets for the payment of benefits under the
SERP, provided such assets remain available to satisfy the claims of the general creditors of
the Corporation and such funding complies with the rules relating to the funding of
nonqualified deferred compensation under Internal Revenue Code Section 409A(b), including
that:

	 	a)	 	no such assets may be located outside the United States;
	 
	 	b)	 	no such assets may be set aside in connection with a change in the
Corporation’s financial health within the meaning of Internal Revenue Code Section
409A(b)(2); and
	 
	 	c)	 	no such assets may be set aside during a restricted period, as defined in
Internal Revenue Code Section 409A(b)(3)(B), i.e., in any period during which:

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	 	1)	 	a defined benefit pension plan maintained by the Corporation
(or any subsidiary, parent or affiliate) is in “at risk” status, as defined in
Internal Revenue Code Section 430(i);
	 
	 	2)	 	the Corporation is in bankruptcy; and
	 
	 	3)	 	if any defined benefit pension plan maintained by the
Corporation (or any subsidiary, parent or affiliate) terminates without
sufficient assets to discharge all of its benefit liabilities, such restriction
shall apply to the 12-month period beginning six months before the termination
date of the defined benefit pension plan.

	(H)	 	Section 8.04A is amended to read in its entirety as follows:
	 
	8.04A 	 	Form of Pension for a Married Participant Age 55 or Older Whose Supplementary
Retirement Allowance Starts After December 31, 2006 and Before July 1, 2008.

     This Section 8.04A shall apply in determining any supplementary retirement allowance that
starts after December 31, 2006 and before July 1, 2008 for a married Participant who is entitled to
the immediate commencement of a supplementary retirement allowance under Section 5 or Section 6 of
this SERP (because the married Participant retires, is age 55 or older and has completed two years
or more of Continuous or Credited Service). The amount of the married Participant’s supplementary
retirement allowance shall be equal to the Participant’s supplementary retirement allowance,
calculated under Section 5 or Section 6, whichever is applicable, payable in the form of a monthly
supplementary retirement allowance for the Participant’s life with a 50% Spouse supplementary
retirement allowance, payable for the Spouse’s life after the Participants death. The
Participant’s monthly supplementary retirement allowance shall be payable to the Participant
starting on (or as of) the first day of the seventh month immediately following the Participant’s
Retirement. The amount of this initial supplementary retirement allowance shall be equal to seven
(7) times the married Participant’s monthly supplemental retirement allowance. Effective from and
after January 1, 2007, this SERP shall conclusively presume that such a Participant irrevocably
elected the time and form of payment described above. Therefore, the Participant cannot elect any
other time or form of payment. If the married Participant is age 55 or older, but not age 65, his
supplementary

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retirement allowance starting date shall be deemed to be Participant’s Early Retirement Date
under Section 6.01 hereof. If the married Participant retires on his 65th birthday and before
July 1, 2008, his supplementary retirement allowance starting date shall be deemed to be the
Participant’s Normal Retirement Date under Section 5.01 hereof. If the married Participant retires
after his 65th birthday and before July 1, 2008, his supplementary retirement allowance starting
date shall be deemed to be the Participant’s actual supplementary retirement allowance benefit
commencement date under Section 5.02 hereof.

     If the married Participant dies during such twenty-four month period immediately following the
Participant’s Retirement, the Participant’s Spouse shall automatically be entitled to receive a
lump sum payment, calculated in accordance with Section 2.12 as of the date of the deceased
Participant’s death, equivalent to an immediate monthly lifetime supplementary survivor allowance
which is an income amount equal to the excess of a) over b) below:

	 	a)	 	50% of the monthly supplementary retirement allowance that would have been
payable to the Participant under this SERP at the time of his death, provided such
supplementary allowance had not been reduced by the Participant’s Basic Pension;
	 
	 	b)	 	any survivor pension payable to the Spouse under the Qualified Pension Plan
following the death of the Participant, or any survivor pension that would have been
payable had the benefits under the Qualified Pension Plan not been commuted or paid in
a lump sum. Where the Qualified Pension Plan is a plan as defined in Section 2.04 b)
or c), the survivor pension payable to the Spouse shall be equal to 50% of the
Participants Basic Pension as defined in Section 2.04.

     If the Participant’s Spouse dies before the Participant’s death, no survivor’s supplementary
retirement allowance or other death benefit shall be payable under this SERP.

     On or as soon as reasonably practicable after the first day of the month immediately following
the second anniversary of the Participant’s Retirement, a lump sum amount shall be paid to the
Participant, if then living, equal to the Participant’s then total benefit under this SERP,
calculated in accordance with the assumptions specified in Section 2.12 hereof as of the

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date of the Participant’s Retirement based on the Participant and, if applicable, Spouse’s
nearest age as of the second anniversary of the Participant’s Retirement. This lump sum payment
shall be paid to the Participant in lieu of any other benefit payments of any kind under this SERP.

     Payments under this Section 8.04A are subject to the conditions set forth in Section 14.

	(I)	 	Section 8.04B is added to read in its entirety as follows:
	 
	8.04B 	 	 Form of Pension for a Married Participant Age 55 or Older Whose Supplementary
Retirement Allowance is Paid After June 30, 2008.

     This Section 8.04B shall apply in determining any supplementary retirement allowance that is
paid after June 30, 2008 to a married Participant who is entitled to a supplementary retirement
allowance under Section 5 or Section 6 of this SERP (because the married Participant retires, is
age 55 or older and has completed two years or more of Continuous or Credited Service). The
married Participant’s SERP benefit shall be the lump sum equivalent value of the amount of the
married Participant’s supplementary retirement allowance under Section 5 or Section 6, whichever is
applicable, calculated on the basis of a joint and 50% Spouse survivor annuity form of payment with
benefit payments commencing immediately and in accordance with the lump sum assumptions described
in Section 2.12 as of the date of the Participant’s Retirement, adjusted with interest as
hereinafter described. This benefit shall be payable in two lump sum payments, the first of which
shall be made on or as soon as reasonably practicable six (6) months after the date of the
Participant’s Retirement and the second of which shall be made on or as soon as reasonably
practicable after the one year anniversary of the date of the Participant’s Retirement. The amount
of each lump sum payment shall be equal to one-half (1/2) of the sum of the amount determined under
(a), plus (b), plus (c), where:

     (a) is the lump sum equivalent value of the married Participant’s SERP benefit as
described above, calculated in accordance with Section 2.12 as of the Participant’s
Retirement Date;

     (b) is interest, based on the interest rate determined under Section 2.12 as of the
Participant’s Retirement Date, applied from the Participant’s Retirement Date to the date
six (6) months after his Retirement; and

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     (c) is interest, based on the interest rate determined under Section 2.12 as of the
Participant’s Retirement Date, applied to an amount equal to one-half (1/2) of the sum of
the amount determined under (a) above plus (b) above, thereby assuming that one-half (1/2)
of the amount determined under (a) above plus (b) above is paid to the Participant six (6)
months after his Retirement.

     Consequently, each lump sum payment shall be in the same amount.

     Effective from and after July 1, 2008, this SERP shall conclusively presume that such a
Participant irrevocably elected the times and forms of payments described above in lieu of any
other benefits under this SERP.

     If a married Participant dies before the first lump sum benefit is paid to the Participant,
the Participant’s Spouse shall be entitled to receive a lump sum payment equal to the lump sum
equivalent value of the 50% monthly supplementary retirement allowance that would have been payable
to the Spouse under Section 8.04A of this SERP had the Participant died prior to July 1, 2008,
calculated in accordance with Section 2.12 as of the Participant’s Retirement Date and credited
with interest at the interest rate determined under Section 2.12, as of the Participant’s
Retirement Date and applied from such date to the date of the Participant’s Death. The
Participant’s Spouse shall be entitled to receive a lump sum payment as soon as reasonably
practicable after the Participant’s death. If the married Participant dies after the first lump
sum benefit is paid to the Participant and before the second lump sum benefit is payable to the
Participant, the Spouse shall be entitled to receive a lump sum payment equal to the amount
calculated as hereinabove described, reduced by the amount of the first lump sum payment to the
Participant, but not to an amount less than zero.

     If the Participant’s Spouse dies before the Participant’s death and before the first lump sum
benefit is paid to the Participant, the beneficiary designated by the Participant shall be entitled
to receive a lump sum payment equal to the lump sum equivalent value of the discounted present
value of the guaranteed 120 monthly supplementary allowance payments the beneficiary would
otherwise have been entitled to receive, calculated in accordance with the assumptions in Section
2.12, credited with interest at the interest rate determined under Section 2.12, as of the
Participant’s Retirement Date and applied from such date to the date of the Participant’s death.

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If the Participant dies before the first lump sum payment is made to the Participant and is
not survived by his Spouse, the Participant’s Beneficiary shall be entitled to receive a single
lump sum payment as soon as reasonably practicable after the Participant’s death. If the
Participant dies after the first lump sum benefit is paid to the Participant and before the second
lump sum benefit is payable to the Participant, and is not survived by his Spouse, the beneficiary
designated by the Participant shall be entitled to receive a lump sum payment equal to the amount
calculated as hereinabove described, reduced by the amount of the first lump sum payment to the
Participant, but not to an amount less than zero.

     If the Participant’s beneficiary dies before the Participant’s death, any lump sum benefit
payable to a beneficiary shall be payable to the Participant’s estate.

     If the Participant dies after both lump sum benefit payments have been made to the
Participant, no survivor’s supplementary allowance or other death benefit shall be payable under
this SERP.

     Notwithstanding the foregoing, the timing and amount of the supplementary retirement allowance
and/or lump sum payments to the following retirees shall be as follows:

	 	 	 	 	 	 	 
	 	 	 	 	Timing and Amount	 	Timing and Amount
	Retired	 	Retirement	 	of the First Single	 	of the Second Single
	Participant	 	Date	 	Sum Payment	 	Sum Payment
	Paul Planet

	 	12-01-07
	 	In 2008; in an
amount equal to 13
monthly
supplementary
retirement
allowance payments
	 	January, 2009; in
an amount equal to
the remainder of
the equivalent lump
sum value of the
Participant’s
supplementary
retirement
allowance,
calculated as of
his Retirement date

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	 	 	 	 	Timing and Amount	 	Timing and Amount
	Retired	 	Retirement	 	of the First Single	 	of the Second Single
	Participant	 	Date	 	Sum Payment	 	Sum Payment
	John Weaver

	 	7-01-08
	 	January, 2009; in
an amount equal to
100% of the
equivalent lump sum
value of the
Participant’s
supplementary
retirement
allowance,
calculated as of
his Retirement date
	 	N/A
	 
	 	 	 	 	 	 
	Richard Zgol

	 	7-01-08
	 	January, 2009; in
an amount equal to
100% of the
equivalent lump sum
value of the
Participant’s
supplementary
retirement
allowance,
calculated as of
his Retirement date
	 	N/A

          The above-described lump sum payments shall be in lieu of any other benefits under this SERP.
Therefore, no lump sum payment shall be made to the Spouse of either John Weaver or Richard Zgol
upon their death after the payment of the above-described lump sum payment. However, if Paul
Planet dies before he receives his second single sum payment, his Spouse shall be entitled to the
survivor benefit hereinabove described.

          Payments under this Section 8.04A are subject to the conditions set forth in Section 14.

	(J)	 	Section 8.05A is amended to read in its entirety as follows:
	 
	8.05A 	 	Form of Pension for an Unmarried Participant After Age 55 Whose Supplementary
Retirement Allowance Starts After December 31, 2006 and Before July 1, 2008.

          This Section 8.05A shall apply in determining any supplementary retirement allowance or other
benefit that starts after December 31, 2006 and before July 1, 2008, for an unmarried Participant
who is entitled to the immediate commencement of a supplementary retirement allowance under Section
5 or Section 6 of this Plan (because the unmarried Participant retires, is age 55 or older and has
at least two years or more of Continuous Service or Credited Service).

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The amount of the unmarried Participant’s supplementary retirement allowance shall be equal to
the supplementary retirement allowance the unmarried Participant is entitled to receive under
Section 5 or Section 6, whichever is applicable, payable in the form of a lifetime monthly
supplementary retirement allowance with 120 monthly payments of the supplemental retirement
allowance guaranteed. This supplemental retirement allowance shall be paid to the Participant
starting on (or as of ) the first day of the seventh month immediately following the Participant’s
Retirement. The amount of this initial supplementary retirement allowance shall be equal to seven
(7) times the unmarried Participant’s monthly supplemental retirement allowance. Effective from
and after January 1, 2007, this SERP shall conclusively presume that such a Participant irrevocably
elected the time and form of payment described above. Therefore, the Participant cannot elect any
other time or form of payment.

     If the unmarried Participant is age 55 or older, but not age 65 or older, his supplementary
retirement allowance starting date shall be deemed to be the Participant’s Early Retirement Date
under Section 6.01. If the unmarried Participant retires on his 65th birthday and before July 1,
2008, his supplementary retirement allowance starting date shall be deemed to be the Participant’s
Normal Retirement Date under Section 5.01. If the unmarried Participant retires after his 65th
birthday and before July 1, 2008, his supplemental retirement allowance starting date shall be
deemed to be the Participant’s actual supplemental retirement allowance benefit commencement date
under Section 5.02 hereof.

     If the unmarried Participant dies during such twenty-four (24) month period immediately
following the Participant’s Retirement, the deceased Participant’s beneficiary designated under
Section 9.02(b) shall automatically receive a lump sum payment, calculated in accordance with
Section 2.12, calculated as of the date of the Participant’s death, in an amount equal to the
discounted present value of the remainder of the guaranteed 120 monthly supplementary allowance
payments.

     On or as soon as reasonably practicable on or after the first day of the month immediately
following the second anniversary of the start of the Participant’s Retirement, a lump sum amount
shall automatically be paid to the Participant, if then living, equal to the Participant’s then
total benefit under this SERP, calculated in accordance with Section 2.12 hereof as of the date of
the

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Participant’s Retirement. This lump sum amount shall be paid to the Participant in lieu of
any other benefit payment of any kind from this SERP.

     Payments under this Section 8.05A are subject to the conditions set forth in Section 14.

	(K)	 	Section 8.05B is added to read as follows:
	 
	8.05B 	 	 Form of Pension for an Unmarried Participant Age 55 or Older Whose Supplementary
Retirement Allowance is Paid After June 30, 2008.

     This Section 8.05B shall apply in determining any supplementary retirement allowance that is
paid after June 30, 2008 to an unmarried Participant who is entitled to the immediate commencement
of a supplementary retirement allowance under Section 5 or Section 6 of this SERP (because the
unmarried Participant retires, is age 55 or older and has completed two years or more of Continuous
or Credited Service). The unmarried Participant’s SERP benefit shall be the lump sum equivalent
value of the amount of the unmarried Participant’s supplementary retirement allowance under Section
5 or Section 6, whichever is applicable, calculated on the basis of a lifetime monthly
supplementary allowance with 120 monthly guaranteed payments with benefit payments commencing
immediately and in accordance with the lump sum assumptions described in Section 2.12 as of the
date of the Participant’s Retirement. This benefit shall be payable in two lump sum payments, the
first of which shall be made on or as soon as administratively practicable six (6) months
immediately following the date of the Participant’s Retirement and the second of which shall be
made on or as soon as administratively practicable after the one year anniversary of the
Participant’s Retirement. The amount of each lump sum payment shall be equal to one-half (1/2) of
the sum of (a), plus (b), plus (c), where:

     (a) is the lump sum value of the unmarried Participant’s SERP benefit, as described
above, calculated in accordance with Section 2.12 as of the Participant’s Retirement Date;

     (b) is interest, based on the interest rate determined under section 2.12 as of the
Participant’s Retirement Date, applied from the Participant’s Retirement Date to the date
six (6) months after his Retirement; and

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     (c) is interest, based on the interest rate determined under Section 2.12 as of the
Participant’s Retirement Date, applied to an amount equal to one-half of the sum of the
amount determined under (a) above plus (b) above, thereby assuming that one-half of the
amount determined under (a) above plus (b) above is paid to the Participant six (6) months
after his Retirement.

     Consequently, each lump sum payment shall be in the same amount.

     Effective from and after July 1, 2008, this SERP shall conclusively presume that such a
Participant irrevocably elected the times and forms of payments described above in lieu of any
other benefits under this SERP.

     If an unmarried Participant dies before the first lump sum benefit is paid to the Participant,
the beneficiary designated by the Participant shall be entitled to receive a lump sum payment equal
to the lump sum equivalent value of the discounted present value of the guaranteed 120 monthly
supplementary allowance payments the beneficiary would otherwise have been entitled to receive,
calculated in accordance with the assumptions in Section 2.12, credited with interest at the
interest rate determined under Section 2.12, as of the Participant’s Retirement Date and applied
from such date to the date of the Participant’s death. The Participant’s Beneficiary shall be
entitled to receive a single lump sum payment as soon as reasonably practicable after the
Participant’s death. If the unmarried Participant dies after the first lump sum benefit is paid to
the Participant and before the second lump sum benefit is payable to the Participant, the
beneficiary shall be entitled to receive a lump sum payment equal to the amount calculated as
hereinabove described, reduced by the amount of the first lump sum payment to the Participant, but
not to an amount less than zero.

     If the unmarried Participant’s beneficiary dies before the Participant’s death, any lump sum
benefit payable to a beneficiary shall be payable to the unmarried Participant’s estate. If the
unmarried Participant dies after both lump sum benefit payments have been made to the Participant,
no death benefit or other benefit shall be payable under this SERP.

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	(L)	 	Section 9.01 is amended to read in its entirety as follows:
	 
	9.01	 	Death after age 55, prior to Retirement and before July 1, 2008

	 	a)	 	In the event that a Participant dies while in the service of the Corporation
after having reached age 55 and having completed at least 2 years of Continuous or
Credited Service and prior to July 1, 2008, his Spouse shall be entitled to receive an
annual supplementary survivor allowance determined in accordance with Section 8.01
hereof as if the Participant had retired immediately prior to the date of his death
and, in the case of Retirement prior to January 1, 2005, had not elected an optional
form of pension in accordance with Section 8.03. However, where the survivor benefit
under the Qualified Pension Plan is payable in a lump sum, the survivor pension payable
to the Spouse shall be equal to the pension that could be provided by such lump sum,
calculated on an Actuarial Equivalent Value basis over the survivor’s lifetime.
	 
	 	b)	 	In the event there is no Spouse at the time of death of a Participant referred
to in paragraph a) of this Section 9.01, his beneficiary or, if he has not designated a
beneficiary, his estate shall receive a lump sum equal to the lump sum that would
otherwise have been payable under this SERP to the Participant’s estate as would be
determined under Section 8 if the Participant had retired immediately prior to the date
of his death. However, where the benefit payable to the designated beneficiary or
estate under the Qualified Pension Plan is payable in a lump sum, any amount payable to
the designated beneficiary or estate shall be equal to such lump sum.
	 
	 	c)	 	In the event that a Participant who has terminated his employment and who is
entitled to a deferred annual supplementary retirement allowance in accordance with
Section 10 dies after having reached age 55 and prior to payment commencement, his
Spouse shall be entitled to receive an annual supplementary survivor allowance
determined in accordance with the applicable provision in Section 8 hereof as if the
Participant had requested payment commencement of

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	 	 	 	his deferred annual supplementary retirement allowance on the first day of the
calendar month immediately preceding or coinciding with his date of death.
	 
	 	 	 	If the Participant is not survived by a Spouse at the time of death, his estate
shall receive a lump sum equal to the lump sum that would otherwise have been
payable under the SERP to the Participant’s estate as would be determined under
Section 8.05A as if the Participant had requested payment commencement of his
deferred annual supplementary retirement allowance on the first day of the calendar
month immediately preceding or coinciding with his date of death.

	(M)	 	Section 9.01A is added to read in its entirety as follows:
	 
	9.01A 	 	 Death after age 55, prior to Retirement and after June 30, 2008

	 	a)	 	If a married Participant dies while in the service of the Corporation, after
having reached age 55, having completed at least two years of Continuous Service or
Credited Service, and after June 30, 2008, his Spouse shall be entitled to receive a
lump sum benefit equal to the lump sum equivalent value of an immediate 50% monthly
supplementary retirement allowance to the Spouse, calculated in the same manner as a
post-retirement death benefit under Section 8.04B and the assumptions specified
therein, except that no interest shall be credited for the period from the date of the
Participant’s death to the date of the death benefit payment to the Spouse. This lump
sum benefit shall be paid to the Participant’s Spouse as soon as reasonably practicable
after the Participant’s death.
	 
	 	b)	 	If an unmarried Participant dies while in the service of the Corporation after
having reached age 55, having completed at least two years of Continuous Service or
Credited Service, and after June 30, 2008, his Beneficiary, or estate if there is no
Beneficiary; shall be entitled to receive the discounted present value of an immediate
guaranteed 120 monthly supplementary retirement payments to the Beneficiary calculated
in the same manner as a post-retirement death benefit under Section 8.05B and the
assumptions specified therein, except that no interest shall be credited for the period
from the date of the Participant’s death to the date of the death benefit payment to
the Beneficiary or estate.

5

 

	(N)	 	Section 9.02 is amended to read in its entirety as follows:
	 
	9.02	 	Death before age 55, prior to Termination of Employment and before July 1, 2008

	 	a)	 	In the event that a Participant dies while in service of the Corporation prior
to having reached age 55, after having completed at least 2 years of Continuous or
Credited Service, and before July 1, 2008, his Spouse or, if he is not survived by a
Spouse, his beneficiary or, if he has not named a beneficiary, his estate, shall
receive the lump sum value of the deferred supplementary retirement allowance that
would otherwise have been payable under the SERP, determined under the applicable
provision in Section 10 as if the Participant had voluntarily terminated his employment
with the Corporation. Such lump sum value shall be calculated in accordance with
Section 2.12 as of the date of the Participant’s death.
	 
	 	b)	 	In the event that a Participant who has terminated his employment and who is
entitled to a deferred annual supplementary allowance in accordance with the applicable
provision in Section 10 dies prior to having reached age 55, his Spouse or, if the
Participant is not survived by a Spouse, his beneficiary or, if he has not designated a
beneficiary, his estate shall receive the lump sum value of the deferred supplementary
retirement allowance that would otherwise have been payable under the SERP. Such lump
sum value shall be calculated under Section 2.12 as of the date of the Participant’s
death.

	(O)	 	Section 9.02A is added to read in its entirety as follows:
	 
	9.02A 	 	 Death before age 55, prior to Termination of Employment and after June 30, 2008

	 	a)	 	If a married Participant dies while in the service of the Corporation before
reaching age 55 and after having completed at least 2 years of Continuous Service and
Credited Service, and after June 30, 2008, his Spouse shall be entitled to receive a
lump sum benefit equal to the lump sum equivalent value of a deferred to age 55 fifty
percent monthly supplementary retirement allowance to the Spouse, calculated in
accordance with Section 10.06 and the assumptions

5

 

	 	 	 	specified therein, except that no interest shall be credited for the period from the
date of the Participant’s death to the date the death benefit is paid to his Spouse.
	 
	 	b)	 	If an unmarried Participant dies while in the service of the Corporation and
before reaching age 55 and after having completed at least 2 years of Continuous
Service or Credited Service, and after June 30, 2008, his Beneficiary, or estate if not
survived by a Beneficiary, shall be entitled to receive a lump sum benefit in an amount
equal to the lump sum equivalent value of a deferred to age 55 one hundred and twenty
guaranteed monthly payments the beneficiary would have otherwise been entitled to
receive, calculated in accordance with Section 10.06 and the assumptions specified
therein, except that no interest shall be credited for the period from the date of the
Participant’s death to the date the death benefit is paid to his Beneficiary or estate.

	(P)	 	Section 10.05 is amended, effective July 1, 2008, to read in its entirety as follows:
	 
	10.05	 	Termination of Employment After December 31, 2006 and Before the Earlier of Age 55 or
July 1, 2008.
	 
	 	 	Voluntary Termination:

          Effective from and after January 1, 2007 and before June 5, 2008, a Participant who
voluntarily terminates his service with the Corporation prior to his 55th birthday and
with at least 2 years of Continuous or Credited Service shall not be entitled to receive an annual
supplementary retirement allowance upon attaining age 55. Rather, the terminated Participant shall
be entitled on or as soon as reasonably practicable after the later of (i) his 55th
birthday, or (ii) the second anniversary of his Termination of Employment, to automatically be paid
the total value of his then SERP benefit, calculated in accordance with Section 2.12. If such a
terminated Participant dies before the payment of his SERP benefit and is survived by a Spouse, the
then lump sum value of the deceased Participant’s SERP benefit, shall be payable to the deceased
Participant’s Spouse, or, if the Participant is not survived by a Spouse, to his designated
beneficiary, in accordance with Section 9.02(b) hereof. This death benefit shall be paid on or as
soon as reasonably practicable after the terminated Participant’s death. If the deceased former
Participant is not survived by a Spouse and had not designated a beneficiary in accordance with

5

 

Section 9.02(b), such benefit shall be paid to the Participant’s estate. Payments under this
Section 10.05 are subject to the conditions in Section 14.

     Involuntary Termination:

     Effective from and after January 1, 2007 and before June 5, 2008, a Participant whose service
with the Corporation is involuntarily terminated prior to his 55th birthday and with at least 2
years of Continuous or Credited Service shall not be entitled to receive an annual supplementary
retirement allowance on or after the second anniversary of his Termination of Employment. Rather,
the terminated Participant shall be entitled on or as soon as reasonably practicable after the
second anniversary of his Termination of Employment, to automatically be paid the total value of
his then SERP benefit, calculated in accordance with Section 2.12 hereof based on the Participant’s
nearest age as of the second anniversary of the Participant’s Termination of Employment. If such a
terminated Participant dies before the second anniversary of his Termination of Employment and is
survived by a Spouse, the then lump sum value of the deceased former Participant’s SERP benefit,
shall be payable to the deceased Participant’s Spouse, or if the Participant is not survived by a
Spouse, to his designated beneficiary in accordance with Section 9.02(b) hereof. This death
benefit shall be paid on or as soon as reasonably practicable after the terminated Participant’s
death. If the deceased former Participant is not survived by a Spouse and had not designated a
beneficiary under Section 9.02(b), such benefit shall be paid to the Participant’s estate.

     Payments under this Section 10.05 are subject to the conditions in Section 14.

	(Q)	 	Section 10.06 is added, effective June 30, 2008, to read as follows:
	 
	10.06	 	Termination of Employment After June 30, 2008.

     Effective after June 30, 2008, a Participant who terminates his service (voluntarily or
involuntarily) with the Corporation prior to his 55th birthday and with at least 2 years
of Continuous or Credited Service shall not be entitled to receive an annual supplementary
retirement allowance upon attaining age 55. Rather, the terminated Participant shall be entitled
to receive the then value of his accrued early retirement benefit, calculated as of the date of his
Termination of Employment in the same manner as described in Section 8.04B, in the case of a

5

 

married Participant or in the same manner as described in Section 8.05B in the case of an
unmarried Participant, except that the assumed form of payment (i.e., the life annuity and 50%
Spouse survivor annuity for a married Participant or the life annuity with 120 monthly payments
guaranteed for an unmarried Participant) shall be assumed to commence when the Participant would
have attained age 55. This lump sum benefit shall be payable in two lump sum payments as
hereinafter provided. The amount of each lump sum payment shall be equal to one-half (1/2) of (a)
plus (b), plus (c), where:

     (a) is the then lump sum value of the Terminated Participant’s accrued early retirement
benefit, which shall be assumed to commence when the Participant would have attained age 55;

     (b) is interest, based on the interest rate determined under Section 2.12 as of the
Participant’s Termination of Employment, applied from the Participant’s Termination of
Employment date to a date six (6) months after his Termination of Employment; and

     (c) is interest, based on the interest rate determined under Section 2.12 as of his
termination of Employment date, applied to an amount equal to one-half of the sum of the
amount determined under (a) above plus (b) above, thereby assuming that one-half of the
amount determined under (a) above plus (b) above is paid to the Participant six (6) months
after his Termination of Employment.

     Consequently each of the lump sum payments shall be in the same amount.

     This Termination of Employment benefit shall be payable in two lump sum payments, the first of
which shall be made on or as soon as reasonably practicable six (6) months immediately following
the Participant’s Termination of Employment and the second of which shall be made on or as soon as
reasonably practicable after the one-year anniversary of the Participant’s Termination of
Employment. If such a terminated Participant dies before the payment of the then value of his
accrued early retirement benefit under this SERP and is survived by a Spouse, the lump sum
equivalent value of a deferred to age 55 fifty percent survivor income benefit to the Spouse
beginning when the Participant would have attained age 55, determined as of the date of the
deceased Participant’s Termination of Employment, shall be payable to the deceased

5

 

Participant’s Spouse, or, if the Participant is not survived by a Spouse, the value of a
deferred to age 55 one hundred and twenty months of guaranteed monthly payments to the
Participant’s benefit shall be paid to his designated beneficiary as soon as reasonably practicable
after the date of the Participant’s death. If the deceased former Participant had not designated a
Beneficiary, the lump sum benefit otherwise payable to the Beneficiary shall be paid as soon as
reasonably practicable to the Participant’s estate.

     Payments under this Section 10.06 are subject to the conditions in Section 14.

5

 

(R) Appendix A is amended to read in its entirety as follows:

List of Participating Subsidiaries or Associated Companies

Abitibi Consolidated Inc.

Abitibi-Consolidated Corp. (formerly Donohue Industries Inc.)

Abitibi Consolidated Sales Corporation

Augusta Newsprint Corporation

Alabama River Pulp Company, Inc.

Bowater Incorporated

5EX-10.12

EXHIBIT 10.12

AbitibiBowater Inc.

Supplemental Retirement Savings Plan

As Amended and Restated Effective as of January 1, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Article 1 INTRODUCTION
	 	 	1	 
	1.1 Plan History
	 	 	1	 
	1.2 Plan Purpose
	 	 	1	 
	 
	 	 	 	 
	Article 2 DEFINITIONS
	 	 	2	 
	2.1 “Account”
	 	 	2	 
	2.2 “Base Salary”
	 	 	2	 
	2.3 “Beneficiary”
	 	 	2	 
	2.4 “Bonus”
	 	 	2	 
	2.5 “Bowater”
	 	 	2	 
	2.6 “Change in Control”
	 	 	2	 
	2.7 “Code”
	 	 	4	 
	2.8 “Company”
	 	 	4	 
	2.9 “Disability”
	 	 	4	 
	2.10 “Eligible Employee”
	 	 	4	 
	2.11 “Employer”
	 	 	4	 
	2.12 “Employer Contribution”
	 	 	4	 
	2.13 “ERISA”
	 	 	4	 
	2.14 “Excess Automatic Company Contribution”
	 	 	5	 
	2.15 “Excess Contributions”
	 	 	5	 
	2.16 “Excess Matching Contribution”
	 	 	5	 
	2.17 “Participant”
	 	 	5	 
	2.18 “Plan”
	 	 	5	 
	2.19 “Plan Administrator”
	 	 	5	 
	2.20 “Plan Year”
	 	 	5	 
	2.21 “Retirement Savings Plan”
	 	 	5	 
	2.22 “Salary Deferral”
	 	 	5	 
	2.23 “Separation from Service”
	 	 	5	 
	2.24 “Year of Service”
	 	 	5	 
	 
	 	 	 	 
	Article 3 ELIGIBILITY AND PARTICIPATION
	 	 	6	 
	3.1 Eligibility for Participation
	 	 	6	 
	3.2 Participation
	 	 	6	 
	3.3 Cessation of Participation
	 	 	6	 
	 
	 	 	 	 
	Article 4 CONTRIBUTIONS AND DEFERRALS
	 	 	6	 
	4.1 Excess Matching Contributions
	 	 	6	 
	4.2 Excess Automatic Company Contributions
	 	 	7	 
	4.3 Employer Contributions
	 	 	7	 
	4.4 Salary Deferrals
	 	 	7	 
	 
	 	 	 	 
	Article 5 ACCOUNTS
	 	 	7	 
	5.1 Accounts
	 	 	7	 
	5.2 Investments
	 	 	7	 

 

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	5.3 Statements
	 	 	8	 
	 
	 	 	 	 
	Article 6 VESTING
	 	 	8	 
	6.1 Vesting Schedule
	 	 	8	 
	6.2 Accelerated Vesting
	 	 	9	 
	6.3 Forfeitures
	 	 	10	 
	 
	 	 	 	 
	Article 7 DISTRIBUTION OF ACCOUNTS
	 	 	10	 
	7.1 Timing of Distribution
	 	 	10	 
	7.2 Benefits Upon Separation from Service
	 	 	10	 
	7.3 Benefits Upon Death
	 	 	10	 
	7.4 Benefits Upon Disability
	 	 	11	 
	7.5 Right of Offset
	 	 	11	 
	7.6 Taxes
	 	 	11	 
	7.7 Additional Discretion to Accelerate Distribution
	 	 	11	 
	 
	 	 	 	 
	Article 8 PLAN ADMINISTRATION
	 	 	12	 
	8.1 Plan Administration and Interpretation
	 	 	12	 
	8.2 Powers, Duties, Procedures
	 	 	12	 
	8.3 Information
	 	 	12	 
	8.4 Indemnification of Plan Administrator
	 	 	12	 
	8.5 Claims Procedure
	 	 	13	 
	 
	 	 	 	 
	Article 9 AMENDMENT AND TERMINATION
	 	 	14	 
	9.1 Authority to Amend and Terminate
	 	 	14	 
	9.2 Existing Rights
	 	 	15	 
	 
	 	 	 	 
	Article 10 MISCELLANEOUS
	 	 	15	 
	10.1 No Funding
	 	 	15	 
	10.2 General Creditor Status
	 	 	15	 
	10.3 No Assignment
	 	 	15	 
	10.4 Notices and Communications
	 	 	15	 
	10.5 Limitation of Participant’s Rights
	 	 	15	 
	10.6 Participants Bound
	 	 	16	 
	10.7 Receipt and Release
	 	 	16	 
	10.8 Governing Law and Severability
	 	 	16	 
	10.9 Headings
	 	 	16	 

ii

 

AbitibiBowater Inc.

Supplemental Retirement Savings Plan

As Amended and Restated Effective as of January 1, 2009

ARTICLE 1

INTRODUCTION

     1.1 Plan History. Bowater Incorporated (“Bowater”) established and maintains the
Bowater Incorporated Compensatory Benefits Plan, originally effective January 1, 1985, and last
amended and restated effective February 26, 1999 (the “Compensatory Benefits Plan”). In response
to the American Jobs Creation Act of 2004 and the enactment of Section 409A of the Internal Revenue
Code (the “Code”), Bowater initially amended the Compensatory Benefits Plan during the transition
period pursuant to the Second Amendment for that plan to comply with Code Section 409A. Under the
Second Amendment, Bowater amended the Compensatory Benefits Plan, effective as of December 31,
2004, to freeze all contributions to the Compensatory Benefits Plan, such that all account balances
under the Compensatory Benefits Plan are ‘grandfathered’ within the meaning of Code Section 409A.

Bowater adopted the Bowater Incorporated Supplemental Retirement Savings Plan, effective as of
January 1, 2005, as a new nonqualified deferred compensation plan and as a replacement plan for
that portion of the Compensatory Benefits Plan that maintained account balances during the Code
Section 409A transition period that are subject to the provisions of Code Section 409A. Effective
as of October 30, 2008, AbitibiBowater Inc. (the “Company”) assumed sponsorship of the Bowater
Incorporated Supplemental Retirement Savings Plan from Bowater, and such plan was renamed the
AbitibiBowater Inc. Supplemental Retirement Savings Plan (the “Plan”).

This Plan has been prepared to comply with the provisions of Code Section 409A, and any regulations
issued thereunder. The Plan shall be interpreted and administered consistent with this intent and
shall apply to all amounts deferred under the Plan on and after January 1, 2005. The Company
reserves the right to amend or modify the Plan in order to comply with regulations promulgated by
the Department of Treasury under Code Section 409A.

     1.2 Plan Purpose. The purpose of the Plan is to provide certain eligible employees of
the Company with a means to defer receipt of a portion of their compensation and to receive Company
contributions for retirement purposes that cannot be received under the Bowater Incorporated
Retirement Savings Plan because of Code limitations. For reference, while the Plan allowed
eligible employees to defer receipt of a portion of their compensation for periods beginning
January 1, 2005 through December 31, 2008, no otherwise eligible employee elected to make any such
deferral. As a result, no “Salary Deferrals” (as defined herein) are credited to the Plan.
References contained herein are included for compliance with documentation requirements of Code
Section 409A.

     The Plan is an unfunded plan maintained by the Company primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated employees within the
meaning of Sections 201, 301 and 401 of the Employee Retirement Income Security Act of 1974
(“ERISA”). In addition, for periods before January 1, 2009, to the extent that contributions are
made under the Plan solely for the purpose of providing benefits for certain

 

 

employees in excess of the limitations on contributions and benefits imposed by Code Section
415, such portion of the Plan shall be treated as a separate plan that is an excess benefit plan
(within the meaning of ERISA Section 3(36)).

ARTICLE 2

DEFINITIONS

Wherever used herein, the following terms have the meanings set forth below, unless a different
meaning is clearly required by the context:

     2.1 “Account”.means an account established for the benefit of a Participant under Section 5.1,
which may include one or more sub-accounts.

     2.2 “Base Salary”.means the annual base salary rate payable by the Employer to an Eligible
Employee for services performed during any Plan Year that would be includible in the Eligible
Employee’s gross income for such year, determined before deductions are made with respect to the
Plan, the Retirement Savings Plan or any other plan maintained by the Employer permitting pre-tax
contributions, such as an Employer-sponsored plan established under Code Section 125. Base Salary
does not include income from stock option exercises, restricted stock or restricted stock units,
payments under the Bowater Incorporated Mid-Term Incentive Plan (or similar plan), the Eligible
Employee’s Bonus, or any other type of incentive award or payments or contributions to group
insurance and other employee benefit plans maintained by the Eligible Employee’s Employer.

     2.3 “Beneficiary”.means the individual or entity designated as the Participant’s Beneficiary
under the Retirement Savings Plan. If there is no Beneficiary designated under the Retirement
Savings Plan, then the rules under that plan shall control for determining the Participant’s
Beneficiary for purposes of the Plan.

     2.4 “Bonus”.means the annual bonus payable under the Employer’s annual incentive plan or
program and does not include any other cash bonus, non-recurring or multi-year bonus.

     2.5 “Bowater”.means Bowater Incorporated, a Delaware corporation which merged with
Abitibi-Consolidated Inc., effective as of October 29, 2007, to form the Company.

     2.6 “Change in Control”.of the Company shall be deemed to have occurred upon:

     (a) the date that any Person is or becomes an Acquiring Person;

     (b) the date that the Company’s stockholders approve a merger, consolidation or reorganization
of the Company with another corporation or other Person, unless, immediately following such merger,
consolidation or reorganization, (i) at least 50% of the combined voting power of the outstanding
securities of the resulting entity would be held in the aggregate by the stockholders of the
Company as of the record date for such approval (provided that securities held by any individual or
entity that is an Acquiring Person, or who would be an Acquiring Person if 5% were substituted for
20% in the definition of such term, shall not be counted as securities held by the stockholders of
the Company, but shall be counted as outstanding

2

 

securities for purposes of this determination), or (ii) at least 50% of the board of directors
or similar body of the resulting entity are Continuing Directors;

     (c) the date the Company sells or otherwise transfers all or substantially all of the
Company’s assets to another corporation or other Person, unless, immediately following such sale or
transfer, (i) at least 50% of the combined voting power of the outstanding securities of the
acquiring entity would be held in the aggregate by the stockholders of the Company as of the record
date for such approval (provided that securities held by any individual or entity that is an
Acquiring Person, or who would be an Acquiring Person if 5% were substituted for 20% in the
definition of such term, shall not be counted as securities held by the stockholders of the
Company, but shall be counted as outstanding securities for purposes of this determination), or
(ii) at least 50% of the board of directors or similar body of the acquiring entity are Continuing
Directors; or

     (d) the date on which less than 50% of the total membership of the Board consists of
Continuing Directors.

     For purposes of this Section, the following terms shall have the following meanings:

	 	(i)	 	“Acquiring Person” shall mean the Beneficial Owner, directly or
indirectly, of securities representing 20% or more of the combined voting power
of the Company’s then outstanding securities, not including (except as provided
in clause (A) of the next sentence) securities of such Beneficial Owner
acquired pursuant to an agreement allowing the acquisition of up to and
including 50% of such voting power approved by two-thirds of the members of the
Board who are Board members before the Person becomes a Beneficial Owner,
directly or indirectly, of securities representing 5% or more of the combined
voting power of the Company’s then outstanding securities. Notwithstanding the
foregoing, (A) securities acquired pursuant to an agreement described in the
preceding sentence will be included in determining whether a Beneficial Owner
is an Acquiring Person if, subsequent to the approved acquisition, the
Beneficial Owner acquires 5% or more of such voting power other than pursuant
to such an agreement so approved; and (B) a Person shall not be an Acquiring
Person if such Person is eligible to and files a Schedule 13G under the
Securities and Exchange Act of 1934 with respect to such Person’s status as a
Beneficial Owner of all securities of the Company of which the Person is a
Beneficial Owner.
	 
	 	(ii)	 	“Affiliate” and “Associate” shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under
the Securities and Exchange Act of 1934, as in effect on the date hereof.
	 
	 	(iii)	 	“Beneficial Owner” of securities shall mean (A) a Person who
beneficially owns such securities, directly or indirectly, or (B) a Person who
has the right to acquire such securities (whether such right is exercisable
immediately or only with the passage of time) pursuant to any agreement,

3

 

	 	 	 	arrangement or understanding (whether or not in writing) or upon the
exercise of conversion rights, exchange rights, warrants, options or
otherwise.
	 
	 	(iv)	 	“Continuing Directors” shall mean any member of the Board who
(A) was a member of the Board immediately prior to the date of the event that
would constitute a Change in Control, and any successor of a Continuing
Director while such successor is a member of the Board, (B) who is not an
Acquiring Person or an Affiliate or Associate of an Acquiring Person and (C) is
recommended or elected to succeed the Continuing Director by a majority of the
Continuing Directors.
	 
	 	(v)	 	“Person” shall mean any individual, corporation, partnership,
group, association or other “person” as such term is used in Sections 13(d) and
14(d) of the Securities and Exchange Act of 1934.

     2.7 “Code”.means the Internal Revenue Code of 1986, as amended from time to time, and the
regulations and rulings issued thereunder. Reference to any section or subsection of the Code
includes reference to any comparable or succeeding provisions of any legislation that amends,
supplements or replaces that section or subsection.

     2.8 “Company”.means AbitibiBowater Inc., a Delaware corporation, or any successor corporation
thereto.

     2.9 “Disability”.means the Participant is determined totally disabled by the Social Security
Administration.

     2.10 “Eligible Employee”.means an employee of the Employer who is (i) an “eligible employee”
within the meaning of the Retirement Savings Plan and (ii) a member of a select group of management
or highly compensated employees within the meaning of ERISA. In addition, for periods before
January 1, 2009, an employee who received contributions that were solely in excess of Code Section
415 was an Eligible Employee for the portion of the Plan that was the excess benefit plan only and
was not considered an Eligible Employee for any other purpose under the Plan. Notwithstanding the
foregoing, an employee who participates in the AbitibiBowater U.S. Supplemental Executive
Retirement Plan (formerly the Abitibi Consolidated U.S. Supplemental Executive Retirement Plan) and
is listed on Exhibit A to the Plan shall not be an Eligible Employee.

     2.11 “Employer”.means the Company and each other entity affiliated with the Company that is a
participating employer under the Retirement Savings Plan.

     2.12 “Employer Contribution”.means an Employer contribution equal to a specified percentage of
a Participant’s Base Salary and Bonus, as described in Section 4.3.

     2.13 “ERISA”.means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and the regulations and rulings issued thereunder.

4

 

     2.14 “Excess Automatic Company Contribution”.means an Employer contribution to a Participant’s
Account under Section 4.2 that, when added to the amount contributed on the Participant’s behalf
under the Retirement Savings Plan as an automatic company contribution for a Plan Year, is equal to
6.5% of Compensation for such Plan Year.

     2.15 “Excess Contributions”.means Employer contributions that are Excess Matching
Contributions and/or Excess Automatic Company Contributions.

     2.16 “Excess Matching Contribution”.means an Employer contribution to a Participant’s Account
under Section 4.1 that would have been contributed to the Participant’s account as a matching
contribution under the Retirement Savings Plan pursuant to its terms, but which could not be
contributed due to the application of Code limitations.

     2.17 “Participant”.means a current or former Eligible Employee who participates in the Plan in
accordance with Article 3 of the Plan and maintains an Account balance hereunder.

     2.18 “Plan”.means the AbitibiBowater Inc. Supplemental Retirement Savings Plan (formerly,
Bowater Incorporated Supplemental Retirement Savings Plan), as provided herein and as may be
amended from time to time.

     2.19 “Plan Administrator”.means the Human Resources and Compensation Committee of the Board of
Directors of the Company (the “HRCC”) or its delegate.

     2.20 “Plan Year”.means the calendar year.

     2.21 “Retirement Savings Plan”.means the AbitibiBowater Inc. Retirement Savings Plan
(formerly, Bowater Incorporated Retirement Savings Plan), effective as of January 1, 2007, as
amended from time to time.

     2.22 “Salary Deferral”.means the portion of Base Salary deferred by a Participant under
Section 4.4 for Plan Years beginning January 1, 2007 and /or January 1, 2008.

     2.23 “Separation from Service”.means the Participant’s death, retirement or other termination
of employment with the Company and all related entities of the Company, or as otherwise provided by
the Department of Treasury in regulations promulgated under Code Section 409A. Notwithstanding the
foregoing, the Participant’s employment relationship with the Company and all related entities of
the Company is treated as continuing intact while the individual is on a military leave, sick leave
or other bona fide leave of absence if the period of such leave does not exceed six months (or
longer, if required by statute or contract). If the period of the leave exceeds six months and the
Participant’s right to reemployment is not provided either by statute or contract, the employment
relationship is deemed to terminate on the first date immediately following such six-month period.

     2.24 “Year of Service”.means a Participant’s year of service with the Employer within the
meaning of the Retirement Savings Plan.

5

 

ARTICLE 3

ELIGIBILITY AND PARTICIPATION

     3.1 Eligibility for Participation.

     (a) An Eligible Employee shall be entitled to participate in the Plan and receive Excess
Contributions under Sections 4.1 and 4.2 if the Eligible Employee is employed by the Employer in
Salary Grade 29 or higher.

     (b) An Eligible Employee shall be entitled to participate in the Plan and receive Employer
Contributions under Section 4.3 if the Eligible Employee:

	 	(i)	 	is employed by the Employer in Salary Grade 43 or higher; and
	 
	 	(ii)	 	directly reports to the Chief Executive Officer of the Company.

     3.2 Participation.

     (a) An Eligible Employee described in Section 3.1(a) shall participate in the Plan and receive
Excess Contributions under Sections 4.1 and 4.2 of the Plan for any Plan Year (or portion thereof)
during which the Eligible Employee is employed in such capacity.

     (b) An Eligible Employee described in Section 3.1(b) shall participate in the Plan and receive
Employer Contributions under Section 4.3 of the Plan for any Plan Year (or portion thereof) during
which the Eligible Employee is employed in such capacity.

     3.3 Cessation of Participation.

     (a) A Participant shall cease to be eligible for Excess Contributions and/or Employer
Contributions, as applicable, for any Plan Year for which the Participant fails to meet the
requirements of Section 3.1. Such Participant shall remain an inactive participant in the Plan
until his Account has been paid in full in accordance with Article 7 of the Plan.

     (b) A Participant shall cease to be an active participant in the Plan upon his Separation from
Service. No Excess Contributions or Employer Contributions shall be made to the Plan with respect
to Base Salary or Bonus paid to the Participant after such Separation from Service. Upon
Separation from Service or Disability, a Participant shall remain an inactive participant in the
Plan until his Account has been paid in full in accordance with Article 7 of the Plan.

ARTICLE 4

CONTRIBUTIONS AND DEFERRALS

     4.1 Excess Matching Contributions. Each Plan Year, the Employer shall make Excess
Matching Contributions to the Account of each Eligible Employee described in Section 3.1(a) in an
amount that would have been contributed to the Participant’s account under the Retirement Savings
Plan pursuant to its terms, but which could not be contributed to the Participant’s account in the
Retirement Savings Plan due to the application of Code limitations.

6

 

     4.2 Excess Automatic Company Contributions. Each Plan Year, the Employer shall make
Excess Automatic Company Contributions to the Account of each Eligible Employee described in
Section 3.1(a) in an amount equal to the difference between (i) 6.5% of the Participant’s
“Compensation,” as such term is defined under the Retirement Savings Plan, and (ii) the amount
contributed to the Participant’s account under the Retirement Savings Plan for such Plan Year as an
automatic company contribution. The intent of the foregoing is to provide such Eligible Employee
with a total such contribution equal to 6.5% of the Participant’s Compensation between the
Retirement Savings Plan and this Plan.

     4.3 Employer Contributions. Each Plan Year, the Employer shall make Employer
Contributions to the Account of each Eligible Employee described in Section 3.1(b) as follows: (i)
for the Chief Executive Officer of the Company, in an amount equal to 12% of his Base Salary plus
Bonus for the Plan Year; and (ii) for all other eligible Participants, in an amount equal to 10% of
their Base Salary plus Bonus for the Plan Year.

     4.4 Salary Deferrals. No Salary Deferrals shall be permitted under the Plan for any
Plan Year beginning on and after January 1, 2009. Any Salary Deferrals previously credited to a
Participant’s Account shall remain vested in accordance with Section 6.1 and shall be distributed
in accordance with Article 7.

ARTICLE 5

ACCOUNTS

     5.1 Accounts. The Plan Administrator shall establish an Account for each Participant
to reflect Excess Contributions, Employer Contributions and Salary Deferrals, if any, made for the
Participant’s benefit together with any adjustments for gains or losses due to investment
experience in accordance with Section 5.2. Separate sub-accounts may be established for each type
of contribution or deferral under the Plan. Excess Contributions and Employer Contributions shall
be credited to a Participant’s Account as of the end of each monthly payroll period. Following the
close of each Plan Year, the Plan Administrator shall perform an annual reconciliation of each
Participant’s Account and make any necessary adjustments to a Participant’s Account. The Accounts
are established solely for the purposes of tracking contributions, deferrals and any income
adjustments thereto. The Accounts shall not be used to segregate assets for payment of any amounts
deferred or allocated under the Plan.

     5.2 Investments. The Plan Administrator shall make available one or more investment
funds in which amounts credited to each Participant’s Account shall be deemed invested, in
accordance with the Participant’s directions. Any such directions shall be effective only in
accordance with such rules as the Plan Administrator may establish and applicable federal and state
law. If a Participant does not make investment elections with respect to amounts credited to his
Account, such amounts shall be deemed invested in such investment fund as the Plan Administrator
may direct.

     (a) A Participant shall make his investment fund selections at such time and in such manner as
permitted by the Plan Administrator, which may include telephone or electronic delivery.
Investments must be made in whole percentages. A Participant may change his

7

 

investment elections at any time, or may reallocate amounts invested among the investment
funds available under the Plan.

     (b) Notwithstanding the foregoing provisions of this Section 5.2, Excess Matching
Contributions made in Plan Years 2005 and 2006 shall be deemed invested in the AbitibiBowater Stock
Fund (as successor to the Bowater Stock Fund) offered under the Retirement Savings Plan. Effective
as of January 1, 2007, Participants credited with such Excess Matching Contributions may change
such deemed investment pursuant to this Section 5.2. If no investment change is made, such Excess
Matching Contributions shall remain deemed invested in the AbitibiBowater Stock Fund (or such other
deemed investment as the Plan Administrator may direct if such Fund is no longer offered under the
Retirement Savings Plan).

     (c) Any account maintenance fees and expense charges for transactions performed for each
Participant’s Account shall be charged to the Participant’s Account. Other Plan charges and
administrative expenses shall be paid by the Employer.

     5.3 Statements. As soon as practicable following the last business day of each
calendar quarter the Plan Administrator (or its designee) shall provide the Participant with a
statement of such Participant’s Account reflecting the income, gains and losses (realized and
unrealized), amounts of deferrals, if any, and distributions with respect to such Account since the
prior statement.

ARTICLE 6

VESTING

     6.1 Vesting Schedule. Subject to Sections 6.2 and 6.3, a Participant shall become
fully vested and have a nonforfeitable right to all Excess Matching Contributions, Excess Automatic
Company Contributions and Employer Contributions, if any, credited to the Participant’s Account,
adjusted for income, gains and losses attributable thereto, as provided below.

	 	 	 
	Contribution	 	Schedule
	Excess Match Contributions

	 	§   Credited before January 1, 2009, Fully
vested

	 
	 	 
	 

	 	§   Credited on and after January 1, 2009, Upon
three Years of Service

	 
	 	 
	Excess Automatic Contributions

	 	Upon three Years of Service
	 
	 	 
	Employer Contributions

	 	Upon three Years of Service
	 
	 	 
	Salary Deferrals

	 	Fully vested

     Subject to Section 6.2, if the Participant incurs a Separation from Service with the Employer
before completing three Years of Service with the Employer, all amounts credited to the
Participant’s Account as an Excess Matching Contribution (on and after January 1, 2009), an Excess
Automatic Contribution, and/or Employer Contribution, and any income or gain attributable thereto,
shall be forfeited.

8

 

     6.2 Accelerated Vesting. Under certain circumstances, a Participant shall become
vested and have a nonforfeitable right to all or a portion of the Excess Matching Contributions,
Excess Automatic Company Contributions and Employer Contributions, if any, credited to the
Participant’s Account, adjusted for income, gains and losses attributable thereto, pursuant to an
accelerated vesting schedule, as provided below. Except as otherwise provided in a Participant’s
employment or other individual agreement, “cause” for purposes of this Section 6.2 shall be
determined by the Company in its sole discretion.

     (a) For any Excess Automatic Company Contributions and Employer Contributions credited to a
Participant’s Account before January 1, 2009, the following rules shall apply if a Participant
incurs a Separation from Service under the circumstances described below before any such
Contributions become fully vested and nonforfeitable:

	 	(i)	 	If a Participant Separates from Service due to death, the
Participant incurs a Disability or if a Change in Control occurs (irrespective
of a Separation from Service), then the Participant shall become fully vested
and have a nonforfeitable right to any such Contributions, adjusted for income,
gains and losses attributable thereto.
	 
	 	(ii)	 	If a Participant’s incurs a Separation from Service due to an
involuntary termination by the Employer without cause:

	 	(A)	 	during the 24 month period that begins on
October 29, 2007, then the Participant shall become fully vested in and
have a nonforfeitable right to his Excess Automatic Company
Contributions and Employer Contributions, if any, adjusted for income,
gains and losses attributable thereto.
	 
	 	(B)	 	after the 24 month period that begins on
October 29, 2007, then the Participant shall become vested in a portion
of any Excess Automatic Company Contributions and any Employer
Contributions, adjusted for income, gains and losses attributable
thereto, determined by multiplying the Participant’s Excess Automatic
Company Contributions and Employer Contributions, if any, by a
fraction, the numerator of which is the Participant’s number of
completed months of service with the Employer, and the denominator of
which is 36.

     (b) For any Excess Matching Contributions, Excess Automatic Company Contributions and Employer
Contributions credited to a Participant’s Account on and after January 1, 2009, if a Participant
incurs a Separation from Service due to an involuntary termination by the Employer without cause,
death or a Disability before the Participant becomes vested in any such contributions, then the
Participant shall become vested in a prorata portion of such contributions, if any, adjusted for
income, gains and losses attributable thereto. Such prorata portion shall be determined by
multiplying any such Contributions by a fraction, the numerator of which is the Participant’s
number of completed months of service with the Employer, and the denominator of which is 36.

9

 

     6.3 Forfeitures. Notwithstanding any provision in the Plan to the contrary, if a
Participant voluntarily Separates from Service with the Employer before attaining age 55, one-half
of the aggregate amount of Excess Matching Contributions, Excess Automatic Company Contributions
and Employer Contributions credited to a Participant’s Account on and after January 1, 2009 (and
any income or gain attributable thereto) shall be forfeited, regardless of whether the Participant
completed three Years of Service with the Employer before the date of his Separation from Service.

ARTICLE 7

DISTRIBUTION OF ACCOUNTS

     7.1 Timing of Distribution. Distribution of the vested portion of a Participant’s
Account shall be made on the earlier to occur of:

	 	(i)	 	the date set forth in Section 7.2 with respect to the
Participant’s Separation from Service (other than due to death or Disability);
	 
	 	(ii)	 	the date set forth in Section 7.3 with respect to the
Participant’s death; or
	 
	 	(iii)	 	the date set forth in Section 7.4 with respect to the
Participant’s Disability.

Notwithstanding any other provision of the Plan to the contrary, in no event shall the distribution
of any Account be accelerated at a time earlier than which it would otherwise have been paid,
whether by amendment of the Plan, exercise of the Plan Administrator’s discretion or otherwise,
except as permitted by the Treasury Regulations issued pursuant to Code Section 409A.

     7.2 Benefits Upon Separation from Service. Upon a Participant’s Separation from
Service for any reason other than death or Disability, the balance of the Participant’s Account
shall be paid in two installments as follows, subject to any reasonable administrative delays in
the processing of payment:

     (a) One-half of the Participant’s Account (determined as of his Separation from Service) shall
be paid as of the first day of the seventh month following the Participant’s Separation from
Service; and

     (b) The remaining portion of the Participant’s Account shall be paid on the one-year
anniversary date of the Participant’s Separation from Service.

Effective with the Participant’s Separation from Service, the Participant shall not have the right
to invest the balance of his Account. In lieu thereof, interest at the one-year LIBOR rate
published in the Wall Street Journal on the Participant’s Separation from Service date shall be
credited to the Participant’s Account in consideration for the delay in payment.

     7.3 Benefits Upon Death. Upon the Participant’s death, the Plan Administrator shall
pay to the Participant’s Beneficiary a benefit equal to the remaining balance in the Participant’s
Account as of his date of death in a lump sum payment. Payment shall be made following the date of
the Participant’s death, but no later than the end of the calendar year in which the

10

 

Participant’s death occurs or, if later, the 15th day of the third month following
the date of the Participant’s death.

     7.4 Benefits Upon Disability. A Participant shall receive the balance of his Account
in a lump sum payment upon incurrence of a Disability. The Participant’s Account shall be valued
as of the date of Disability as determined by the Social Security Administration, and payment shall
be made following such date, but no later than the end of the calendar year following the date of
Disability or, if later, the 15th day of the third month following the date of
Disability.

     7.5 Right of Offset. The Employer shall have the right to offset any amounts payable
to a Participant under the Plan to reimburse the Employer for liabilities or obligations of the
Participant to the Employer if the following conditions are met:

     (a) the liabilities or obligations of the Participant to the Employer were incurred in the
ordinary course of the service relationship between the Participant and the Employer;

     (b) the entire amount to be offset does not exceed $5,000 in any taxable year of the
Participant; and

     (c) the offset is made at the same time and in the same amount as the liabilities or
obligations otherwise would have been due and collected from the Participant.

     7.6 Taxes. Income taxes and other taxes payable with respect to an Account shall be
deducted from amounts payable under the Plan. All federal, state or local taxes that the Plan
Administrator determines are required to be withheld from any payments made pursuant to this
Article 7 shall be withheld. The Plan Administrator shall have the discretion to make a
distribution, or accelerate the time or schedule of payment, from a Participant’s Account if
payment is required for:

     (a) FICA, FUTA and/or the corresponding withholding provisions of applicable state and local
taxes with respect to compensation deferred under the Plan. Any such distribution shall not exceed
the aggregate of such tax withholding and shall reduce the Participant’s Account balance to the
extent of such distributions; or

     (b) payment of state, local or foreign tax obligations arising from participation in the Plan
that apply to an amount deferred under the Plan and FUTA resulting from such payment. Any such
payment shall not exceed the amount of such taxes due as a result of Plan participation.

     7.7 Additional Discretion to Accelerate Distribution.

     (a) The Plan Administrator shall have the discretion to accelerate the time or schedule of
payment under the Plan if the Plan fails to meet the requirements of Code Section 409A and
regulations promulgated thereunder, provided that any such payment does not exceed the amount
required to be included in income as a result of such failure.

     (b) The Plan Administrator shall have the discretion to require a mandatory lump sum payment
of a Participant’s Account balance up to the Code Section 402(g)(1)(B) limit in effect at

11

 

the time of payment provided that the payment results in the termination and liquidation of
the entirety of the Participant’s interest under the Plan (as determined in accordance with plan
aggregation rules set forth in Code Section 409A and Treasury Regulations promulgated thereunder).

ARTICLE 8

PLAN ADMINISTRATION

     8.1 Plan Administration and Interpretation. The Plan Administrator shall oversee the
administration of the Plan. The Plan Administrator shall have complete control and authority to
determine the rights and benefits and all claims, demands and actions arising out of the provisions
of the Plan of any Participant, Beneficiary, deceased Participant or other person having or
claiming to have any interest under the Plan. Benefits under the Plan shall be paid only if the
Plan Administrator decides in its discretion that the Eligible Employee, Participant or Beneficiary
is entitled to them. Notwithstanding any other provision of the Plan to the contrary, the Plan
Administrator shall have complete discretion to interpret the Plan and to decide all matters under
the Plan. Such interpretation and decision shall be final, conclusive and binding on all
Participants and any person claiming under or through any Participant, in the absence of clear and
convincing evidence that the Plan Administrator acted arbitrarily and capriciously. Any individual
serving as Plan Administrator who is a Participant shall not vote or act on any matter relating
solely to himself or herself. When making a determination or calculation, the Plan Administrator
shall be entitled to rely on information furnished by a Participant, a Beneficiary, the Employer or
a trustee (if any).

     8.2 Powers, Duties, Procedures. The Plan Administrator shall have such powers and
duties, may adopt such rules, may act in accordance with such procedures, may appoint such officers
or agents, may delegate such powers and duties and shall follow such claims and appeal procedures
with respect to the Plan (subject to the requirements of Section 8.5) as the Plan Administrator may
establish. The Plan Administrator or individuals acting on its behalf shall receive reimbursement
for any reasonable business expense incurred in the performance of the foregoing duties.

     8.3 Information. To enable the Plan Administrator to perform its functions, the
Employer shall supply full and timely information to the Plan Administrator on all matters relating
to the compensation of Participants, their employment, retirement, death, Separation from Service,
Disability and such other pertinent facts as the Plan Administrator may require.

     8.4 Indemnification of Plan Administrator. The Company agrees to indemnify and to
defend to the fullest extent permitted by law any officer or employee who serves as Plan
Administrator (including any such individual who formerly served as Plan Administrator) against all
liabilities, damages, costs and expenses (including reasonable attorneys’ fees and amounts paid in
settlement of any claims approved by the Employer in writing in advance) occasioned by any act or
omission to act in connection with the Plan, if such act or omission is in good faith.

12

 

     8.5 Claims Procedure. A Participant or Beneficiary shall have the right to file a
claim, inquire if he has any right to benefits and the amounts thereof or appeal the denial of a
claim.

     (a) Initial Claim. A claim shall be considered as having been filed when a written
communication is made by the Participant, Beneficiary or his authorized representative to the
attention of the Plan Administrator (the “claimant”). The Plan Administrator shall notify the
claimant in writing within 90 days after receipt of the claim if the claim is wholly or partially
denied. If an extension of time beyond the initial 90-day period for processing the claim is
required, written notice of the extension shall be provided to the claimant prior to the expiration
of the initial 90-day period. In no event shall the period, as extended, exceed 180 days. The
extension notice shall indicate the special circumstances requiring an extension of time and the
date by which the Plan Administrator expects to render a final decision. For any claims brought by
the Chief Executive Officer of the Company, the Plan Administrator shall adjudicate such claims.
For any claims brought by the Senior Vice President – Human Resources, the Chief Executive Officer
of the Company shall adjudicate such claims.

     (b) Content of Denial. Notice of a wholly or partially denied claim for benefits shall be in
writing in a manner calculated to be understood by the claimant and shall include:

	 	(i)	 	the reason or reasons for denial;
	 
	 	(ii)	 	specific reference to the Plan provisions on which the denial
is based;
	 
	 	(iii)	 	a description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary; and
	 
	 	(iv)	 	an explanation of the Plan’s claim appeal procedure, including
a statement of the claimant’s right to bring a civil action under Section
502(a) of ERISA following a denial of the claim upon review.

     (c) Right to Review. If a claim is wholly or partially denied, the claimant may file an
appeal requesting the Plan Administrator to conduct a full and fair review of his claim. An appeal
must be made in writing no more than 60 days after the claimant receives written notice of the
denial. The claimant may review or receive copies, upon request and free of charge, any documents,
records or other information “relevant” (within the meaning of Department of Labor Regulation
Section 2560.503-1(m)(8)) to the claimant’s claim. The claimant may also submit written comments,
documents, records and other information relating to his claim. The Plan Administrator shall take
into account all comments, documents, records and other information submitted by the claimant
relating to the claim, without regard to whether such information was submitted or considered in
the initial review of the claim. The decision of the Plan Administrator regarding the appeal shall
be given to the claimant in writing no later than 60 days following receipt of the appeal.
However, if the Plan Administrator, in its sole discretion, grants a hearing, or there are special
circumstances involved, the decision shall be given no later than 120 days after receiving the
appeal. If such an extension of time for review is required, written notice of the extension shall
be furnished to the claimant prior to the commencement of the

13

 

extension. The decision shall be written in a manner calculated to be understood by the
claimant and include:

	 	(i)	 	specific reasons for the decision;
	 
	 	(ii)	 	specific references to the pertinent Plan provisions on which
the decision is based;
	 
	 	(iii)	 	a statement that the claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of, all documents,
records or other information relevant to the claimant’s claim; and
	 
	 	(iv)	 	a statement of the claimant’s right to bring a civil action
under Section 502(a) of ERISA following a wholly or partially denied claim for
benefits.

     (d) Form of Notice and Decision. Any notice or decision by the Plan Administrator under this
Section 8.5 may be furnished electronically in accordance with Department of Labor Regulation
Section 2520.104b-1(c)(i), (iii) and (iv).

     (e) Exhaustion of Administrative Remedy. Notwithstanding any provision in the Plan to the
contrary, no employee, Participant or Beneficiary may bring any legal or administrative claim or
cause of action against the Plan, the Plan Administrator or the Employer in court or any other
venue until the employee, Participant or Beneficiary has exhausted its administrative remedies
under this Section 8.5.

     (f) Suspension of Payment. If the Plan Administrator is in doubt concerning the entitlement
of any person to any payment claimed under the Plan, the Employer may suspend payment until
satisfied as to the person’s entitlement to the payment. Notwithstanding the foregoing, no
Participant or Beneficiary may bring a claim for Plan benefits to arbitration, court or through any
other legal action or process until the administrative claims process of this Section 8.5 has been
exhausted.

ARTICLE 9

AMENDMENT AND TERMINATION

     9.1 Authority to Amend and Terminate.

     (a) The Plan reserves to the HRCC the right to amend or terminate the Plan at any time,
subject to Section 9.2. Any amendment or termination of the Plan shall be effected by resolution
of the HRCC or its authorized delegate. Except as provided in paragraph (b), Account balances
shall be maintained under the Plan until such amounts would otherwise have been distributed in
accordance with the terms of the Plan.

     (b) Upon termination of the Plan, the HRCC reserves the discretion to accelerate distribution
of the Accounts of Participants in accordance with regulations promulgated by the Department of
Treasury under Code Section 409A.

14

 

     9.2 Existing Rights. No amendment or termination of the Plan shall materially
adversely affect the rights of any Participant with respect to amounts that have been credited to
his Account prior to the effective date of such amendment or termination. Notwithstanding the
foregoing, the HRCC may amend the Plan as necessary to address changes in applicable law in order
to assure that amounts contributed to the Plan are not subject to federal income tax before
distribution or withdrawal.

ARTICLE 10

MISCELLANEOUS

     10.1 No Funding. The Company intends that the Plan constitute an “unfunded” plan for
tax purposes. The Company may, but shall have no obligation to, authorize the creation of trusts
and deposit therein cash or other property, or make other arrangements to meet the payment
obligations under the Plan. Such trusts or other arrangements, if established, shall be consistent
with the unfunded status of the Plan.

     10.2 General Creditor Status. The Plan constitutes a mere promise by the Company to
make payments in accordance with the terms of the Plan and Participants and Beneficiaries shall
have the status of general unsecured creditors solely of the Employer employing the Participant.
Nothing in the Plan shall be construed to give any employee or any other person rights to any
specific assets of the Employer, the Company, or of any other person.

     10.3 No Assignment. Plan benefits, payments or proceeds shall not be subject to any
claim of any creditor of any Participant or Beneficiary and shall not be subject to attachment or
garnishment or other legal process. Participant Accounts or benefits payable may not be assigned,
pledged or encumbered in any manner, and any attempt to do so shall be void.

     10.4 Notices and Communications. All notices, statements, reports and other
communications from the Plan Administrator to any employee, Participant, Beneficiary or other
person required or permitted under the Plan shall be deemed to have been duly given when personally
delivered to, when transmitted via facsimile or other electronic media or when mailed overnight or
by first-class mail, postage prepaid and addressed to, such employee, Participant, Beneficiary or
other person at his last known address on the Employer’s or Company’s records. All elections,
designations, requests, notices, instructions and other communications from a Participant,
Beneficiary or other person to the Plan Administrator required or permitted under the Plan shall be
in such form as is prescribed from time to time by the Plan Administrator, and shall be mailed by
first-class mail, transmitted via facsimile or other electronic media or delivered to such location
as shall be specified by the Plan Administrator. Such communication shall be deemed to have been
given and delivered only upon actual receipt by the Plan Administrator at such location.

     10.5 Limitation of Participant’s Rights. Nothing contained in the Plan shall confer
upon any person a right to be employed or to continue in the employ of the Employer, or to
interfere, in any way, either with the Employer’s right to terminate the employment of an Eligible
Employee at any time, with or without cause, or to modify the Base Salary or Bonus of any Eligible
Employee.

15

 

     10.6 Participants Bound. Any action with respect to the Plan taken by the Plan
Administrator or a trustee (if any) or any action authorized by or taken at the direction of the
Plan Administrator, the Employer or a trustee (if any) shall be conclusive upon all Participants
and Beneficiaries entitled to benefits under the Plan.

     10.7 Receipt and Release. Any payment to any Participant or Beneficiary in accordance
with the provisions of the Plan shall, to the extent thereof, be in full satisfaction of all claims
against the Employer, the Plan Administrator and a trustee (if any) under the Plan, and the Plan
Administrator may require such Participant or Beneficiary, as a condition precedent to such
payment, to execute a receipt and release to such effect. If any Participant or Beneficiary is
determined by the Plan Administrator to be incompetent by reason of physical or mental disability
(including minority) to give a valid receipt and release, the Plan Administrator may cause the
payment or payments becoming due to such person to be made to another person for his benefit
without responsibility on the part of the Plan Administrator, the Employer or a trustee (if any) to
follow the application of such funds.

     10.8 Governing Law and Severability. The Plan shall be construed, administered and
governed in all respects under and by the laws of the State of Delaware to the extent not preempted
by ERISA. If any provision is held by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions hereof shall continue to be fully effective.

     10.9 Headings. Headings and subheading in the Plan are inserted for convenience only
and are not to be considered in the construction of the provisions hereof.

* * *

IN WITNESS WHEREOF, the undersigned authorized officer of AbitibiBowater Inc. has executed this
document as of December 17, 2008, to evidence its adoption by AbitibiBowater Inc.

	 	 	 	 	 	 	 
	 	 	AbitibiBowater Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William G. Harvey	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	William G. Harvey	 	 
	 
	 

	 	Its:
	 	Senior Vice President and Chief Financial
Officer	 	 

16

 

EXHIBIT A

The following employees shall be ineligible to participate the Plan:

	 	§	 	Jay Backus
	 
	 	§	 	Breen Blaine
	 
	 	§	 	Charlie DelVecchio
	 
	 	§	 	Colin Keeler
	 
	 	§	 	Steve MacIsaac
	 
	 	§	 	Grant Schneider

17

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