Document:

RFP-2013.12.31-10Kexhibit - 10.24

EXHIBIT 10.24

AMENDED AND RESTATED
EXECUTIVE EMPLOYMENT AGREEMENT
THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) made as of the 26 day of February, 2014 (the “Effective Date”)
B E T W E E N:
RESOLUTE FOREST PRODUCTS INC., 
a corporation existing under the laws of Delaware
(hereinafter referred to as the “Corporation”),
- and -
RICHARD GARNEAU, of the City of Montréal, 
in the Province of Québec,
(hereinafter referred to as the “Executive”).
WHEREAS the Corporation and the Executive are currently parties to an Employment Agreement, dated January 1, 2011 (the “Prior Employment Agreement”), and desire to amend and restate the terms and conditions of the Prior Employment Agreement in their entirety to read as set forth herein;
WHEREAS the Corporation desires to continue the Executive’s employment in the capacity of President and Chief Executive Officer and to ensure the continued availability to the Corporation of the Executive’s services, and the Executive is willing to continue such employment and render such services; and
WHEREAS the Corporation and the Executive have agreed that the terms and conditions of such employment relationship shall henceforth be as set out herein;
NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the respective covenants and agreements of the parties herein contained and for other good and valuable consideration (the receipt and sufficiency of which are acknowledged by each party), the parties covenant and agree as follows:
Article 1 
INTERPRETATION
		
	1.1
	Defined Terms

For the purposes of this Agreement, unless the context otherwise requires, the following terms shall have the respective meanings set out below and grammatical variations of such terms shall have corresponding meanings:
“Affiliate” shall have the meaning ascribed to such term in Rule 12b‐2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as in effect on the date hereof;

“Annual Base Salary” has the meaning set out in Section 4.1;
“Board” means the board of directors of the Corporation;
“Business Day” means any day, other than a Saturday, Sunday or statutory holiday in the Province of Québec on which commercial banks in Montréal are open for business;
“Cause” has the meaning set out in Section 5.2;
“Change in Control” has the meaning ascribed thereto in the Amended and Restated Change in Control Agreement being executed between the Executive and the Corporation in conjunction with this Agreement;
“Common Shares” means the outstanding common shares in the capital of the Corporation at any time;
“Confidential Information” has the meaning set out in Section 6.1;
“Date of Termination” means the effective date of any termination of the Executive’s employment with the Corporation;
“Eligible Pay” means Annual Base Salary as in effect at the Date of Termination and the lower of (i) the average of the last two (2) Incentive Awards earned by the Executive and (ii) 125% of the Executive’s target incentive (expressed in dollars) for the year in which the Date of Termination occurs;
“Good Reason” has the meaning ascribed thereto in the Amended and Restated Change in Control Agreement;
“HRC/NGC” means the Human Resources and Compensation/Nominating and Governance Committee of the Board.
“Improvements” has the meaning set out in Section 6.2(a);
“Incentive Award” means the amount(s), if any, to which the Executive is entitled for the relevant period in question under a regular annual cash incentive plan or program of the Corporation established from time to time, and as may be amended or replaced from time to time, it being understood that other cash recognition, non-recurring or multi-year incentive awards shall not be considered as an Incentive Award for the purpose hereof;
“Non-Disclosure Period” has the meaning set out in Section 6.1;
“Permanent Disability” has the meaning set out in Section 5.3;
“Person” includes, without limitation, an individual, corporation, partnership, joint venture, association, trust, firm, unincorporated organization or other legal or business entity;
“Prohibited Area” means the territorial limits of Canada, the United States, Mexico, Italy, the United Kingdom and South Korea;

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“Restricted Period” means the period from January 1, 2011, the effective date of the Prior Employment Agreement, to (i) the Date of Termination in the event of termination of this Agreement by the Corporation without Cause or termination of this Agreement by the Executive for Good Reason pursuant to the terms of the Change in Control Agreement or (ii) the end of the ninth (9th) month following the Date of Termination in all other circumstances, except in the case of termination for Cause, in which case the Restricted Period shall end on the twelfth (12th) month following the Date of Termination;
“Subsidiary” has the meaning ascribed thereto in the Canada Business Corporations Act;
“Voting Shares” means any securities of the Corporation ordinarily carrying the right to vote at elections of directors.
		
	1.2
	Rules of Construction

Except as may be otherwise specifically provided in this Agreement and unless the context otherwise requires, in this Agreement:
		
	(a)
	the terms “Agreement”, “this Agreement”, “the Agreement”, “hereto”, “hereof”, “herein”, “hereby”, “hereunder” and similar expressions refer to this Agreement in its entirety and not to any particular provision hereof;

		
	(b)
	references to an “Article”, “Section”, “Schedule” or “Exhibit” followed by a number or letter refer to the specified Article or Section of or Schedule or Exhibit to this Agreement;

		
	(c)
	the division of this Agreement into articles and sections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement;

		
	(d)
	words importing the singular number only shall include the plural and vice versa and words importing the use of any gender shall include all genders;

		
	(e)
	the word “including” is deemed to mean “including without limitation”;

		
	(f)
	the terms “party” and “the parties” refer to a party or the parties to this Agreement;

		
	(g)
	any reference to a statute, regulation or rule shall be construed to be a reference thereto as the same may from time to time be amended, re-enacted or replaced, and any reference to a statute shall include any regulations or rules made thereunder; and

		
	(h)
	all dollar amounts refer to Canadian dollars unless expressly provided to the contrary.

		
	1.3
	Severability

If any provision of this Agreement, including the breadth or scope of the provisions contained in Article 6 (whether as to the Non-Disclosure Period, the Restricted Period, the Prohibited Area, or otherwise), shall be held by any court of competent jurisdiction to be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining provisions, or part thereof, of this Agreement and such remaining provisions, or part thereof, shall remain enforceable and binding. 

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	1.4
	Prior Agreements

This Agreement cancels and replaces any prior agreements between the Executive and the Corporation, other than (i) the indemnification agreement executed by the Executive dated December 9, 2010 (the “Indemnification Agreement”) and (ii) the Director Nonqualified Stock Option Agreement executed by the Executive on January 9, 2011 (the “Director Option Agreement”), memorializing a grant under the LTIP of stock options approved by the Board on December 9, 2010 in respect of his service as an independent director of the Corporation. All options awarded pursuant to the Director Option Agreement will continue to vest in accordance with the terms thereof.
		
	1.5
	Related Plans, Policies and Agreements

In the event of any conflict or inconsistency between the provisions of this Agreement and any other plans, policies and agreements referred to herein, including without limitation any written annual short-term incentive plans or programs, the LTIP (as defined in Section 4.3) and any and all related award agreements to be entered into by the Corporation and the Executive from time to time (including the Director Option Agreement (as defined in Section 1.4)) and the Indemnification Agreement (as defined in Section 1.4) (all of which are collectively referred to as the “Collateral Agreements”), the provisions of the Collateral Agreements, as same may be amended from time to time by the Corporation, shall prevail, all of which shall be in the corporate records of the Corporation and available for review from time to time by the Executive. It is further acknowledged that in conjunction with this Agreement, the Executive and the Corporation are executing an Amended and Restated Change in Control Agreement, the provisions of which shall govern all matters relating to the substance thereof notwithstanding anything herein to the contrary.
ARTICLE 2     
EMPLOYMENT
		
	2.1
	Employment

Before the Effective Date, the Corporation employed the Executive pursuant to the Prior Employment Agreement.  The Corporation hereby agrees to continue to employ the Executive and the Executive hereby agrees to continue serving the Corporation in the capacity of President and Chief Executive Officer, effective as of the Effective Date, all in accordance with and subject to the terms and conditions hereof.
		
	2.2
	Location of Executive

The Executive’s office will be located at the current offices of the Corporation at 111 Duke Street in Montréal, Québec, provided that the Corporation may subsequently require that the Executive relocate to such other corporate office of the Corporation in the general area of Montréal as may be determined by the Board from time to time. The Executive will furthermore be required to travel to other locations from time to time, including offices, production facilities, customers and suppliers of the Corporation or of its Affiliates.

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ARTICLE 3     
DUTIES
		
	3.1
	Employment Duties

The Executive shall perform such duties and exercise such powers as are normally associated with and incidental and ancillary to the position of President and Chief Executive Officer and shall perform such additional duties and exercise such additional powers as may from time to time be assigned to him by the Board, acting reasonably.  Without limiting the foregoing, during the term of his employment hereunder, the Executive shall, to the best of his ability:
		
	(a)
	devote his full time and attention during normal business hours and such other times as may be reasonably required to the business and affairs of the Corporation and its Affiliates and shall not, without the prior written consent of the Board, undertake any other business or occupation or public office which may detract from the proper and timely performance of his duties hereunder;

		
	(b)
	perform diligently and faithfully those duties as are consistent with the position and status of President and Chief Executive Officer that may be assigned to the Executive from time to time;

		
	(c)
	promote the interests and goodwill of the Corporation and its Affiliates and not knowingly do, or willingly permit to be done, anything to the prejudice, loss or injury of the Corporation or any of its Affiliates; and

		
	(d)
	at all times keep the Corporation regularly informed (in writing if so requested) of his conduct of the business and affairs of the Corporation and provide such explanations of his conduct as the Board may require.

		
	3.2
	Board Membership

The Executive agrees to serve as a Director of the Corporation if elected, and further agrees to become a Director and/or Officer of the Corporation’s Subsidiaries or Affiliates as designated by the Corporation. Subject to approval of the Board, the Executive shall be permitted to serve as an outside director of one (1) public company that does not, directly or indirectly, compete with the Corporation and provided furthermore that no conflict of interest exists or would reasonably be expected to arise as a consequence thereof.
		
	3.3
	Reporting

The Executive shall report to the Board.  The Executive shall report fully on the management and operations of the Corporation and shall advise to the best of his ability and in accordance with reasonable business standards on business matters that may arise from time to time during the term of this Agreement.

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ARTICLE 4     
COMPENSATION
		
	4.1
	Annual Base Salary

The annual base salary (“Annual Base Salary”) payable to the Executive for his services hereunder shall be $935,369.52, payable in equal semi-monthly instalments in arrears in accordance with the usual compensation practices of the Corporation from time to time.
The Annual Base Salary shall be subject to a periodic increase adjustment if as and when determined by the Board from time to time at its discretion.
		
	4.2
	Short-Term Incentive Plan

In addition to the Annual Base Salary, the Executive shall be eligible to participate in the short-term incentive plans that are adopted by the Corporation from time to time, pursuant to which the Executive will be eligible to receive discretionary Incentive Awards as approved by the Board and/or the HRC/NGC in accordance with the Corporation’s corporate governance processes as established and amended from time to time. Incentive Awards under such short‐term incentive plans adopted as aforesaid from time to time are discretionary and subject to modifications by the Board and/or the HRC/NGC, including increases, decreases, cancellation, deferral or other conditions as determined by the Board and/or HRC/NGC, at its or their discretion, even if and after performance levels have been met.
		
	4.3
	Long-Term Incentive Plan

The Executive will be eligible to participate in the long-term incentive plans adopted by the Corporation and in effect from time to time, including without limitation under the Resolute Forest Products Equity Incentive Plan, as may be amended, restated and/or renamed from time to time (the “LTIP”), and to receive grants thereunder as determined by the Board from time to time at its discretion.
		
	4.4
	Pension

The Executive shall be entitled to participate in the Corporation’s registered pension or defined contribution plans, as may be maintained by the Corporation from time to time for its non-unionized employees in Canada, and any other plans, programs or arrangements providing additional retirement benefits or other benefits in lieu of retirement benefits as may be maintained by the Corporation and made available to the Executive from time to time.
		
	4.5
	Fringe Benefits

During the term of the Executive’s employment hereunder, the Executive shall be entitled to participate in all medical, dental, disability and group life plans and other employee benefit programs established by the Corporation from time to time for the benefit of its non-unionized employees in Canada. The benefits will be provided in accordance with and subject to the terms and conditions of the applicable plan, program, fund or arrangement relating to such benefits in effect from time to time. The Executive acknowledges that the Corporation may amend or terminate the benefits from time to time as provided in the applicable plan, program, fund or arrangement. The Executive shall also be provided with a fully paid club membership at a private club in Montreal during the term of employment and, in addition, an annual perquisite allowance of $50,000 to cover all perquisites such as other club memberships, fiscal and financial advice and tax preparation by professionals selected by the Executive. The Corporation will provide for an 

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annual medical examination at its expense for the Executive and his wife.  In addition, the Executive shall be eligible to use any medical concierge service made available by the Corporation to members of its executive team.
		
	4.6
	Vacation

The Executive shall be entitled to five (5) weeks plus an additional three (3) “floating” or discretionary days of paid vacation in each calendar year in accordance with the policies of the Corporation in effect from time to time applicable to its senior executives, to be taken during such calendar year subject to the need for the timely performance of the Executive’s responsibilities hereunder.  In the event that the Executive’s employment is terminated, he shall be entitled to a pro-rated vacation leave with pay for the portion of the year in which such termination occurs that he has been actively employed. It is the responsibility of the Executive to ensure that his vacation entitlement is taken in each calendar year, as there shall be no carry forward of vacation entitlement to a year other than for which it has accrued without the permission of the Board.
		
	4.7
	Expenses

The Executive shall be reimbursed for all reasonable travel and other out-of-pocket expenses properly incurred by the Executive from time to time in connection with the carrying out of his duties hereunder in accordance with the Corporation’s travel and entertainment policy as amended from time to time.  For all such expenses, the Executive shall furnish to the Corporation originals or true copies of all invoices or statements in respect of which the Executive seeks reimbursement. Any Corporation credit card shall be used only for expenses incurred in the course of carrying out the Executive’s duties.
		
	4.8
	Deductions and Withholdings

The Corporation shall be entitled to make such deductions and withholdings from the Executive’s remuneration as may be required by law and as may be required by the Executive’s participation in or receipt of any benefit, stock option or other program contemplated hereby, and the Corporation’s obligations in respect thereof shall thereby be satisfied to the extent of such deductions and withholdings.
		
	4.9
	Compensation Exhaustive

For greater certainty, the Executive shall not be entitled to any salary, bonus, participation in profits or other remuneration, or payment or compensation in lieu thereof, except as expressly set forth in this Agreement or as otherwise may be provided pursuant to any plan, program or arrangement as to which the Executive’s participation is approved by the Board and/or HRC/NGC from time to time.

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ARTICLE 5     
TERMINATION OF EMPLOYMENT
		
	5.1
	Term of Employment

The employment of the Executive hereunder shall continue for an indefinite period until it is terminated in accordance with the provisions of this Article 5.
		
	5.2
	Cause

The Corporation may terminate the employment of the Executive at any time for Cause, effective immediately, by giving written notice of termination to the Executive setting out the basis for termination.  “Cause” shall mean any of the following:
		
	(a)
	the wilful failure of the Executive to carry out his duties hereunder, to comply in all material respects with the rules and policies of the Corporation or to follow any reasonable instruction or directive of the Board which is consistent with the Executive’s duties and responsibilities under this Agreement;

		
	(b)
	the Executive acting dishonestly or fraudulently in connection with the business of the Corporation, or the wilful gross misconduct of the Executive in the course of his employment hereunder, in each case resulting in adverse consequences to the Corporation or to any of its Affiliates;

		
	(c)
	if the Executive or his spouse or child under the age of majority makes any personal profit arising out of or in connection with any transaction to which the Corporation or any of its Affiliates is a party or with which the Corporation or any of its Affiliates is associated without making disclosure to and obtaining the prior written consent of the Board, or other material breach of the Executive’s fiduciary duties to the Corporation;

		
	(d)
	the conviction of the Executive for, or a guilty plea by the Executive to, any criminal offence punishable by imprisonment that may reasonably be considered to be likely to adversely affect the Corporation or any of its Affiliates or the suitability of the Executive to perform his duties hereunder, including without limitation any offence involving fraud, theft, embezzlement, forgery, wilful misappropriation of funds or property, or other fraudulent or dishonest acts;

		
	(e)
	any material breach of any provisions of this Agreement by the Executive;

		
	(f)
	misconduct on the part of the Executive that is materially detrimental to the business or financial position of the Corporation or to any of its Affiliates;

		
	(g)
	personal misconduct by the Executive which is of such a serious and substantial nature that it has or would injure the reputation of the Corporation or of any of its Affiliates; 

		
	(h)
	the habitual inability by the Executive to carry out functions of his employment hereunder due to alcohol or drug related causes, provided that the Executive shall have been provided with written notice thereof at least thirty (30) days prior to the Date of Termination and shall have failed to remedy such alcohol or drug related causes during such period of time; or

		
	(i)
	any serious reason pursuant to Article 2094 of the Civil Code of Québec.

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For purposes of this provision, no act or omission on the part of the Executive shall be considered “wilful” unless it is done or omitted in bad faith or without reasonable belief that the act or omission was in the best interests of the Corporation. Any act or omission based upon a resolution duly adopted by the Board or advice of counsel for the Corporation shall be conclusively presumed to have been done or omitted in good faith and in the best interests of the Corporation.  Cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity to be heard before the Board) determining that the employment of the Executive is to be terminated for Cause.
		
	5.3
	Termination Where Executive Disabled

If at any time the Executive is unable to perform his duties properly because of ill health, accident or otherwise, for a period or periods totalling at least twenty-six (26) weeks in any period of twelve (12) consecutive calendar months (“Permanent Disability”), the Corporation may terminate the Executive’s employment in accordance with the applicable corporate practices of the Corporation in effect at the time the Executive becomes permanently disabled. The Executive shall submit to such reasonable medical examinations as may be requested by a doctor or other medical practitioner selected jointly by the Executive and the Corporation in order to determine whether the condition or conditions suffered by the Executive constitute Permanent Disability.  In no event shall the Executive be considered to have a Permanent Disability for the purposes of this Agreement unless the Executive is deemed disabled and eligible for benefits pursuant to the Company’s long-term disability plan.
		
	5.4
	Death

The Executive’s employment shall terminate automatically upon the death of the Executive.
		
	5.5
	Other Termination by the Corporation

The Corporation may terminate this Agreement (other than as provided in the foregoing provisions of this Article 5) at any time and for any reason if the Board, in its sole discretion, so determines, by giving three (3) months’ prior written notice of termination to the Executive.
		
	5.6
	Other Termination by the Executive

The Executive may terminate his employment at any time and for any reason by giving three (3) months’ prior notice in writing to the Corporation. For greater certainty, such notice shall not be required in respect of termination by the Executive for Good Reason pursuant to the terms of the Change in Control Agreement.
		
	5.7
	Cessation of Duties

The Corporation shall have the right, at any time prior to the end of the applicable notice period pursuant to Sections 5.5 or 5.6, notwithstanding the provisions of the relevant Section, by giving written notice to the Executive, to require that the Executive cease to perform his duties and responsibilities and cease attending the Corporation’s premises immediately upon giving such notice and in such event, the employment of the Executive hereunder shall terminate on the termination date stipulated in the written notice of termination, it being understood that the Executive shall continue to receive the employment benefits during the balance of such three (3) month period. A termination by the Executive pursuant to Section 5.6 shall remain as such even if the Corporation exercises its right hereunder.

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	5.8
	Severance Payments

The following severance pay provisions shall apply notwithstanding anything to the contrary in or inconsistent with the provisions of the Corporation’s Severance Policy — Chief Executive Officer and Direct Reports (“Severance Policy”):
		
	(a)
	Upon termination of the Executive’s employment (i) for Cause pursuant to Section 5.2, or (ii) voluntarily by the Executive pursuant to Section 5.6, the Executive shall not be entitled to any pay in lieu of notice of termination, severance or similar payment in respect of such termination other than (A) accrued and unpaid Annual Base Salary earned by the Executive up to the Date of Termination, (B) vacation pay earned up to the Date of Termination, (C) in the event of early termination by the Corporation of the notice period in Section 5.6, the portion of the Annual Base Salary that would have otherwise been payable during such notice period, and (D) any amount of or entitlement to Incentive Awards, other awards, pension benefits and other benefits in accordance with any then applicable plans and agreements. In addition, any unvested stock option, SAR, full value award (including, without limitation, unrestricted stock, restricted stock or restricted stock units, performance stock or performance stock units, and deferred stock or deferred stock units) in the Corporation held by the Executive under a long term incentive plan adopted by the Corporation from time to time shall vest and shall remain exercisable by the Executive subject to and in accordance with the relevant plan and award agreements.

		
	(b)
	Upon termination of the Executive’s employment (i) as a result of the Permanent Disability of the Executive pursuant to Section 5.3, or (ii) by the death of the Executive pursuant to Section 5.4, the Executive (or his estate, as the case may be) shall be entitled to receive (A) accrued and unpaid Annual Base Salary earned by the Executive up to the Date of Termination, (B) vacation pay earned up to the Date of Termination, and (C) any amount or entitlement to Incentive Awards, other awards, pension benefits and other benefits in accordance with any then applicable plans and agreements. In addition, any unvested stock option, SAR, full value award (including, without limitation, unrestricted stock, restricted stock or restricted stock units, performance stock or performance stock units, and deferred stock or deferred stock units) in the Corporation held by the Executive under a long term incentive plan adopted by the Corporation from time to time shall vest and shall remain exercisable by the Executive subject to and in accordance with the relevant plan and award agreements.

		
	(c)
	If the Executive’s employment is terminated pursuant to Section 5.5, other than within two years following a Change in Control (in which case the Change in Control Agreement shall govern and the Executive shall not be entitled to any payment pursuant to this Agreement), the Executive shall be entitled to receive:

		
	(i)
	accrued and unpaid Annual Base Salary earned by the Executive up to the Date of Termination;

		
	(ii)
	vacation pay earned up to the Date of Termination;

		
	(iii)
	subject to the Executive’s execution and non-revocation of a Waiver and Release Agreement acceptable to the Corporation, severance pay in a lump sum of an amount equal to six (6) weeks of Eligible Pay per year of continuous service, subject to a 

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minimum of fifty-two (52) weeks and a maximum of one hundred-four (104) weeks, and pro-rated for partial years of service; and
		
	(iv)
	any amount or entitlement to Incentive Awards, other awards, pension benefits and other benefits in accordance with the relevant plans and agreements.

In addition, any unvested stock option, SAR, full value award (including, without limitation, unrestricted stock, restricted stock or restricted stock units, performance stock or performance stock units, and deferred stock or deferred stock units) in the Corporation held by Executive under a long term incentive plan adopted by the Corporation from time to time shall vest and shall remain exercisable by the Executive subject to and in accordance with the relevant plan and award agreements.
All amounts payable to the Executive as a result of the termination of the Executive’s employment pursuant to any statute, regulation or other provision of law are included in and are not in addition to the amounts payable pursuant to this Section 5.8. Amounts payable pursuant to Section 5.8(c)(i), (ii) and (iii) shall be paid on the tenth (10th) day following the effectiveness of the release described above; provided however that, if the sixtieth (60th) day following termination of employment falls in the subsequent calendar year, then the payment shall be the later of (i) the first (1st) business day of that subsequent year or (ii) the tenth (10th) day following the effectiveness of the release.  For greater certainty, the Corporation agrees that payment of undisputed claims will not be delayed should there exist any disputed claims.  Notwithstanding anything in this Agreement to the contrary, any severance payable pursuant to Section 5.8(c)(iii) shall be void if the Executive does not sign the Waiver and Release Agreement within the timeframe set forth in the Waiver and Release Agreement.  
		
	5.9
	Resignation on Termination

The Executive agrees that upon any termination of his employment with the Corporation he shall immediately tender his resignation from any position he may hold as an officer or director of the Corporation or any of its Affiliates. In the event of the Executive failing within three days to comply with his obligation hereunder, he hereby irrevocably authorizes and appoints any other director or officer of the Corporation as his agent and attorney to sign in his name and on his behalf any written resignations or other documents and do all other things necessary to give effect to such resignation.
		
	5.10
	Continuance in Effect

For greater certainty, notwithstanding any termination of the employment of the Executive, the provisions of this Agreement shall continue in full force and effect in accordance with their terms, including, without limitation, (i) the provisions of Article 6, (ii) rights to indemnification and insurance under the Indemnification Agreement, Charter, By-Laws and directors’ and officers’ insurance policies maintained by the Corporation and (iii) rights to which the Executive is entitled by virtue of his participation in the employee benefits plans, policies and arrangements of the Corporation, all in accordance with the terms of the relevant plans and agreements.

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ARTICLE 6     
EXECUTIVE’S COVENANTS
		
	6.1
	Non-Disclosure

The Executive acknowledges and agrees that:
		
	(j)
	in the course of performing his duties and responsibilities hereunder, he will have access to and will be entrusted with detailed confidential information and trade secrets concerning past, present, future and contemplated company strategy, plans and activities (including acquisition plans and activities), products, services, operations, technology, intellectual property, methodologies and procedures of the Corporation or its Affiliates, whether in written, printed, pictorial, diagrammatic, electronic or any other form or medium, including, without limitation, information relating to names, addresses, contact persons, preferences, needs and requirements of past, present and prospective clients, customers, suppliers and employees of the Corporation and its Affiliates (collectively, “Confidential Information”), the disclosure of any of which to competitors of the Corporation or of any of its Affiliates or to the general public, or the use of any of which by the Executive or any competitor of the Corporation or of any of its Affiliates, could reasonably be expected to be detrimental to the interests of the Corporation and its Affiliates;

		
	(k)
	in the course of performing his duties and responsibilities hereunder, the Executive will be a representative of the Corporation and its Affiliates to its and their customers, clients and suppliers and as such will have significant responsibility for maintaining and enhancing the goodwill of the Corporation and its Affiliates with such customers, clients and suppliers and would not have, except by virtue of his employment with the Corporation, developed a close and direct relationship with the customers, clients and suppliers of the Corporation and its Affiliates; and

		
	(l)
	the right to maintain the confidentiality of the Confidential Information, the right to preserve the goodwill of the Corporation and its Affiliates and the right to the benefit of the contacts and connections previously developed by the Executive with prospective clients, customers and others and any relationships that will be developed between the Executive and the customers, clients and suppliers of the Corporation and its Affiliates by virtue of the Executive’s employment with the Corporation constitute proprietary rights of the Corporation and its Affiliates which the Corporation and its Affiliates are entitled to protect.

In accordance with the matters acknowledged and agreed to by the Executive above and in consideration of the payments and other benefits to be received by the Executive pursuant to this Agreement, the Executive hereby covenants and agrees with the Corporation that he will not, except with the specific prior written consent of the Board, either during the term of this Agreement or at any time within five (5) years thereafter (the “Non-Disclosure Period”), directly or indirectly, disclose to any person or in any way make use of (other than for the benefit of the Corporation or its Affiliates), in any manner, any of the Confidential Information, provided that such Confidential Information shall be deemed not to include information which is or becomes generally available to the public other than as a result of disclosure by the Executive.
		
	6.2
	Intellectual Property

(a)    The Executive shall disclose to the Corporation or one or more of its Affiliates, as the Board may direct, all ideas, suggestions, discoveries, inventions and improvements (collectively, the 

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“Improvements”) which he may make solely, jointly or in common with other employees, during the term of his employment with the Corporation and which relate to the business activities of the Corporation or its Affiliates.  Any Improvements coming within the scope of the business of the Corporation or of any of its Affiliates made and/or developed by the Executive while in the employ of the Corporation, whether or not conceived or made during regular working hours, or whether or not the Executive is specifically instructed to make or develop the same, shall be for the benefit of the Corporation and/or its Affiliates and shall be considered to have been made by virtue of this Agreement and shall immediately become the exclusive property of the Corporation and/or its Affiliates.
(b)    The Executive shall assign, set over and transfer to the Corporation or one or more of its Affiliates, as the Board may direct, his entire right, title and interest in and to any and all the Improvements and to all patents, copyrights or other intellectual property rights (or applications therefor) which may be or have been filed and/or issued by or to him or on his behalf, and the Executive agrees to execute and deliver to the Corporation or any such Affiliate, any and all instruments necessary or desirable to accomplish the foregoing and, in addition, to do all lawful acts which may be necessary or desirable to assist the Corporation or any such Affiliate to obtain and enforce protection of the Improvements.
(c)    The Executive waives all moral rights in any Improvements and all work produced by the Executive during the term of this Agreement.
		
	6.3
	Non-Competition

The Executive represents and warrants that he is not subject to and will not bring any material that is subject to any non-competition, non-disclosure, discoveries and works or other agreements that would prevent or restrict him from rendering services to the Corporation pursuant to this Agreement. Executive further represents and warrants that his employment and use of any material he brings will not violate the rights of any third party, including without limitation, pursuant to any competition or non-solicitation agreement.
The Executive hereby agrees that he shall not (without the prior written consent of the Board which shall not be unreasonably withheld taking into account (i) the Executive’s career in the pulp and paper industry and (ii) his non-disclosure obligations under Section 6.1) during the Restricted Period and within the Prohibited Area whether on his own account or in conjunction with or on behalf of any other person, and whether as an employee, director, officer, shareholder, partner, principal, agent, or in any other capacity whatsoever other than as a consultant, in competition with the Corporation or any of its Affiliates, directly or indirectly, operate, manage, control, participate in, carry on, be employed by, be engaged in, perform services in respect of, be concerned with, be financially interested in or financially assist, or permit his name to be used in connection with the activities from time to time of the Corporation (the “Restricted Business”), including the manufacture, sale and/or dealing in newsprint, commercial printing and packaging papers, market pulp and wood products, as well as research into, development, production, manufacture, sale, supply, import, export or marketing of any product which is the same or similar to or competitive with any product researched, developed, produced, manufactured, sold, supplied, imported, exported or marketed by the Corporation or by any of its Affiliates in the context of the above described activities during the term of this Agreement.
Notwithstanding the foregoing restrictions, the Executive may acquire securities (i) of a class or series that is traded on any stock exchange or over the counter if such securities represent not more than two percent (2%) of the issued and outstanding securities of such class or series, (ii) of a mutual fund or other investment entity that invests in a portfolio the selection and management of which is not within the control 

-13-

of the investor, or (iii) held in a fully managed account where the Executive does not direct or influence in any manner the selection of any investment in such securities.
		
	6.4
	Non-Solicitation of Customers

The Executive hereby agrees that he shall not during the Restricted Period, whether on his own behalf or in conjunction with or on behalf of any other person, directly or indirectly, except on behalf of the Corporation or its Affiliates, solicit, assist in soliciting, accept, facilitate the acceptance of the business of any person (i) to whom the Corporation or its Affiliates has supplied goods or services at any time prior to the Date of Termination, or (ii) to whom the Corporation or any of its Affiliates has offered to supply goods or services prior to the Date of Termination, or (iii) to whom the Corporation or any of its Affiliates has provided details of the terms on which it would or might be willing to supply goods or services prior to the Date of Termination, or (iv) with whom the Corporation or any of its Affiliates has had any negotiations or discussions regarding the possible supply of goods or services prior to the Date of Termination.
		
	6.5
	Non-Solicitation of Employees

The Executive hereby agrees that he shall not during the Restricted Period, either on his own behalf or in conjunction with or on behalf of any other person, directly or indirectly, except on behalf of or with the prior written consent of the Corporation or its Affiliates, (a) induce or solicit any person who was employed by the Corporation or by any of its Affiliates to leave such employment; or (b) hire or accept into employment or otherwise engage or use the services of any person who was so employed within the immediately preceding six months.  Notwithstanding the foregoing, the general advertisement of open positions, not targeted at any individual, shall not be a violation of this provision.
		
	6.6
	Non-interference with Suppliers

The Executive hereby agrees that he shall not during the Restricted Period, either on his own behalf or in conjunction with or on behalf of any other person, directly or indirectly, interfere, seek to interfere, induce and/or incite another person to interfere, or take steps to interfere with the continuance of supplies (or the terms relating to such supplies) from any suppliers who have been supplying products, materials or services to the Corporation or any of its Affiliates at any time during the term of this Agreement.
		
	6.7
	Applicability to Affiliates or Purchasers

The obligations undertaken by the Executive pursuant to this Article 6 may be enforced directly against the Executive by any Affiliate of the Corporation or any purchaser from the Corporation of all or any part of its business, to the extent applicable by their terms to such Affiliate or such purchased business, and shall, with respect to each Affiliate of the Corporation or such purchased business, constitute a separate and distinct covenant and the invalidity or unenforceability of any such covenant shall not affect the validity or enforceability of the covenant in favour of the Corporation or any other Affiliate of the Corporation or any such purchaser.  If for any reason any of the obligations of the Executive pursuant to this Article 6 cannot be directly enforced by an Affiliate or purchaser as contemplated hereby, the Executive acknowledges that such obligations may be enforced by the Corporation on behalf of such Affiliate or purchaser, as the case may be.
		
	6.8
	Provisions in the Event of Breach

The Executive agrees that, in the event of any actual or threatened breach by the Executive of any of the covenants or agreements contained in this Article 6, without prejudice to any and all other rights and recourses of the Corporation, the Corporation shall have the right to enforce the terms and provisions 

-14-

thereof by means of compelling specific performance and/or by means of injunction (including, without limitation, provisional, interlocutory and permanent).  In addition, and without restriction to the foregoing, in the event of a breach by the Executive of any of the covenants or agreements contained in this Article 6, any payments otherwise payable to the Executive as severance pay pursuant to the provisions of Section 5.8(c)(iii) hereof shall be deemed to have been forfeited in their entirety by the Executive and the running of the Non-Disclosure Period and Restricted Period shall be stayed and shall recommence upon the date the Executive ceases to be in breach thereof, whether voluntarily or by injunction.
		
	6.9
	Disclosure

During the term of this Agreement, the Executive shall promptly disclose to the Board full information concerning any interest, direct or indirect, of the Executive (whether as owner, shareholder, partner, lender or other investor, director, officer, employee, consultant or otherwise) or his spouse or child under the age of majority in any business which is reasonably known to the Executive to purchase or otherwise obtain services or products from, or to sell or otherwise provide services or products to the Corporation or to any of its Affiliates or to any of their respective suppliers or customers.
During the Non-Disclosure Period and the Restricted Period, the Executive shall inform any prospective employer of the existence of this Agreement and the obligations which it imposes upon the Executive under Sections 6.1, 6.2, 6.3, 6.4, 6.5 and 6.6.
		
	6.10
	Merger Transactions

The Executive shall not, during the term of this Agreement and during the Restricted Period, solicit, initiate or encourage proposals or offers from, or provide information relating to the Corporation or any of its Affiliates to, any person in connection with or relating to any proposed acquisition or disposition of all or any material part of the issued and outstanding Common Shares or other securities of the Corporation or any of its Affiliates, or any proposed amalgamation, merger, sale of all or any material part of the assets of the Corporation or any of its Affiliates, take-over bid, reorganization, recapitalization, liquidation, winding-up, or other business combination or any similar transaction involving the Corporation or any of its Affiliates, without in each case the consent of the Board.
		
	6.11
	Consulting Services after Date of Termination

Notwithstanding the foregoing restrictions of this Article 6, the Executive may provide consulting services to any person after the date of termination and within the Prohibited Area subject to his obligations under Article 6 and provided furthermore that the Executive shall not become an employee of or enter into an employment agreement with a Restricted Business relating to the Prohibited Area during the Restricted Period.
		
	6.12
	Return of Materials

All files, forms, brochures, books, materials, written correspondence, memoranda, documents, manuals, computer disks, software products and lists (including financial and other information and lists of customers, suppliers, products and prices) pertaining to the Corporation or to any of its Affiliates and containing Confidential Information which may come into the possession or control of the Executive shall at all times remain the property of the Corporation or such Affiliate, as the case may be.  Upon termination of the Executive’s employment hereunder for any reason, the Executive agrees to immediately return all such property of the Corporation or of any of its Affiliates in the possession of the Executive or directly or indirectly under the control of the Executive and to destroy all electronic copies thereof. The Executive agrees not to 

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make, for his personal or business use or that of any other person, reproductions or copies of any such property or other property of the Corporation or of any of its Affiliates.
ARTICLE 7     
GENERAL
		
	7.1
	Reasonableness of Restrictions and Covenants

The Executive hereby confirms and agrees that the covenants and restrictions pertaining to the Executive contained in this Agreement, including, without limitation, those contained in Article 6, are reasonable and valid and hereby further acknowledges and agrees that the Corporation and its Affiliates would suffer irreparable injury in the event of any breach by the Executive of his obligations under any such covenant or restriction.  Accordingly, the Executive hereby acknowledges and agrees that damages would be an inadequate remedy at law in connection with any such breach and that the Corporation and its Affiliates shall therefore be entitled, in addition to any other right or remedy which they may have at law, in equity or otherwise, to temporary and permanent injunctive relief enjoining and restraining the Executive from any such breach.
		
	7.2
	Amendments and Waivers

No amendment or waiver of any provision of this Agreement shall be binding on any party unless consented to in writing by such party.  No waiver of any provision of this Agreement shall constitute a waiver of any other provision, nor shall any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise expressly provided.
		
	7.3
	Successors and Assigns

This Agreement shall enure to the benefit of and shall be binding on and enforceable by and against the heirs, executors, administrators and legal personal representatives of the Executive and the successors and permitted assigns of the Corporation.  This Agreement is personal to the Executive and none of his rights may be assigned, made subject to a security interest or otherwise disposed of or encumbered, nor may any of his obligations be delegated or transferred, except as permitted in writing by the Board, or in accordance with the written policies, governance procedures and management practices of the Corporation, if any, as approved by the Board from time to time.
		
	7.4
	Notices

(a)    Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be delivered or sent in person, by courier, by registered mail, charges prepaid, or by fax in the case of the Corporation and by electronic mail in the case of the Executive, addressed as follows:
		
	(i)
	If to the Executive: 
111, Vinet Street, Apt. 604 
Montréal, Québec H3J 2W2

Email: rgar1234@gmail.com
		
	(ii)
	If to the Corporation: 
Resolute Forest Products Inc. 
111 Duke Street 

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Suite 5000 
Montréal, Québec  H3C 2M1
Attention:    Chief Legal Officer 
Fax number:    514-394-3644
(b)    Any such notice or other communication shall be deemed to have been given and received on the day on which it was delivered or transmitted (or, if such day is not a Business Day or if delivery or transmission is made on a Business Day after 5:00 p.m. at the place of receipt, then on the next following Business Day) or, if mailed, on the third (3rd) Business Day following the date of mailing; provided, however, that if at the time of mailing or within three (3) Business Days thereafter there is or occurs a labour dispute or other event which might reasonably be expected to disrupt the delivery of documents by mail, any notice or other communication hereunder shall be delivered or transmitted by any aforesaid permitted means of communication.
(c)    Any party may at any time change its address for service from time to time by giving notice to the other parties in accordance with this Section 7.4.
		
	7.5
	Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether written or oral. There are no conditions, covenants, agreements, representations, warranties or other provisions, express or implied, collateral, statutory or otherwise, relating to the subject matter hereof except as provided herein. This agreement supersedes the prior employment agreement in its entirety.
		
	7.6
	Rules and Policies

In addition to this Agreement, all written rules and policies of the Corporation adopted by the Board from time to time apply to the Executive except to the extent that they are inconsistent with the express provisions of this Agreement, in which case such provisions will prevail.
		
	7.7
	Governing Law

This Agreement shall be interpreted and enforced in accordance with, and the respective rights and obligations of the parties shall be governed by, the laws of the Province of Quebec and the federal laws of Canada applicable in that province, without regard to the principles of conflict of laws.
		
	7.8
	Acknowledgements

The Executive acknowledges that:
		
	(a)
	the Executive has had sufficient time to review and consider this Agreement thoroughly;

		
	(b)
	the Executive has read and understands the terms of this Agreement and the Executive’s obligations hereunder;

		
	(c)
	the Executive has been given an opportunity to obtain independent legal advice, or such other advice as the Executive may desire, concerning the interpretation and effect of this Agreement; and

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	(d)
	this Agreement is entered into voluntarily and without any pressure.

		
	7.9
	Counterparts

This Agreement and all documents contemplated by or delivered under or in connection with this Agreement may be executed and delivered in any number of counterparts, with the same effect as if all parties had signed and delivered the same document, and all counterparts shall be construed together to be an original and will constitute one and the same agreement.
		
	7.10
	Language

The parties have requested that this Agreement be drawn up in the English Language.  Les parties ont demandé que ce contrat soit rédigé en anglais.
IN WITNESS WHEREOF this Agreement has been executed by the parties as of the date first above written.
	
					
	 
	 
	RESOLUTE FOREST PRODCUTS INC.

	By
	/s/ Michael S. Rousseau
	 

	 
	Michael S. Rousseau

	 
	Chair of the Human Resources and Compensation/Nominating and Governance Committee

	

THE EXECUTIVE

	 

	By:
	/s/ Richard Garneau

	 
	Richard Garneau

-18-RFP-2013.12.31-10Kexhibit - 10.25

        

EXHIBIT 10.25
AMENDED AND RESTATED 
CHANGE IN CONTROL AGREEMENT
THIS AMENDED AND RESTATED AGREEMENT, made as of the 26 day of  February 2014, by and between Resolute Forest Products Inc., a Delaware corporation (the “Corporation”), and Richard Garneau (the “Executive”).
WHEREAS, the Executive is the President and Chief Executive Officer of the Corporation; and
WHEREAS the Corporation and the Executive have entered into an Amended and Restated Executive Employment Agreement as of the 26 day of February 2014 setting forth the terms of the Executive’s employment (the “Employment Agreement”); and
WHEREAS, the Executive is considered by the Board of Directors of the Corporation (the “Board”) to be a valued member of management of the Corporation who has outstanding skills and abilities and an extensive background in the Corporation’s business; and 
WHEREAS, the uncertainty attendant to a Change in Control of the Corporation may result in the departure or distraction of management personnel, including the Executive, to the detriment of the Corporation; and
WHEREAS, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Corporation’s management, including the Executive, to their assigned duties in the event of a Change in Control of the Corporation; and
WHEREAS, the Corporation and the Executive are currently parties to a Change in Control Agreement, dated January 1, 2011 (the “Prior Change in Control Agreement”), and desire to amend and restate the terms of the Prior Change in Control Agreement in their entirety to read as set forth herein;
WHEREAS, this Amended and Restated Change in Control Agreement  is entered into as part of the Executive’s compensation as provided in the Employment Agreement and to maintain or increase the profitability of the Corporation; and
WHEREAS except where otherwise provided herein, defined terms as used herein have the meanings set forth in the Employment Agreement.
NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the parties hereto agree as follows:
1.DEFINITIONS
The following terms shall have the meanings assigned to them below:
		
	(a)
	“Base Amount” shall mean the Executive’s Annual Base Salary at the rate in effect on the Termination Date.

		
	(b)
	“Beneficial Owner” of securities shall mean (i) a Person who beneficially owns such securities, directly or indirectly, or (ii) a Person who has the right to acquire such securities (whether 

- 2 -

such right is exercisable immediately or only with the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon the exercise of conversion rights, exchange rights, warrants, options or otherwise.
		
	(c)
	“Incentive Amount” shall mean an amount equal to the lesser of (i) the average of the last two Incentive Awards earned by the Executive prior to the Termination Date, or (ii) 125% of the Executive’s target incentive (expressed in dollars) for the year in which the Termination Date occurs.

		
	(d)
	“Change in Control” means any of the following:

		
	(i)
	the acquisition, directly or indirectly and by any means whatsoever, by any person, or by a group of persons acting jointly or in concert, of that number of Voting Shares which is equal to or greater than 50% of the total issued and outstanding Voting Shares immediately after such acquisition; 

		
	(ii)
	the election or appointment by any holder of Voting Shares, or by any group of holders of Voting Shares acting jointly or in concert, of a number of members of the Board of Directors of the Corporation equal to or greater than one half (50%) of the members of the Board of Directors; 

		
	(iii)
	any transaction or series of transactions, whether by way of reconstruction, reorganization, consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise, whereby assets of the Corporation become the property of any other person (other than a subsidiary of the Corporation) if such assets which become the property of any other person have a fair market value (net of the fair market value of any then existing liabilities of the Corporation assumed by such other person as part of the same transaction) equal to 50% or more of the Market Capitalization of the Corporation immediately before such transaction; or 

		
	(iv)
	the completion of any transaction or the first of a series of transactions which would have the same or similar effect as any transaction or series of transactions referred to in paragraphs (i), (ii) and (iii) above.

		
	(e)
	“Disability” shall mean a physical or mental condition that is defined as a disability in the Corporation’s long term disability insurance plan covering the Executive immediately prior to the Change in Control.

		
	(f)
	“Employer Contributions” shall mean an amount equal to the maximum contributions the Corporation could have made (regardless of actual circumstances) on the Executive’s behalf under the Corporation’s defined contribution plan for non-unionized employees and Resolute Forest Products DC Make-up Program for the fiscal year in which the Executive’s Termination Date occurs. 

		
	(g)
	“Good Reason” shall mean:

		
	(i)
	a material change in the Executive’s status, title, position or responsibilities (including in reporting line relationships) that represents a substantial adverse change from the Executive’s status, title, position or responsibilities as in effect immediately preceding the date of a Change in Control or at any time within twenty-four (24) months thereafter; 

- 3 -

the assignment to the Executive of any duties or responsibilities that are materially inconsistent with the Executive’s status, title, position or responsibilities as in effect immediately preceding the date of a Change in Control or at any time within twenty-four (24) months thereafter; or any removal of the Executive from or failure to reappoint or reelect the Executive to any material office or position held immediately preceding the date of a Change in Control; or at any time within twenty-four (24) months thereafter.
		
	(ii)
	a material reduction in compensation and benefits, in the aggregate, (in terms of benefit levels and/or reward opportunities which opportunities will be evaluated in light of the performance requirements therefor) to those provided for under the employee compensation and benefit plans, programs and practices in which the Executive was participating immediately preceding the date of the Change in Control or at any time within twenty-four (24) months thereafter;

		
	(iii)
	a material reduction of the Executive’s Annual Base Salary as in effect immediately preceding the date of the Change in Control or any time within twenty-four (24) months thereafter;

		
	(iv)
	a failure by the Corporation to obtain from any Successor its assent to this Agreement contemplated by Section 10 hereof; or

		
	(v)
	a material change in the geographic location at which the Executive is to perform services on behalf of the Corporation from the location immediately prior to the Change in Control.

		
	(h)
	“Market Capitalization of the Corporation” at any time means the product of (i) the number of outstanding Common Shares of the Corporation at that time, and (ii) the average of the closing prices for the Common Shares of the Corporation on the principal securities exchange (in terms of volume of trading) on which the Common Shares of the Corporation are listed at that time for each of the last 10 business days prior to such time on which the Common Shares of the Corporation traded on such securities exchange.

		
	(i)
	“Notice of Termination” shall mean a notice sent by either the Executive or the Corporation to the other party terminating the Executive’s employment as of a certain date and setting forth the reasons therefor.

		
	(j)
	“Successor” shall mean the direct or indirect successor by purchase, merger, consolidation or otherwise, to all or substantially all of the business and/or assets of the Corporation.

		
	(k)
	“Termination Date” shall mean (i) in the case of the Executive’s death, the date of death, (ii) in the case of a termination by the Executive in accordance with Section 3, the last day of employment as set forth in the Notice of Termination given by the Executive, (iii) in the case of a termination by the Corporation for Cause, a date not less than thirty (30) days after receipt of the Notice of Termination by the Executive, (iv) in the case of a termination by the Corporation due to the Executive’s Disability, the date not less than thirty (30) days after receipt of the Notice of Termination by the Executive, provided that the Executive shall not have returned to the full-time performance of duties within thirty (30) days after such receipt, and (v) in all other cases, the date specified in the Notice of Termination or if no Notice of 

- 4 -

Termination is sent, the last day of the Executive’s active employment (an Executive receiving periodic severance pay is no longer considered employed for the purposes of this Agreement).
2.    TERM OF AGREEMENT
This Agreement shall commence as of the date hereof and terminate on the occurrence of any of the following events:  (i) the date of death of the Executive; (ii) voluntary resignation by the Executive from the Corporation otherwise than in response to a Good Reason; (iii) the giving of notice by the Corporation in the event of Disability; (iv) termination for Cause; (v) termination of employment of the Executive at any time when there has been no Change in Control or more than two years after the immediately preceding Change in Control; (vi) termination of this Agreement by the Corporation in accordance with Section 12 or (vii) satisfaction by the Corporation of its obligations under Section 4 of this Agreement in the event of termination of the Executive in the circumstances contemplated by Section 4. The specific date of termination shall be as set forth in the definition of Termination Date.
For greater certainty, Section 4 applies with respect to each separate Change in Control until the Agreement has been terminated.  In addition, with respect to a particular Change in Control, Section 4 expires twenty-four (24) months following such Change in Control unless this Agreement is otherwise terminated.
3.    EXECUTIVE’S RIGHT OF TERMINATION
After a Change in Control and for twenty-four (24) months thereafter, the Executive shall have the right to terminate employment for Good Reason as set forth below.  If the Executive’s employment is terminated in accordance with the provision of this Section 3, the Executive shall be entitled to the compensation and benefits described in Section 4 below.  In order to resign for Good Reason, the Executive must notify the Corporation in writing not more than thirty (30) days after the occurrence of one or more events asserted to constitute Good Reason, describing such event or events in reasonable detail (a “Good Reason Notice”).  If the Corporation fails to cure all events identified in the Good Reason Notice within thirty (30) days after receiving the Good Reason Notice by restoring the Executive to the position he would have been in had the event not occurred (including payment of any lost compensation or benefits), the Executive may resign for Good Reason by submitting a Notice of Termination not more than one hundred eighty (180) days after the end of such thirty (30) day period.  For avoidance of doubt, the failure of the Executive to notify the Corporation of an event constituting Good Reason, or to resign as a result of such event having occurred and not having been cured, shall not constitute a waiver of any of the Executive’s other rights with respect to such event, including without limitation the right to maintain an action for breach of contract, or preclude the Executive from resigning for Good Reason upon the subsequent occurrence of any of the events described above, including an event of the same type.
4.    COMPENSATION UPON CHANGE IN CONTROL FOLLOWED BY CERTAIN TERMINATIONS
If the Executive’s employment with the Corporation shall be terminated within twenty-four (24) months following a Change in Control (i) by the Corporation for any reason other than for Cause or Disability, or (ii) by the Executive for Good Reason pursuant to Section 3 (each, a “Qualifying Termination”), the Executive shall be entitled to the compensation and benefits set forth in this Section 4.  If either a Notice of Termination is given by the Corporation, or an event constituting the basis for the Executive’s resignation for Good Reason occurs (and is not subsequently cured within thirty (30) days as described above) prior to the end of such twenty-four (24) month period, the Executive’s termination shall be considered to have terminated within such twenty-four (24) month period regardless of the actual Termination Date.

- 5 -

If a Qualifying Termination occurs, the Executive shall be entitled to the following as of the applicable Termination Date:
		
	(a)
	A single lump sum, paid as soon as practicable, but in no event later than sixty (60) days after the Executive’s Termination Date, equal to the sum of the following less applicable withholding taxes:

		
	(v)
	an amount equal to the Base Amount multiplied by three;

		
	(vi)
	an amount equal to the Incentive Amount multiplied by three;

		
	(vii)
	an amount equal to the Employer Contributions multiplied by three; and

		
	(viii)
	a cash payment of $20,000 in lieu of individual outplacement services.

The payment of severance hereunder is intended to meet the short-term deferral exception under Section 409A of the US Internal Revenue Code of 1986, as amended (the “Code”), and shall be interpreted and administered consistent with this intent, to the extent applicable.  
		
	(b)
	As of the Executive’s Termination Date, the Executive (and the Executive’s spouse or surviving spouse and dependents) will be provided health care (including medical, prescription drug and dental) and life insurance coverage provided by the Corporation to executives as of the date of the Change in Control for the earlier of thirty-six (36) months after the Termination Date or the date on which the Executive is covered by a subsequent employers’ health care and life insurance programs.  The amount of premiums that the Executive is required to pay for such coverage shall not exceed the amount paid by executives who are active employees on the Termination Date and thereafter. If and to the extent that the benefits described in this paragraph cannot be provided under the Corporation’s plans or programs, the lump sum payment described in subsection (a) shall be increased by an amount calculated so that the amount of such payment, after payment of all applicable income taxes, equals the present value of the difference between the full premium cost without employer subsidy of the lost benefits and the amount of premium the Executive would have been required to pay.

5.    EQUITY AWARDS
Notwithstanding anything in the applicable equity plan or any award agreement to the contrary, if, upon a Change in Control, the Executive holds options for the purchase of shares, or restricted shares or restricted share units (“Equity Awards”), all Equity Awards so held shall, unless the Executive breaches the terms of Article 6 of the Employment Agreement (as qualified by Section 14 of this Agreement in the event of a Qualifying Termination),  (i) immediately vest to the extent they have not already vested at such date and (ii) continue to be held, in all cases, notwithstanding the terms of the Equity Award plans, on the same terms and conditions as if the Executive continued to be employed by the Corporation.
6.    DISABILITY
In the event of Disability of the Executive, the Agreement may be terminated by the Corporation on thirty days’ notice.  Notwithstanding anything contained in this Section 6, the Executive shall be entitled to all benefits provided under any disability and pension plans of the Corporation applicable to the Executive at the date of Disability.

- 6 -

7.    NO MITIGATION REQUIRED
The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement, nor shall any payment or benefit provided for in this Agreement be offset by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, or otherwise.
8.    EXECUTIVE’S EXPENSES
The Corporation shall pay or reimburse the Executive for all costs, including reasonable attorney’s, accountants’ and actuary’s fees and expenses, incurred by the Executive (i) to confirm the Executive’s rights to and amounts of payments hereunder, (ii) to contest or dispute any termination of the Executive’s employment following a Change in Control or seek to obtain or enforce any right or benefit provided by this Agreement in litigation or arbitration, or (iii) in connection with any audit by a taxing authority related to any payment or benefit hereunder, or any subsequent contest or litigation relating to the tax treatment of such payment or benefit.  Notwithstanding the foregoing, if the Executive does not prevail in a lawsuit or arbitration pertaining to this Agreement, the Executive shall repay to the Corporation all fees and expenses relating to such proceeding that have been previously paid by the Corporation.
9.    CODE SECTION 280G
Notwithstanding anything in this Agreement to the contrary, if the aggregate amount of the benefits and payments under this Agreement, and other payments and benefits which the Executive has the right to receive from the Corporation (including the value of any equity rights which become vested upon a Change in Control) (the “Total Payments”) would constitute a “parachute payment” as defined in Section 280G of the US Internal Revenue Code of 1986, as amended, such that the Executive would be subject to the excise tax under Code Section 4999 of the Code, then the Accounting Firm (defined below in this Section 9) shall determine which of the following has a greater aggregate value for the Executive, which greater value shall be paid to the Executive: 
		
	(a)
	The after-tax amount that would be retained by the Executive (after taking into account all required income taxes payable by the Executive and the amount of any excise taxes that would be payable by the Executive under Code Section 4999 (the “Excise Taxes”)) if the Executive were to receive the Total Payments, or

		
	(b)
	The after-tax amount that would be retained by the Executive (after taking into account all federal, state and local income taxes payable by the Executive) if the Executive were to receive the Total Payments reduced to the largest amount that would result in no portion of the Total Payments being subject to Excise Taxes (the “Reduced Payments”).  

If the Total Payments are payable to the Executive, the Corporation shall not reimburse the Executive for any Excise Taxes imposed on the Executive or provide any such other compensation (whether through a tax gross-up or otherwise) to mitigate the effects of the Excise Taxes.  If the Executive is to receive Reduced Payments, the Total Payments payable will be reduced or eliminated in the following order: (1) cash payments, (2) taxable benefits, (3) nontaxable benefits and (4) accelerated vesting of equity awards.  
The determination of whether the Executive will receive the Total Payments or the Reduced Payments, and the calculation of the amount of the Reduced Payments, if applicable, shall be performed by a nationally recognized certified public accounting firm selected by the Corporation (the “Accounting Firm”).  In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Corporation may appoint another nationally recognized accounting firm to make 

- 7 -

the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder).  All fees and expenses of the Accounting Firm shall be borne solely by the Corporation. 
10.    BINDING AGREEMENT
This Agreement shall inure to the benefit of and be enforceable by the Executive, and the Executive’s heirs, executors, administrators, successors and assigns. This Agreement shall be binding upon the Corporation, its Successors and assigns. The Corporation shall require any Successor to assume and agree to perform this Agreement in accordance with its terms. The Corporation shall obtain such assumption and agreement prior to the effectiveness of any such succession.
11.    SOLE SEVERANCE; OTHER BENEFITS 
If the Executive receives the payments and benefits due under Section 4, such payments and benefits shall be in lieu of any other severance amounts to which the Executive may be entitled under any other severance arrangement, including under any employment agreement, severance pay plan, or applicable legislation entitling the Executive to severance benefits.  For greater certainty, the payments under Section 4 are in satisfaction of the Executive’s entitlement to a retiring allowance.  However, the parties acknowledge that the benefits paid hereunder are only exclusive as to other severance payments and that the Executive may be entitled to other benefits or payments triggered by a Change in Control under certain other of the Corporation’s benefit or compensation arrangements, including, without limitation, any long term incentive plans or equity incentive award plans.
12.    AMENDMENTS; WAIVERS
Except as otherwise provided below, no provision of this Agreement may be modified, waived or discharged, except in a writing specifically referring to such provision and signed by the party against which enforcement of such modification, waiver or discharge is sought.  No waiver by either party hereto of the breach of any condition or provision of this Agreement shall be deemed a waiver of any other condition or provision at the same or any other time.  Notwithstanding the foregoing, the Board or a committee thereof may amend (or terminate) this Agreement if (a) the Board or such committee reasonably and in good faith determines that such amendment is necessary either (i) to comply with the requirements of any law or regulation applicable to the Corporation or (ii) to conform the Agreement to prevailing corporate practices for companies comparable to the Corporation, provided any such amendment or termination is not adopted less than ninety (90) days prior to or after a Change in Control, (b) the same amendment is made to all other Change in Control Agreements between the Corporation and similarly situated executives, and (c) the Executive is notified in writing of the amendment and the reason for its adoption not more than thirty (30) days after it is adopted.
13.    VALIDITY
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.
14.    CONTINUANCE IN EFFECT
In the event of a Qualifying Termination, the Executive’s covenants pursuant to Sections  6.3 (Non-Competition), 6.4 (Non-Solicitation of Customers), 6.5 (Non-Solicitation of Employees), 6.6 (Non-Interference with Suppliers) and 6.10  (Merger Transactions) of the Employment Agreement shall extinguish on the Date of Termination. Except as expressly provided for in the preceding sentence and for greater 

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certainty, notwithstanding any Termination of the Executive, the provisions of the Employment Agreement shall continue in full force and effect in accordance with their terms, including, without limitation, (i) the provisions of Article 6, (ii) rights to indemnification and insurance under the Indemnification Agreement, Charter, By-Laws and directors’ and officers’ insurance policies maintained by the Corporation and (iii) rights to which the Executive is entitled by virtue of his participation in the employee benefits plans, policies and arrangements of the Corporation, all in accordance with the terms of the relevant plans and agreements.
15.    GENERAL
The provisions of Sections 7.2, 7.3, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9 and 7.10 of the Employment Agreement are hereby incorporated by reference as if herein recited at length.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.
	
						
	RESOLUTE FOREST PRODUCTS  INC.
	 
	THE EXECUTIVE

	Per:
	/s/ Michael S. Rousseau
	 
	Per:
	/s/ Richard Garneau

	 
	Michael S. Rousseau
	 
	 
	Richard Garneau

	 
	Chair of the Human Resources and Compensation/Nominating and Governance Committee

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