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EXHIBIT 10.4
LOAN OFFER
File: D158665    Company: E119933

BY:    INVESTISSEMENT QUÉBEC, a corporation duly constituted under the Act respecting Investissement Québec (CQLR, chapter I-16.0.1), having its head office at 1195 avenue Lavigerie, suite 060, Québec, Quebec G1V 4N3 (“IQ”).
TO:    RESOLUTE FP CANADA INC., a duly incorporated legal person having its principal place of business at 111 Robert-Bourassa boulevard, suite 5000, Montréal, Quebec H3C 2M1 (the “Company”).
1.LOAN
1.1IQ is granting the Company a loan for a maximum amount of two hundred and nineteen million six hundred and fifty thousand dollars $219,650,000 ) (the “Loan”), representing 75% of eligible and paid deposits by Resolute FP US Inc. (“RFP US”) in connection with the Tariffs, upon the terms and conditions set forth herein.
1.2The capitalized words and expressions used herein have the meaning given to them in Schedule A hereto, unless the context or a specific provision requires another meaning.
2.PROJECT
2.1The Loan is offered solely for the project which aims to partially fund liquidities pursuant to part 2 of the Essor program, and in  the context of the countervailing and antidumping duties, hereinafter referred to as “Tariffs,” imposed by the United States on softwood lumber imports from Quebec (the “Project”), as set out below:
															
	Deposits for the Project	FINANCING
	Description	Amount	Source of Funds	Amount
		Total Deposits	Eligible Deposits		
	Estimated countervailing and antidumping duties (2020-2022)	$149,640,000	$149,640,000	IQ term loan (75% financing of countervailing and antidumping duties)	$219,650,000
	Countervailing and antidumping duties (2017-2019)	$143,234,458	$143,234,458	RFP US working capital	$73,224,458

															
	Total:	$292,874,458 
	$292,874,458 
	Total:	$292,874,458

2.2The Company declares that the payment of Deposits in connection with the Project started on or about April 28, 2017 and that such Deposits could continue until December 31, 2022 (the “ Completion Date of the Project”). If RFP US stops making payments of Deposits in connection with the Project prior to this date, the Company shall notify IQ in writing of the actual end date of such payment and, for the purposes of this Offer, the Completion Date of the Project shall be the latter date or, if the Company fails to notify IQ of the actual end date of the payment of Deposits in connection with the Project, the date of the end of the period covered by the last independent auditors’ report delivered to IQ. For greater certainty, Deposits on imports made after December 31, 2022 shall automatically be excluded from the Project.
3.INTEREST RATE
3.1.The Loan shall bear interest from each disbursement, at the 30-day banker’s acceptance rate plus 1.45 % calculated monthly. The 30-day banker’s acceptance rate prior to being increased is currently, for reference purposes only, at 0.48%.

															
					
	

	

	

	

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LOAN OFFER
File: D158665    Company: E119933

4.INTEREST PAYMENTS
4.1The Company shall pay interest calculated at the rate and in the manner provided in title 3 “INTEREST RATE” on the last day of each month starting on the last day of the month following the first Loan disbursement.
5.LOAN REPAYMENT
5.1The Company shall benefit from a 24-month moratorium period on the repayment of the principal amount of the Loan as of the date of the first disbursement of the Loan.
5.2Following the moratorium period provided in the previous paragraph, the Company shall repay the principal amount of the Loan in 96 consecutive monthly instalments, payable on the last day of each month starting on the last day of the first month following the end of the moratorium period as shown in the example below in the case of a disbursement of the maximum Loan amount:
						
	Number of instalments	Amount
	95	$2,290,000.00

	1	$2,100,000.00

Subsequent to the final disbursement, should the total disbursements made under the Loan be less than the maximum amount of the Loan, the monthly instalment amount shall be adjusted accordingly. 
5.3In the event of an agreement between the Canadian and American governments (or a unilateral decision by the American government) on softwood lumber Tariffs, or a final decision of a court or an international organization having jurisdiction on this matter, the Company undertakes, up to the amounts then owing, to repay IQ the entire amount received, directly or indirectly, from any competent authority as reimbursement of Tariffs paid by RFP US on Quebec imports, as soon as possible, upon receipt of all such amounts.
5.4The Company may, at its discretion, at any time, prepay the Loan in whole or in part, without penalty. Further to prepayment, under this section 5.4, section 5.3 or otherwise, the monthly instalment amount shall be adjusted accordingly based on the number of instalments remaining, if applicable.
6.DISBURSEMENT
6.1The Loan disbursements shall be made directly in the Company’s account.
6.2The Loan disbursement shall be made in a maximum of 10 instalments, each corresponding to a maximum of 75% of the eligible deposits paid by RFP US for which the Company requested the disbursement. Should the Company request a payment that is less than the authorized limit of 75% of eligible deposits, it may use all or part of the balance of the 75% maximum of eligible deposits it did not use in the past for a future disbursement request, but without going over 75% of the eligible deposits paid by RFP US up to the date of such subsequent disbursement.
7.COMMITMENTS TO BE FULFILLED BEFORE THE LOAN DISBURSEMENT
7.1The first disbursement of the Loan shall be made only once IQ has obtained, to its satisfaction:
7.1.1An external auditors’ report confirming the amount of Tariffs paid by RFP US for the period from January 1, 2017 to September 30, 2020 and imposed by the United States on softwood lumber imports from Quebec;
7.1.2Putting in place, to IQ’s satisfaction, the security required under section 8 hereof;
7.1.3One or more opinions from the Company’s and/or RFP US’ outside legal counsels must be obtained, at the Company’s expense, in favour of IQ, confirming, among other things, i) the Company’s corporate status and its borrowing capacity, the validity and enforceability on the Company of: x) this Offer (once accepted by the Company), y) the Canadian account control agreement; and z) the hypothec on the Company’s Canadian accounts covered by this control agreement; ii) the validity and enforceability of RFP US’ intervention hereunder.
															
					
	

	

	

	

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LOAN OFFER
File: D158665    Company: E119933

7.1.4A duly completed and signed copy of the form entitled “Automatic payment plan and disbursement authorization – Company” together with, if applicable, an original personalized cheque specimen in the Company’s name or the form entitled “Confirmation of bank account information for electronic disbursement.”
7.2Prior to each Loan disbursement, the Company shall have submitted to IQ in a form satisfactory to IQ:
7.2.1An external auditors’ report confirming the amount of Tariffs imposed by the United States and paid by RFP US on softwood lumber imports from Quebec;
7.2.2The most recent consolidated financial statements of Resolute Forest Products Inc. (“RFP Inc.”).
8.SECURITY
8.1In order to provide a specific continuing guarantee of the fulfillment of all of the obligations of the Company towards IQ pursuant hereto, the Company must:
8.1.1consent to granting IQ a first ranking principal hypothec of two hundred and nineteen million six hundred and fifty thousand dollars ($219,650,000), and an additional hypothec of forty-three million nine hundred and thirty thousand dollars ($43,930,000) pursuant to Canadian laws on two bank accounts to be created by the Company (the “Dedicated Account”). The Dedicated Account must be targeted as the recipient of all amounts received from RFP US in accordance with section 9.2.1 hereof. 
8.1.2enter into an account control agreement with respect to the hypothec mentioned in section 8.1.1 above on the Dedicated Account.
9.SPECIAL UNDERTAKINGS OF THE COMPANY
9.1In addition to the general undertakings stipulated hereunder, the Company undertakes, from the date of acceptance of this Offer and until repayment of the Loan in full, to:
9.1.1Provide the following financial statements:
												
	Entity
	Type	Frequency	Deadline (days)
(from the end of each fiscal year)

	Resolute Forest Products Inc.	Consolidated audited	Annually	120
	Resolute Forest Products Inc.	Forecasted with working hypotheses	Annually	120
	Resolute Forest Products Inc.	10Q Quarterly reports	Quarterly (Q1/Q2/Q3)	120

9.1.2Use the funds disbursed from the Loan exclusively for expenses, operations and obligations relating to activities of Quebec plants and Quebec activities of entities of the RFP Inc. group. For greater certainty, in no event shall the Company use the funds disbursed by IQ to pay or repay Tariffs of RFP US;
9.1.3The Company shall notify IQ, a) in advance if it intends to be liquidated or to wind-up, and b) within a reasonable timeframe of becoming aware, (i) of any change of control of RFP Inc. or voluntary merger, liquidation or winding-up of RFP Inc.; or (ii) if RFP Inc. ceases to hold direct or indirect control of the Company. In the event that IQ notifies the Company that these transactions are not in IQ’s interest, acting reasonably, IQ can then, within sixty (60) days of the notice to the Company, claim from the Company full repayment of the principal amount of this Loan plus any interest accrued. For purposes of this clause, “control” means the direct or indirect holding of a number of voting shares carrying more than 50% of the voting rights of the relevant entity;
9.1.4An undertaking from the Company not to use the funds disbursed to grant loans or advances to shareholders of RFP Inc., directors or officers of the Company or of RFP Inc. or to associated or affiliated companies not controlled by RFP Inc., if applicable, except in the normal course of business and in compliance with the terms of clause 9.1.2 hereinabove;
															
					
	

	

	

	

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LOAN OFFER
File: D158665    Company: E119933

9.2RFP US intervenes herein and undertakes in favour of IQ, from the date of acceptance of this Offer and until repayment of the Loan in full, to:
9.2.1transfer to the Company and deposit as soon as possible in the Company’s Dedicated Account any amount received from any competent authority as reimbursement for Tariffs paid by RFP US on Quebec imports, up to the amounts then owing to IQ hereunder;
9.2.2The Company undertakes in favour of IQ to apply, as soon as possible, any amount received from RFP US in accordance with section 9.2.1 hereof exclusively in reduction of the Loan.
10.EXAMINATION FEES
10.1This Offer is subject to examination-related fees (“Examination Fees”) equal to 0.5% of the amount of the Loan, i.e., up to one million ninety-eight thousand two hundred and fifty dollars ($1,098,250).
10.2The examination fee instalments shall be made gradually at each Loan disbursement, in an amount equal to 0.5 % of the amount of each disbursement. After the final disbursement, should the total disbursements made under the Loan be less than the maximum Loan amount, the total Examination Fee amount provided in paragraph 10.1 shall be adjusted accordingly. 
10.3The fact that the Examination Fees have been cashed shall not confer any rights on the Company and shall not impose any obligations on IQ to make any disbursement of the Loan; such rights and obligations shall only arise where the terms and conditions referred to herein have been fulfilled.
11.OTHER PROVISIONS
11.1Only the French version of this Offer shall be considered official and, in all cases, the French version shall prevail over any accompanying translation.
11.2The Company acknowledges that the provisions contained in this Offer and in its schedules have been freely discussed with IQ and that it has received adequate explanations as to their nature and scope.
11.3This Offer shall be deemed to have been executed by all parties in QUÉBEC.

															
					
	

	

	

	

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LOAN OFFER
File: D158665    Company: E119933

INVESTISSEMENT QUÉBEC

												
	By:	/S/ Michel Tremblay	Date:	2020-11-03
		Signature		
		Michel Tremblay
Senior Account Manager, Specialized Financing
		
		Print the Name of the Authorized Signatory		

												
	By:	/S/ Luc Jacob	Date:	2020-11-03
		Signature		
		Luc Jacob, CPA, CA, M. Sc.
Director, Specialized Financing - Québec
		
		Print the Name of the Authorized Signatory		

															
					
	

	

	

	

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LOAN OFFER
File: D158665    Company: E119933

ACCEPTANCE BY THE COMPANY
After reading the terms and conditions set forth in this Offer and in the schedules thereto, we accept this Loan offer.
RESOLUTE FP CANADA INC.
												
	By:	/S/ REMI G. LALONDE	Date:	2020-11-04
		Signature		
		REMI G. LALONDE	

	
		Name of Authorized Signatory		
	

By:
	/S/ MARIANNE LIMOGES	Date:	2020-11-04
		Signature		
		MARIANNE LIMOGES		
		Name of Authorized Signatory		

INTERVENTION OF RESOLUTE FP US INC.

RESOLUTE FP US INC. intervenes in this Offer and agrees to the terms of section 9.2.1 and undertakes to comply with them.

												
	By:	/S/ REMI G. LALONDE	Date:	2020-11-04
		Signature		
		REMI G. LALONDE	

	
		Name of Authorized Signatory		
	

By:
	/S/ MARIANNE LIMOGES	Date:	2020-11-04
		Signature		
		MARIANNE LIMOGES		
		Name of Authorized Signatory		

															
					
	

	

	

	

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Dossier : D158665    Entreprise : E119933

1.DEFINITIONS
For the purposes of this Offer, the following terms have the meaning set forth hereinafter unless the context indicates otherwise:
“Event of Default” shall mean any of the defaults under section 5 “Events of Default”;
“Eligible Deposits” shall mean Deposits in connection with the Project to the extent they were incurred and paid by RFP US on Quebec imports;
2.INTEREST
2.1.Any amount not paid when due hereunder shall bear interest from such date at the annual rate stipulated in section 3.1 hereunder calculated over a period of three hundred and sixty-five (365) days every time it is referred to herein.
2.2.Any interest not paid when due shall bear interest itself from such date at the rate stipulated in this Offer without demand or notice.
3.ELECTRONIC TRANSFERS
3.1IQ may disburse the Loan directly into the Company’s bank account if IQ has obtained the original copy of the form entitled “Automatic payment plan and disbursement authorization – Company” and, if applicable, an original personalized cheque specimen in the Company’s name or the form entitled “Confirmation of bank account information for electronic disbursement.” However, IQ reserves the right to disburse the Loan by issuing a cheque where it deems that method of disbursement preferable in the circumstances.
3.2The Company hereby authorizes IQ to use manual or electronic debits on its bank account to make any payment that the Company is required to make to IQ hereunder as well as any subsequent amendments thereto. To this effect, the Company hereby authorizes the bank or the financial institution with which it deals to honour the debits made by IQ and undertakes to complete and sign the form entitled “Automatic payment plan and disbursement authorization – Company.” In the event of prepayment, the automatic payment amounts will have to be adjusted. 
3.3Every month, IQ shall send the Company, in advance, a debit note setting forth all the information regarding payments to be made by the Company.
3.4The Company undertakes to renew the above authorization if it changes its bank or financial institution while any balance of the Loan is outstanding and to inform IQ of this change by providing a new duly completed and signed schedule entitled “Automatic payment plan and disbursement authorization – Company”, together with a cheque specimen from its new bank or financial institution marked “VOID” and containing all the necessary information.
3.5The Company agrees that repayment of any amount owed hereunder as well as any subsequent amendments shall be made by cheque where IQ deems that method of payment preferable in the circumstances.
4GENERAL UNDERTAKINGS OF THE COMPANY
4.1From the date of acceptance of this Offer and for as long as the Company is liable to IQ in any capacity hereunder, it undertakes to:
4.1.1provide the financial statements mentioned in the Offer within the time limit prescribed therein;
4.1.2comply with its disclosure requirements in accordance with the securities laws applicable to related party transactions;
4.1.3not to move a substantial portion of its assets outside the Province of Quebec without first obtaining IQ's written authorization;
4.1.4take out and maintain reasonable insurance policies, in particular all risk insurance, and, upon request, provide IQ with the certificate(s) of insurance confirming the policies taken out and any renewals thereof; 
4.1.5not encumber the sums deposited in the Dedicated Account referred to in the Offer, or dispose in any way whatsoever of the sums deposited in the said Dedicated Account other than in accordance with this Offer while any balance of the Loan is outstanding;
4.1.6disclose in the quarterly reports given to IQ in accordance with section 9.1.1 of the Offer Letter, any material litigation or proceeding before any court of justice or tribunal, board or government agency to which it is party in accordance with the applicable securities legislation; 
4.1.7comply at all times in all material respect, with the laws to which it is subject in Quebec and, more specifically, but without limiting the generality of the foregoing, the standards relating to environmental protection, labour and employment, and human rights, except for any non-compliance that does not have a material adverse effect on the RFP Inc. group;
4.1.8maintain at all times internal ethics policies;
4.1.9provide, upon IQ’s request, the certificates or documents required pursuant to the laws of the Province of Quebec;
4.1.10without limiting the scope of section 9.1.3 of the Offer Letter that only requires notice upon the occurrence of certain outlined changes, not to assign this Offer Letter without IQ’s prior written consent, except to a Canadian entity controlled by RFP Inc. with operations in Quebec; 
4.1.11pay all expenses relating to the preparation and registration, if required, of the documents necessary to give legal effect to this Offer and any amendment thereto;
4.1.12In the Event of Default, pay all reasonable costs incurred by IQ to exercise its rights pursuant to this Offer, including IQ’s right to obtain performance of all the Company’s obligations to protect, enforce or preserve all security granted in guarantee of the Loan or to enable a valuation of the Company’s assets to be made, upon IQ’s request, including but not limited to all legal costs, fees, charges or other legal expenses, agent’s fees, trustee’s fees or other fees or charges;
4.1.13in the Event of Default, pay all reasonable costs that are billed by an external consultant, selected by IQ, to advise IQ on all questions related to the Loan; specifically, the mandate assigned to the external consultant may extend to the preparation and financial and operational analyses of 
															
					
	

	

	

	

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Dossier : D158665    Entreprise : E119933

the Company, the evaluation of the security offered and the elements of intellectual property related to the Project as well as any other matter related to the protection of IQ’s rights;
4.1.14Upon at least 48 hours prior notice to the Company, allow IQ to enter the Company’s premises during normal business hours to conduct audits that are deemed necessary for the Project and obtain a copy of any document required to this end. Before exercising this right, IQ shall request in advance a copy of the requested documents from the Company and should the documents not be received within a period of 10 days after the request was received, IQ may exercise its right to enter, such right to be exercised in accordance with the applicable laws and regulations;
4.1.15Not grant other hypothecs or security interest, or for its own benefit, ranking prior to those granted to IQ on the Tariffs as security for the Loan; unless prior written consent of IQ has been obtained.
5.EVENTS OF DEFAULT
Notwithstanding any provision to the contrary in this Offer and even where the other conditions have been fulfilled, IQ reserves the right, at its discretion, to terminate the Loan or any undisbursed portion thereof or to defer disbursement thereof, and the Company undertakes to repay, on demand, all or part of the sums disbursed on account of the Loan together with any interest accrued, in the following cases unless this Event of Default is remedied within 45 days following a request to this effect by IQ to the Company :
5.1if the Company makes an assignment of its property, is subject to a receiving order pursuant to the Bankruptcy and Insolvency Act, makes a proposal to its creditors or commits an act of bankruptcy pursuant to the aforesaid Act, claims the benefit of the provisions of the Companies’ Creditors Arrangement Act or if it is subject to a winding-up order pursuant to the winding-up rules provided in the Business Corporations Act or any other similar law, or if it fails to maintain a legal existence;
5.2if the Company is in default under the terms of an agreement or a security instrument relating to its borrowings in a principal amount over $50,000,000 and such default has not been remedied within the time prescribed; 
5.3in the event of misrepresentation, fraud or falsification of documents prepared by the Company and submitted to IQ in connection with the Project;
5.4if the Company fails to fulfill a material covenant stipulated in the terms, conditions and clauses of this Offer.
6.GENERAL PROVISIONS
6.1This contract shall be governed by the laws of the Province of Quebec and, in the event of dispute, the courts of Quebec in the judicial district of Quebec alone shall have jurisdiction. In addition, this Offer is subject to the terms and conditions set forth in the Act respecting Investissement Québec.
6.2By accepting this Offer, the Company declares that all information of a technical, financial or economic nature that it has prepared and provided to IQ on a historical basis is true, to the best of its knowledge.
6.3For the purposes of this Offer, all notices shall be in writing and sent by certified or registered mail or delivered by hand or by fax. Notices from IQ shall be sent to the Company’s head office, to the attention of the authorized representative who shall execute the acceptance of this Offer for and on behalf of the Company. All notices from the Company or its shareholders shall be sent to Investissement Québec, at its place of business at 600, de La Gauchetière Ouest, Suite 1500, Montréal, Quebec, H3B 4L8, to the attention of the Secretary. All notices shall be deemed to have been received on the day they are delivered, where hand-delivered, the day of transmittal, if sent by fax, and if such day is a business day, during normal office hours or the following business day, or on the third business day after they are mailed by the sender, where sent by certified or registered mail.
7.CANCELLATION
7.1If the Company does not request the disbursement of any amount of the Loan which the Company is entitled to receive within 6 months following the Project Completion Date, IQ may cancel all or part of the Loan.
8.PUBLIC ANNOUNCEMENT
8.1By accepting this Offer, the Company agrees that IQ can publicly disclose the principal parameters of the Loan granted to the Company including but not limited to the name of the Company, its type of operations, its location, the nature and amount of the Loan provided hereunder as well as the number of employees working for the Company.
8.2Except in the case of any disclosure required by law, the terms of any public announcement relating to the contractual relationship between IQ and the Company shall be determined by mutual agreement of the parties, both with respect to the timing and the content. Neither party may use the name of the other party or refer to the business relationship arising hereunder in any promotional material or advertising, without the prior written consent of the other party. 
															
					
	

	

	

	

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EXHIBIT 10.45

RESOLUTE FOREST PRODUCTS 2019 EQUITY INCENTIVE PLAN
STOCK SETTLED PERFORMANCE STOCK UNIT AGREEMENT
THIS PERFORMANCE STOCK UNIT AGREEMENT, dated as of November16, 2020, (the “Date of Grant”) is made by and between Resolute Forest Products Inc., a Delaware corporation (the “Company”), and «FIRST» «LAST» (“Participant”).
WHEREAS, the Company has adopted the Resolute Forest Products 2019 Equity Incentive Plan (the “Plan”), pursuant to which performance stock units may be granted in respect of shares of the Company’s common stock, par value $0.001 per share (“Stock”); and
WHEREAS, the Human Resources and Compensation and Nominating and Governance Committee of the Company (the “Committee”) has determined that it is in the best interests of the Company and its stockholders to grant the performance stock unit award provided for herein to Participant subject to the terms set forth herein.
NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:
1.Grant of Performance Stock Unit.
(a)Grant.  The Company hereby grants to Participant «PSUs» performance stock units (the “PSUs”), on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan (the “Initial Grant”).  Each PSU represents the right to receive one share of Stock as of the Settlement Date (defined in Section 2(c)), to the extent the Participant is vested in such PSUs as of the Settlement Date, subject to the terms of this Agreement and the Plan.  
(b)Incorporation by Reference, Etc.  The provisions of the Plan are hereby incorporated herein by reference.  Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan.  The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon Participant and his legal representative in respect of any questions arising under the Plan or this Agreement.
(c)Acceptance of Agreement.  Unless Participant notifies the Company in writing within 14 days after the Date of Grant that Participant does not wish to accept this Agreement, Participant will be deemed to have accepted this Agreement and will be bound by the terms of the Agreement and the Plan.  Any such notice may be given to the Corporate Compensation at the Company’s principal executive office.
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2.Terms and Conditions.
(a)Calculation of Earned Performance Stock Units.  The period over which the PSUs earned by the Participant will be measured is the three calendar years beginning with the calendar year that immediately follows the Date of Grant (“Performance Period”). If the Participant is otherwise vested as provided in Section 2(b), the Participant will receive a number of PSUs based on actual achievement of performance measures during the Performance Period, as set forth on Exhibit 1 attached hereto.
(b)Vesting.  Subject to Section 3, a Participant will be 100% vested if he remains employed with the Company or any Affiliate or Subsidiary on February 28, 2024 (the “Vesting Date”).  For purposes of the Agreement, the “Vesting Period” is the period beginning on December 1 following the Date of Grant through the Vesting Date.  Notwithstanding the foregoing, a Participant who meets the criteria to terminate employment due to Retirement (as provided in Section 3(a)) shall be 100% vested as of the date the Participant meets such criteria (irrespective of whether the Participant terminates employment due to Retirement).  
(c)Settlement.   The obligation to make payments and distributions with respect to PSUs shall only be satisfied through the issuance of one share of Stock for each earned and vested PSU (the “settlement”) and the settlement of the PSUs may be subject to such conditions, restrictions and contingencies as the Committee shall determine. Subject to Section 4(c), the Company undertakes and agrees not to exercise its right under the Plan to settle the PSUs in any other means other than shares of Stock. PSUs shall be settled as soon as practicable after the Vesting Date.  However, in the event (i) the Participant dies on or after the Date of Grant and before the Performance Period, the PSUs shall be settled no later than March 15 of the calendar year following the end of the first calendar year of the Performance Period, and (ii) the Participant dies during the Performance Period, the PSUs shall be settled no later than March 15 of the calendar year following the calendar year in which the Participant dies.  For purposes of this Agreement, the date on which PSUs are settled pursuant to the preceding sentence shall be a “Settlement Date.”  
(d)Dividend Equivalents.  Participant will from time to time be credited with additional PSUs (rounded to the nearest whole share), the number of which will be determined by dividing: 
(i)The product obtained by multiplying the amount of each dividend (including extraordinary dividend if so determined by the Company) declared and paid by the Company on the Stock on a per share basis during the Vesting Period by the number of PSUs recorded in the Participant’s account on the record date for payment of any such dividend, by
(ii)The Fair Market Value (as defined in the Plan) of one (1) share of Stock on the dividend payment date for such dividend.  
Subject to continued employment with the Company or any Affiliate or Subsidiary or as otherwise provided in Section 3, the additional PSUs shall vest and be settled at the same time and in the same proportion as the Initial Grant.  No additional PSUs shall be 
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accrued for the benefit of Participant with respect to record dates occurring before, or with respect to record dates occurring on or after the date, if any, on which Participant has forfeited the PSUs. 
3.Termination of Employment with the Company.  For purposes of this Agreement and to the extent applicable to the Participant, the term “termination of employment” shall mean “separation from service” as defined in Section 409A of the Internal Revenue Code (“Section 409A”).  To the extent payments are made during the periods permitted under Section 409A (including any applicable periods before or after the specified payment dates set forth in Section 2(c)), the Company shall be deemed to have satisfied its obligations under the Plan and shall be deemed not to be in breach of its payments obligations hereunder.
(a)Retirement.  If the Participant’s employment with the Company, Affiliates and Subsidiaries terminates as a result of “Retirement” at any time on or after six months from the Date of Grant, then the Participant shall be entitled to receive 100% of the PSUs he would have earned had he remained employed with the Company, Affiliates and Subsidiaries for the entire Vesting Period, based on actual performance as provided in and determined pursuant to Section 2(a).  For purposes of the Agreement, “Retirement” means the Participant terminates employment with the Company, all Affiliates and Subsidiaries under circumstances that do not entitle the Participant to severance either pursuant to an agreement or policy, plan or program and such termination occurs on or after: (i) attaining age 58, (ii) completing at least two years of service, and (iii) having a combined age and years of service (counting partial years) equal to at least 62.5 points. 
(b)Involuntary Termination and Certain Voluntary Terminations. The Participant shall become vested in a prorata number of PSUs and entitled to receive a number of PSUs based on actual performance, as provided in and determined pursuant to Section 2(a), in the following circumstances: (1) the Participant’s employment with the Company or any Affiliate or Subsidiary terminates as a result of Retirement within six months after the Date of Grant, (2) the Participant voluntarily terminates his employment with the Company, Affiliates and Subsidiaries on or after age 55 and the termination does not constitute a Retirement, or (3) the Participant is involuntarily terminated by the Company or any Affiliate or Subsidiary without Cause (whether or not the Participant is eligible for Retirement, regardless of his age at termination and other than due to Disability or death).  For purposes of the preceding, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the Participant’s retirement date or last day worked (in the case of termination) and the denominator of which shall be 39 (the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).  
(c)Death. If the Participant’s employment with the Company or any Affiliate or Subsidiary terminates due to the Participant’s death, the Participant shall become vested in a prorata number of PSUs and entitled to receive a number of PSUs based on estimated actual 
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performance as of December 31 of the calendar year that contains the Participant’s date of death, as approved by the Committee. 
(i)Death During Performance Period.  If the Participant’s death while employed occurs during the Performance Period, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the end of the calendar year that contains the Participant’s date of death and the denominator of which shall be 39 (i.e., the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).  
(ii)Death On/After Date of Grant and Before Performance Period.  If the Participant’s death while employed occurs on or after the Date of Grant, but before the Performance Period begins, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the end of the first calendar year of the Performance Period and the denominator of which shall be 39 (i.e., the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).  
(d)Disability.  If the Participant becomes eligible for long-term disability benefits under a plan sponsored by the Company, an Affiliate or a Subsidiary (“Disabled”), the Participant shall become vested in a prorata number of PSUs and entitled to receive a number of PSUs based on actual performance as provided in and determined pursuant to Section 2(a). 
(i)Disability During Performance Period.  If the Participant becomes Disabled during the Performance Period, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the end of the calendar year during the Performance Period that includes the date on which the Participant becomes Disabled plus the number of additional full calendar months, if any, elapsed from the date of the Participant’s return to active employment with the Company through the end of the Vesting Period, and the denominator of which shall be 39 (i.e., the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).    
(ii)Disabled On/After Date of Grant and Before Performance Period.  If the Participant becomes Disabled on or after the Date of Grant, but before the Performance Period begins, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the end of the first calendar year of the Performance Period plus the number of additional full calendar months, if any, elapsed from the date of the Participant’s return to active employment with the Company after the end of the first calendar year of the Performance Period 
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through the end of the Vesting Period, and the denominator of which shall be 39 (i.e., the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).  
(iii)Disabled On/After the End of the Performance Period.  If the Participant becomes Disabled after the Performance Period ends, but before the Vesting Date, the Participant shall be entitled to receive 100% of the PSUs he would have earned had he remained in active employment with the Company, Affiliates and Subsidiaries for the entire Vesting Period, based on actual performance as provided in and determined pursuant to Section 2(a).
(e)Other Termination.  If the Participant’s employment with the Company, all Affiliates and Subsidiaries terminates (i) by the Company for Cause at any time or (ii) by resignation before attainment of age 55, then all outstanding PSUs, whether vested but unsettled or unvested, shall immediately terminate.
In no event shall any PSUs be settled before the Vesting Date except as provided above in the event of death or as otherwise determined by the Company.
4.Compliance with Legal Requirements.  The granting and settlement of the PSUs, and any other obligations of the Company under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required.  
(a)Transferability.  Unless otherwise provided by the Committee in writing, the PSUs shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant by Participant other than by will or the laws of descent and distribution. Any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company, an Affiliate or a Subsidiary; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.
(b)No Rights as Stockholder.  The Participant shall not be deemed for any purpose to be the owner of any shares of Stock subject to PSUs and shall have no voting rights with respect to the PSUs.
(c)Tax Withholding.  All distributions under the Plan are subject to withholding of all applicable federal, state, provincial, local and foreign income taxes and social contributions (the “Withholding Obligation”). The Company may satisfy such Withholding Obligation by any means whatsoever, including withholding cash from any other payment or amounts due to the Participant. Unless otherwise determined by the Committee, the Company will satisfy its Withholding Obligation by issuing, upon the settlement of the PSUs, a net number of shares of Stock to the Participant equal to the number of shares of Stock that the Participant would otherwise be entitled to receive on the Settlement Date minus such number of shares of Stock with a value determined on that date equal to any amount required to satisfy the Withholding Obligation.
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5.Forfeiture and Recoupment.  For the avoidance of doubt, the Plan’s provisions on forfeiture and recoupment in Section 15 of the Plan apply to the PSUs awarded hereunder.  The Company's Recoupment Policy, as may be amended from time to time, shall apply to the  PSUs, any shares of Stock delivered hereunder and any profits realized on the sale of such Shares to the extent that the Participant is covered by such policy.  If the Participant is covered by such policy, the policy may apply to recoup PSUs awarded, any shares of Stock delivered hereunder or profits realized on the sale of such shares either before, on or after the date on which the Participant becomes subject to such policy.
6.Miscellaneous.
(a)Waiver.  Any right of the Company contained in this Agreement may be waived in writing by the Committee.  No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.  No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.
(b)Notices.  Any written notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage paid first class mail.  Notices sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt.  Notices shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s records, or if to the Company, to the attention of the Director, Corporate Compensation at the Company’s principal executive office.  
(c)Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.
(d)No Rights to Employment.  Nothing contained in this Agreement shall be construed as giving Participant any right to be retained, in any position, as an employee, consultant or director of the Company or its Affiliates or shall interfere with or restrict in any way the right of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge Participant at any time for any reason whatsoever.
(e)Beneficiary.  The Participant other than a Participant residing in the Province of Québec, may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation.  Any notice should be made to the attention of the Corporate Secretary of the Company at the Company’s principal executive office.  If no designated beneficiary survives the Participant, the Participant’s estate shall be deemed to be Participant’s beneficiary.
(f)Québec Participant.  The Participant residing in the Province of Québec may only designate a beneficiary by will. Upon the death of the Participant residing in the Province of 
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Québec, the Company shall settle the PSUs pursuant to Section 2(c) of this Agreement to the liquidator, administrator or executor of the estate of the Participant.
(g)Successors.  The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.
(h)Entire Agreement.  This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.  No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto, except for any changes permitted without consent under Section 9 of the Plan.
(i)Governing Law.  This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware.
(j)Headings.  The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.
IN WITNESS WHEREOF, the Company has executed this Agreement as of the day first written above.
RESOLUTE FOREST PRODUCTS INC. 

By:                         
Yves Laflamme
President and Chief Executive Officer

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Exhibit 1
Performance Measures
For the Performance Period that begins January 1, 2021 and ends December 31, 2023, there are two performance measures, each with different weighting and possible payout levels.  
Performance Weighting
The actual results of each performance measure, described below, will be adjusted to reflect each measure’s weighting. 
						
	Performance Measure	Weighting
		
	Total Shareholder Return	50%
	Return on Capital	50%

Performance Measures

Total Shareholder Return (“TSR”)
Subject to adjustments, for the TSR measure, the Participant will earn between 0% and 200% (share amounts being straight-line interpolated) of the number of PSUs covered by the Initial Grant.
																		
	TSR vs. Peers During the Performance Period	20 percentage points below median	10 percentage points below median	Median	10 percentage points above median	20 percentage points above median
	Payout	0%	50%	100%	150%	200%

Notwithstanding anything in the Agreement to the contrary, payouts for the TSR measure that otherwise would have been more than 100% of target will be capped at 100% of target if the Company’s TSR is negative over the Performance Period.
TSR shall be calculated as follows:

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Relative TSR shall be measured each calendar year in the Performance Period.  For example, TSR for 2021 shall be determined using January 1, 2022 as the end point and January 1, 2021 as the beginning point. Interim payout levels shall be determined based on relative TSR for each calendar year.  The payout levels for each calendar year shall be added and their sum shall be divided by 3 to determine final payout of the TSR measure. 
The peer group includes the following companies:
						
	Canfor Corp	Mercer International Inc.
	Clearwater Paper Corp	Rayonier Advanced Materials
	Western Forest Products Inc.*	Verso Corp - A
	Domtar Corp	West Fraser Timber Co. LTD
	Interfor Corp	

*Note that the peer group included Conifex Timber Inc. until December 31, 2019 and Western Forest Products Inc. since January 1, 2020.
The Committee may, in its sole discretion, make adjustments to the peer group as appropriate.
Return on Capital 
Subject to adjustments, for the return on capital measure, the Participant will earn between 0% and 200% (payouts being straight-line interpolated) of the number of PSUs covered by the Initial Grant.
																		
	Original internal rate of return (“IRR”) vs. Actual IRR	< 80% of original IRR
	90% of original IRR	100% of original IRR	110% of original IRR	> 120% of original IRR

	Payout	0%	50%	100%	150%	200%

For each capital project approved after January 1, 2018 and assessed during the Performance Period, the actual IRR will be compared to the original IRR set forth in the project’s appropriation of funds request in accordance with Policy FP-500, Capital Expenditures. Total payout will be calculated using a weighted average.  Capital projects included for this performance measure include all wood projects with an appropriation of funds greater than $500,000, pulp and paper projects with an appropriation of funds greater than $1,000,000, and corporate projects with an appropriation of funds greater than $1,000,000 with an assigned IRR.  
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