Document:

EX-10.27

 Exhibit 10.27 

 
 

 
  
  
 AMENDED AND RESTATED 
 DB
SERP FOR MANAGEMENT 
 COMMITTEE MEMBERS 

OF DOMTAR 
  

As in effect on March 7, 2007, 
 amended and restated on October 1, 2012, July 30, 2013 
 and further on January 1st, 2015 

			
	 

  
	 	  
  

 

 Table of Contents 

 

					
	 1. Introduction
	  	 	1	  
		
	 2. Definitions
	  	 	1	  
		
	 3. Normal Retirement
	  	 	7	  
		
	 4. Early Retirement
	  	 	8	  
		
	 5. Deferral of Early Retirement Pension
	  	 	8	  
		
	 6. Non-Vested Termination of Employment
	  	 	8	  
		
	 7. Vested Termination
	  	 	8	  
		
	 8. Normal Form of Pension
	  	 	9	  
		
	 9. Optional Forms of Pension
	  	 	9	  
		
	 10. Death Before Commencement of Pension Payments
	  	 	10	  
		
	 11. Death After Commencement of Pension Payments
	  	 	10	  
		
	 12. Disability
	  	 	10	  
		
	 13. Administration
	  	 	11	  
		
	 14. Funding
	  	 	11	  
		
	 15. Non-Alienation of Benefits
	  	 	13	  
		
	 16. Conflicts or Inconsistencies
	  	 	14	  
		
	 17. Amendments
	  	 	14	  
		
	 18. General Provisions
	  	 	14	  
		
	Appendix	  			

			
	 

  
	 	  
  

 

  

	1.	Introduction 

  

	1.1	The present document constitutes the DB SERP for Management Committee Members of Domtar, hereinafter called the “DB SERP”. 

 

	1.2	The purpose of the DB SERP is to provide members of the Management Committee of the Company with additional retirement benefits in excess of those that may be payable
in accordance with the provisions of the Base Plans and of the DC SERP, as defined below. 

  

	2.	Definitions 

  

	2.1	Accrued Pension: at any date, the lesser of (a) and (b) defined below: 

 

	 	a)	two percent (2%) of the Best Average Earnings on such date multiplied by the number of years of Credited Service on such date; 

 

	 	b)	fifty percent (50%) of the Best Average Earnings on such date. 

  

	2.2	Actuarial Equivalent: 

  

	 	a)	For a Member employed in Canada: Actuarial Equivalent Value as defined under the Base Canadian Pension Plan; 

 

	 	b)	For a Member employed in the United States: Actuarial Equivalent as defined under the Base U.S. Pension Plan. 

 

	 	c)	For a Member employed in both Canada and the United States: subject to Section 2.28, with respect to benefits or deemed benefits under the Base Canadian Pension
Plan, Actuarial Equivalent Value as defined in the Base Canadian Pension Plan and with respect to benefits or deemed benefits under the Base U.S. Pension Plan, Actuarial Equivalent as defined in the Base U.S. Pension Plan 

 

	2.3	Base Canadian Pension Plan: the Domtar Pension Plan for Non-Negotiated Employees, as may be amended from time to time. 

 

	2.4	Base Plans: subject to Section 2.28, 

  

	 	a)	For a Member employed in Canada: the Base Canadian Pension Plan; 

  

	 	b)	For a Member employed in the United States: the Base U.S. Pension Plan and the Base U.S. Savings Plan. 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

 

	2.5	Base U.S. Pension Plan: the Domtar U.S. Salaried Pension Plan, as may be amended from time to time. 

 

	2.6	Base U.S. Savings Plan: the Domtar U.S. Salaried 401(k) Plan and the Domtar Personal Care 401(k) Plan, as may be amended from time to time.

  

	2.7	Best Average Earnings: shall mean the highest annualized average Earnings of the Member during any 60 consecutive months of membership in the Base Plans
during the 120 months of membership in the Base Plans prior to the date of Separation from Service. In the event that there are less than 60 consecutive months, Best Average Earnings shall be calculated by dividing the total Earnings of the Member
during the period of membership in the Base Plans by the number of months during such period in respect of any part of which he shall have had Earnings and multiplying the result by 12. 

For the purpose of this Section 2.7, for a Member employed both in Canada and in the United States, consecutive periods of
membership under the Base Canadian Pension Plan, the Base U.S. Pension Plan and the Base U.S. Savings Plan, and any periods in which a Member is deemed to have Credited Service under Section 2.11, shall be deemed consecutive membership in the
Base Plans. To the extent necessary, earnings shall be converted to the currency to be used for payment pursuant to Section 18.1 based on the average exchange rate for the year or shorter period earned. 

For the purpose of this Section 2.7, bonuses are attributed to the month during which they are actually paid. Notwithstanding,
should the timing of bonus payments differ from year to year, the number of bonus payments recognized shall not exceed the number of years included in the averaging period, as determined by the HR Committee. In addition, Earnings for a given month
(other than bonuses) are deemed to be equal to the Earnings for the corresponding calendar year (other than bonuses) divided by the number of months of membership in the Base Plans during the said calendar year. 

 

	2.8	Board: the Board of Directors of Domtar Corporation. 

  

	2.9	Code: the U.S. Internal Revenue Code of 1986, as amended. 

  

	2.10	Company: means Domtar Corporation and any of its subsidiaries or affiliated companies. 

 

	2.11	Credited Service: shall mean the period of service with the Company, before the executive’s Separation from Service, that starts with the date the
executive becomes a Member of the DB SERP and ends on the later of October 1, 2012 and the date the executive ceases to be a member of the DB SERP, as defined in Section 2.18, during which: 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	 

  
	 	  
  

 

  

 

	 	a)	For a Member employed in Canada: the Member is accruing credited service under the DB Option of the Base Canadian Pension Plan or the Company is contributing on behalf
of the Member under the DC Option of the Base Canadian Pension Plan, or would be contributing if it were not for the tax limits; 

  

	 	b)	For a Member employed in the United States: the Company is contributing on behalf of the Member under the Base U.S. Savings Plan, or would be contributing if it were
not for applicable Code limits and assuming the Member elected to contribute to the Base U.S. Savings Plan. 

  

	 	c)	For a Member with periods of employment in both Canada and the United States: subject to Section 2.28, during the period the Member is employed in Canada, the
Member is accruing credited service as provided in paragraph (a) of this Section 2.11 and, during the period the Member is employed in the United States, the Company is contributing on behalf of the Member as provided in paragraph
(b) of this Section 2.11, provided that, unless Section 2.23(e) of the DC SERP for Designated Executives of Domtar applies to the Member for a particular calendar year during which such Member transitions from one country to another,
the accruals or contributions, as applicable, at the commencement of the particular calendar year shall be deemed to continue in the same Base Plan for the remainder of the particular calendar year (or, if earlier, until a Separation from Service)
without duplication and without a break in service other than as a result of a Separation from Service. 

  

	2.12	DC SERP: The DC SERP for Designated Executives of Domtar and the DC SERP for Designated Executives of Domtar Personal Care, as may be amended from time to
time. 

  

	2.13	Deemed Account Balance: 

  

	 	a)	With respect to a defined contribution provision of the Base Plans, subject to Section 2.28, the account balance, for the same period as used to determine the
Credited Service with reference to the applicable Base Plan, calculated on the following basis: 

  

	 	i)	Deemed contributions are determined assuming the Member has elected to contribute at the maximum rate allowed under the applicable Base Plans, with the matching of
Company contributions in accordance with the respective Base Plans provisions; 

  

	 	ii)	Deemed credited interest is calculated on the Deemed Account Balance at the beginning of the calendar year and on the deemed Company contributions during the calendar
year, assuming such deemed contributions, as applicable, are made in the middle of the year, at the same rate of return as credited under the DC SERP. 

  

	 	b)	With respect to the DC SERP, the actual notional account balance of the Member. 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

 

	2.14	Default: shall have the meaning given to it in the Trust Agreement. 

 

	2.15	Earnings: subject to Section 2.28, 

  

	 	a)	For a Member employed in Canada: Earnings as defined under the Base Canadian Pension Plan; 

 

	 	b)	For a Member employed in the United States: Compensation as defined under the Base U.S. Savings Plan; 

With the exception that bonuses recognized in a) or b) above in a given year will not exceed the lesser of: 

 

	 	c)	The actual target bonus, as determined from time to time by the Company for the Member; and 

 

	 	d)	A target bonus of 50% of the previous year’s salary. 

 For the period of disability recognized pursuant to Section 12 of the DB SERP, Earnings are deemed to be equal to the Member’s salary rate on the day his disability begins. 

 

	2.16	HR Committee: the Human Resources Committee of the Board. 

  

	2.17	Management Committee: the Management Committee of the Company as appointed by the Board upon recommendation of the Chief Executive Officer of the Company.

  

	2.18	Member: 

  

	 	a)	an executive of the Company from the date he is designated as a member of the Management Committee and who is entitled to benefits under the DB SERP; or

  

	 	b)	any former members of the Management Committee as recommended by the Company’s Chief Executive Officer; or 

 

	 	c)	any other executive of the Company as recommended by the HR Committee. 

 Notwithstanding the above, a member of the Management Committee covered under a grandfathered SERP arrangement would not be a Member of the DB SERP. For convenience, a list of such members of the
Management Committee covered under a grandfathered SERP arrangement as at March 7, 2007 is included in the Appendix. 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

 

	2.19	Normal Retirement Date: with respect to a Member, the first day of the month coinciding with or immediately following the Member’s sixty-fifth
(65th) birthday. 

  

	2.20	Refundable Tax: shall have the meaning given to it in the Trust Agreement. 

 

	2.21	Section 409A: section 409A of the Code and the rules, regulations and guidance promulgated thereunder. 

 

	2.22	Separation from Service: occurs (or a Member Separates from Service) when 

 

	 	a)	For a U.S. Taxpayer: the Member ceases to be employed by the Company and all entities considered a single employer with the Company under Code Sections 414(b) and
(c) as a result of the Member’s death, retirement, or other termination of employment. Whether a Separation from Service takes place is based on all the relevant facts and circumstances and determined in accordance with Section
409A. 

  

	 	b)	For a Member other than a U.S. Taxpayer: the Member ceases to be employed by the Company as a result of the Member’s death, retirement, or other termination of
employment. 

  

	2.23	Trust Agreement: the agreement between the Company, a Trustee and the Member, as may be entered into in accordance with Section 14 of the DB SERP.

  

	2.24	Trust Fund: shall have the meaning given to it in the Trust Agreement. 

 

	2.25	Trustee: the trustee party to the Trust Agreement. 

  

	2.26	U.S. Taxpayer: a Member who 

  

	 	a)	Is a U.S. citizen; or 

  

	 	b)	Is a foreign national/U.S. permanent resident (“green card” holder); or 

 

	 	c)	Is a foreign national who meets the “substantial physical presence” test during an applicable calendar year; 

 

	 	d)	Is a “dual status” individual and either 

  

	 	i)	Who declares that he is a U.S. Taxpayer (under (a), (b), or (c) above); or 

 

	 	ii)	Who the Company determines is a U.S. Taxpayer (under (a), (b), or (c) above); 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

 

	 	e)	Is subject to U.S. federal income tax under the terms of the Canada-United States Tax Convention (1980) and the Protocols in effect thereunder; or

  

	 	f)	Whose benefits under this DB SERP are otherwise subject to taxation in the U.S. 

 Notwithstanding the foreign Member declaration of U.S. Taxpayer status, and unless proven otherwise, if the Company’s payroll, human resources, or other records indicate that the Member is a U.S.
Taxpayer, then the member shall be deemed to be a U.S. Taxpayer for the purposes of the DB SERP. 
  

	2.27	For the purposes of the present document, the terms and expressions listed below shall have the meaning given to them in the Base Plans: 

 

	 	a)	Base Canadian Pension Plan: 

	 	•	 	 Balanced Fund 

	 	•	 	 DB Option 

	 	•	 	 DC Option 

  

	 	b)	Base U.S. Savings Plan 

	 	•	 	 Balanced Index Fund 

  

	2.28	For the purposes of the present document: 

  

	 	a)	if a Member has periods of employment in both Canada and the United States, then, except as expressly provided otherwise, the provisions of the present document with
respect to Members employed in Canada shall apply with respect to such periods as the Member is employed in Canada and the provisions of the present document with respect to Members employed in the United States shall apply with respect to such
periods as the Member is employed in the United States; 

  

	 	b)	a Member shall be considered to be employed in the country of the Member’s primary payroll location unless the Member and the Company agree otherwise;

  

	 	c)	in no event shall a Member be deemed to be employed in two locations simultaneously; and 

 

	 	d)	unless Section 2.23e) of the DC SERP for Designated Executives of Domtar applies to a Member for the applicable calendar year, deemed Member contributions and
deemed Company contributions shall be deemed to be made to only one country’s Base Plans in a single calendar year, with the deemed contributions based on the Base Plans of the country of the Member’s primary payroll location at the
commencement of the applicable calendar year. 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

 

	3.	Normal Retirement 

 A Member who
Separates from Service, for a reason other than death, on or beyond his Normal Retirement Date, shall receive from the Company, in accordance with the DB SERP, a monthly pension of one twelfth of the excess of (a) over (b) below:

  

	 	a)	His Accrued Pension, determined on his date of Separation from Service; 

  

	 	b)	With respect to the same years of service recognized as Credited Service under the DB SERP, the sum of the annual amount of the lifetime pension to which the Member is
entitled on his date of Separation from Service in accordance with: 

  

	 	i)	For a Member employed in Canada: the DB Option and/or the DC Option of the Base Canadian Pension Plan and the DC SERP. For the purposes of this paragraph, the annual
amount of lifetime pension to which the Member is entitled under the DC Option of the Base Canadian Pension Plan and under the DC SERP is equal to the Actuarial Equivalent of the Deemed Account Balance of the Member in each of these plans;

  

	 	ii)	For a Member employed in the United States: the Base U.S. Pension Plan, the Base U.S. Savings Plan and the DC SERP. For the purposes of this paragraph, the annual
amount of pension to which the Member is entitled under the Base U.S. Savings Plan and under the DC SERP is equal to the Actuarial Equivalent of the Deemed Account Balance of the Member in each of these plans. 

 

	 	iii)	For a Member with periods of employment in both Canada and the United States, subject to Section 2.28, with respect to periods the Member was employed in Canada,
the amount determined in accordance with clause (i) of this paragraph (b), plus, with respect to the periods the Member was employed in the United States, the amount determined in accordance with clause (ii) of this paragraph (b), provided
that, unless Section 2.23e) of the DC SERP for Designated Executives of Domtar applies to such Member in the applicable year, with respect to a calendar year in which the Member transitioned from one country to another, whichever of clause
(i) or (ii) applies at the beginning of such calendar year shall apply for the remainder of such calendar year. The amount determined in accordance with either clause (i) or clause (ii) of this paragraph (b) which is in a
currency other than the currency used for payment shall be converted to the currency to be used for payment using the exchange rate at the date of Separation from Service. 

For the purposes of this paragraph (b), any amount of pension shall be determined disregarding any credit splitting resulting from a
marriage breakdown. 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

Notwithstanding anything in this Section 3 to the contrary, any pension provided to a U.S. Taxpayer pursuant to this DB SERP, except
as otherwise provided in Section 10, shall be paid in accordance with Section 9.3. 
  

	4.	Early Retirement 

 A
Member who Separates from Service, for a reason other than death after completing two (2) years of service as a Member, or as a member of the Management Committee if earlier, before his Normal Retirement Date but on or after age 55, shall
receive from the Company, in accordance with the DB SERP, a monthly pension determined as in Section 3 above, except that the Accrued Pension determined in accordance with paragraph (a) of Section 3 shall be reduced by one half of one
percent (0.5%) for each calendar month his early retirement date precedes the date of his sixty second (62nd) birthday. 
 Notwithstanding anything in this Section 4 to the contrary, any pension
provided to a U.S. Taxpayer pursuant to this DB SERP, except as otherwise provided in Section 10, shall be paid in accordance with Section 9.3. 
  

	5.	Deferral of Early Retirement Pension 

 A
Member, other than a U.S. Taxpayer, who Separates from Service, for a reason other than death, before his Normal Retirement Date but on or after age 55 and who is entitled to a pension from the DB SERP under Section 4 above, may elect to defer
the commencement of this pension until the first day of any calendar month preceding or coinciding with his Normal Retirement Date. 
 In such
event, the amount of pension to which he is entitled in accordance with the DB SERP shall be calculated as provided in Sections 3 and 4, adjusted to reflect the pension commencement date in the applicable calculations. 

For more certainty, this Section 5 does not apply to a U.S. Taxpayer. 

 

	6.	Non-Vested Termination of Employment 

 A
Member who Separates from Service, for a reason other than death, before completing two (2) years of service as a Member, or as a member of the Management Committee if earlier, is not entitled to any benefit under the DB SERP. 

 

	7.	Vested Termination 

  

	7.1	A Member who Separates from Service, for a reason other than death, after completing two (2) years of service as a Member, or as a member of the Management
Committee if earlier, shall receive from the Company, in accordance with the DB SERP, a monthly pension determined as in Section 3 above, payable from his Normal Retirement Date. 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

Any increase in pension under the DB Option of the Base Canadian Pension Plan after Separation from Service and before payments commence
shall have no impact on the pension payable from the DB SERP. 
  

	7.2	If the Member elects to receive the pension to which he is entitled in accordance with the Base Plans before his Normal Retirement Date, he will be assumed to have
elected the same option for the pension due in accordance with Section 7.1 of the DB SERP. In this event, the pension due in accordance with the DB SERP shall be the Actuarial Equivalent of the pension payable from his Normal Retirement Date
and shall commence on the same date as will the pension due in accordance with the Base Plans. 

  

	7.3	Upon his Separation from Service prior to age 55, instead of the pension described in paragraphs 7.1 and 7.2 above, the Member may elect to receive a single lump sum
payment equal to the Actuarial Equivalent of the pension described in paragraph 7.1 above. 

  

	7.4	Notwithstanding anything to the contrary in this Section 7, a U.S. Taxpayer is only entitled to the single lump sum payment described in paragraph 7.3. For a U.S.
Taxpayer, such payment shall be made in accordance with the provisions of Section 9.3. For more certainty, a U.S. Taxpayer is not entitled to the monthly pension payments described in paragraphs 7.1 and 7.2 and paragraph 9.1.

  

	8.	Normal Form of Pension 

 Subject to
paragraphs 7.4 and 9.3 for a U.S. Taxpayer, the normal form of pension payable under the DB SERP shall consist of monthly benefits payable in equal amounts starting on the first day of the month in which the Member commences retirement, and on the
first day of every subsequent month for the life of the Member. If the Member dies before 60 monthly payments have been made, payments under the DB SERP shall continue to his estate until 60 monthly payments have been made. 

For the purposes of Sections 3, 4, 5 and 7 of the DB SERP, the pension amount due in accordance with the Base Plans and the DC SERP shall be that which
corresponds to the normal form of pension of the DB SERP and shall exclude the additional pension resulting from excess contributions of the Base Plans, if any. 
  

	9.	Optional Forms of Pension 

  

	9.1	The same optional forms of payment as under the DB Option of the Base Canadian Pension Plan are offered to a Member, other than a U.S. Taxpayer, who Separates from
Service on or after age 55, in accordance with the DB SERP. 

 In this event, the payment of the pension due in
accordance with the DB SERP shall be the Actuarial Equivalent of the pension under the normal form of payment 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

described in Section 8. However, if the Member elects a form of pension under the DB Option of the Base Canadian Pension Plan that has an Actuarial Equivalent value greater than the
Actuarial Equivalent value of the pension under the normal form of payment under the DB SERP, the DB SERP pension shall be reduced by the Actuarial Equivalent of such additional value under the Base Canadian Pension Plan. 

 

	9.2	Notwithstanding paragraph 9.1 above, with the consent of the HR Committee, instead of the pension described in Section 8 or in paragraph 9.1 above, the Member may
elect to receive a single lump sum payment. For the purposes of this paragraph, the lump sum payment to which the Member is entitled is equal to the Actuarial Equivalent of the pension payable under the normal form of payment described in
Section 8 above. 

  

	9.3	Notwithstanding anything to the contrary in Section 8 or in paragraphs 9.1 or 9.2 above, a U.S. Taxpayer is only entitled to the single lump sum benefit described
in paragraphs 7.4 and 9.2 above. For a U.S. Taxpayer, such payment shall be made within 90 days following the six (6) month anniversary of the date of Separation from Service and on the same day that benefits under the DC SERP are paid to the
U.S. Taxpayer. For more certainty, a U.S. Taxpayer is not entitled to the monthly pension payments described in Sections 3, 4 and 5, paragraphs 7.1, and 7.2, Section 8 and paragraph 9.1 or elect any other time or form of payment. The time of
payment of benefits to U.S. Taxpayers under the DB SERP shall be the same as under this DC SERP. 

  

	10.	Death Before Commencement of Pension Payments 

 If a Member Separates from Service by reason of death before the commencement of his pension payments, his estate shall receive a single lump sum payment equal to the Actuarial Equivalent of the benefits
to which he would have been entitled under the DB SERP had he Separated from Service for a reason other than death on the day of his death. Any such payment shall be made within 90 days of the date of the Member’s death. 

 

	11.	Death After Commencement of Pension Payments 

 If a Member, other than a U.S. Taxpayer, dies after payment of his pension, determined in accordance with Articles 3, 4, 5 or paragraph 7.1 or 7.2, as applicable, has commenced, the death benefits shall
be determined in accordance with the normal form of payment as described in Section 8, or the optional form of payment selected pursuant to paragraph 9.1, as applicable. 

 

	12.	Disability 

 Despite the definition of
Credited Service in Section 2.11 of the DB SERP, a Member who is considered disabled under the Base Plans, and who continues, on that basis, to accrue credited service, pension credits, or company contributions under such Base Plans, as the

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  
 
case may be, shall continue to accrue Credited Service for the purposes of the DB SERP while disabled, but only if the Member became so disabled while a member of the Management Committee.

 Benefits will only be paid from the DB SERP upon the Member’s actual Separation from Service, as described in Sections 3, 4, 5, 6 or 7
and, in the case of a U.S. Taxpayer, 9.3 above, as applicable. 
 For the purposes of Section 14 of the DB SERP, a disabled Member, other
than a U.S. Taxpayer, who became disabled while a member of the Management Committee is deemed to be a member of the Management Committee until the date of his Separation from Service. Provided he is at least age 55 upon Separation from Service, the
DB SERP benefits of such a disabled Member will start to be funded in accordance with Section 14 from the earlier of his Separation from Service and his attainment of age 60. 

 

	13.	Administration 

 The HR Committee is
responsible for the administration of the DB SERP, the supervision of its application and the interpretation of its provisions. With respect to Members who are not U.S. Taxpayers, the HR Committee may, at its discretion, approve other settlement
options of benefits payable under this Plan. 
  

	14.	Funding 

 This Section 14 does not
apply to U.S. Taxpayers. 
  

	14.1	Funding from age 60 onward 

 Within 12 months of the date a Member, other than a U.S. Taxpayer, turns 60, and provided he is a member of the Management Committee on that date, the Company shall fund the benefits payable under the DB
SERP by means of the Trust Fund contemplated in the Trust Agreement. At that point, the DB SERP shall become a retirement compensation arrangement within the meaning of the Income Tax Act. 

The Company may, at its discretion, fund a Member’s benefit in a Trust Fund in which the Member is the only beneficiary or in a
Trust Fund that includes multiple Members as beneficiaries. 
 Funding shall be effected by amortizing, over a five
(5) year period, the cost of the benefits of the DB SERP for participation prior to age 60 and by paying, annually, the current service cost. The Base Canadian Pension Plan’s actuary will determine the payments on account of amortization
and current service using the actuarial assumptions and methods described in the Trust Agreement. 

  

	
	  
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DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

The Member’s interest in the assets held under the Trust Agreement will vest only if: 

 

	 	a)	he dies in active service after age 60; 

  

	 	b)	he retires on or after the Normal Retirement Date and is a member of the Management Committee at the time of his retirement; or 

 

	 	c)	he is terminated by the Company within 12 months of a change of control of the Company as defined in the Trust Agreement. 

The Trustee shall pay the benefits under the DB SERP to the Member from that point onward unless the Company notifies the Trustee that it
intends to pay the benefits directly. Any amount remaining in the Trust Fund after all benefits required to be paid by the DB SERP have been paid, including any refundable tax balance, shall be returned to the Company. Any surplus assets in the
Trust Fund, based on the last filed actuarial report, may be returned to the Company while the Trust Fund continues to exist. If the Member Separates from Service or ceases to be a member of the Management Committee prior to the Normal Retirement
Date and the Trust Fund is intended to provide benefits in respect of only the applicable Member, the Trust Fund, including refundable tax, shall be returned to the Company and the Trust Agreement shall terminate. 

 

	14.2	Letters of Credit 

  

	 	(a)	The Company may satisfy all or part of its obligation to make contributions under the Trust Agreement by arranging for the issuance of a new Letter of Credit, or the
renewal of an existing Letter of Credit, in accordance with this Section 14.2, before the date the payment is otherwise due in accordance with the Trust Agreement. 

 

	 	(b)	Where the Company has arranged for and caused the issuance or renewal of a Letter of Credit in accordance with this Section 14.2, the Company shall be relieved of
the obligation to contribute, in accordance with the Trust Agreement, an amount equal to the face amount of the Letter of Credit. 

  

	 	(c)	Where the Company wishes a Letter of Credit to be issued or renewed in accordance with this Section 14.2, it shall arrange with the issuer thereof to issue or
renew, as the case may be, the Letter of Credit in the name of the Trustee, to be held by the Trustee as part of the Trust Fund. 

  

	 	(d)	To secure the issuance or renewal of a Letter of Credit, the Company shall contribute to the Trust Fund the amount that, after withholding and payment of the Refundable
Tax therefrom, is required by the issuer of the Letter of Credit for the issuance or renewal of the Letter of Credit, as the case may be. 

  

	 	(e)	On or before the Renewal Date of a particular Letter of Credit held by the Trustee, the Company shall either: 

  

	
	  
 12

DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

 

	 	(i)	cause the issuer of the particular Letter of Credit to renew it on the same terms and conditions as applied before the renewal; 

	 	(ii)	substitute for the particular Letter of Credit another Letter of Credit on the same terms and conditions as the particular Letter of Credit; or

	 	(iii)	contribute to the Trust Fund the face amount of the Letter of Credit or such other amount required in accordance with the last actuarial valuation report.

  

	 	(f)	Where the Company does not comply with paragraph (e) of this Section 14.2 or where there occurs a Default, the Trustee shall forthwith demand payment under
the Letter of Credit. 

  

	 	(g)	In this Section 14.2, 

“Letter of Credit” means an irrevocable, standby, unsecured letter of credit obtained from a Schedule 1 Canadian Bank or other
lender with a term of one year which names the Trustee as beneficiary permitted to draw down (an amount up to the face amount) on the Letter of Credit on the occurrence of a Default or a failure by the Company to comply with paragraph (e) of
this Section 14.3, and which shall require the issuing bank or lender to withhold and remit to the Receiver General the appropriate amount of Refundable Tax (provided that, notwithstanding the foregoing, the first Letter of Credit issued in
connection with this DB SERP may have a term of less than one year); 
 “Renewal Date”, in relation to a Letter of
Credit, means the date that is thirty (30) days before the Letter of Credit is to expire. 
  

	14.3	Company’s responsibility 

 For more certainty, in the event that, for whatever reason, the assets of the Trust Fund are insufficient to pay for the benefits payable under the DB SERP as and when they become due, notwithstanding any
other provision of this Section 14, the Company shall remain responsible for the payment of such benefits. 
  

	15.	Non-Alienation of Benefits 

 No benefit
payable under the provisions of the DB SERP shall be in any manner capable of anticipation, surrender, commutation, alienation, sale, transfer, assignment, pledge, encumbrance or charge; nor shall any such benefit be in any manner subject to the
debts, contracts, liabilities, engagements or torts of the person entitled to such benefit, except as specifically provided in any applicable legislation. 

  

	
	  
 13

DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

 

	16.	Conflicts or Inconsistencies 

 In the
event of any conflict or inconsistency between the provisions of the DB SERP and the provisions of the Base Plans, the provisions of the DB SERP shall prevail. 
  

	17.	Amendments 

 The Company reserves the
right to amend or terminate the DB SERP at any time. Subject to Section 18.6, no amendment or termination shall adversely affect any benefits that have accrued up to the effective date of such change, based on Earnings, Credited Service, Base
Plans and DC SERP accrued benefits up to that date, which effective date shall not precede the date on which the change is communicated to the Member. Notwithstanding the foregoing, any amendment to this DB SERP which is the result of a change to
the Base Plans shall take effect as of the same date as applicable in respect of the amendment to the Base Plans. 
  

	18.	General Provisions 

  

	18.1	Currency 

Notwithstanding anything to the contrary herein, all payments under the DB SERP shall be in Canadian currency for Members employed in
Canada, and in U.S. currency for Members employed in the United States, in each case as of the last date of employment with the Company. 
  

	18.2	Withholding and reporting 

All payments under the DB SERP are expressed on a pre-tax basis and shall be subject to applicable withholding tax and reporting pursuant
to applicable legislation. 
  

	18.3	Interpretation 

 The DB
SERP shall be interpreted, with respect to a Member, in accordance with the laws of the same jurisdiction as applicable for purposes of the Member’s employment agreement with the Company, which is in force at the relevant time, or in the
absence of an employment agreement, with the law of the Province of Québec for a Member employed in Canada, and with the law of the State of South Carolina for a Member employed in the United States. 

 

	18.4	Entire Agreement 

 Except
to the extent expressly contemplated by the HR Committee at the time of adoption of the DB SERP, the DB SERP supersedes and replaces any and all prior plans, agreements, arrangements or understandings between the Company and the Member regarding any
retirement benefits to be provided to the Member in excess of those that may be payable in accordance with the provisions of the Base Plans and of the DC SERP. 

  

	
	  
 14

DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	

	 	  
  

 

  

 

	18.5	Severability 

 Should any
of the provisions of the DB SERP and/or conditions be illegal or not enforceable, it or they shall be considered severable and the DB SERP and the remaining conditions shall remain in full force and effect and be binding upon the parties as though
the said provision or provisions had never been included. 
  

	18.6	Enurement 

 The DB SERP
shall enure to the benefit of and be binding upon the respective successors of the parties hereto, and the heirs, administrators and legal representatives of the Member. 

 

	18.7	Section 409A 

Neither the Company nor any of its directors, officers or employees shall have any liability to a Member in the event Section 409A
applies to any benefit paid or provided pursuant to the DB SERP in a manner that results in adverse tax consequences for the Member or any of his or her beneficiaries or transferees. The HR Committee may unilaterally amend, modify or terminate any
benefit provided under the DB SERP if it determines, in its sole discretion, that such amendment, modification or termination is necessary or advisable to comply with applicable U.S. law as a result of changes in law or regulation or to avoid the
imposition of an additional tax, interest or penalty under Section 409A. 

  

	
	  
 15

DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015

			
	 

  
	 	  
  

 

  
 APPENDIX 
 Members of the Management Committee covered under a
grandfathered SERP arrangement 
 as at March 7, 2007 

Steven Barker 

Roger Brear 
 James
Lenhoff 
 Gilles Pharand 
 Raymond Royer 
  

  

	
	  
 16

DB SERP for Management Committee Members of Domtar
 As in effect on March 7, 2007, amended and restated on October 1, 2012, on July 30, 2013 and further on January 1st
2015EX-10.28

 Exhibit 10.28 

 
  
 

 
  
  
 AMENDED AND RESTATED 
 DC
SERP FOR DESIGNATED 
 EXECUTIVES OF DOMTAR

  
 As in effect on March 7, 2007, 

amended and restated on September 1, 2012, July 30, 2013 

and further on December 7, 2014 

			
	

	 	  
  

 

  
 Table of Contents 
  

					
	 1. Introduction
	  	 	1	  
		
	 2. Definitions
	  	 	1	  
		
	 3. Retirement
	  	 	9	  
		
	 4. Non-Vested Termination of Employment
	  	 	9	  
		
	 5. Vested Termination
	  	 	9	  
		
	 6. Death
	  	 	9	  
		
	 7. Disability
	  	 	10	  
		
	 8. Administration
	  	 	10	  
		
	 9. Funding
	  	 	10	  
		
	 10. Non-Alienation of Benefits
	  	 	10	  
		
	 11. Conflicts or Inconsistencies
	  	 	10	  
		
	 12. Amendments
	  	 	11	  
		
	 13. General Provisions
	  	 	11	  
		
	 Appendix
	  			

  

			
	

	 	  
  

 

  

 

	1.	Introduction 

  

	1.1	The present document constitutes the DC SERP for Designated Executives of Domtar, hereinafter called the “DC SERP”. 

 

	1.2	The purpose of the DC SERP is to provide designated executives of the Company with additional retirement benefits in excess of those that may be payable in accordance
with the provisions of the Base Plans, as defined below. 

  

	1.3	The DC SERP effective date is March 7, 2007. 

  

	1.4	On September 1, 2012, the DC SERP was amended and restated in order to allow designated employees transferred to Attends Healthcare Products, Inc. to continue
participation in the DC SERP. 

  

	1.5	On July 30, 2013, the DC SERP was amended and restated in order to clarify the treatment of employees with service both in Canada and the US and to clarify the
treatment of employees no longer meeting the Member criteria. 

  

	1.6	On December 7, 2014, the DC SERP was amended and restated in order to exclude employees transferred to the DC SERP for Designated Executives of Domtar Personal
Care. 

  

	2.	Definitions 

  

	2.1	Annual Contribution Credit: for a given calendar year, and subject to Section 2.23, 

 

	 	a)	For a Member employed in Canada: the excess, if any, of eleven percent (11%) of the Member’s Earnings during the calendar year over: 

 

	 	i)	For a member of the DC Option under the Base Canadian Pension Plan: Company’s contribution to the Base Canadian Pension Plan with respect to the period of that
calendar year as a Member of the DC SERP, assuming that the Member would have elected to contribute to the Base Canadian Pension Plan such amount that would result in the maximum Company contribution; and 

 

	 	ii)	For a member of the DB Option under the Base Canadian Pension Plan: the Pension Adjustment of the Member, reduced by the Member’s contribution to the DB Option of
the Base Canadian Pension Plan, both with respect to the period of that calendar year as a Member of the DC SERP. 

  
  

	
	 1
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

 

	 	b)	For a Member employed in the United States: the excess, if any, of the percentage of the Member’s Earnings applicable under the Base U.S. Savings Plan for an
employee of the same age joining that plan on or after January 1, 2008, as may be amended from time to time, over the sum of Company’s contribution to the Base U.S. Savings Plan and of the credit to the Member for the calendar year under
the Base U.S. Pension Plan, if any, in respect of the period of the calendar year as a Member of the DC SERP. For the purposes of this paragraph, a Member who is a U.S. Taxpayer is assumed to contribute to the Base U.S. Savings Plan such amount that
would result in the maximum Company contribution. 

 Notwithstanding the above, the Annual Contribution Credit for
2007, for executives who were promoted to salary level 26 or over before March 7, 2007 and who became Members of the DC SERP on March 7, 2007, shall be equal to 10/12ths of the amount that would have been calculated above if the DC SERP
had been in effect for the entire calendar year. 
 Annual Contribution Credits are credited by the Company to the DC SERP
Notional Account Balance at the end of the calendar year for which they have been determined, or upon Separation from Service if earlier. Commencing in 2009, Annual Contribution Credits shall only be credited in respect of periods of time in which
the executive is earning benefits under the applicable Base Plans, depending on country of employment. For each calendar year after 2012, the Annual Contribution Credit for the year shall only be determined with respect to the period of that
calendar year throughout which the DC SERP Member meets the eligibility requirements as defined in Section 2.14. 
  

	2.2	Annual Credited Notional Return: for a given calendar year, and subject to Section 2.23, 

 

	 	a)	For a Member employed in Canada: notional return calculated at the rate of return obtained by the Balanced Fund under the DC Option of the Base Canadian Pension Plan
for the twelve-month period ending on November 30th of the calendar year. 

  

	 	b)	For a Member employed in the United States: notional return calculated at the rate of return obtained by the Balanced Index Fund under the Base U.S. Savings Plan for
the twelve-month period ending on November 30th of the calendar year. 

  

	 	c)	 For a Member with employment periods in Canada and the United States: the notional return with respect to amounts contributed or deemed contributed
based on the Base Canadian Pension Plan shall be determined 

  
  

	
	 2
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

	 	
pursuant to paragraph (a) of this Section 2.2 and with respect to amounts contributed or deemed contributed based on the Base U.S. Pension Plan or the Base U.S. Savings Plan, shall be
determined pursuant to paragraph (b) of this Section 2.2. 

 In the event of Separation from Service
before the end of the calendar year, the notional return calculated under 2.2 (a) and (b) is based on the period beginning on November 30th of the prior calendar year and ending on the last day of the month that is two months prior to
the month in which the payment occurs. 
 Annual Credited Notional Return is applied to the DC SERP Notional Account Balance at
the beginning of the calendar year and is credited to the DC SERP Notional Account Balance at the end of the calendar year for which it has been determined, or upon benefit payment if earlier. 

Once a year, a Member may elect in writing, prior to November 30 of that calendar year, and subject to Section 2.23, to have
the Annual Credited Notional Return for the following calendar year determined on the basis of: 
  

	 	d)	For a Member employed in Canada: the notional return calculated at the rate of return obtained by the Index Bond Fund under the DC Option of the Base Canadian Pension
Plan. 

  

	 	e)	For a Member employed in the United States: the notional return calculated at the rate of return obtained by the Total Bond Market Index Fund under the Base U.S.
Savings Plan. 

  

	 	f)	For a Member with employment periods in Canada and the United States: with respect to amounts to be contributed or deemed contributed based on the Base Canadian Pension
Plan, on the basis set forth in paragraph (d) of this Section 2.2 and with respect to amounts to be contributed or deemed contributed based on the Base U.S. Pension Plan or the Base U.S. Savings Plan, on the basis set forth in paragraph
(e) of this Section 2.2. 

 Such election will be applicable to all future years after it is made, until
a new election to revert to the funds described in paragraphs 2.2 (a) and (b), as applicable is communicated in writing to the Company. Such election shall be made prior to November 30 of a calendar year to take effect in the following
calendar year. 
  

	2.3	Base Canadian Pension Plan: the Domtar Pension Plan for Non-Negotiated Employees, as may be amended from time to time. 

 

	2.4	Base Plans: subject to Section 2.23, 

  

	 	a)	For a Member employed in Canada: the Base Canadian Pension Plan 

  
  

	
	 3
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

 

	 	b)	For a Member employed in the United States: the Base U.S. Pension Plan and the Base U.S. Savings Plan 

 

	2.5	Base U.S. Pension Plan: the Domtar U.S. Salaried Pension Plan, as may be amended from time to time. 

 

	2.6	Base U.S. Savings Plan: the Domtar U.S. Salaried 401(k) Plan, as may be amended from time to time. 

 

	2.7	Board: the Board of Directors of Domtar Corporation. 

  

	2.8	Code: the U.S. Internal Revenue Code of 1986, as amended. 

  

	2.9	Company: means Domtar Paper Company LLC, Domtar Inc, Domtar Industries LLC, E.B. Eddy Paper Inc., Domtar A.W. LLC and Ariva Distribution Inc.

  

	2.10	DC SERP Notional Account Balance: shall, at any date whatsoever, be the sum of the Annual Contribution Credits and of the Annual Credited Notional Return
in the name of the Member under the DC SERP, as it is reported in the books of the Company. 

 Notwithstanding the
above, the DC SERP Notional Account Balance for a Transfer Member, shall be transferred to the DC SERP for Designated Executives of Domtar Personal Care as at the end of the year of the Transfer Date. However in the event of a Separation of Service
and payment of benefits prior to the end of the year of the Transfer Date, the transfer shall occur as of the date of the payment of benefits. For greater certainty, the amount transferred shall include the Annual Contribution Credit for the
calendar year. Upon such transfer, the Transfer Member shall have no more entitlement under the DC SERP. 
  

	2.11	Earnings: subject to Section 2.23, 

  

	 	a)	For a Member employed in Canada: Earnings as defined under the Base Canadian Pension Plan in respect of periods in which the executive is a Member of the DC SERP.

  

	 	b)	For a Member employed in the United States: Compensation as defined under the Base U.S. Savings Plan in respect of periods in which the executive is a Member of the DC
SERP. 

  

	 	c)	For a Member with employment periods in Canada and the United States: with respect to an Annual Contribution Credit to be contributed or deemed contributed based on the
Base Canadian Pension Plan, Earnings as defined under the Base Canadian Pension Plan, and with respect to an Annual Contribution Credit to be contributed or deemed contributed based on the Base U.S. Pension Plan or the Base U.S. Savings Plan,
Compensation as defined under the Base U.S. Savings Plan. 

  
  

	
	 4
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

Notwithstanding the above, Earnings for 2007 for executives who were promoted to salary level 26 or over before March 7, 2007 and who
became Members on March 7, 2007 shall be equal to the amount that would have been determined above if the DC SERP had been in effect for the entire calendar year. 
  

	2.12	HR Committee: the Human Resources Committee of the Board. 

  

	2.13	Management Committee: means the management committee of Domtar Corporation. 

 

	2.14	Member: 

  

	 	a)	A U.S. or Canadian executive of the Company from the date his salary grade is 26 or above in accordance with the Company’s compensation scales, but not before
March 7, 2007, and who is accruing benefits under the DC SERP; or 

  

	 	b)	Any other U.S. or Canadian executives of Domtar Corporation and any of its subsidiaries or affiliated companies as recommended by the Management Committee or its
designee. 

 Notwithstanding the above, an executive covered under a grandfathered SERP arrangement is not a
Member of the DC SERP. For convenience, a list of such executives covered under a grandfathered SERP arrangement as of March 7, 2007 is included in the Appendix. Transfer Member will cease to be a Member of the DC SERP as of his Transfer Date.

  

	2.15	Normal Retirement Date: with respect to a Member, the first day of the month coinciding with or immediately following the Member’s sixty-fifth
(65th) birthday. 

  

	2.16	Pension Adjustment: shall mean the pension adjustment as defined under the Income Tax Act (Canada), for purposes of determining a deemed value to the DB
Option of the Base Canadian Pension Plan. 

  

	2.17	Section 409A: section 409A of the Code and the rules, regulations and guidance promulgated thereunder. 

 

	2.18	Separation from Service: occurs (or a Member Separates from Service) when 

 

	 	a)	For a U.S. Taxpayer: the Member ceases to be employed by the Company and all entities considered a single employer with the Company under Code Sections 414(b) and
(c) as a result of the Member’s death, retirement, or other termination of employment. Whether a Separation from Service takes place is based on all the relevant facts and circumstances and determined in accordance with U.S. Treas. Reg.
1.409A-1(h)(1); 

  
  

	
	 5
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

 

	 	b)	For a Member other than a U.S. Taxpayer: the Member ceases to be employed by the Company and any of its subsidiaries or affiliated companies as a result of the
Member’s death, retirement, or other termination of employment. 

  

	2.19	Transfer Date: The date a Member becomes covered under the DC SERP for Designated Executives of Domtar Personal Care. 

 

	2.20	Transfer Member: A Member who becomes covered under the DC SERP for Designated Executives of Domtar Personal Care 

 

	2.21	U.S. Taxpayer: a Member who 

  

	 	a)	Is a U.S. citizen; or 

  

	 	b)	Is a foreign national/U.S. permanent resident (“green card” holder); or 

 

	 	c)	Is a foreign national who meets the “substantial physical presence” test during an applicable calendar year; or 

 

	 	d)	Is a “dual status” individual and either 

  

	 	i)	Who declares that he is a U.S. Taxpayer (under (a), (b), or (c) above); or 

 

	 	ii)	Who the Company determines is a U.S. Taxpayer (under (a), (b), or (c) above). 

 

	 	e)	Is subject to U.S. federal income tax under the terms of the Canada-United States Tax Convention (1980) and the Protocols in effect thereunder; or

  

	 	f)	Whose benefits under this DC SERP are otherwise subject to taxation in the U.S. 

 Notwithstanding the foreign Member’s declaration of U.S. Taxpayer status, and unless proven otherwise, if the Company’s payroll, human resources, or other records indicate that the Member is a
U.S. Taxpayer, then the Member shall be deemed to be a U.S. Taxpayer for the purposes of the DC SERP. 

  
  

	
	 6
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

 

	2.22	For the purposes of the present document, the terms and expressions listed below shall have the meaning given to them in the Base Plans: 

 

	 	a)	Base Canadian Pension Plan: 

	 	•	 	 Balanced Fund 

	 	•	 	 DB Option 

	 	•	 	 DC Option 

	 	•	 	 Index Bond Fund 

  

	 	b)	Base U.S. Savings Plan 

	 	•	 	 Balanced Index Fund 

	 	•	 	 Total Bond Market Index Fund 

  

	2.23	For the purposes of the present document: 

  

	 	a)	If a Member has periods of employment in both Canada and the United States, then, except as expressly provided otherwise, the provisions of the present document with
respect to Members employed in Canada shall apply with respect to such periods as the Member is employed in Canada and the provisions of the present document with respect to Members employed in the United States shall apply with respect to such
periods as the Member is employed in the United States; 

  

	 	b)	A Member shall be considered to be employed in the country of the Member’s primary payroll location unless the Member and the Company agree otherwise;

  

	 	c)	In no event shall a Member be deemed to be employed in two locations simultaneously; 

 

	 	d)	Except as provided in Section 2.23e) below, a Member shall accrue an Annual Contribution Credit in a calendar year determined on the basis of the provisions
applicable in respect of employment in the country of the Member’s primary payroll location at the commencement of the applicable calendar year; and 

  

	 	e)	 In the event that a Member who is not a U.S. Taxpayer as of the commencement of the applicable calendar year and for the three years prior to that year
(i) has periods of employment in both Canada and the United States during that year, (ii) accrues benefits in the Base Plans of the two countries during that year, (iii) is entitled to make an initial deferral election in that year
under U.S. Treas. Reg. § 1.409A-2(c), and (iv) the actual aggregate Company contributions to the Base Plans of the two countries for the Member with respect to that year are greater than the maximum Company contribution that would have
been made had the Member remained in the country of the Member’s primary payroll location at the commencement of that year, then that year’s Annual Contribution Credit for such Member shall be the excess, if

  
  

	
	 7
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

	 	
any (such excess, the “Transition Contribution”), of (A) the sum of (i) eleven percent (11%) of the Member’s Earnings from employment in Canada during the
calendar year and (ii) the percentage of the Member’s Earnings from employment in the United States during the calendar year applicable under the Base U.S. Savings Plan (as amended from time to time) for an employee of the same age joining
that plan on or after January 1, 2008, over (B) the sum of (i) for a member of the DC Option under the Base Canadian Pension Plan: the Company’s contribution to the Base Canadian Pension Plan with respect to the period of that
calendar year as a Member of the DC SERP while employed in Canada, (ii) for a member of the DB Option under the Base Canadian Pension Plan: the Pension Adjustment of the Member for the year with respect to the Company, reduced by the
Member’s contribution to the DB Option of the Base Canadian Pension Plan, both with respect to the period of that calendar year as a Member of the DC SERP while employed in Canada and (iii) the sum of Company’s contribution to the
Base U.S. Savings Plan and of the credit to the Member for the calendar year under the Base U.S. Pension Plan, if any, with respect to the period of the calendar year as a Member of the DC SERP while employed in the United States. For the purposes
of Sections 2.2 (c) and (f) and 2.11 (c) and with respect to the applicable calendar year referred to in this Section 2.23(e), the Annual Contribution Credit deemed contributed for the year based on the Base Canadian Pension Plan
shall equal the Applicable Canadian Percentage of the Transition Contribution and the Annual Contribution Credit deemed contributed for the year based on the Base U.S. Pension Plan and the Base U.S. Savings Plan shall equal the Applicable U.S.
Percentage of the Transition Contribution. For purposes of this Section 2.23e), the “Applicable Canadian Percentage” shall mean the percentage obtained by dividing (i) the Company’s actual contributions to the Base
Canadian Pension Plan for the Member in the applicable calendar year by (ii) the Company’s aggregate contributions to the Base Plans of the two countries for the Member in that year, and the “Applicable U.S. Percentage”
shall mean the percentage obtained by dividing (i) the Company’s actual contributions to the Base U.S. Pension Plan and the Base U.S. Savings Plan for the Member in the applicable calendar year by (ii) the Company’s contributions
to the Base Plans of the two countries for the Member in that year. 

  
  

	
	 8
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

 

	3.	Retirement 

 A Member who Separates from
Service on or after age 55, after completing two (2) years of service as a Member, or as salary grade 26 or above if earlier, shall receive as soon as practicable from the Company in accordance with the DC SERP, a lump sum payment equal to his
DC SERP Notional Account Balance. For a U.S. Taxpayer, such payment shall be made within 90 days following the six (6) month anniversary of the date of Separation from Service and on the same day that benefits under the DB SERP for Management
Committee Members of Domtar are paid to the U.S. Taxpayer, if any. 
 A Member, other than a U.S. Taxpayer, may instead irrevocably elect in
writing, prior to the first payment of his benefits, to receive the payment of his DC SERP Notional Account Balance over a period not exceeding 10 years in annual installments. The first payment is due upon his retirement date and is equal to his DC
SERP Notional Account Balance divided by the number of payments he has elected. Subsequent payments are made on each anniversary of the retirement of the Member in an amount equal to the then remaining DC SERP Notional Account Balance divided by the
number of remaining payments he has elected. For the purposes of determining the DC SERP Notional Account Balance at each retirement anniversary, the Annual Credited Notional Return is calculated on the DC SERP Notional Account Balance at the
previous retirement anniversary at the rate of return of the appropriate fund over the period from the last day of the second month preceding one anniversary to the last day of the second month preceding the next anniversary. For more certainty,
this paragraph does not apply to a U.S. Taxpayer. 
  

	4.	Non-Vested Termination of Employment 

 A
Member who Separates from Service, for a reason other than death, before completing two (2) years of service as a Member, or as salary grade 26 or above if earlier, is not entitled to any benefit under the DC SERP. 

 

	5.	Vested Termination 

 A Member who
Separates from Service, for a reason other than death, prior to age 55 after completing two (2) years of service as a Member, or as salary grade 26 or above if earlier, shall receive as soon as practicable from the Company in accordance with
the DC SERP, a lump sum payment equal to his DC SERP Notional Account Balance. For a U.S. Taxpayer, such payment shall be made within 90 days following the six (6) month anniversary of the date of Separation from Service and on the same day
that benefits under the DB SERP for Management Committee Members of Domtar are paid to the U.S. Taxpayer, if any. 
  

	6.	Death 

 If a Member Separates from
Service by reason of death, his estate shall receive from the Company, in accordance with the DC SERP, a lump sum payment equal to his DC SERP Notional Account Balance. Any such payment shall be made within 90 days of the date of the Member’s
death. 

  
  

	
	 9
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

 

	7.	Disability 

 A Member who is considered
disabled under the Base Plans, and who continues, on that basis, to accrue credited service, pension credits, or company contributions under such Base Plans, as the case may be, shall continue to accrue Annual Contribution Credits for the purposes
of the DC SERP, on the basis of his salary rate at the time his disability began. 
 Benefits will only be paid from the DC SERP upon the
Member’s actual Separation from Service, as described in Sections 3, 4, 5 or 6 above, as applicable. 
  

	8.	Administration 

 The HR Committee is
responsible for the administration of the DC SERP, the supervision of its application and the interpretation of its provisions. 
 With respect
to a Member other than a U.S. Taxpayer, the HR Committee may, at its discretion, approve other settlement options of benefits payable under this Plan. For more certainty, this paragraph does not apply to a U.S. Taxpayer. 

 

	9.	Funding 

 Benefits under the DC SERP are
not funded. They are paid from the Company’s general revenues. 
  

	10.	Non-Alienation of Benefits 

 No benefit
payable under the provisions of the DC SERP shall be in any manner capable of anticipation, surrender, commutation, alienation, sale, transfer, assignment, pledge, encumbrance or charge; nor shall any such benefit be in any manner subject to the
debts, contracts, liabilities, engagements or torts of the person entitled to such benefit, except as specifically provided in any applicable legislation. 
  

	11.	Conflicts or Inconsistencies 

 In the
event of any conflict or inconsistency between the provisions of the DC SERP and the provisions of the Base Plans, the provisions of the DC SERP shall prevail. 

  
  

	
	 10
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

 

	12.	Amendments 

 The Company reserves the
right to amend or terminate the DC SERP at any time. Subject to Section 13.6, no change or termination shall adversely affect any benefits that have accrued up to the effective date of such change, which effective date shall not precede the
date on which the change is communicated to the Member. Notwithstanding the foregoing, any amendment to this DC SERP which is the result of a change to the Base Plans shall take effect as of the same date as applicable in respect of the amendment to
the Base Plans. 
  

	13.	General Provisions 

  

	13.1	Currency 

Notwithstanding anything to the contrary herein, all payments under the DC SERP shall be in Canadian currency for Members employed in
Canada, and in U.S. currency for Members employed in the United States, in each case as of the last date of employment with the Company. Any Annual Contribution Credit and any future Annual Credited Notional Returns on such Annual Contribution
Credit shall be in the currency of the applicable Base Plan used for the determination of such Annual Contribution Credit. 
  

	13.2	Withholding and reporting 

All payments under the DC SERP are expressed on a pre-tax basis and shall be subject to applicable withholding tax and reporting pursuant
to applicable legislation. 
  

	13.3	Interpretation 

 The DC
SERP shall be interpreted, with respect to a Member, in accordance with the laws of the same jurisdiction as applicable for purposes of the Member’s employment agreement with the Company, which is in force at the relevant time, or in the
absence of an employment agreement, with the law of the Province of Québec for a Member employed in Canada, and with the law of the State of South Carolina for a Member employed in the United States. 

 

	13.4	Entire Agreement 

 Except
to the extent expressly contemplated by the HR Committee at the time of adoption of the DC SERP, the DC SERP supersedes and replaces any and all prior plans, agreements, arrangements or understandings between the Company and the Member regarding any
retirement benefits to be provided to the Member in excess of those that may be payable in accordance with the provisions of the Base Plans. 

  
  

	
	 11
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

 

	13.5	Severability 

 Should any
of the provisions of the DC SERP and/or conditions be illegal or not enforceable, it or they shall be considered severable and the DC SERP and the remaining conditions shall remain in full force and effect and be binding upon the parties as though
the said provision or provisions had never been included. 
  

	13.6	Enurement 

 The DC SERP
shall enure to the benefit of and be binding upon the respective successors of the parties hereto, and the heirs, administrators and legal representatives of the Member. 

 

	13.7	Section 409A 

Neither the Company nor any of its directors, officers or employees shall have any liability to a Member in the event Section 409A
applies to any benefit paid or provided pursuant to the DC SERP in a manner that results in adverse tax consequences for the Member or any of his or her beneficiaries or transferees. The HR Committee may unilaterally amend, modify or terminate any
benefit provided under the DC SERP if it determines, in its sole discretion, that such amendment, modification or termination is necessary or advisable to comply with applicable U.S. law as a result of changes in law or regulation or to avoid the
imposition of an additional tax, interest or penalty under Section 409A. 

  
  

	
	 12
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

			
	

	 	  
  

 

  

APPENDIX 

Executives covered under a grandfathered SERP arrangement as at March 7, 2007 

Steven Barker 

Kevin Bélanger 
 Guy Boucher 
 Roger Brear 

Gerald Gray 

Timothy Houle 

Gérard Lacombe 
 James Lenhoff 
 Martin Lorrion 

Dominic Maiorino 

Stewart Marcoux 

Gildas Minville 

Gilles Pharand 

Raymond Royer 

Louis Schiavone 

Ross Stairs 

Nicholas Willis 
  

  
  

	
	 13
 DC SERP for Designated
Executives of Domtar
 As in effect on March 7, 2007, amended and restated on September 1, 2012, July 30, 2013 and further on December 7,
2014

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