Document:

Domtar Corporation Replacement Long-Term Incentive Compensation Plan

 Exhibit 10.32 
 Domtar Corporation 
 Replacement Long-Term Incentive Compensation Plan 
 for Former Employees of Weyerhaeuser Company 

 Table of Contents 
  

					
	 	  	 	  	Page
	ARTICLE I. GENERAL	  	1
	1.	  	Name of Plan	  	1
	2.	  	Purposes	  	1
	3.	  	Effective Date	  	1
	4.	  	Number of Shares	  	1
		  	 4.1    Authorized Number of Shares
	  	1
		  	 4.2    No Reuse of Shares
	  	1
		  	 4.3    Adjustment of Shares
	  	2
	5.	  	Administration	  	2
		  	 5.1    Administration and Interpretation by the Committee
	  	2
		  	 5.2    Interpretation; Change of Control Adjustments
	  	3
	6.	  	Limitation on Eligibility and Grants.	  	3
		
	ARTICLE II. DEFINITIONS	  	3
	2.	  	Definitions	  	3
		
	ARTICLE III. STOCK OPTIONS; STOCK APPRECIATION RIGHTS	  	6
	3.1.	  	Types of Stock Options	  	6
		  	3.1.1     Types of Options	  	6
		  	3.1.2     Stock Appreciation Rights	  	7
		  	3.1.3     Exercise/Sell Election	  	7
	3.2.	  	Option Price	  	8
	3.3.	  	[Reserved].	  	8
	3.4.	  	Vesting; Exercise Upon Termination of Employment	  	8
		  	3.4.1    Initial Vesting Period	  	8
		  	3.4.2    Term of Options and Stock Appreciation Rights	  	8
		  	3.4.3    Exercise by Personal Representative	  	8
		  	3.4.4    Exercises of Options and Rights	  	8
		  	3.4.5    Post-Termination Exercises	  	8
	3.5.	  	Payment for Shares	  	9
		  	3.5.1    Form of Payment	  	9
		
	ARTICLE IV. STOCK AWARDS	  	9
	4.	  	Stock Awards	  	9
	4.1.	  	Committee Authority	  	9
	4.2.	  	Issuance of Shares	  	9
	4.3.	  	Waiver of Restrictions	  	9

  

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	ARTICLE V. PERFORMANCE SHARE AWARDS	  	10
	5.	  	Performance Share Awards	  	10
	5.1.	  	Performance Share Awards Authority	  	10
	5.2.	  	Payout Upon Termination	  	10
		
	ARTICLE VI. GENERAL	  	10
	6.1.	  	Amendment and Termination of Plan	  	10
	6.2.	  	Continued Employment; Rights in Options and Awards	  	10
	6.3.	  	Other Compensation Plans	  	11
	6.4.	  	Certificates for Shares; Registration	  	11
	6.5.	  	No Rights as Shareholder	  	11
	6.6.	  	No Assignment or Transfer of Interests	  	11
	6.7.	  	Compliance with Laws and Regulations	  	11
	6.8.	  	Withholding of Taxes	  	11
	6.9.	  	No Trust or Fund	  	12
	6.10.	  	Governing Law	  	12
	6.11.	  	Severability	  	12

  

 ii 

 Domtar Corporation 
 Replacement Long-Term Incentive Compensation Plan 
 For Former Employees of Weyerhaeuser Company

 ARTICLE I. 
 GENERAL 
 1.1. Name of Plan 
 The name of the plan set forth herein is the “Domtar Corporation Replacement Long-Term Incentive Compensation Plan for the Former Employees of Weyerhaeuser Company,” herein called the “Plan.”

 1.2. Purposes 
 The purposes of
the Plan are to enhance the long-term profitability and shareholder value of Domtar Corporation (the “Company”) by offering stock based incentives to those employees of the Company and Subsidiaries who are key to the growth and success of
the Company, to attract and retain executives with experience and ability on a basis competitive with industry practices and to encourage executives to acquire and maintain stock ownership in the Company through the surrender of awards granted under
the Weyerhaeuser Company Long-Term Incentive Compensation Plan (the “Prior Plan”) in exchange for awards granted under this Plan in accordance with the Transaction Agreement (as hereinafter defined). 
 1.3. Effective Date 
 The effective date of the
Plan is the date immediately prior to the Closing of the transactions contemplated by the Transaction Agreement. 
 1.4. Number of Shares

 1.4.1 Authorized Number of Shares. The number of Shares that may be issued under the Plan shall not exceed 4,363. Shares
issued pursuant to the Plan will be authorized and unissued Shares which may includes Shares which from time to time have been reacquired by the Company. 
 1.4.2 No Reuse of Shares. To the extent that (a) any Stock Option or Stock Appreciation Right expires, or is terminated, canceled or surrendered, without being exercised (including, without limitation,
in connection with the grant of a replacement option); (b) Shares are not issued upon exercise of any Stock Appreciation Right; (c) the underlying Shares are not issued because the Award is forfeited, terminated, surrendered or canceled;
or (d) Shares are not issued pursuant to any Performance Share Award, shares underlying or subject to such Stock Option, Stock Appreciation Right or Award shall revert to the Company and no longer be available for issuance under the Plan.

 1.4.3 Adjustment of Shares. In the event that at any time or from time to time a stock
dividend, stock split, recapitalization, merger, consolidation, or other change in capitalization of the Company, or a sale by the Company of all or part of its assets, or any distribution to shareholders other than a cash dividend, results in
(a) the outstanding Shares, or any securities exchanged therefore or received in their place being exchanged for a different number or class of securities of the Company or of any other corporation, or (b) new, different or additional
securities of the Company or of any other corporation being received by the holders of Shares of the Company, then: 
 (i)
the limitation on Shares set forth in Section 1.4.1 of Article I; 
 (ii) the number and class of Shares that may be made
subject to Stock Options, Stock Appreciation Rights and Awards; 
 (iii) the Option Price of unexercised Stock Options and
Stock appreciation Rights; and 
 (iv) Share values or prices used for calculation purposes shall in each case be equitably
adjusted as determined by the Committee in its sole discretion. 
 1.5. Administration 
 1.5.1 Administration and Interpretation by the Committee. The Plan shall be administered by the Committee. Members of the Committee shall not be
eligible to participate in the Plan, and no member of the Committee shall have been, during the period of one year prior to Committee service, granted or awarded equity securities of the Company pursuant to the Plan or pursuant to any other plan of
the Company. Members of the committee must be “Outside Directors” for the purposes of Section 162(m) of the Internal Revenue Code of 1986, which section was adopted as part of the Omnibus Budget Reconciliation Act of 1993, or any
successor provision. The Committee shall have exclusive authority to designate the employees of the Company and Subsidiaries who are eligible to participate in the Plan as Participants. The Committee shall also have exclusive authority to interpret
the Plan and may from time to time adopt, and change, rules and regulations of general application for the administration of the Plan, including rules and regulations relating to the manner of exercise and settlement of Stock Options and Stock
Appreciation Rights, issuance and custody of Restricted Stock and the manner of settlement of Performance Share Awards. The Committee’s interpretation of the Plan and its rules and regulations, and all actions taken and determinations made by
the Committee pursuant to the Plan, shall be conclusive and binding on all parties involved or affected. The Committee may delegate administrative duties to such of the officers of the Company as it so determines. 
  

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 1.5.2 Interpretation; Change of Control Adjustments. Without limiting the preceding
Section 5.1, and notwithstanding any other provisions of the Plan, the Committee is authorized to take such action as it determines to be necessary or advisable, and fair and equitable to Participants, with respect to Stock Options, Stock
Appreciation Rights and Awards in the event of a merger of the Company with, consolidation of the Company into, or the acquisition of the Company by, another corporation, or a sale or transfer of all or substantially all of the assets of the Company
to another corporation or any other person or entity, a tender or exchange offer for Shares made by any corporation, person or entity (other than the Company), or other reorganization, as a result of which the Company is not likely to continue as an
independent, publicly-owned corporation. Such authorized action may include (but shall not be limited to) establishing, amending or waiving the type, terms, conditions, or duration of, or restrictions on, Stock Options, Stock Appreciation Rights and
Awards so as to provide for earlier, later, extended or additional times for exercise, payments or settlement or lifting of restrictions, differing methods for calculating payments or settlements and other modifications, and the Committee may take
such actions by adopting rules and regulations applicable to all Participants, to certain categories of Participants or only to individual Participants. The Committee may take such actions before or after making the grants of Stock Options, Stock
Appreciation Rights or Stock Awards to which the action relates and before or after any public announcement with respect to such merger, consolidation, acquisition, sale or transfer of assets, tender or exchange offer or other reorganization that is
the reason for such action. 
 1.6. Limitation on Eligibility and Grants. 
 An Award may be granted under this Plan only to an employee or officer of the Company who held a Prior Plan Award who has elected to surrender all of his
or her Weyerhaeuser Equity Awards in exchange for an Award granted by the Company under the Plan. The Committee shall have the authority to grant only Substituted Spinco Options, Substituted Spinco RSUs and Substituted Spinco SARs under the Plan
having the terms and provisions set forth in the Transaction Agreement. 
 ARTICLE II. 
 DEFINITIONS 
 2. Definitions 

For purposes of the Plan, the following terms shall be defined as set forth below: 
 2.1. “Award” means any award or grant of Shares under Article IV and any award or grant of Performance Shares under Article V. 
 2.2. “Code” means the Internal Revenue Code as amended from time to time. 
  

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 2.3. “Committee” means the Human Resources Committee of the Board of Directors of the Company. 
 2.4. “Company” means Domtar Corporation, a Delaware corporation. 
 2.5. “Disability” means a medical condition in which a Participant is either entitled to total and permanent disability benefits under the Social Security Act or judged to be totally and permanently disabled by the Committee or
any person or committee delegated by the Committee to make such determinations. 
 2.6. “Early Retirement” means retirement on a date after an
individual reaches age 55 with at least 10 years of service, but prior to the individual reaching age 65. 
 2.7. “Exercise/Sell Election” means
the election set forth in Section 3.1.3 of Article III 
 2.8. “Fair Market Value” means the arithmetic average of the highest and lowest
sales prices per Share on a day as reported on the consolidated transaction reporting system for New York Stock Exchange issues for the day. 
 2.9.
“Grant Date” means the grant date of the Prior Plan Awards surrendered in exchange for the Award. 
 2.10. “Holder” means the Participant
to whom is granted a Stock Option, Stock Appreciation Right or Award, or the personal representative of the Holder who has died. 
 2.11. “Incentive
Stock Option” means an option to purchase Shares granted under Article III of the Plan with the intention that it qualify as an “incentive stock option” as that term is defined in Section 422 of the Code. 
 2.12. “Non-Qualified Stock Option” means an option to purchase Shares granted under Article III of the Plan other than an Incentive Stock Option. 

2.13. “Option Price” means the purchase price of Shares, as prescribed by the Committee, in respect to any Stock Option or Stock Appreciation Right.

 2.14. “Participant” means an individual who is a Holder of Stock Options, Stock Appreciation Rights and/or Awards. 
 2.15. “Performance Measures” means objective criteria specifically defined by the Committee on a Company-specific basis, business-unit basis or in comparison
with peer group performance, which may include or exclude specified items of an unusual or nonrecurring nature, and are based on one or more of the following: earnings before interest and taxes, net earnings, earnings per share, return on equity,
return on assets, return on capital employed, cash flow, cost reduction, stock price appreciation, total shareholder return, economic value added, cash flow return on investment, and cash value added. 
  

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 2.16. “Performance Share” means a unit of value, equal on the Grant Date to the Fair Market Value of a Share on
such Date or such greater value as the Committee shall prescribe, used to calculate the total value of a Performance Share Award. 
 2.17. “Performance
Share Award” means an award granted under Article V of the Plan the payout of which is subject to achievement through a performance period of performance goals prescribed by the Committee. 
 2.18. “Prior Plan” shall have the meaning set forth in Section 2.1 of Article I. 
 2.19. “Prior Plan Award” means an award granted to a Participant under the Prior Plan that has been surrendered by the Participant in exchange for an Award granted under this Plan pursuant to the terms of
the Transaction Agreement 
 2.20. “Restricted Stock Award” means an award of Shares granted under Article IV of the Plan the rights of ownership
of which are subject to restrictions prescribed by the Committee. 
 2.21. “Retirement” means retirement upon or after an individual reaches age
65, Early Retirement, or termination of employment due to a Disability with at least 10 years of service with the Company or a Subsidiary. 
 2.22.
“Shares” means the common shares (par value $0.01 per share) of the Company. 
 2.23. “Stock Appreciation Right” means a right, granted
under Section 3.1.2 of Article III, to surrender to the Company all or a portion of the related Stock Option, if any, and to receive an amount (in Shares or cash or any combination of Shares and cash, as the Committee shall determine) equal to
the excess of the Window Period Fair Market Value per Share for the date the Stock Appreciation Right is exercised over the Option Price per Share, in the case of a Stock Appreciation Right exercised within a Window Period, or equal to the excess of
the Fair Market Value per Share for the date the Stock Appreciation Right is exercised over the Option Price per Share in the case of a Stock Appreciation Right exercised on a date outside a Window Period. 
 2.24. “Stock Option” or “Option” means the right to purchase Shares granted under Section 3.1.1 of Article III of the Plan. 
 2.25. “Subsidiary” means a corporation the voting share ownership of which, by the Company or another Subsidiary, is sufficient for the election of a majority
of the directors of the corporation. 
  

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 2.26. “Substituted Spinco Options” shall have the meaning set forth in the Transaction Agreement. 

2.27. “Substituted Spinco RSUs” shall have the meaning set forth in the Transaction Agreement. 
 2.28. “Substituted Spinco SARs” shall have the meaning set forth in the Transaction Agreement. 
 2.29. “Transaction Agreement” means the Amended and Restated Transaction Agreement, dated as of January 25, 2007, among Weyerhaeuser Company, the Company, Domtar Paper Company, LLC, Domtar Delaware
Holdings Inc., Domtar Pacific Papers Inc., Domtar Pacific Papers ULC, Domtar (Canada) Paper Inc. and Domtar Inc. as the same may be amended from time to time. 
 2.30. “Weyerhaueser” means Weyerhaeuser Company, a Washington corporation. 
 2.31. “Weyerhaeuser Equity Award” shall have the
meaning set forth in the Transaction Agreement. 
 2.32. “Window Period” means a period of ten days on which there is trading in Shares on the New
York Stock Exchange, beginning with the third trading day after disclosure by the Company to the public of its earnings for the fiscal period just ended and ending with the twelfth such day. 
 2.33. “Window Period Fair Market Value” means the highest daily mean price per Share during the Window Period, determined from sales prices as reported on the
consolidated transaction reporting system for New York Stock Exchange issues for the Window Period. 
 ARTICLE III. 
 STOCK OPTIONS; STOCK APPRECIATION RIGHTS 
 3.1. Types of Stock Options 
 3.1.1 Types of Options. The Committee is authorized to grant
Stock Options to Participants either alone or wholly or partially in connection with Stock Appreciation Rights, for such number of Shares and at such Option Price, and exercisable in such installments over such periods of time and subject to such
vesting provisions, as the Committee shall determine. The Committee shall designate each Option issued hereunder as an “Incentive Stock Option” or a “Non-Qualified Stock Option.” The aggregate Fair Market Value on the Grant Date
of Share with respect to which Incentive Stock Options are exercisable by the Participant for the first time in any calendar year shall not exceed the amount provided for in Section 422 of the Code. 
  

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 3.1.2 Stock Appreciation Rights. The Committee is authorized to grant Stock Appreciation Rights,
either alone or wholly or partly in conjunction with Stock Options, for such numbers of Shares and at such Option Prices as the Committee shall determine. Upon exercise of a Stock Appreciation Right, the Holder shall be entitled to receive Shares
having value equivalent to 50% of the difference per Share between the Window Period Fair Market Value, or the Fair Market Value, whichever is applicable, and the Option Price, multiplied by the number of Shares as to which the Stock Appreciation
Right is exercised, and cash equivalent to 50% of the difference per Share between the applicable Window Period Fair Market Value or Fair Market Value and the Option Price, multiplied by the number of Shares as to which the Stock Appreciation Right
is exercised, provided that the Committee shall have the sole discretion to determine in any case or cases such other form in which payment will be made, i.e. all cash, all Shares, or any combination thereof If the Holder is to receive Shares upon
exercise of a Stock Appreciation Right, the number of Shares so determined is not a whole number, such number shall be reduced to the next lower number and there shall be paid to the Holder in cash an amount equal to the product of multiplying the
remaining fractional share by the applicable Fair Market Value of one share on the exercise date. 
 3.1.3 Exercise/Sell Election.
Holders of Stock Options not granted in conjunction with Stock Appreciation Rights shall have, at each time of exercise of such an Option, the right to elect to exercise such Option by causing a cash payment of the Option Price to be made to the
Company and simultaneously having such number of such Shares, as is determined by the Secretary of the Company, sold through a Company-designated registered broker in an open market transaction without cost of sale to the Holder, such
“exercise/sell election” to be effected in accordance with procedures and documentation established by the Secretary of the Company. The Holder of such Exercise/Sell election shall have the right to elect either to either: (A) have
the number of Shares to be sold approximate the number of Shares that upon sale on the exercise date would be required to yield cash proceeds equivalent to the sum of (i) the total Option Price for the Shares as to which the option is exercised
and (ii) 50% of the difference between (x) the total Fair Market Value on the exercise date of the Shares as to which the option is exercised; and (y) the total Option Price for the Shares as to which the option is exercised; or
(B) have the number of Shares sold be the number of shares as to which the option is exercised. The Holder of the Stock Option with the Exercise/Sell Election electing under (A) above shall be entitled to receive (i) the proceeds of
sale of the Shares to be sold remaining after payment to the Company of the Option Price and the applicable tax withholding; and (ii) the number of Shares remaining after the sale of Shares as provided above. The Holder of the Stock Option with
the Exercise/Sell Election electing under (B) above shall be entitled to receive the proceeds of the sale of the Shares to be sold remaining after payment to the Company of the Option Price and the applicable tax withholding. 
  

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 3.2. Option Price. The Option Price of the Shares subject to any Stock Option or Stock Appreciation Right shall be
determined by the Committee, as provided in the Transaction Agreement. 
 3.3. [Reserved]. 
 3.4. Vesting; Exercise Upon Termination of Employment 
 3.4.1 Initial Vesting Period.
Each Stock Option and Stock Appreciation Right shall become initially exercisable only after one year (or such longer period as may be determined by the Committee) of continuous employment of the Holder by the Company and/or one or more Subsidiaries
after the Grant Date, provided, that if the Holder shall die prior to completion of such year of continuous employment, each Stock Option and Stock Appreciation Right held by such Holder may nevertheless be exercised in accordance with this Article
3. 
 3.4.2 Term of Options and Stock Appreciation Rights. Except as otherwise provided in this Article 3, each Stock Option and Stock
Appreciation Right shall by its terms expire at such time as the Committee may determine in granting it, but not later than ten years from the Grant Date. 
 3.4.3 Exercise by Personal Representative. Any Stock Option or Stock Appreciation Right exercisable at the time of death of the Holder may be exercised by the personal representative of the Holder entitled
thereto at any time or from time to time within two years after the date of death, but in no event later than ten years (or such shorter period as determined under Section 3.4.2) from the Grant Date. 
 3.4.4 Exercises of Options and Rights. Each Stock Option and Stock Appreciation Right shall be exercisable by the Holder from time to time for the
full amount or for any part thereof, but no such Option or Right shall be exercised in part more frequently than once in any period of ten business days. 
 3.4.5 Post-Termination Exercises. In case of termination of employment of the Holder other than by reason of death, any Stock Option or Stock Appreciation Right of the Holder shall be exercisable only:
(i) within three years if the termination of the Holder’s employment is coincident with Retirement or Early Retirement or is as a result of position elimination, or (it) within three months after the date the Holder ceases to be an
employee of the Company or a Subsidiary if termination of the Holder’s employment is for any reason other than Retirement, Early Retirement or position elimination, but in no event later than ten years (or such shorter period determined under
Section 3.4.2) from the Grant Date. Neither transfer of employment between or among the Company and Subsidiaries, or a leave of absence approved in accordance with Company procedures, shall be considered termination of employment. 

 

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 3.5. Payment for Shares 
 3.5.1 Form of Payment. Upon exercise of a Stock Option not involving exercise of a related Stock Appreciation Right, in whole or in part, the Option Price for Shares to which the exercise relates shall be paid
in cash or, unless otherwise designated by the Committee at the time the Stock Option is granted, paid for with Shares (in the manner designated by the Secretary of the Company) valued at their Fair Market Value on the exercise date, and no Shares
shall be issued until such payment in full has been made. The Holder shall have none of the rights of a shareholder with respect to Shares subject to a Stock Option or Stock Appreciation Right unless and until the Shares are issued to the Holder.

 ARTICLE IV. 
 STOCK
AWARDS 
 4. Stock Awards 
 4.1. Committee
Authority. The Committee is authorized to make awards of Shares of the Company subject to Performance Measures established by the Committee, in writing, no later than the first 90 days of the period in which the performance Measure shall apply.
Performance periods shall not be shorter than one year from the Grant Date. Other terms, conditions and restrictions of such awards shall be set forth in an agreement or agreements between the Company and the recipient of the Award. The terms,
conditions and restrictions which the Committee shall have the power to determine shall include the manner in which Shares subject to Restricted Stock Awards are held during the periods they are subject to restrictions and the circumstances under
which forfeiture of Restricted Stock Share Awards and Shares subject to Restricted Stock Awards shall occur by reason of termination of employment of the Holder. 
 4.2. Issuance of Shares. Upon the satisfaction of the terms, conditions and restrictions prescribed in respect to a Restricted Stock Award, or upon the Holder’s release from the terms, conditions and restrictions of a Restricted
Stock Award, as determined by the Committee, the Company shall deliver, as soon as practicable, to the Holder, or in the case of the Holder’s death, to the personal representative of the Holder or as the appropriate court directs, a stock
certificate for the appropriate number of Shares. 
 4.3. Waiver of Restrictions. Notwithstanding any other provisions of the Plan, the Committee may,
in its sole discretion, waive the forfeiture period and any other terms, conditions or restrictions of any Stock Award under circumstances (including the death, Disability, Retirement or Early Retirement of the Holder, or material change in the
Holder’s circumstances arising after the date of the Award), and subject to such terms and conditions (including forfeiture of the Shares) as the Committee shall deem appropriate. 
  

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 ARTICLE V. 
 PERFORMANCE SHARE AWARDS 
 5. Performance Share Awards 
 5.1. Performance Share Awards Authority. The Committee is authorized to grant performance Share Awards to Participants using Performance Measures established by
the Committee, in writing, no later than the first 90 days of the period in which the Performance Measure shall apply. In addition, the Committee is authorized to determine: (a) the length of performance periods except that no performance
period may be shorter than one year from the Grant Date, (b) the amount and frequency of grants of Performance Share Awards, both independently and in relation to grants of Stock Options and other Awards, and (c) the form of payment of
Awards, which may be in cash, shares, Options, Rights or Awards or any combination of cash, Shares, Options, Rights and Awards. The Committee may not adjust performance goals and performance periods established for any Award if such adjustment would
increase the amount of the Award. 
 5.2. Payout Upon Termination. In the event a Holder’s employment by the Company or a Subsidiary terminates
during the performance period of a Performance Share Award, payout shall be as follows: 
 (a) If the termination of
employment is the result of discharge for cause or resignation, or Early Retirement prior to age 62 at the request of the Holder, the Award shall be forfeited in full. 
 (b) If the termination is the result of Retirement, death, Disability, position elimination, or Early Retirement at the request of the
Company, payout shall be made at the end of the applicable performance period and prorated for service during the performance period. 
 ARTICLE VI. 
 GENERAL 
 6.1. Amendment and Termination of Plan. The Board of Directors of the Company may from time to time amend, modify, or otherwise alter the Plan or any provision thereof, or discontinue or terminate the Plan; but no amendment or
discontinuance of the Plan shall, without the written consent of the Holder, adversely affect the Holder’s Stock Option, Stock Appreciation Right or Award. 
 6.2. Continued Employment; Rights in Options and Awards. Neither the Plan, participation in the Plan as a Participant, or any action of the Committee taken under the Plan shall be construed as giving any Participant or employee of
the Company or a Subsidiary any right to be retained in the employ of the Company or a Subsidiary or limit the right of the Company or a Subsidiary to terminate the employment of the Participant or employee. 
  

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 6.3. Other Compensation Plans. Neither the adoption of the Plan nor anything contained in the Plan shall prevent
the Company or any Subsidiary from adopting or continuing other or additional compensation arrangements, or discontinuing or terminating such arrangements, and such other arrangements may be either generally applicable or applicable only in specific
cases. 
 6.4. Certificates for Shares; Registration. The Company shall be under no obligation to any Participant to register for offering or resale
under the Securities Act of 1933, or register or qualify under state securities laws, any Shares, security or interest in a security paid or issued under, or created by the Plan. The Company may issue certificates for Shares with such legends and
subject to such restrictions on transfer and stop transfer instructions as counsel for the Company deem necessary or desirable for compliance by the Company with federal and state securities laws. 
 6.5. No Rights as Shareholder. No Stock Option, Stock Appreciation Right or Award shall entitle the Holder to any dividend, voting or other right of a shareholder
unless and until the date of issuance under the Plan of the Shares that are the subject of the Option, Right or Award, free of all applicable restrictions. 
 6.6. No Assignment or Transfer of Interests. No Stock Option, Stock Appreciation Right or Award shall be assignable or otherwise transferable by the Holder except as provided for herein in the case of death of the Holder. If a Holder
makes an assignment or transfer in violation of this Section 6.6, any obligation of the Company with respect to such Option, Right or Award shall thereupon terminate. 
 6.7. Compliance with Laws and Regulations. The Plan is intended to satisfy the conditions of Rule 16b-3, as amended from time to time, as promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended from time to time, and all interpretations of the Plan shall to the extent permitted by law, regulations and rulings, be made in a manner consistent with and so as to satisfy the conditions of Rule 16b-3.
Additionally, in interpreting and applying the provisions of the Plan, any Stock Option granted as an Incentive Stock Option pursuant to the Plan shall to the extent permitted by law, be construed as an “incentive stock option” within the
meaning of Section 422 of the Code. 
 6.8. Withholding of Taxes. The Company may require the Holder to pay to the Company the amount of any
withholding taxes which the Company is required to withhold with respect to the grant, exercise, payment or settlement of any Stock Option, Stock Appreciation Right or Award. In such instances, the Committee may, in its discretion and subject to the
Plan and applicable law, permit the Holder to satisfy withholding obligations, in whole or in part, by paying cash or by electing to have the Company withhold Shares, or to transfer Shares to the Company, in such amounts as are equivalent to the
Fair Market Value of the withholding obligation. 
  

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 6.9. No Trust or Fund. The Plan is intended to constitute an “unfunded” plan. Nothing contained herein
shall require the Company to segregate any monies or other property, or Shares, or to create any trusts, or to make any special deposits for any immediate or deferred amounts payable to any Participant, and no Participant shall have any rights that
are greater than those of a general unsecured creditor of the Company. 
 6.10. Governing Law. The Plan and all interpretations of its provisions
shall be governed by the laws of the State of Washington and applicable Federal laws. 
 6.11. Severability. If any provision of the Plan or any Stock
Option, Stock Appreciation Right or Award is determined to be invalid, illegal or unenforceable in any jurisdiction, or as to any person, or would disqualify the Plan or any Option, Right or Award under any law deemed applicable by the Committee,
such provision shall be construed or deemed amended to conform to applicable laws, or, if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Option, Right or
Award, such provision shall be stricken as to such jurisdiction, person or Option, Right or Award, and the remainder of the Plan and any such Option, Right or award shall remain in full force and effect. 
  

 12Domtar Corporation Executive Stock Option and Share Purchase Plan

 Exhibit 10.33 
 DOMTAR INC. 
 EXECUTIVE STOCK OPTION 
 AND 
 SHARE PURCHASE PLAN 
 The Executive Stock Option and Share Purchase Plan of Domtar Inc. was adopted by the Board of Directors on November 5, 1987 and ratified by the
shareholders on April 27, 1988. The Plan was subsequently amended on March 16, 1993, July 24, 1996, March 11, 1999, February 28, 2002 and February 27, 2003. 
 The provisions of the Plan and the rules adopted pursuant to Section 3.1 of the Plan govern the interpretation and administration of the Plan.

 This booklet contains the Plan text, and the Rules and Forms for use in connection with the Plan. 
 (Includes all amendments - May 2003) 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE
	 1.
	  	DEFINITIONS	  	1
			
	 2.
	  	PURPOSES OF THE PLAN	  	2
			
	 3.
	  	ADMINISTRATION OF THE PLAN	  	3
			
	 4.
	  	SHARES SUBJECT TO THE PLAN	  	3
			
	 5.
	  	OPTIONS	  	3
		  	 5.1    Grant of Options
	  	3
		  	 5.2    Payment of Subscription Price
	  	3
		  	 5.3    Option Period
	  	3
		  	 5.4    Exercise of Options and S.A.R.s
	  	5
		  	 5.5    Share Appreciation Rights
	  	5
		  	 5.6    Options and S.A.R.s Non-Assignable
	  	5
			
	 6.
	  	RIGHTS	  	6
		  	 6.1    Grant of Rights
	  	6
		  	 6.2    Payment of Subscription Price
	  	6
		  	 6.3    Exercise of Rights
	  	6
		  	 6.4    Bonus Shares
	  	6
		  	 6.5    Rights Non-Assignable
	  	7
			
	 7.
	  	FINANCIAL ASSISTANCE	  	7
			
	 8.
	  	RIGHTS TO SUBSCRIBE FOR SHARES OR OTHER SECURITIES	  	8
			
	 9.
	  	OFFER FOR SHARES OF THE CORPORATION	  	8
			
	 10.
	  	PARTICIPANT NOT A SHAREHOLDER	  	8
			
	 11.
	  	EFFECTS OF ALTERATION OF CAPITAL STOCK	  	8
			
	 12.
	  	AMENDMENT AND TERMINATION	  	9
			
	 13.
	  	LEGAL REQUIREMENTS	  	9
			
	 14.
	  	GOVERNING LAW	  	9
			
	 15.
	  	PARTICIPATION VOLUNTARY	  	9
			
	 16.
	  	COMING INTO EFFECT	  	10

  

 DOMTAR INC. 
 EXECUTIVE STOCK OPTION 
 AND 
 SHARE PURCHASE PLAN 
 1. DEFINITIONS 
 The following words and phrases shall have the following meanings unless there be something in the context inconsistent therewith: 
 “Board” shall mean the Board of Directors of the Corporation as the same may be constituted from time to time. 
 “Bonus Shares” shall mean Shares reserved for issuance on the Third Anniversary Date, or such other date as the Committee may determine,
to certain Participants in accordance with the terms of the Plan and as described more fully in Subsection 6.4.1. 
 “Committee” shall mean the Human Resources Committee (formerly the Executive Management and Compensation Committee) of the Board as the same may be constituted from time to time. 
 “Corporation” shall mean Domtar Inc. 
 “Eligible Executive” shall have the meaning ascribed thereto in Section 2. 
 “Loan” shall
mean the particular loan incurred by a Loan Participant (other than a Senior Executive) pursuant to Section 7 in respect of the exercise of a Right. 
 “Loans” shall mean the aggregate at any time of all Loans incurred by a Loan Participant (other than a Senior Executive) in respect of the exercise of Rights. 
 “Loan Participant” shall mean a Participant (other than a Senior Executive) who has exercised a Right and applied for a Loan from the
Trustee pursuant to the provisions of the Plan. 
 “Market Value” shall mean the arithmetic average of the closing prices per
share for a board lot of Shares traded on The Toronto Stock Exchange on the last trading day preceding the event and on which at least one board lot of Shares was traded on each such exchange. 
 “Option” shall mean, as the context requires, either the entire option to purchase Shares granted to a Participant pursuant to the Plan
or the unexercised portion thereof. 
 “Participant” shall mean an Eligible Executive to whom an Option, a S.A.R. or a Right
has been granted pursuant to the Plan. 
  

 “Plan” shall mean this Executive Stock Option and Share Purchase Plan. 
 “Purchase Contract” shall mean a non-transferable purchase contract entered into between a Senior Executive and the Corporation in
connection with the exercise of Rights as contemplated in Section 6.1 of the Plan. 
 “Right” shall mean the right to
purchase Shares of the Corporation granted to a Participant pursuant to the Plan. 
 “S.A.R.” shall mean, as the context
requires, either the aggregate share appreciation rights granted to a Participant pursuant to the Plan or the unexercised portion thereof. 
 “S.A.R. Period” shall mean the period during which a S.A.R. may be exercised, being the period commencing on the third business day and ending on the twelfth business day following the dates of the release of the quarterly
or annual financial statements of the Corporation. 
 “Senior Executive” shall mean an Eligible Executive who is also a
member of the Corporation’s Management Committee, an Executive Officer as defined under the United States Securities Exchange Act of 1934, as amended, or such other person designated as a senior executive by the Committee from time to time.

 “Shares” shall mean common shares of the capital stock of the Corporation as from time to time constituted. 
 “Specified Price” shall mean the Market Value on the day of the grant of an Option or Right, less such discount, if any, not exceeding
the maximum permitted by regulatory authorities, which shall have been set by the Committee at the time of the grant. 
 “Subscription
Price” shall mean an amount equal to the number of Shares in respect of which an Option, a S.A.R. or a Right is exercised multiplied by the Specified Price. 
 “Third Anniversary Date” shall mean the date which is 36 months after the date of grant of any Right, provided that such Right was exercised as prescribed in section 7 of the Rules. 
 “Trustee” shall mean such financial institution as is appointed Trustee under the Plan by the Committee, and any successor Trustee
appointed by the Committee. 
 Words importing the masculine gender shall include the feminine gender. 
 2. PURPOSES OF THE PLAN 
 The purposes of the Plan are
(i) to encourage the productivity of officers and full-time executives of the Corporation and its subsidiaries as well as of those corporations in which the Corporation or any of its subsidiaries holds at least 50% of the voting shares
(“Eligible Executives”) in furthering the development, growth and profitability of the Corporation and to encourage participation of such Eligible Executives in the ownership of the Corporation, (ii) to contribute in providing
such Eligible Executives with a total compensation and reward package that is comparable to industry practice and is tax effective, and (iii) to assist the Corporation in retaining and attracting executives with experience and ability.

  

 2 

 3. ADMINISTRATION OF THE PLAN 
  

	 	3.1	The Plan is under the direction of the Committee which, in addition to the specific powers conferred upon it hereunder, has full and complete authority to interpret the Plan and,
subject to Sections 11 and 12, to prescribe such rules and regulations and make such other determinations as it deems necessary or desirable to meet the objectives of and to administer the Plan. 

  

	 	3.2	The Corporation shall pay all administrative costs of the Plan. 

 4. SHARES SUBJECT TO THE PLAN 
 The number of Shares that may be issued pursuant to the exercise of Options, S.A.R.s and Rights shall
not exceed 16,000,000 Shares, subject to adjustment pursuant to Section 11. All Shares subject to Options, S.A.R.s and Rights that have expired, terminated or have been cancelled without having been exercised shall be available for any
subsequent Options, S.A.R.s and Rights under the Plan. 
 5. OPTIONS 
 5.1 Grant of Options 
 The Committee,
after considering the recommendation of the Chief Executive Officer of the Corporation, shall designate from among the Eligible Executives those to whom Options and S.A.R.s shall be granted, the number of Shares to be covered by each Option, the
number of S.A.R.s, if any, to be allotted by virtue of each such Option, the period during which the same may be exercised and the other terms and conditions attaching thereto. Any Participant, at the time of the grant of an Option and S.A.R., may
hold more than one Option. The grant of each Option and S.A.R. shall be evidenced by a letter from the Corporation addressed to the Participant setting forth the number of Shares covered by such Option, the Specified Price, the option period and any
other terms and conditions attaching thereto, any financial assistance provided in respect thereof pursuant to Section 7 and the number of S.A.R.s included therewith. 
 5.2 Payment of Subscription Price 
 The Subscription Price for the Shares covered by an Option granted under this Plan shall be paid in full at the time of exercise of such Option. 
 5.3 Option Period 
  

	 	5.3.1	 Subject to Section 5.4, each Option and each S.A.R., if any, shall be exercisable during a period established by the Committee provided that, unless otherwise
determined by the Committee, this period shall commence 

  

 3 

	 	 
not earlier than 12 months after the date of the grant in respect of the exercise of an Option and 24 months in respect of the exercise of a S.A.R. and shall
expire no later than 10 years after the date of grant, provided further that unless otherwise determined by the Committee: 

  

	 	(a)	in the event of the retirement of the Participant, no further portions of the Options or S.A.R.s held by such Participant shall become exercisable, and any Options and S.A.R.s then
exercisable by such Participant, shall terminate on the earlier of the termination date of the Option or S.A.R., as the case may be, first established by the Committee and three years after the date of the Participant’s retirement where the
Participant is 60 years of age or older at the date of retirement and otherwise one year after the date of the Participant’s retirement, except, in either case, for the first Option and related S.A.R. allotted to the Participant which have not
been fully exercised because of any limitations imposed by the Committee as to the rate of exercise pursuant to Subsection 5.4.1 or the commencement of the exercise period pursuant to the foregoing paragraph of this Subsection 5.3.1, in
which event the Participant will be entitled to exercise such first Option and related S.A.R. up to 48 months from the date of the grant of the first Option and related S.A.R., and provided further that during such period the Participant
shall not be restricted in the rate of exercise of the first Option and related S.A.R. by any limitations imposed by the Committee pursuant to Subsection 5.4.1; 

  

	 	(b)	in the event of the death of the Participant, no further portions of the Options or S.A.R.s held by such Participant shall become exercisable, and notwithstanding paragraph
(a) of Subsection 5.3.1, any Options and related S.A.R.s then exercisable by such Participant, shall terminate 12 months after the date of the Participant’s death; and 

  

	 	(c)	in the event that the Participant ceases to be an Eligible Executive of the Corporation or its subsidiaries or of a corporation in which the Corporation or any of its subsidiaries
holds at least 50% of the voting shares for any reason other than retirement or death, any Options and related S.A.R.s then held by such Participant shall terminate on the date on which the Participant ceases to be an Eligible Executive, subject to
such exceptions as the Committee may at any time agree to upon the recommendation of the Chief Executive Officer of the Corporation. 

  

	 	5.3.2	Except as set forth in Subsection 5.3.1 and unless otherwise determined by the Committee, all rights under outstanding Options and related S.A.R.s not exercised at the
termination date of the relevant Options and related S.A.R.s or for which the period during which it may be exercised has not commenced prior to the date of death or retirement of the Participant or the termination of his employment, shall be
forfeited. 

  

 4 

 5.4 Exercise of Options and S.A.R.s 
  

	 	5.4.1	Subject to Section 5.3, each Option and S.A.R. related thereto shall be exercised in accordance with a rate or rates of exercise established by the Committee and in effect at
the time of the grant thereof, provided that the exercise of a S.A.R. may occur only during the S.A.R. Period. With respect to Options granted on or after February 4, 2003, the rate or rates of exercise to be established by the Committee shall
be linked to the performance of the Shares, such that Options granted on or after such date will vest incrementally only if the performance of the Share price between the date of grant and the relevant anniversary date of the grant is equal to or
exceeds the average performance of an index to be determined by the Committee. 

  

	 	5.4.2	Options and S.A.R.s shall be exercised in accordance with the procedures to be established by the Committee from time to time. 

 5.5 Share Appreciation Rights 
  

	 	5.5.1	The exercise of S.A.R.s will entitle the Participant to a payment equal to the number of S.A.R.s exercised multiplied by the amount by which the Market Value on the day of the
exercise exceeds the applicable Subscription Price. 

  

	 	5.5.2	Any payments resulting from the exercise of S.A.R.s will be subject to statutory deductions. 

  

	 	5.5.3	The Participant may request such payment in cash or in Shares (net of statutory deductions) valued at the Market Value thereof as of the time of exercise. The Committee shall have
the sole discretion to determine which form of payment, or combinations thereof, to make. 

  

	 	5.5.4	Notwithstanding the foregoing provisions of this Section 5.5, in the event of any payment in Shares resulting from the exercise of S.A.R.s, the Specified Price shall be the
Market Value on the day of the grant of the Option without allowance for any discount which may have been set by the Committee in respect of the grant thereof. 

 5.6 Options and S.A.R.s Non-Assignable 
 No Options or S.A.R.s or any interest therein shall be transferable or assignable by the Participant otherwise than by will or pursuant to the laws of succession and no Option or S.A.R. may be exercised by anyone other than the Participant
or his legal representative during the life of the Participant. 
  

 5 

 6. RIGHTS 
 6.1 Grant of Rights 
 The Committee, after considering the recommendation of the Chief Executive
Officer of the Corporation, shall designate from among the Eligible Executives those to whom Rights shall be granted, the number of Shares to be allotted to each of them by virtue of each such Right, the Specified Price and the other terms and
conditions attaching thereto. Notice of such grant shall be forthwith given to the respective Eligible Executives setting forth the number of Shares covered by such Rights, the Specified Price and any other terms and conditions attaching thereto and
any financial assistance provided in respect thereof pursuant to Section 7, provided that financial assistance in respect of the exercise of Rights shall not be available to Senior Executives on or after July 30, 2002. All Eligible
Executives shall immediately and for a period of 30 days thereafter be entitled to accept such grant (or a portion thereof) and exercise the Rights granted thereby and any Eligible Executive (other than a Senior Executive) shall be entitled to apply
for a Loan in respect of the number of Shares to be acquired. Senior Executives who exercise Rights granted to them shall have the option to immediately acquire and pay the Subscription Price for Shares covered by such Rights, or to enter into a
non-transferable purchase contract (“Purchase Contract”) with the Corporation under which each Senior Executive shall irrevocably commit to purchase the number of Shares covered by such Rights within 10 years from the date the
Purchase Contract is entered into. The Purchase Contract shall be subject to such terms and conditions as may be determined from time to time by the Committee. 
 6.2 Payment of Subscription Price 
 The Subscription Price for the Shares covered by a Right granted
under this Plan shall be paid in full at the time of exercise of such Right, subject to the entering into of Purchase Contracts between the Corporation and Senior Executives in respect of the exercise of Rights by Senior Executives and the
fulfilment by Senior Executives of their obligations pursuant to such contracts. 
 6.3 Exercise of Rights 
 Rights shall be exercised in accordance with the procedures to be established by the Committee from time to time. 
 6.4 Bonus Shares 
  

	 	6.4.1	Subject to Subsection 6.4.2, a Participant who has exercised a Right will receive from the Corporation on the Third Anniversary Date, or such other date as the Committee may
determine, provided that the Participant still qualifies as an Eligible Executive on such date, one Bonus Share for every four Shares purchased by the Participant on the exercise of such Right and still beneficially owned by the Participant on the
Third Anniversary Date or such other date as determined by the Committee. 

  

	 	6.4.2	 A Senior Executive who has exercised a Right will receive from the Corporation on the Third Anniversary Date (or such other date as the 

  

 6 

	 	 
Committee may determine), provided that the Senior Executive still qualifies as an Eligible Executive on such date, one Bonus Share for (i) every four
Shares purchased by the Senior Executive in connection with the exercise of such Right or the fulfilment of his obligations under the Purchase Contract and still beneficially owned by the Senior Executive on the Third Anniversary Date (or such other
date as determined by the Committee), or (ii) every four Rights exercised where the Senior Executive has not, as of the Third Anniversary Date (or such other date as determined by the Committee) fulfilled his or her obligations under the
Purchase Contract. 

  

	 	6.4.3	Bonus Shares issued under the Plan shall be considered fully paid in consideration of past service that is no less in value than the fair equivalent that the Corporation would have
received if the Bonus Shares had been issued for money. 

 6.5 Rights Non-Assignable 
 No Rights or any interest therein shall be transferable or assignable by the Participant other than by will pursuant to the laws of succession and no
Right may be exercised by anyone other than the Participant or his legal representative during the life of the Participant. 
 7. FINANCIAL
ASSISTANCE 
  

	 	7.1	The Committee shall make available to a Participant (other than a Senior Executive) at the time of the exercise of a Right, a Loan bearing interest at a rate to be determined from
time to time by the Committee, in an amount within the limits established and subject to such other terms and conditions as may be determined by the Committee, for the purpose of paying the Subscription Price of the Shares in respect of which the
Right is being exercised, as the case may be, provided that the Shares so subscribed for and the Certificate representing such Shares shall be pledged with and in favour of the Trustee as security for the repayment of such Loan until the Loan has
been repaid entirely. 

  

	 	7.2	Each Loan made available to a Participant (other than a Senior Executive) at the time of the exercise of a Right shall be repaid by the Participant in accordance with the terms and
conditions established by the Committee, provided that no Loan shall remain outstanding, in whole or in part, beyond the tenth anniversary of the date of grant of the Right relative to which a loan application has been submitted by the Participant.

  

	 	7.3	Notwithstanding anything to the contrary contained herein or in the Rules, no Loans may be made available to the Chief Executive Officer or any other Senior Executive (each such
Senior Executive, a “Covered Person”) on or after July 30, 2002, and no Loans made available to any Covered Person prior to such date shall be modified in any material respect or renewed after such date.

  

 7 

 8. RIGHTS TO SUBSCRIBE FOR SHARES OR OTHER SECURITIES 
 In the event that any rights to subscribe for shares (including Shares) or other securities of the Corporation or of others are issued from time to time by the
Corporation to the holders of its Shares and received by the Trustee in respect of Shares held by the Trustee from time to time as security for the Loans of Loan Participants, the Trustee shall, upon the direction of the Committee, or failing any
such direction, may, in its entire discretion, either deliver such rights to the respective Loan Participants who own, subject to the pledge herein described, such Shares, in proportion to the respective numbers of the Shares so owned by such Loan
Participants on the record date for such issue of rights, or may sell any such rights for cash, in which event the Trustee shall apply the proceeds of such sale to the Loans of such Loan Participants. 
 9. OFFER FOR SHARES OF THE CORPORATION 
 In the event that, at
any time when Shares are held by the Trustee as security pursuant to Section 7.1 hereof, an offer to purchase is made to all holders of Shares, notice of such offer shall be given by the Trustee to each of the Loan Participants and if a Loan
Participant authorizes the Trustee to accept the said offer in respect of all or any Shares then held by the Trustee in pledge, the Trustee may, but need not if the Trustee considers that acceptance would prejudice its security, accept the said
offer in respect of the said Shares. In such event, the proceeds of the sale of said Shares, if and to the extent that any such proceeds consist of other than cash, shall be substituted in pledge for such Shares, and shall be deemed to have been
pledged with and in favour of the Trustee by the Loan Participant, and all of the provisions of the Plan shall apply in respect of such proceeds in the same manner, to the same extent, and with the same rights and obligations of the Trustee and such
Loan Participant and subject to the same limitations as existed with respect to said Shares and, if and to the extent that any such proceeds consist of cash, shall be applied by the Trustee to the repayment and prepayment of the Loans of such Loan
Participant. 
 10. PARTICIPANT NOT A SHAREHOLDER 
 A Participant shall have no rights as a shareholder of the Corporation with respect to any Shares covered by any Option, S.A.R. or Right outstanding in his favour, until such time as and to the extent only that such Option, S.A.R., Right
has been exercised, and in the case of a Right granted to a Senior Executive, until the Shares underlying such Right have been purchased and the Subscription Price therefor paid either directly through the exercise of such Right or under the terms
of the Purchase Contract between the Senior Executive and the Corporation. 
 11. EFFECTS OF ALTERATION OF CAPITAL STOCK 
  

	 	11.1	In the event of the declaration of a stock dividend, a subdivision, consolidation or reclassification or other changes with respect to the Shares, then the number of and price
payable for Shares subject to any unexercised Options, S.A.R.s or Rights (or subject to Purchase Contracts entered into with Senior Executives), and the formula for determining the cash payable upon the exercise of S.A.R.s, shall be adjusted in such
manner as the Board shall deem proper. 

  

 8 

	 	11.2	If the Corporation shall issue rights to its shareholders to subscribe for additional Shares, then the Board, in its discretion, may increase or adjust the number of Shares subject
to any unexercised Options, S.A.R.s, Rights (or Purchase Contracts entered into with Senior Executives), or take such other action as it deems appropriate, in order to give the Participants the opportunity to participate rateably.

 12. AMENDMENT AND TERMINATION 
 The Board may at any time and from time to time by resolution amend or terminate the Plan, but (a) no such amendment or termination shall, except with the written consent of the Participants concerned, respectively, affect the terms
and conditions of Options, S.A.R.s and Rights previously granted under the Plan to the extent that they have not then been exercised (or, in the case of Rights exercised by Senior Executives under Purchase Contracts, to the extent the obligations
under such contracts have not been fulfilled), unless the rights of such Participants shall then have terminated or been wholly exercised, and (b) without the approval of the shareholders the total number of Shares that may be issued pursuant
to the exercise of Options, S.A.R.s and Rights, or that may be purchased under outstanding Purchase Contracts entered into with Senior Executives, may not be increased (except by adjustment pursuant to Section 11) and the provisions of
Section 2, regarding eligibility, may not be modified. 
 13. LEGAL REQUIREMENTS 
 No Right to purchase, Option or S.A.R. may be exercised nor will the Corporation have any obligation to issue Shares pursuant thereto or under Purchase Contracts entered
into with Senior Executives if such exercise or issue would be contrary to or violate any applicable law or any applicable regulation of a duly constituted authority. 
 14. GOVERNING LAW 
 The provisions of the Plan will be interpreted in accordance with the laws of the Province
of Quebec. 
 15. PARTICIPATION VOLUNTARY 
  

	 	15.1	The participation of an Eligible Executive in the Plan is entirely voluntary and not obligatory and shall not be interpreted as conferring upon any such Eligible Executive any
rights or privileges other than those rights and privileges expressly provided in the Plan. In particular, participation in the Plan does not constitute a condition of employment nor a commitment on the part of the Corporation to ensure the
continued employment of such Eligible Executives. 

  

	 	15.2	The Plan does not provide any guaranty against any loss or profit which may result from fluctuations in the market value of the Shares. 

  

 9 

	 	15.3	The Corporation does not assume responsibility for the income or other tax consequences for the Eligible Executives participating in the Plan or obtaining financial assistance in
respect thereof and Eligible Executives are advised to consult with their own tax advisors. 

 16. COMING INTO EFFECT 

The Plan shall come into effect upon its approval by the shareholders of the Corporation. 
 May 2003 
  

 10

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