Document:

Exhibit 10.10

 

EXHIBIT 10.10

	 	 	 
	

	 	Abitibi-Consolidated Inc.

1155 Metcalfe Street, Suite 800

Montréal, Québec, Canada H3B 5H2

Tel. 514-875-2160 Fax. 514-875-6284
	 
	 	 
	 

	 	Postal address:

Post Office Box 69

Montréal, Québec, Canada H3C 2R5

Mr. John Weaver

Dear John:

          Re: Severance Entitlements

          The purpose of this letter is to set out your entitlements in the event
that your employment is terminated without Just Cause in a circumstance other
than a circumstance involving a “Change of Control” of Abitibi-Consolidated Inc.
(“ACI”).

          If your employment is terminated without “Just Cause” or for “Good Reason”
following a Change of Control, your entitlement to severance payments and other
benefits will be covered by the terms of the Severance Compensation Agreement dated
September 26, 1995 between you and Abitibi-Price Inc. as amended by the Severance
Compensation Agreement dated May 30, 1997 (the “Change of Control Arrangements”).
For greater certainty, unless otherwise specified in this letter, all defined terms
will have the meaning ascribed to them in the Change of Control Arrangements.

          If your employment is terminated without Just Cause in a circumstance other
than a circumstance involving a Change of Control of ACI, you will be entitled to:

	 	•	 	your accrued and unused vacation entitlement;
	 
	 	•	 	your accrued and unpaid salary and bonus remuneration;
	 
	 	•	 	a cash amount equal to three times your annual
compensation. For purposes of this agreement, “annual
compensation” shall mean the annual base salary payable to you at
the end of the month immediately preceding the month in which
your employment is terminated plus the average annual bonus paid
to you in the two year period immediately prior to the calendar
year in which your employment was terminated;
	 
	 	•	 	your coverage under all of the Company benefit
plans, except for the long-
term disability plan, will cease on the earlier of three years
following the date
that your employment was terminated or the date that you accept
comparable
employment. Your coverage under the ACI long-term disability plan
will
cease 8 weeks after the date that your employment is terminated.
	 
	 	•	 	three years additional credited service in the ACI pension plan;

 

 

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	 	•	 	continued use of the automobile provided to you by ACI
for three years following the date of your termination. You will be
responsible for its maintenance and operating costs and ACI will continue
to insure the automobile;
	 
	 	•	 	all of your options will vest and they will continue to be
exercisable as if you continued to be employed by the Company;
	 
	 	•	 	your entitlements pursuant to the terms of the ACI Deferred
Share Unit and Performance Share Unit Plans will be determined in accordance
with the terms of those plans; and
	 
	 	•	 	You will be permitted to elect to relocate to the United
States. If you so elect, all costs and expenses that you incur will be subject
to the terms of the ACI relocation policy attached as Schedule “A” hereto.

          Except as provided above, where your employment has been terminated by you or terminated by
the Corporation for any reason, you will not be entitled, except to the extent required under any
mandatory employment standard under applicable employment legislation, to receive any payment as
termination pay, severance pay, pay in lieu of notice, or as damages. Except as to any entitlement
as provided above, you hereby waive any claim you may have against ACI for or in respect of
termination pay, severance pay, or on account of loss of office or employment or notice in lieu
thereof or damages in lieu thereof. Payments to you upon termination in accordance with this
agreement by ACI will be deemed to include and to satisfy entitlement to termination pay, vacation
pay and severance pay pursuant to the applicable employment legislation to the extent of those
payments. Receipt by you of payments in accordance with this agreement will be deemed to constitute
a full and final release and discharge by you of ACI, and all of its directors, officers and agents
(for each of whom ACI contracts as a trustee) from all claims in respect of your hiring by,
employment with and termination of employment with ACI. For greater certainty, you will, subject to
the terms of all applicable corporate law, continue to be indemnified by ACI for actions that you
undertook in your capacity as an executive of ACI.

          In addition, you agree as follows:

	 	•	 	For a period of three years after your termination in the
circumstance described above, you shall not, without the prior written consent
of ACI, directly or indirectly, be an owner, consultant, employee, officer,
director, advisor, partner, venturer, or agent of, or render or provide any
services to any corporation, trust, firm or partnership which competes in any
way, whether directly or indirectly, with the business of ACI in Canada or the
United States.
	 
	 	•	 	Notwithstanding the foregoing, nothing herein shall prevent you
from owning not more than 5% of the issued shares of a corporation, the shares
of which are listed on a recognized stock exchange or traded in the
over-the-counter

 

 

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	 	 	 	market in Canada or the United States, which carries on a business which is the same as or
substantially similar to or which competes with or would compete with the business of ACI or
any of its Subsidiaries.
	 
	 	•	 	You shall not for a period of 3 years following your termination,
directly or indirectly, contact or solicit any designated customers of
ACI or any of its subsidiaries for the purpose of selling to the
designated customers any products or services which are the same as or
substantially similar to, or in any way competitive with, the products
or services sold by ACI or any of its subsidiaries at the end of your
employment period. For the purpose of this section, a designated
customer means a person who was a customer of ACI or of any of its
subsidiaries during some part of your employment period.
	 
	 	•	 	You agree that for a period of three years following the date that
your employment is terminated, you will not, directly or indirectly,
employ or retain as an independent contractor any employee of ACI or
any of its subsidiaries or induce or solicit, or attempt to induce,
any such person to leave his/her employment.
	 
	 	•	 	You shall not at any time, directly or indirectly, use or disclose to
any person any confidential information provided, however, that
nothing in this section shall preclude you from disclosing or using
confidential information if:

	 	(a)	 	the confidential information is available to the public or in the public
domain at the time of such disclosure or use, without breach of this Agreement; or
	 
	 	(b)	 	disclosure of the confidential information is required to be made by any
law, regulation, governmental authority or court.

	 	•	 	You acknowledge and agree that the obligations under this section are
to remain in effect in perpetuity and shall exist and continue in full
force and effect notwithstanding any breach or repudiation, or alleged
breach or repudiation, of this Agreement by ACI.
	 
	 	•	 	You agree that for purposes of this Agreement, confidential
information shall mean: (i) all intellectual property (including trade
secrets); (ii) all information relating to ACI’s business policies,
strategies, operations, finances, marketing plans or business
opportunities; mergers and acquisitions, (iii) the identity of ACI’s
customers that became known to you during your employment, including,
without limitation, any customer lists or any information about the
business of ACI’s customers; and (iv) the identity of ACI’s suppliers
that became known to you during your employment.
	 
	 	•	 	You acknowledge that a breach or threatened breach by you of the
provisions set out above will result in ACI and its shareholders
suffering irreparable

 

 

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	 	 	 	harm which is not capable of being calculated and which cannot be fully or
adequately compensated by the recovery of damages alone. Accordingly, you agree
that ACI shall be entitled to interim and permanent injunctive relief, specific
performance and other equitable remedies, in addition to any other relief to
which ACI may become entitled.
	 
	 	•	 	You agree not to disclose the terms of this Agreement to
anyone other than your spouse, your financial advisor or your solicitor.

          All amounts payable to you hereunder are subject to all applicable deductions and
withholdings. If you wish to receive the amounts set out above in a more tax effective manner, ACI
will comply with any lawful direction that you may give concerning the payments.

          You acknowledge that you have had an opportunity to read and consider this Agreement and to
obtain such independent legal or other advice concerning the interpretation and effect of this
Agreement as you considered advisable.

          This Agreement will be governed by the laws of the Province of Quebec and the federal laws of
Canada applicable therein.

          The parties hereto acknowledge that they have expressly requested and are satisfied that this
Agreement and all related documents be drawn up in the English language. Les parties aux présentes
reconnaissent avoir expressément requis que la présente entente et les documents qui y sont
relatifs soient rédigés en anglais.

          Please indicate your acceptance of and your agreement to the terms of this letter by signing
as appropriate and returning to us a copy of this letter.

	 	 	 	 	 
	 	Yours truly,

ABITIBI-CONSOLIDATED INC.

 	 
	 	Per:	 /s/ (name unrecognizable)
 	 
	 	 	DIRECTOR 	 
	 	 	 
	 

          IN WITNESS WHEREOF I have hereunto set my hand and seal this 25th day of September, 2000.

	 	 	 	 	 	 	 
	SIGNED, SEALED AND DELIVERED 

in the presence of:

	 	)

)	 	 	 	 
	/s/ Jacques Vachon
 

WITNESS SIGNATURE

	 	)

)

	 	/s/ John Weaver 

John Weaver
	 l/s
	 
	 	 	 	 	 	 
	Jacques Vachon
 

PRINT NAME OF WITNESS

	 	)

)

	 	 	 	 
	 
	 	 	 	 	 	 
	4325 Montrose, Westmount
 

ADDRESS OF WITNESS

	 	)

)Exhibit 10.11

 

EXHIBIT
10.11

SEVERANCE COMPENSATION AGREEMENT

          THIS AGREEMENT made the 1st day of April, 2002.

BETWEEN:

                    ABITIBI-CONSOLIDATED INC., a company amalgamated under the laws of
Canada

                    (the “Corporation”)

                    — and —

                    ALAIN GRANDMONT, an individual residing in the City of
Montreal, in the province of Québec

                    (the “Executive”)

RECITALS:

	A.	 	The Executive is a senior officer of the Corporation and is considered by the Board of
Directors of the Corporation to be a valued employee of the Corporation and has
acquired
outstanding and special skills and abilities and an extensive background in and
knowledge of
the Corporation’s business and the industry in which it is engaged.
	 
	B.	 	The Board of Directors recognizes that it is essential and in the best interests of the
Corporation and its shareholders that the Corporation retain the continuing dedication
of the Executive to his office and employment.
	 
	C.	 	The Board of Directors further believes that the past service of the Executive to the
Corporation requires that the Executive receive fair treatment, in the event of a
change in control of the Corporation.
	 
	D.	 	It is desirable to clarify the scope of the arrangements under this Agreement.

          NOW THEREFORE in consideration of these premises and the mutual covenants herein
contained and in consideration of the Executive continuing in office and in the employment
of the Corporation, the Corporation and the Executive hereby covenant and agree as follows:

April 1,
2002

 

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	1.	 	Definitions

	 	 	 	In this Agreement,
	 
	 	(a)	 	“Agreement” means this agreement and all schedules attached to this agreement,
in each case as they may be restated, amended or supplemented from time to time, and
the expressions “hereof”, “herein”, “hereto”, “hereunder”, “hereby”, and similar
expressions refer to this agreement and, unless otherwise indicated, references to
sections are to sections in this agreement;
	 
	 	(b)	 	“Annual Compensation” means the aggregate of (i) the annual base salary of the
Executive, payable by the Corporation as at the end of the month immediately preceding
the month in which the termination of employment hereunder takes effect; and (ii) the
greater of (A) the last bonus payment earned by the Executive pursuant to the Key
Executive Incentive Plan in the fiscal year immediately preceding the termination of
the Executive’s employment hereunder; or (B) an amount equal to the average of the
bonus payments earned by the Executive pursuant to the Key Executive Incentive Plan in
the two fiscal years immediately preceding the termination of the Executive’s
employment hereunder;
	 
	 	(c)	 	“Change of Control” means any of:

	 	(i)	 	The acquisition, directly or indirectly and by any means whatsoever, by
any person, or by a group of persons acting jointly or in concert, of that
number of Voting Shares which is equal to or greater than 35% of the total
issued and outstanding Voting Shares immediately after such acquisition
unless another person or group of persons has previously acquired and
continues to hold a number of Voting Shares which represents a greater
percentage than the first-mentioned person or group of persons;
	 
	 	(ii)	 	The election or appointment by any holder of Voting Shares, or by any
group of holders of Voting Shares acting jointly or in concert, of a number
of members of the Board of Directors of the Corporation equal to or greater
than one third of the members of the Board of Directors unless another
holder or group of holders has previously elected or appointed a greater
number of members of the Board of Directors and re-elects such greater
number of members at the same time as the first-mentioned holder or group of
holders;
	 
	 	(iii)	 	Any transaction or series of transactions, whether by way of
reconstruction, reorganization, consolidation, amalgamation, arrangement,
merger, transfer, sale or otherwise, whereby assets of the Corporation become
the property of any other person (other than a subsidiary of the Corporation)
if such assets which become the property of any other person have a fair
market value (net of the fair market value of any then existing liabilities
of the Corporation assumed by such other person as part of the same
transaction) equal to 50%

			
	 	 	 
	Canadian SCA-Alain Grandmont
	 	April 1, 2002

 

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	 	 	 	or more of the Market Capitalization of the Corporation immediately before
such transaction; or

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

	 	(d)	 	“Disability” means the mental or physical state of the Executive such that:

	 	(i)	 	The directors of the Corporation, other than the Executive if
he is a director, unanimously determine that the Executive has been unable,
due to illness, disease, mental or physical disability or similar cause, to
fulfil his obligations as an employee or officer of the Corporation either for
any consecutive 6 month period or for any period of 12 months (whether or not
consecutive) in any consecutive 24 month period; or
	 
	 	(ii)	 	A court of competent jurisdiction has declared the Executive
to be mentally incompetent or incapable of managing his affairs;

	 	(e)	 	“Good Reason” means:

	 	(i)	 	Without the express written consent of the Executive, the
assignment to the Executive of any duties materially inconsistent with his
positions, duties and responsibilities with the Corporation immediately prior
to the date hereof or any removal of the Executive from, or any failure to
re-elect the Executive to, material positions, duties and responsibilities with
the Corporation, except in connection with the termination of the Executive’s
employment for Just Cause, Disability or Retirement or as a result of the
Executive’s death or by the Executive other than for Good Reason;
	 
	 	(ii)	 	A reduction by the Corporation in the Executive’s salary as in
effect on the date hereof or as the same may be increased from time to time;
	 
	 	(iii)	 	The failure by the Corporation to continue in effect any
incentive or compensation plan, or any pension, life insurance, health and
accident or disability plan in which the Executive is participating at the date
hereof, (or plans providing the Executive with substantially similar benefits)
unless such plans have been replaced by new plans providing the Executive with
benefits that are as good as or better than the benefits provided in such
plans, or the taking of any action by the Company which would adversely affect
the Executive’s participation in or materially reduce the Executive’s benefits
under any of such plans or deprive the Executive of any material fringe benefit
enjoyed by him at the date hereof;
	 
	 	(iv)	 	The requirement that the Executive be based anywhere other than
the Corporation’s principal executive offices except for required travel on the
Corporation’s business to an extent substantially consistent with the

			
	 	 	 
	Canadian SCA— Alain Grandmont
	 	April 1, 2002

 

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	 	 	 	Executive’s present employment or travel obligations, or in the event the
Executive consents to any such relocation, the failure by the Corporation to
pay (or reimburse the Executive for) all reasonable moving expenses incurred
by the Executive or to indemnify the Executive against any excess in (A) the
cost of a principal residence in the new location which is comparable to the
Executive’s principal residence at the time of the relocation, over (B) the
amount realized by the Executive upon the sale of his principal residence at
the time of the relocation; or
	 
	 	(v)	 	Any reason which would be considered to amount to constructive
dismissal by a court of competent jurisdiction;

	 	(f)	 	“Just Cause” means wilful failure of the Executive to properly carry out his
duties after written notice by the Corporation of the failure to do so and an
opportunity for the Executive to correct the same within a reasonable time from the
date of receipt of such written notice from the Corporation, or theft, fraud or
dishonesty or material misconduct by the Executive involving the property or affairs
of the Corporation or the carrying out of the Executive’s duties;
	 
	 	(g)	 	“Key Executive Incentive Plan” means any program adopted by the Corporation
from time to time with the intention of providing bonus or similar compensation to the
executives of the Corporation;
	 
	 	(h)	 	“Market Capitalization of the Corporation” at any time means the product of (i)
the number of outstanding common shares of the Corporation at that time, and (ii) the
average of the closing prices for the common shares of the Corporation on the principal
securities exchange (in terms of volume of trading) on which the common shares of the
Corporation are listed at that time for each of the last 10 days prior to such time on
which the common shares of the Corporation traded on such securities exchange;
	 
	 	(i)	 	“Person” means includes an individual, partnership, association, body
corporate, trustee, executor, administrator, legal representative and any national,
provincial, state or municipal government;
	 
	 	(j)	 	“Retirement” means the retirement or early retirement of the Executive in
accordance with the terms of the Retirement Agreement;
	 
	 	(k)	 	“Retirement Agreement” means any agreement between the Corporation and the
Executive, under which the Corporation agreed to pay the Executive a retirement
allowance following his retirement or early retirement from employment with the
Corporation, in accordance with the terms of that agreement and including any
amendments made from time to time to such agreement;
	 
	 	(l)	 	“Stock Option Plans” means the Abitibi-Consolidated Inc. Stock Option Plan and
any similar plan of the Corporation under which the Corporation from time to time

			
	 
	Canadian SCA — Alain Grandmont
	 	April 1, 2002

 

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	 	 	 	grants options to purchase Voting Shares of the Corporation and loans for the
purpose of exercising such options;
	 
	 	(m)	 	“Subsidiary” has the meaning ascribed to it in the Canada Business
Corporations Act, as in force on the date hereof; and
	 
	 	(n)	 	“Voting Shares” means any securities of the Corporation ordinarily
carrying the right to vote at elections of directors.

	2.	 	Scope of Agreement

          The parties hereto intend that this Agreement set out their respective rights and obligations
in certain circumstances in which the Executive’s employment is terminated. This Agreement does
not purport to provide for any other terms of the Executive’s employment with the Corporation.

	3.	 	Position, Duties and Responsibilities of Executive

          The Executive shall continue to have the responsibilities and powers that he currently has or
such other responsibilities and powers as he and the Corporation may from time to time agree upon.
The Executive shall devote the whole of his working time to the Executive’s duties and shall use
his best efforts to promote the interests of the Corporation.

	4.	 	Termination of Employment by the Corporation for Just Cause

          The Corporation may terminate the Executive’s employment at any time without notice or further
obligations to the Executive under this Agreement for reasons of Just Cause. Notwithstanding the
foregoing, the Executive shall not be deemed to have been terminated for Just Cause unless and
until there has been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of the Board of Directors
of the Corporation (excluding the Executive if the Executive is at that time a director of the
Corporation) at a meeting of the Board called and held for the purpose (after reasonable notice to
the Executive and an opportunity for the Executive, together with his legal counsel, to be heard
before the Board), finding that in the good faith opinion of the Board the Executive was guilty of
conduct constituting Just Cause and specifying the particulars thereof. The effective date of any
termination pursuant to this section shall be the date on which such resolution is given to the
Executive.

	5.	 	Termination of Employment by the Corporation Without Just Cause or by the
Executive for Good Reason

          If at any time within two years following a Change of Control the Executive’s employment is
terminated, (a) by the Corporation other than for Just Cause or (b) by the Executive in response
to a Good Reason, the following provisions shall apply:

			
	 
	Canadian SCA —Alain Grandmont
	 	April 1, 2002

 

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	 	(a)	 	The Executive shall be entitled to receive, and the Corporation shall pay to
the Executive, immediately following termination, a cash amount equal to three times
the Annual Compensation of the Executive less required statutory deductions;
	 
	 	(b)	 	The Executive shall continue to receive until the earlier of (i) three years
after the date of termination or (ii) receipt of equivalent benefits from a new
employer, all group benefits including health, dental, life and car allowance
(excluding all maintenance and operating expenses) other than disability insurance
benefits on the scale provided by the Corporation to the Executive as at the date of
termination or in lieu of such continued coverage, the Executive shall be entitled to
receive a cash amount equal to the value to the Executive (as determined by a chartered
accountant or firm of chartered accountants acceptable to the Corporation and the
Executive) of such coverage for such period of time;
	 
	 	(c)	 	The Executive will also be entitled to receive on termination the normal and
any supplementary pension benefits in effect on the date of termination according to
the terms of the Corporation’s registered pension plans and the Retirement Agreement
or according to similar provisions of any successor plan, of which the Executive is a
member at the date of termination (the “Retirement Plans”). The Executive’s total
pension entitlement and retirement options will be determined on the basis that the
Executive had three years of credited service and age under the Retirement Plans at
his date of termination of employment (over and above his actual years of credited
service as otherwise determined). In addition, such additional years of service shall
be included for the purpose of determining final or best average earnings assuming
that the Executive’s monthly rate of salary at date of termination would have
continued unchanged during the period of additional service. For Retirement Plans that
include performance bonuses in the definition of pensionable earnings, the average of
the highest three actual bonuses earned in the five years immediately prior to the
date of termination shall be used for calculating the bonuses for each year during the
severance period used for the purpose of determining final or best average earnings.
Any portion of the total pension entitlement of the Executive not eligible to be paid
under provisions of the registered pension plans of the Corporation shall be payable
as supplementary payments in accordance with the Retirement Agreement;
	 
	 	(d)	 	if at the date of termination of the Executive’s employment, the Executive
holds options for the purchase of shares under the Stock Option Plans, all options so
held shall, unless the Executive has breached the terms of section 13 hereof, (i)
immediately vest to the extent they have not already vested at such date and (ii)
continue to be held, in both cases, notwithstanding the terms of the Stock Option
Plans, on the same terms and conditions as if the Executive continued to be employed
by the Corporation;

			
	 
	Canadian SCA — Alain Grandmont
	 	April 1, 2002

 

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	 	(e)	 	If at the date of the termination of the Executive’s employment, the Executive
owes any money to the Corporation pursuant to loans to the Executive for the purchase
of shares under the Stock Option Plans or for assisting the Executive to purchase
property, such loans shall, notwithstanding the terms of any other agreement between
the Corporation and the Executive respecting these loans, be repayable by the Executive
in the same manner and at the same time as if the Executive continued to be employed by
the Corporation following such termination, provided that if the Executive has breached
the terms of section 13 hereof, the loans shall become immediately due on the date of
such breach and shall be repaid forthwith.

For greater certainty, this section 5 applies with respect to each Change of Control until this
Agreement has been terminated in accordance with section 14 hereof. In addition, with respect to a
particular Change of Control, this section 5 expires two years following such Change of Control
unless this Agreement is otherwise terminated in accordance with section 14 hereof. This section 5
does not apply in the event of the termination of the employment of the Executive as a result of
death, Disability or Retirement or by the Executive otherwise than in response to a Good Reason or
by the Corporation for Just Cause. If the Executive or the Corporation intend to terminate the
Executive’s employment as contemplated in this section, the party having such intention shall give
the other notice thereof and the effective date of such termination shall be the date on which such
notice is given to the other party.

	6.	 	Disability

          In the event of Disability of the Executive, this Agreement may be terminated by the
Corporation on thirty days’ notice. Notwithstanding anything contained in this Section 6, the
Executive shall be entitled to all benefits provided under the disability and pension plans of the
Corporation applicable to the Executive at the date of this Agreement.

	7.	 	No Obligation to Mitigate

          The Executive shall not be required to mitigate the amount of any payment or benefit provided
for in section 5 of this Agreement by seeking other employment or otherwise, nor shall the amount
of any payment provided for in section 5(a) be reduced by any compensation earned by the Executive
as a result of employment by another employer after termination or otherwise.

	8.	 	Binding on Successors

	 	(a)	 	The Corporation will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Corporation, by agreement in form and substance
satisfactory to the Executive, to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that the Corporation would be required to
perform it if no such succession had taken place. Failure of the Corporation to obtain
such agreement prior to the effectiveness of any such succession shall be a breach of
this Agreement and shall entitle the Executive to compensation from the Corporation on
the same terms and conditions as the Executive would be entitled hereunder if the

			
	 
	 
	Canadian SCA — Alain Grandmont
	 	April 1, 2002

 

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	 	 	 	Executive terminated his employment for Good Reason. As used in this Agreement,
“Corporation” shall mean the Corporation as hereinbefore defined and any successor
to its business and/or assets as aforesaid which executes and delivers the
agreement provided for in this section 8 (a) or which otherwise becomes bound by
all the terms and provisions of this Agreement by operation of law.

	 	(b)	 	This Agreement shall ensure to the benefit of and be enforceable by the
Executive’s successors or legal representatives but otherwise it is not assignable. If
the Executive should die while any amounts would still be payable to the Executive
hereunder if the Executive had continued to live, all such amounts unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to the
Executive’s estate.

	9.	 	Expenses

          The Corporation agrees to pay all legal fees and expenses incurred by the Executive as a
result of the termination of his employment in circumstances covered by this Agreement (including
all such fees and expenses, if any, incurred in contesting or disputing any such termination or in
seeking to obtain or enforce any right or benefit provided by this Agreement).

	10.	 	Entire Agreement

          Except for the Executive’s rights to continued participation in the Corporation’s employee
benefit plans, including, without limitation, the Corporation’s Stock Option Plans, this Agreement
constitutes the entire agreement between the parties hereto pertaining to the subject matter
hereof and superceedes and replaces the terms of the Prior Agreements. Upon execution of the
present Agreement, the Prior Agreements will be of no further force or effect. No amendment or
waiver of this Agreement shall be binding unless executed in writing by both parties hereto.

	11.	 	Confidential Information

          In the event of termination of employment of the Executive, the Executive agrees to keep
confidential all information of a confidential or proprietary nature concerning the Corporation,
its subsidiaries and affiliates and their respective operations, assets, finances, business and
affairs and further agrees not to use such information for personal advantage, provided that
nothing herein shall prevent disclosure of information which is publicly available or which is
required to be disclosed under appropriate statutes, rules or law or legal process.

	12.	 	Choice of Law

          This Agreement shall be
governed and interpreted in accordance with the laws of the Province
of Québec and the courts of the Province of Québec shall be the sole and proper forum with respect
to any suits brought with respect to this Agreement. The present agreement has been drafted in
English at the request of the Executive. La présente entente a
été rédigée en anglais à la demande
de l’employé.

			
	 
	Canadian SCA — Alain Grandmont
	 	April 1, 2002

 

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	13.	 	Non-Competition

          The Executive agrees that in the event of his termination of service with the
Corporation under Section 5 of this Agreement, the Executive will not for a period of 2 years
beginning on the date of such termination, without written approval of the Board of Directors,
undertake or carry on, either alone or in partnership, or either on his own account or on behalf of
or as agent or employee or director of any person or persons, firm or corporation (other than the
Corporation), or be employed or interested or engaged (other than as a holder of securities of not
more than five percent (5%) of the stock or equity of any corporation the capital stock of which is
publicly traded) in any business in competition with that carried on by the Corporation at the date
of termination.

	14.	 	Notices

          Any notice or other communication required or permitted to be given hereunder shall be in
writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic
communication or by hand-delivery as hereinafter provided. Any such notice or other communication,
if mailed by prepaid first-class mail at any time other than during a general discontinuance of
postal service due to strike, lockout or otherwise, shall be deemed to have been received on the
fourth business day following the sending, or if delivered by hand shall be deemed to have been
received at the time it is delivered to the applicable address noted below either to the
individual designated below or to an individual at such address having apparent authority to
accept deliveries on behalf of the addressee. Notice of change of address shall also be governed
by this section. In the event of a general discontinuance of postal service due to strike,
lock-out or otherwise, notices or other communications shall be delivered by hand or sent by
facsimile or other means of electronic communication and shall be deemed to have been received in
accordance with this section. Notices and other communications shall be addressed as follows:

(a) If to the Executive:

Alain Grandmont,

Senior Vice-President, Value-Added Paper Operations

(b) If to the Corporation:

Abitibi-Consolidated Inc.

Att. Jacques Vachon

1155, Metcalfe Street, Suite 800

Montréal (Qu#233;bec) H3B 5H2

Attention:   Chairman of the
H.R.C.C. 
Telecopier:  (416)367-3549

			
	 
	Canadian SCA — Alain Grandmont
	 	April 1, 2002

 

-10-

	15.	 	Termination

          This Agreement shall terminate immediately on the occurrence of any of the following events:
(i) the date of death of the Executive; (ii) voluntary resignation by the Executive from the
Corporation otherwise than in response to a Good Reason; (iii) the giving of notice by the
Corporation in the event of Disability as contemplated by section 6 hereof; (iv) termination for
Just Cause; (v) termination of employment of the Executive at any time when there has been no
Change of Control or more than two years after the immediately preceding Change of Control; or (vi)
satisfaction by the Corporation of its obligations under section 5 of this Agreement in the event
of termination of the Executive in the circumstances contemplated by section 5.

	16.	 	Copy of Agreement

          The Executive hereby acknowledges receipt of a copy of this Agreement duly signed by the
Corporation.

          IN WITNESS WHEREOF the parties hereto have duly executed and delivered this Agreement.

	 	 	 	 	 	 	 
	 	 	 	ABITIBI-CONSOLIDATED INC.

 	 
	 	 	 	By:  	/s/ John Weaver
 	 
	 	 	 	 	John Weaver 	 
	 	 	 	 	President and Chief Executive Officer 	 
	 
	 	 	 	 	 
	 	 	 	/s/ John A. Tory
 	 
	 	 	 	John A. Tory 	 
	 	 	 	Chairman of the H.R.C.C. 	 
	 
	 	 	 	 	 
	Witness: 	(name unrecognizable)	 	/s/ Alain Grandmont
 	 
	 	 	 	Alain Grandmont 	 
	 	 	 	Senior Vice-President, Value-Added Paper
Operations 	 
	 

			
	Canadian SCA — Alain Grandmont
	 	April 1, 2002

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]