Document:

EX-10.43

 Exhibit 10.43 
 

 
  
 Graph
appear 
 Domtar Paper Company, LLC 
 100 Kingsley Park Dr 
 Ft Mill. SC 29715-6476

 Tel (803) 802-7500 
 Fax (803) 802-8002 
 May 30,2013

 PERSONAL AND CONFIDENTIAL 
 Mike Edwards 
 8315 Woodmont Drive Waxhaw, NC,
28173 
 Dear Mike: 
 As we recently discussed, we have come to an understanding that we will accept your retirement as of June 30, 2013 (“Retirement Date”). At that time, we will provide you
with a severance opportunity commensurate with your position and years of service. The receipt of the severance package will be contingent upon your signing and complying with a release document, under the terms of which you will release the Company
from any and all claims. The attached draft agreement describes the entire severance package and applicable conditions should you elect to sign it and thereby become eligible for the severance package. The agreement is being given to you at this
time in a draft form so that you have ample time to consider it and assess your retirement planning. The attached agreement should not be signed by you; rather, you will be provided a final agreement at your Retirement Date. At that time, you will
have up to 21 days after receipt of the final agreement to consider it. 
 In order to aid you in your retirement
planning, this letter and the draft agreement describe the severance opportunity and the additional and continuing benefits that are available to you as of your Retirement Date. We thank you for your years of service and wish you welL Should you
have any questions regarding any information in this letter or the attached draft agreement, please ask me or Melissa Anderson. Please also note that there is no obligation on behalf of the Company to continue your employment through your Retirement
Date. To the contrary, the Company maintains the right to separate you at any time for any or no reason. Likewise, if you disparage the Company or otherwise disclose the terms of this confidential matter to other employees, then the Company may also
reconsider its willingness to provide you with any severance opportunity and may elect not to do so. 
 Severance
Opportunity 
 As discussed, as of your Retirement Date, we will provide you with a severance opportunity. The
receipt of the severance package will be contingent upon your signing and complying with a release document, releasing the Company from any and all claims. Should you sign the agreement, you will be entitled to severance as if you were a participant
in the Severance Program for Management Committee Members (the ‘‘Severance Plan”). Domtar will pay you a severance allowance in accordance with the Severance Plan of US$854,900 (representing 24 

www.domtar.com 

 

 
  
 
months of the base salary) less applicable statutory deductions. Such amount shall be paid in a lump sum as soon as reasonably practicable after the final agreement is fully executed by you and
the Company, and in no event later than 90 days thereafter, subject to the tem1s and conditions of the Severance Plan and the agreement. 
 Group Insurance 
 All your group benefits coverage
including Basic and Supplemental Life Insurance coverage, Dependent Life Insurance, Executive Life Insurance coverage, Executive Personal Accident Insurance, Personal Accident Insurance, Group Business Travel Accident Insurance, Long Term Disability
coverage and your Medical and Dental coverage will terminate on the Retirement Date. 
 Your Basic and
Supplemental Life, Executive Life and Voluntary Dependent Life insurance coverage can be converted or ported. Executive Personal Accident Insurance and Personal Accident Insurance are only portable. Any converted or ported insurance coverage will be
to an individual insurance policy with Prudential Financial. You must exercise your conversion or portability right within thirty-one (31) days of the termination of your Domtar insurance coverage. lf you are interested in the conversion or
portability option, please contact Mike Campbell at 803-802-8216 or a local Prudential Financial sales representative for details. 
 Your medical and dental coverage under the Domtar group insurance program will remain in effect for 18 months following your Retirement Date (or for such longer period of time as is
covered by COBRA), provided you elect to continue your medical coverage in accordance with Section 4980B of the US Internal Revenue Code (“COBRA”). If you sign the attached agreement within 21 days after your Retirement Date and elect
COBRA coverage, then the Corporation will reimburse you (within 30 days after your payment of the applicable premium) for a period of 18 months for the amount that the cost to you under COBRA exceeds what would have been the cost to you of medical
coverage under the Domtar group insurance program had you been employed. See the attached agreement for additional details. If you obtain equivalent coverage elsewhere, this cost reimbursement will terminate. Details of COBRA coverage and the
election will be provided to you by SHPS/ADP, Inc. after your Retirement Date. 
 Alternatively, you may elect
retiree medical coverage under the Domtar Salaried Retiree Medical Plan. There is no dental retiree coverage although COBRA is still available for dental coverage even if you elect the Domtar Salaried Retiree Medical Plan. The Domtar Salaried
Retiree Medical Plan monthly premium is entirely paid by the retiree. If you elect retiree medical coverage, for the 18 months following your Retirement Date, Domtar will reimburse you (within 30 days after your payment of the applicable premium)
for the amount of the premium that exceeds the cost you would have paid as an active employee. If you obtain equivalent or better coverage elsewhere, this cost reimbursement will terminate. If you are interested in considering this option as well,
please advise Mike Campbell at (803) 802- 
 8216 and he will advise the plan administrator, SHPS/ADP, who
in turn will send you all the necessary information. 
 If you elect medical coverage under COBRA, you cannot
elect retiree medical coverage with 
 Domtar at a later date. 

6 

 

 
  
 Pension
and 401 (k) Plans 
 Full participation in the company qualified pension, 401 (k) plans, DC SERP for
Designated Executives of Domtar (DC SERP) and DB SERP for Management Committee Members of Domtar (DB SERP) will continue until your Retirement Date. Payment of your benefits under the company pension and 40 I (k) plans and the DB and DC SERP
will be determined in accordance with the terms of the applicable plan. 
 Annual Incentive Plan 

You are eligible to receive a bonus under our 2013 Annual Incentive Plan. The bonus eligibility will be based on
Domtar’s performance relative to the performance criteria under the Annual Incentive Plan, calculated based on your actual base salary paid during 
 2013 and your bonus target of 100%. Payment will be made in accordance with the terms of the Annual Incentive Plan at the same time as payments are made to other executives and in any
event, no later than March 15, 2014. 
 Treatment of Your Long Term Incentive Plan Awards 

Stock Options 
 Subject to your retirement on the Retirement Date, all of your unvested stock options will vest as of the Retirement Date and you will have until the earlier of the fifth anniversary of
the Retirement Date or the normal expiration date of the stock options to exercise the vested stock options granted to you under the Plan. 
 Restricted Stock Units 
 Subject to your retirement
on the Retirement Date, all of your unvested Restricted Stock 
 Units (“RSUs”) will vest and will be
paid as soon as practicable after the Retirement Date 
 Performance Stock Units 

Subject to your retirement on the Retirement Date, all of your outstanding Performance Stock Units (“PSUs”) will
continue to vest and be paid out at the same time as similar awards vest and are paid out, subject to satisfaction of the performance goals and to the provisions ofthe Plan and the award agreement governing the PSUs. You agree that you have no
rights with respect to such PSUs other than the settlement of vested PSUs. 
 For more information, please
contact Josee Turgeon at 514-848-5475. 

 

 
  
 Financial
Counseling 
 If you sign the attached agreement within 21 days after your Retirement Date and comply with terms,
then you will be entitled to reimbursement for up to $5,000 of financial counseling received in 2013. Reimbursement payments will be made to you promptly following submission of receipts for services, provided that receipts are submitted within

 90 days. No reimbursement payment will be made later than December 31, 2013. You understand that this
reimbursement may be a taxable benefit. 
 Unemployment 

You should be aware that if you sign the final agreement within 21 days after your Retirement Date, we will report your
severance pay to the appropriate unemployment agency as required by applicable law. 
 * * * * * 

I extend to you our best wishes for success in your future endeavours. Yours truly, 

By: 
 John D. Williams 
 President and Chief Executive
Officer 
 EnclosuresEX-10.47

 Exhibit 10.47 

 
 

 
  
  
 DC SERP FOR DESIGNATED 

EXECUTIVES OF DOMTAR PERSONAL CARE 

 
 As in effect on March 31, 2014 

			
	

	 	  
  

 

  
 Table of Contents 
  

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

  

			
	

	 	  
  

 

  

 
  

	1.	Introduction 

  

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

  

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

  

	2.	Definitions 

  

	2.1	Annual Contribution Credit: for a given calendar year, the excess, if any, of the percentage, as set in Appendix “A”, of the Member’s
Earnings, over the Company’s contribution to the Base U.S. Savings Plan in respect of the period of the calendar year as a Member of the Personal Care DC SERP. For the purposes of this paragraph, a Member is assumed to contribute to the Base
U.S. Savings Plan such amount that would result in the maximum Company contribution 

 In any given calendar year,
the aggregate of the Annual Contribution Credit and the Annual Contributions Credit received under the DC SERP for Designated Executives of Domtar combined with the aggregate contributions and pension credits received under the base plans of the DC
SERP for Designated Executives of Domtar, if any, and the Base U.S. Savings Plan shall not exceed the percentage, as set in the Appendix “A”, of the Member’s Earnings 

Annual Contribution Credits are credited by the Company to the Personal Care DC SERP Notional Account Balance at the end of the calendar
year for which they have been determined, or upon Separation from Service if earlier. 
  

	2.2	Annual Credited Notional Return: for a given calendar year, notional return calculated at the rate of return obtained by the Balanced Index Fund under the
Base U.S. Savings Plan for the twelve-month period ending on November 30th of the calendar year. 

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

  

	
	  
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DC SERP for Designated Executives of Domtar Personal Care
 As in effect on March 31, 2014

			
	

	 	  
  

 

  

 
 Once a year, a Member may elect in writing,
prior to November 30 of that calendar year, to have the Annual Credited Notional Return for the following calendar year determined on the basis of the notional return calculated at the rate of return obtained by the Total Bond Market Index Fund
under the Base U.S. Savings Plan. 
 Such election will be applicable to all future years after it is made, until a new election
to revert to the funds described above is communicated in writing to the Company. Such election shall be made prior to November 30 of a calendar year to take effect in the following calendar year. 

 

	2.3	Base U.S. Savings Plan: the Domtar U.S. Salaried 401(k) Plan and the Domtar Personal Care 401(k) Plan, as may be amended from time to time, for the period
of service as a Member of the Personal Care DC SERP. 

  

	2.4	Board: the Board of Directors of Domtar Corporation. 

  

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

  

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

 

	2.7	Earnings: Compensation as defined under the Base U.S. Savings Plan in respect of periods in which the executive is a Member of the Personal Care DC SERP.

  

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

  

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

 

	2.10	Member: Any executives of Domtar Personal Care division as recommended by the Management Committee or its designee as specified in the Appendix.

  

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

  

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

  

	
	  
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DC SERP for Designated Executives of Domtar Personal Care
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	2.13	Section 409A: section 409A of the Code and the rules, regulations and guidance promulgated thereunder. 

 

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

  

	2.15	Transferred DC SERP Notional Account Balance: If applicable, the Member’s DC SERP Notional Account Balance transferred from the DC SERP
for Designated executives of Domtar as of the end of the year the Member becomes a Member of the Personal Care DC SERP and cease to participate in the DC SERP for Designated executives of Domtar or upon payment of benefits if earlier.

  

	2.16	U.S. Taxpayer: a Member who 

  

	 	a)	Is a U.S. citizen; or 

  

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

 

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

 

	 	d)	Is a “dual status” individual and either 

  

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

 

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

 

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

  

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

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

  

	
	  
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DC SERP for Designated Executives of Domtar Personal Care
 As in effect on March 31, 2014

			
	

	 	  
  

 

  

 

	2.17	Year of Service: a Member shall be credited with service in an amount equal to the aggregate of the following (applied without duplication):

  

	 	a)	years of service as a Member of the DC SERP for Designated executives of Domtar Personal Care; and 

 

	 	b)	years of service as a Member DC SERP for Designated Executives of Domtar 

  

	2.18	For the purposes of the present document, the terms and expressions listed below shall have the meaning given to them in the Base U.S. Savings Plan:

  

	 	•	 	 Balanced Index Fund 

	 	•	 	 Total Bond Market Index Fund 

  

	3.	Retirement 

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

	4.	Non-Vested Termination of Employment 

 A
Member who Separates from Service, for a reason other than death, before completing two (2) Years of Service as a Member is not entitled to any benefit under the Personal Care DC SERP. 

 

	5.	Vested Termination 

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

  

	
	  
 4

DB SERP for Designated Executor of Domnar Personal Care
 As in effect on March 31, 2014

			
	

	 	  
  

 

  

 

	6.	Death 

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

	7.	Disability 

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

	8.	Administration 

 The HR Committee is
responsible for the administration of the Personal Care DC SERP, the supervision of its application and the interpretation of its provisions. 
  

	9.	Funding 

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

	10.	Non-Alienation of Benefits 

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

 

	11.	Conflicts or Inconsistencies 

 In the
event of any conflict or inconsistency between the provisions of the Personal Care DC SERP and the provisions of the Base U.S. Savings Plans, the provisions of the Personal Care DC SERP shall prevail. 

  

	
	  
 5

DC SERP for Designated Executives of Domtar Personal Care
 As in effect on March 31, 2014

			
	

	 	  
  

 

  

 

	12.	Amendments 

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

	13.	General Provisions 

  

	13.1	Currency 

Notwithstanding anything to the contrary herein, all payments under the Personal Care DC SERP shall be in U.S. currency . Any Annual
Contribution Credit and any future Annual Credited Notional Returns on such Annual Contribution Credit shall be in U.S. currency 
  

	13.2	Withholding and reporting 

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

	13.3	Interpretation 

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

	13.4	Entire Agreement 

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

  

	
	  
 6

DC SERP for Designated Executives of Domtar Personal Care
 As in effect on March 31, 2014

			
	

	 	  
  

 

  

 

	13.5	Severability 

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

	13.6	Enurement 

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

 

	13.7	Section 409A 

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

  

	
	  
 7

DC SERP for Designated Executives of Domtar Personal Care
 As in effect on March 31, 2014

			
	

	 	  
  

 

  

APPENDIX 
 The percentage
set out for the purpose of Section 2.1 for designated executives is as follow 
  

					
	 Name
	  	 Percentage
	  	 Effective Date

	 Mike Fagan
	  	11.0%	  	January 1st 2015
	 Brad Goodwin
	  	10.0%	  	March 31, 2014
	 Michele Salo
	  	10.5%	  	December 7, 2014
	 Richard Vannan
	  	10.5%	  	December 7, 2014

  

	
	  
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DC SERP for Designated Executives of Domtar Personal Care
 As in effect on March 31, 2014

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