Document:

exv10w21

EXHIBIT 10.21

[LETTERHEAD OF ABITIBIBOWATER INC.]

October 26, 2010

Mr. Alain Grandmont

1100 Montée St-Elmire

Saint-Sauveur (Québec)

JOR 1R1

Re: Terms of Employment Post Emergence

Dear Alain,

This letter is intended to document for you important information concerning changes in your
compensation, benefits and other conditions of service upon the company’s anticipated emergence
from bankruptcy in the coming weeks. As you are aware from the emergence plan, these changes become
effective on the date of emergence or as otherwise described in the details that follow. Please
note that this is a summary of conditions, the whole intended to be in accordance with and pursuant
to the filed restructuring plans.

As of emergence, you will continue to occupy your position of Executive Vice President, Human
Resources and Supply Chain, in the new AbitibiBowater Inc.

The terms and conditions of your employment post emergence are detailed below.

	 	 	 

	Location:

	 	Montreal, Quebec, Canada
	 
	 	 
	Effective Date:

	 	These terms and conditions are contingent on approval of
the restructuring plans and will be effective on the date
of emergence.
	 
	 	 
	Compensation:

	 	Your annual base salary will be US$361,250.

You will be eligible to participate in a short-term incentive plan effective for quarters 3 and 4
of 2010, with target award payout of 50% of your base salary. For the 2011 short-term incentive
plan, you will be eligible for a target level of 100% of base salary.

The independent directors of the current Board of Directors recommend to the Human Resources
Compensation/Nominating and Governance Committee of the new Board of Directors (the “Committee”) to
award you a restructuring recognition award in the amount of US$361,250, to be paid as soon as
practical following emergence.

Additionally, we have put in place an equity award program, to be effective on the date of
emergence. The independent directors of the current Board of Directors recommend to

 

 

the Committee to award you an initial grant under this program equivalent to 125% of your base
salary as soon as practical following emergence.

You will also continue to be eligible for a perquisite allowance of US$12,000 per year as well as a
complete annual medical examination and parking.

Other benefits:

You will maintain participation in various benefit plans such as group insurance and vacation.

As regards pension benefits, you will start participating in the Company’s defined contributions
(DC) pension plan and new DC SERP at the following levels of contribution:

	 	 	 	 	 
	 	 	Employee	 	Company
	Contributions	 	Contributions	 	Contributions
	Basic

	 	5% of eligible earnings*
	 	10.5% of eligible earnings
	 
	 	 	 	 
	Additional

	 	None
	 	10% of eligible earnings

 

			
	*	 	Up to the Compensation Limit (U.S.A.)

Provided you waive all your SERP claims in the creditor protection proceedings, your SERP benefits
accrued up to the date of emergence will be reinstated and fully recognized in new SERPs to be put
in place by the Company, provided that all defined benefits (DB) available under such new SERPs
will be frozen as of the date of emergence. Pursuant to the DC SERP, lump sums continue to be paid
as per pre-filing practice. As regards your Canadian DB SERP, the Company intends to pay you such
benefits as a lump sum once you retire, unless these benefits have been secured in part or in
total, in which case they would be paid in the form of monthly payments.

You will receive shortly a separate letter providing you more details with respect to the enrolment
in the DC pension plan.

Severance

You will be covered by the Company’s severance policy for the Chief Executive Officer and his
direct reports. Pursuant to this policy, you will be entitled to six weeks of eligible pay per year
of continuous service, with a minimum of 52 weeks and up to a maximum of 104 weeks. For a period of
12 months following a “change in control”, the severance pay is available in the event of
involuntary termination for a “good reason”. The emergence of the Company from creditor protection
and all related transactions will not constitute a change in control for the purpose of this
policy.

 

 

Prior Agreements

Pursuant to the restructuring plans, all your prior management agreements with the Company (e.g.
employment, severance pay and change in control agreements) are being rejected as of the date of
emergence.

***

Enclosed for your reference are the corresponding Fact Sheets for the various compensation and
benefits programs listed above. The complete 2010 Equity Plan is also available upon request, while
the complete plan text of other programs will be available at a later date.

We are excited about the outlook of the newly emerged company and look forward to your continued
leadership.

	 	 	 

	/s/ Richard B. Evans

	 	/s/ David J. Paterson
	Richard B. Evans

	 	David J. Paterson
	Chairman

	 	President and Chief Executive Officer

I have read the present letter and hereby accepted these terms and conditions.

	 	 	 	 	 

	/s/ Alain Grandmont
 

Alain Grandmont

	 	November 8, 2010
 

Date
	 	 

Enclosuresexv10w23

EXHIBIT 10.23

[LETTERHEAD OF ABITIBIBOWATER INC.]

October 26, 2010

Mr. Yves Laflamme

1340, de Rouen

Boucherville (Québec)

J4B 8C3

Re: Terms of Employment Post Emergence

Dear Yves,

This letter is intended to document for you important information concerning changes in your
compensation, benefits and other conditions of service upon the company’s anticipated emergence
from bankruptcy in the coming weeks. As you are aware from the emergence plan, these changes become
effective on the date of emergence or as otherwise described in the details that follow. Please
note that this is a summary of conditions, the whole intended to be in accordance with and pursuant
to the filed restructuring plans.

As of emergence, you will continue to occupy your position of Senior Vice President, Wood Products,
in the new AbitibiBowater Inc.

The terms and conditions of your employment post emergence are detailed below.

	 	 	 

	Location:

	 	Montreal, Quebec, Canada
	 
	 	 
	Effective Date:

	 	These terms and conditions are contingent on approval of
the restructuring plans and will be effective on the date
of emergence.
	 
	 	 
	Compensation:

	 	Your annual base salary will be US$276,250.

You will be eligible to participate in a short-term incentive plan effective for quarters 3 and 4
of 2010, with target award payout of 50% of your base salary. For the 2011 short-term incentive
plan, you will be eligible for a target level of 100% of base salary.

The independent directors of the current Board of Directors recommend to the Human Resources
Compensation/Nominating and Governance Committee of the new Board of Directors (the “Committee”) to
award you a restructuring recognition award in the amount of US$276,250, to be paid as soon as
practical following emergence.

Additionally, we have put in place an equity award program, to be effective on the date of
emergence. The independent directors of the current Board of Directors recommend to

 

 

the Committee to award you an initial grant under this program equivalent to 125% of your base
salary as soon as practical following emergence.

You will also continue to be eligible for a perquisite allowance of US$12,000 per year as well as a
complete annual medical examination and parking.

Other benefits:

You will maintain participation in various benefit plans such as group insurance and vacation.

As regards pension benefits, you will start participating in the Company’s defined contributions
(DC) pension plan and new DC SERP at the following levels of contribution:

	 	 	 	 	 
	 	 	Employee	 	Company
	Contributions	 	Contributions	 	Contributions
	Basic

	 	5% of eligible earnings*
	 	10.5% of eligible earnings
	 
	 	 	 	 
	Additional

	 	None
	 	10% of eligible earnings

 

			
	*	 	Up to the Compensation Limit (U.S.A.)

Provided you waive all your SERP claims in the creditor protection proceedings, your SERP benefits
accrued up to the date of emergence will be reinstated and fully recognized in new SERPs to be put
in place by the Company, provided that all defined benefits (DB) available under such new SERPs
will be frozen as of the date of emergence. Pursuant to the DC SERP, lump sums continue to be paid
as per pre-filing practice. As regards your Canadian DB SERP, the Company intends to pay you such
benefits as a lump sum once you retire, unless these benefits have been secured in part or in
total, in which case they would be paid in the form of monthly payments.

You will receive shortly a separate letter providing you more details with respect to the enrolment
in the DC pension plan.

Severance

You will be covered by the Company’s severance policy for the Chief Executive Officer and his
direct reports. Pursuant to this policy, you will be entitled to six weeks of eligible pay per year
of continuous service, with a minimum of 52 weeks and up to a maximum of 104 weeks. For a period of
12 months following a “change in control”, the severance pay is available in the event of
involuntary termination for a “good reason”. The emergence of

 

 

the Company from creditor protection and all related transactions will not constitute a change in
control for the purpose of this policy.

Prior Agreements

Pursuant to the restructuring plans, all your prior management agreements with the Company (e.g.
employment, severance pay and change in control agreements) are being rejected as of the date of
emergence.

***

Enclosed for your reference are the corresponding Fact Sheets for the various compensation and
benefits programs listed above. The complete 2010 Equity Plan is also available upon request, while
the complete plan text of other programs will be available at a later date.

We are excited about the outlook of the newly emerged company and look forward to your continued
leadership,

	 	 	 

	/s/ Richard B. Evans

	 	/s/ David J. Paterson
	Richard B. Evans

	 	David J. Paterson
	Chairman

	 	President and Chief Executive Officer

I have read the present letter and hereby accepted these terms and conditions.

	 	 	 	 	 

	/s/ Yves Laflamme 

Yves Laflamme

	 	10/11/2010 

Date

Enclosures

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