Document:

EX-10.61

EXHIBIT
10.61

     MEMORANDUM OF AGREEMENT made in Montreal this 29th day of July, 2008.

	 	 	 
	BETWEEN:
	 	 
	 

	 	ABITIBIBOWATER INC.,

herein represented by the Honorable
Togo D. West, Jr., its Chairman of
Human Resources & Compensation
Committee, duly authorized as he so
declares;
	 

	 

	 	(hereinafter referred to as the “Corporation”)
	 
	 	 
	 

	 	- and -
	 
	 	 
	 

	 	JOHN W. WEAVER,

Executive, residing in the City of
Amelia Island, Florida;
	 
	 	 
	 

	 	(hereinafter referred to as the “Executive”)

     WHEREAS the Executive is the Executive Chairman and a Director of the Corporation; and

     WHEREAS there has been a Change of Control (as defined in the Current Employment Agreement
(hereinafter described)) of Abitibi-Consolidated Inc. resulting from the merger of
Abitibi-Consolidated Inc. and Bowater Inc.; and

     WHEREAS as a consequence of the aforesaid Change of Control the responsibilities of the
Executive have been modified; and

     WHEREAS agreement has been reached between the Executive and the Corporation to the effect
that the Executive shall retire as an employee of the Corporation as at June 30, 2008 and that the
Executive shall provide certain consulting services to the Corporation; and

 

 

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     WHEREAS there are currently outstanding between the Executive and the Corporation (which for
all purposes of this Agreement includes all predecessors of the Corporation, including
Abitibi-Consolidated Inc.) numerous agreements and plans relating to the Executive’s employment,
compensation and other benefits to which he is entitled, as well as other rights and obligations of
the Executive in respect of the Corporation, (collectively the “Employment Agreements”), which
Employment Agreements include the documents entitled or described as follows:

	 	•	 	Severance Compensation Agreement dated February 18, 2006 between
Abitibi-Consolidated Inc. and John W. Weaver (the “Current Employment
Agreement”);
	 
	 	•	 	Severance Compensation Agreement dated September 26, 1995 between
Abitibi-Price Inc. and the Executive (the “Previous Employment Agreement”);
	 
	 	•	 	Letter Agreement between Abitibi-Consolidated Inc. and the Executive dated
September 25, 2000 providing for certain severance entitlements in the event of
a Change of Control (the “Severance Agreement”)
	 
	 	•	 	AbitibiBowater Inc. 2008 Equity Incentive Plan, adopted by Resolution dated
25, 2008 (the “Equity Plan”);
	 
	 	•	 	Abitibi-Consolidated Inc. Executive Deferred Share Unit Plan (the “DSUP”);
	 
	 	•	 	Abitibi-Consolidated Inc. Restricted Share Unit Plan, including Resolution
of a Special Meeting of the Board of Directors of Abitibi-Consolidated Inc.
dated January 26, 2007 (the “RSUP”);
	 
	 	•	 	Abitibi-Consolidated Inc. Stock Option Plan dated (the “Stock Plan”);
	 
	 	•	 	Abitibi-Consolidated U.S. Supplemental Executive Retirement Plan (SERP) (the
“SERP”); and
	 
	 	•	 	Annual Incentive Plan of AbitibiBowater Inc. adopted by the Board of
Directors on March 25, 2008 (the “Annual Incentive Plan”).

     WHEREAS agreement has been reached between the Corporation and the Executive regarding the
terms of the Executive’s termination of employment with the Corporation and related matters,
including the agreement of the Executive to provide certain consulting services to the Corporation
following his termination of employment, the whole in accordance with the terms hereinafter set
forth.

     NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING, THE PARTIES HERETO COVENANT AND AGREE AS
FOLLOWS:

1.      Preamble: The preamble to this Agreement shall constitute an integral part hereof and as
such shall be binding upon the Parties hereto.

 

 

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2.      Termination of Employment: The Corporation and the Executive mutually agree that the
Executive’s employment with the Corporation shall terminate effective June 30, 2008 (the
“Termination Date”). The Executive agrees to execute all such resignations and other documents as
may be required in order to give full force and effect to the foregoing, including without
limitation resignations as at the Termination Date as an Officer of the Corporation, its
subsidiaries and affiliates and as a Director of such subsidiaries and affiliates.

3.      Consulting Agreement: The Corporation has requested the Executive, and the Executive has
agreed, to provide consulting services to the Corporation for a term commencing July 1, 2008 and
terminating March 31, 2009, the whole in accordance with the terms of a consulting agreement (the
“Consulting Agreement”) being executed concurrently with the execution hereof.

4.      Ongoing Relationship: The Executive agrees to remain a Director of the Corporation until
March 31, 2009 and to assume the position of Non-Executive Chairman of the Corporation from the
Termination Date until March 31, 2009, at which date the resignation of the Executive as a Director
and Non-Executive Chairman of the Corporation shall take effect. The Executive acknowledges that no
additional compensation or other amounts shall be paid to him in consideration for his acting as a
Director as aforesaid other than what is payable to him pursuant to this Agreement and the
Consulting Agreement. In consideration for the Executive acting as Non-Executive Chairman as
aforesaid, the Corporation shall pay to the Executive during such period as he acts in such
capacity a fee of CA$ 10,000 per month from the Termination Date until March 31, 2009.

5.      Compensation: The Corporation agrees to pay to the Executive the following:

	 	(a)	 	In consideration for the termination of the Executive’s employment with the
Corporation as a consequence of the Change of Control, the Corporation shall pay to the
Executive US$ 460,000 as soon as practicable following the execution of this Agreement
plus US$ 607,923.61 on January 5, 2009;
	 
	 	(b)	 	As regards all amounts to which the Executive may at any time be entitled, and
all present and future rights of the Executive, under the Corporation’s SERP (that is,
the Abitibi Consolidated U.S. SERP) (the “Plan”), the Corporation shall pay to the
Executive on January 5, 2009 a lump sum amount of US$ 13,983,171.39, being the agreed
aggregate present value and full entitlement of the Executive under such Plan;
	 
	 	(c)	 	As regards the amount, if any, to which the Executive is entitled under the
Corporation’s Annual Incentive Plan for the 2008 calendar year (with the exception of
the Synergy Attainment Bonus to which the Executive is entitled pursuant to Section 5
of such Annual Incentive Plan and which is dealt with in sub-paragraph (d) below), the
Corporation shall pay to the Executive in one lump sum a prorated amount equal to eight
twelfths (8/12) of such annual entitlement, which amount shall be paid following the
calculation thereof in the ordinary

 

 

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	 	 	 	course at the same time as same is payable to other eligible employees of the
Corporation;
	 
	 	(d)	 	As regards the amount, if any, to which the Executive is entitled under Section
5 (Synergy Attainment Bonus) of the Corporation’s Annual Incentive Plan for the 2008
calendar year, the Corporation shall pay to the Executive in one lump sum an amount
equal to fourteen twelfths (14/12) of such annual entitlement, which amount shall be
paid following the calculation thereof in the ordinary course at the same time as same
is payable to other eligible employees of the Corporation; and
	 
	 	(e)	 	The Corporation shall reimburse to the Executive all reasonable expenses
incurred by the Executive in transporting his personal household effects from Montreal
to a location of his choosing in North America.

	 	 	All of the abovementioned amounts shall be subject to such withholdings and other deductions
at source as are required in order to fully comply with all applicable law and regulations
thereunder.

6.      Group Benefits: The Executive shall continue to receive until the earlier of (i) three
(3) years following the Termination Date or (ii) receipt of equivalent benefits from a new
employer, all group benefits including health, dental, life other than disability insurance
benefits on the scale provided by the Corporation to the Executive at the Termination Date. After
such three (3) year period, the Executive will be eligible to such retiree benefits as are in place
at such time.

7.      Stock Plans: The Parties acknowledge that the Executive may have certain rights under
the Corporation’s DSUP, RSUP, Equity Plan and Stock Plan, which rights shall be exercisable by the
Executive in accordance with the provisions thereof after taking into account the retirement of the
Executive from his employment as at the Termination Date.

8.      Repayment of Loans: The Parties acknowledges that the Executive is indebted to the
Corporation in the amount of CA$ 906,750 pursuant to the letter agreement between
Abitibi-Consolidated Inc. and the Executive dated September 10, 1999, which amount shall be repaid
by the Executive pursuant to the Rules Respecting Employee Stock Purchase Loans, namely on June 30,
2009, being one year following the Executive’s retirement from the Corporation.

9.      Confidential Information: 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 of law or legal process.

10.     Non Competition: The Executive agrees that he will not for a period of two (2) years
commencing July 1, 2008, without written approval of the Board of Directors, undertake or

 

 

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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 throughout the world that is in competition with that carried on by the
Corporation at the Termination Date. In consideration of the Executive’s foregoing covenant not to
compete, the Executive shall be entitled to receive, and the Corporation shall pay to the Executive
a cash amount equal to US$ 2,948,905, less statutory deductions, payable January 5, 2009. In the
event of any breach by the Executive of his foregoing covenant to not compete, the Executive shall
be liable for all damages resulting therefrom including the reimbursement of the foregoing cash
payment.

11.      The Executive acknowledges and agrees that any default by him of his obligations under this
Agreement, including sections 9 and 10 hereof, shall release the Corporation from any outstanding
obligations hereunder and under the Consulting Agreement, without prejudice to all other rights and
recourses available to the Corporation in the circumstances.

12.      Release: The amounts payable by the Corporation pursuant to the provisions hereof
represent payment in full of all amounts owing by, and the fulfillment of all other obligations of,
the Corporation, its subsidiaries and affiliates to the Executive, including in respect of (i) the
Executive’s employment with the Corporation and the termination thereof, (ii) all pension, benefit
and stock plans of the Executive and (iii) all rights of the Executive in respect of all of the
foregoing. Accordingly, subject to the payment of the amounts owing by the Corporation to the
Executive pursuant to the terms hereof and the Consulting Agreement and subject to such rights as
the Executive may have under the plans referred to in Section 7 hereof, the Executive hereby
irrevocably and unconditionally grants to the Corporation, its subsidiaries and affiliates, and
their respective directors, officers, employees and agents, a full, final and unconditional release
and discharge from and against any and all claims, liabilities, losses, obligations and amounts of
any and every nature whatsoever, past, present and future, arising out of the Executive’s
employment with the Corporation and the termination hereof, including without limitation severance
pay, damages, penalties, rights under pension, stock option, benefit and other plans, and any other
amounts owing or other obligations pursuant to the terms of the Employment Agreements and as a
consequence of the termination of the Executive’s employment with the Corporation.

     The foregoing release includes, but is not limited to, claims of wrongful discharge or those
arising under any purported contract, written or oral, express or implied, under all applicable
federal and state law in the United States, the Fair Labor Standards Act, the State Overtime or
Wage Payment Law and all other federal, state, and local laws prohibiting employment discrimination
on account of age, race, sex, creed, national origin, or mental or physical disability, including,
but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment
Act (ADEA), the Rehabilitation Act, the American With Disability Act (ADA) and the Family and
Medical Leave Act (FMLA), all as may be amended from time to time. The Executive acknowledges and
agrees that he is entering into this Agreement knowingly and voluntarily, has been advised to
consult with an attorney before

 

 

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signing this Agreement, understands he may take at least forty-five (45) days to consider this
Agreement before signing it, and has carefully read and fully understands all the provisions of
this Agreement and that he voluntarily enters into this Agreement by signing below.

13.      Priority of this Agreement: This Agreement supersedes and takes priority over the terms
and conditions of all other agreements between the Executive and the Corporation and its
Affiliates, including without limitation the Employment Agreements, all of which are terminated
except where herein expressly provided to the contrary.

14.      Entire Agreement: This Agreement constitutes the entire agreement between the Parties
hereto pertaining to the subject matter hereof. No amendment or waiver of this Agreement shall be
binding unless executed in writing by both Parties hereto.

15.      Choice of Law: This Agreement shall be governed by 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 Parties. La présente entente a été
rédigée en anglais à la demande des parties.

16.      Binding on Successors: This Agreement shall be binding upon and shall enure to the
benefit of the respective permitted successors and assigns of the Parties hereto. Subject to the
express provisions hereof, this Agreement shall enure to the benefit of and be enforceable by the
Executive’s successors or legal representatives but otherwise it is not assignable by the
Executive. If the Executive should die while any amounts are still required to be paid to the
Executive hereunder notwithstanding such death, all such amounts shall be paid in accordance with
the terms of this Agreement to the Executive’s estate unless otherwise provided herein.

17.      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:
	 
	 	 	 	John W. Weaver

 

 

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	 	 	 	8241 Residence Court

Amelia Island, Florida 32034
	 
	 	(b)	 	If to the Corporation:
	 
	 	 	 	AbitibiBowater Inc.

1155, Metcalfe Street, Suite 800

Montréal (Québec) H3B 5H2
	 
	 	 	 	Attention: James T. Wright

Telecopier: (514) 394 2394

or to such other address as either Party may communicate by written notice to the other.

18.      The Parties agree to execute upon request all such documents as may be required from time to
time in order to give full force and effect to this Agreement.

	 	 	 	 	 
	 

	 	ABITIBIBOWATER INC.
	 
	 	 	 	 
	/s/ John W. Weaver

	 	by
	 	/s/ Togo D. West, Jr.
	 

	 	 	 	 
	JOHN W. WEAVER

	 	 	 	The Honorable Togo D. West, Jr.

Chairman of Human Resources &

Compensation Committee
	 
	 	 	 	 
	 

	 	ABITIBIBOWATER INC.
	 
	 	 	 	 
	 

	 	by
	 	/s/ James T. Wright
	 

	 	 	 	 
	 

	 	 	 	James T. Wright

Senior Vice-President

Human ResourcesEX-10.63

EXHIBIT
10.63

Execution Copy

     AMENDMENT NO. 1 TO THE MEMORANDUM OF AGREEMENT (hereinafter referred to as this “Amendment”)
made in Montreal this 21st day of January, 2009.

	 	 	 
	BETWEEN:
	 	 
	 
	 	 
	 

	 	ABITIBIBOWATER INC.,

herein represented by Jacques P.
Vachon, its Senior Vice President,
Corporate Affairs and Chief Legal
Officer, duly authorized as he so
declares;
	 
	 	 
	 

	 	(hereinafter referred to as the “Corporation”)
	 
	 	 
	 

	 	-and-
	 
	 	 
	 

	 	JOHN W. WEAVER,

Executive, residing in the City
of Amelia Island, Florida;
	 
	 	 
	 

	 	(hereinafter referred to as the
“Executive”, and together with
the Corporation, the “Parties”)

     WHEREAS, the Corporation and the Executive entered into that certain Memorandum of Agreement,
dated as of July 29, 2008 (the “Agreement”); and

     WHEREAS, the Corporation and the Executive agree to amend the Agreement as set forth below.

     NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING, AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND ADEQUACY OF WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES, INTENDING
TO BE LEGALLY BOUND, COVENANT AND AGREE AS FOLLOWS:

     1. Preamble: The preamble to this Amendment shall constitute an integral part hereof
and as such shall be binding upon the Parties.

     2. Definitions: For purposes of this Amendment, a “business day” means any day of the
year, other than a Saturday, Sunday, or any day on which Canadian chartered banks are required or
authorized to close in Montreal, Quebec, Canada. All other capitalized expressions used in this
Amendment but not otherwise defined in this Amendment shall have the meanings set forth in the
Agreement.

 

 

     3. Amendments to Sections 5 (a) and (b) and Section 10: Sections 5(a) and (b) and
Section 10 of the Agreement are hereby amended to reflect the following terms relating to the
schedule of payment of all amounts due thereunder and certain other matters as specifically
provided below:

     “The Corporation agrees to pay to the Executive the following:

     (a) An aggregate amount equal to US$17,540,000 (the “Principal Amount”), such
Principal Amount to be paid by the Corporation as follows:

     (i) US$4,500,000 on January 23, 2009; provided, that a portion of such
amount, sufficient after withholding of all applicable taxes, will be used by the
Corporation to repay in full the Executive’s loan from the Corporation in the
amount of CA$906,750;

     (ii) US$3,000,000 on each of April 30, 2009 and August 15, 2009;

     (iii) US$2,000,000 on each of September 15, 2009, October 15, 2009 and
November 15, 2009; and

     (iv) The remaining balance of the Principal Amount, less the amounts paid by
the Corporation pursuant to the preceding clauses (a)(i) through (a)(iii) of
Section 3 of this Amendment, on December 15, 2009.

     The Corporation shall pay interest on the unpaid balance of the Principal Amount from January
5, 2009 until paid at the legal rate of interest plus the indemnity rate as provided in Article
1619 of the Civil Code of Quebec, in each case, determined under the laws of Quebec (as such rates
may change from time to time). Interest shall be paid on the unpaid Principal Amount together with
payment of each installment as specified in Section 3(a) of this Amendment commencing with the
installment due on April 30, 2009 as specified in Section 3(a)(ii) of this Amendment and shall be
calculated from and including the first day of each relevant period to but not including the date
of payment. (For the avoidance of doubt, interest shall be calculated (i) from and including
January 5, 2009 to but not including January 23, 2009 as to the entire Principal Amount; (ii) from
and including January 23, 2009 as to the Principal Amount less the payment of US$4,500,000 made on
that date to but not including April 30, 2009; and so on.)

     (b) If the Corporation fails to pay the Principal Amount due as set forth in
Section 3(a) of this Amendment (together with interest as provided in Section 3(b)
of this Amendment), the Executive shall have the right to demand acceleration of
the Corporation’s obligation to make payment of the entire unpaid Principal Amount
upon written notice to the Corporation, subject to the right of the Corporation to
cure the default during the period of three (3) business days following receipt of
such

2

 

notice. If the Corporation defaults in the payment when due of the amounts
set forth in Section 3(a) of this Amendment at the times when they are due and
payable as well as during the aforesaid three (3) business day cure period, and if,
following such notice and cure period, the Executive commences a lawsuit for
collection of amounts he is owed hereunder, the Corporation shall reimburse the
Executive’s reasonable fees and expenses of his counsel resulting therefrom.
Interest as provided in Section 3(b) of this Amendment hereof shall continue to
accrue during any period of time that the Corporation is in default of its
obligations to make payment as provided in Section 3(a) of this Amendment.

     (c) The Corporation shall not be obligated to provide any lien, encumbrance,
mortgage, pledge, letter of credit or other collateral security of any kind for its
obligation to make payments as set forth in Sections 3(a), 3(b) and 3(c) of this
Amendment. In the event of any lawsuit commenced by the Executive pursuant to
Section 3(c) of this Amendment, the Corporation shall waive and relinquish any
right to seek security for costs from the Executive as permitted under the Quebec
Code of Civil Procedure.

     (d) All amounts to be paid by the Corporation to the Executive pursuant to
this Agreement are payable for the account of the Executive at: Wachovia Bank,
Fernandina Beach, FL, to an account number to be designated by the Executive.”

     4. Amendment to Section 8: Section 8 of the Agreement shall be amended and restated
in its entirety to read as follows:

     “Repayment of Loans: The Parties acknowledge that the Executive is indebted to the
Corporation in the amount of CA$ 906,750 pursuant to the letter agreement between
Abitibi-Consolidated Inc. and the Executive dated September 10,1999, which amount shall be repaid
pursuant to Section 3(a)(i) of this Amendment.”

     5. Currency of Payment: All amounts to be paid by the Corporation under this
Amendment shall be paid in dollars in the lawful currency of the United States of America.
References contained in this Amendment to US$ shall mean such United States dollars and references
to CA$ shall mean dollars in the lawful currency of Canada.

     6. No Other Amendments. Except as otherwise expressly amended or modified hereby, all
of the terms and conditions of the Agreement shall continue in full force and effect. Each
reference to “hereof”, “hereunder”, “herein” and “hereby” and each similar reference contained in
the Agreement shall refer to the Agreement as amended hereby.

     7. Priority of this Amendment and the Agreement: This Amendment and the Agreement,
together, supersede and take priority over the terms and conditions of

3

 

all other agreements between the Executive and the Corporation and its Affiliates, including
without limitation the Employment Agreements.

     8. Entire Agreement: This Amendment and the Agreement, together, constitute the entire
agreement between the Parties pertaining to the subject matter hereof.

     9. Choice of Law: This Amendment shall be governed by and interpreted in accordance
with the laws of the Province of Quebec and the courts of the Province of Quebec shall be the sole
and proper forum with respect to any suits brought with respect to this Amendment. The present
Amendment has been drafted in English at the request of the Parties. La presente entente a ete
redigee en anglais a la demande des parties.

4

 

     IN WITNESS WHEREOF, the Parties have caused this Amendment to be duly executed as of the date
first written above.

	 	 	 	 	 
	 

	 	ABITIBIBOWATER INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Jacques P. Vachon
	 

	 	 	 	 
	 

	 	 	 	Name: Jacques P. Vachon

Title: Senior Vice President, Corporate Affairs

and Chief Legal Officer
	 
	 	 	 	 
	 

	 	 	 	/s/ John W. Weaver
	 

	 	 	 	 
	 

	 	 	 	John W. Weaver

[Signature Page to Amendment]

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