Document:

exv10w12

EXHIBIT 10.12

ABITIBIBOWATER INC. 2010 EQUITY INCENTIVE PLAN

DIRECTOR RESTRICTED STOCK UNIT AGREEMENT

     THIS RESTRICTED STOCK UNIT AGREEMENT, dated as of the third trading day after the date the
Company’s 2010 Form 10-K is filed with the Securities and Exchange Commission (the “Date of
Grant”) is made by and between AbitibiBowater Inc., a Delaware corporation (the
“Company”), and _______________ (“Participant”).

     WHEREAS, the Company has adopted the AbitibiBowater Inc. 2010 Equity Incentive Plan (the
“Plan”) pursuant to which restricted stock units (“RSUs”) may be granted in respect
of shares of the Company’s common stock, par value $0.001 per share (“Stock”); and

     WHEREAS, the Participant serves as a member of the Board of Directors of the Company
(“Director”) and the Board of Directors has determined that, subject to the terms set forth
herein, a portion of each Director’s compensation should be made in the form of a RSU award to more
closely align their interests with those of the Company and its stockholders.

     NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties
contained in this Agreement, and for other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree
as follows:

     1. Grant of Restricted Stock Unit.

     (a) Grant.
The Company hereby grants to Participant _______________ RSUs, on the terms and conditions
set forth in this Agreement and as otherwise provided in the Plan (the “Initial Grant”).
Each RSU represents the right to receive payment in respect of one share of Stock as of the
Settlement Date (defined in Section 2(b)) to the extent the Participant is vested in such RSU as of
the Settlement Date, subject to the terms of this Agreement and the Plan.

     (b) Incorporation by Reference, Etc. The provisions of the Plan are hereby
incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement
shall be construed in accordance with the provisions of the Plan and any interpretations,
amendments, rules and regulations promulgated by the Human Resources and Compensation/Nominating
and Governance Committee (the “Committee”) from time to time pursuant to the Plan. Any
capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in
the Plan. The Committee shall have final authority to interpret and construe the Plan and this
Agreement and to make any and all determinations under them, and its decision shall be binding and
conclusive upon the Participant and his legal representative in respect of any questions arising
under the Plan or this Agreement.

     (c) Acceptance of Agreement. Unless the Participant notifies the Director, Corporate
Compensation in writing within 14 days after the Date of Grant that the Participant does not wish
to accept this Agreement, the Participant will be deemed to have accepted this Agreement and will
be bound by the terms of the Agreement and the Plan. Any such notice may be given to the Director,
Corporate Compensation at the Company’s principal executive office.

 

 

     2. Terms and Conditions.

     (a) Vesting. Subject to the Participant’s continued service as a Director, twenty
five percent (25%) of the RSUs (rounded to the nearest whole RSU) shall vest on the last day of
each calendar quarter of the year of the Date of Grant (each such date, a “Vesting Date”).

     (b) Settlement. The obligation to make payments and distributions with respect to
RSUs (the “settlement”) shall be satisfied through the issuance of one share of Stock for
each vested RSU, and the settlement of the RSUs may be subject to such conditions, restrictions and
contingencies as the Committee shall determine. One-third of the RSUs shall be settled on March 31
of each of the first three calendar years following the year of the Date of Grant; provided,
however, all vested RSUs shall be settled as soon as practicable after the earliest of the
Participant’s (i) termination of service as a Director, (ii) death or (iii) Disability, but in no
event later than March 15 of the year following the year of such termination of service, death or
Disability, as applicable. For purposes of this Agreement, each date on which RSUs are settled
pursuant to the preceding sentence shall be a “Settlement Date.” For purposes of this
Agreement and to the extent applicable to the Participant, the term “termination of service” shall
be interpreted to comply with Section 409A of the Internal Revenue Code (“Section 409A”).
To the extent payments are made during the periods permitted under Section 409A (including any
applicable periods before or after the specified payment dates set forth in this Section 2(b)), the
Company shall be deemed to have satisfied its obligations under the Plan and shall be deemed not to
be in breach of its payment obligations hereunder.

     (c) Dividend Equivalents and Voting Rights. The Participant will from time to time be
credited with additional RSUs (including a fractional RSU), the number of which will be determined
by dividing:

          (i) The product obtained by multiplying the amount of each dividend (including extraordinary
dividend if so determined by the Company) declared and paid by the Company on the Stock on a per
share basis on or after the Date of Grant and before the date on which all RSUs are settled by the
number of vested but unsettled and unvested RSUs recorded in Participant’s account on the record
date for payment of any such dividend, by

          (ii) The Fair Market Value of one (1) share of Stock on the dividend payment date for such
dividend.

     Subject to the Participant’s continued service as a Director, the additional RSUs shall vest
and be settled at the same time and on the same proportion as the Initial Grant. No additional
RSUs shall be accrued for the benefit of Participant with respect to record dates occurring prior
to, or with respect to record dates occurring on or after the date, if any, on which Participant
has forfeited the RSUs.

     3. Termination of Service with Company. Notwithstanding any provision of Section 2 to
the contrary, the following vesting and forfeiture provisions shall apply to the Participant’s
vested but unsettled and unvested RSUs.

     (a) Retirement and Involuntary Termination. If the Participant’s service as a
Director terminates as a result of “Retirement” or a failure to be re-elected as a Director (other
than due to

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death or Disability), then the Participant shall become vested in a prorated number of RSUs.
For purposes of the preceding, the prorated portion of the RSUs that is vested as of the
Participant’s date of termination, including the portion of the RSUs then already vested, shall be
the total number of granted and credited RSUs multiplied by a fraction, the numerator of which
shall be the number of full months elapsed from January 1 of the calendar year of the Date of Grant
through the date of the Participant’s termination of service as a Director and the denominator of
which shall be 12. The term “Retirement” shall mean mandatory retirement at age 72 (or such other
age as required by Company’s By-Laws and/or Board of Directors Corporate Governance Principles).

     (b) Death. If the Participant dies during his period of service as a Director, then,
in addition to the RSUs vested as of the date of death under Section 2(a), the RSUs scheduled to
vest on the next scheduled Vesting Date shall also vest on the date of death.

     (c) Disability. If the Participant becomes Disabled, then, in addition to the RSUs
then vested under Section 2(a), the RSUs scheduled to vest on the next scheduled Vesting Date shall
also vest upon the Participant’s Disability.

     (d) Termination by the Company for Cause. If the Participant’s service as a Director
terminates for Cause, then all outstanding RSUs, whether vested but unsettled or unvested, shall
immediately terminate.

     (e) Other Termination. If the Participant’s service as a Director terminates other
than as described in the foregoing provisions of this Section 3, including resignation from the
Board of Directors before Retirement, then the Participant shall remain vested in all previously
vested RSUs, whether settled or unsettled, but all unvested RSUs shall immediately terminate.

     Notwithstanding anything contained to the contrary in this Section 3, in no event shall any
RSUs be settled prior to the applicable Vesting Date except if otherwise determined by the Board of
Directors and if permitted under Code Section 409A (to the extent applicable to the Participant).

     4. Compliance with Legal Requirements. The granting and settlement of the RSUs, and
any other obligations of the Company under this Agreement, shall be subject to all applicable
federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by
any regulatory or governmental agency as may be required.

     (a) Transferability. Unless otherwise provided by the Committee in writing, the RSUs
shall not be transferable by Participant other than by will or the laws of descent and
distribution.

     (b) No Rights as Stockholder. The Participant shall not be deemed for any purpose to
be the owner of any shares of Stock subject to RSUs and shall have no voting rights with respect to
the RSUs.

     (c) Tax Withholding. All distributions under the Plan are subject to withholding of
all applicable federal, state, provincial, local and foreign taxes, which obligations shall be

3

 

satisfied through (i) the issuance by the Company of net shares of Stock, or (ii) the sale by
the Company of the number of shares of Stock necessary satisfy such obligations.

     5. Miscellaneous.

     (a) Waiver. Any right of the Company contained in this Agreement may be waived in
writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver
of any other right, or as a waiver of the same right with respect to any subsequent occasion for
its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this
Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation
of the same breach.

     (b) Notices. Any written notices provided for in this Agreement or the Plan shall be
in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or
overnight courier, or by postage paid first class mail. Notices sent by mail shall be deemed
received three business days after mailing but in no event later than the date of actual receipt.
Notices shall be directed, if to the Participant, at the Participant’s address indicated by the
Company’s records, or if to the Company, to the attention of the Director, Corporate Compensation
at the Company’s principal executive office.

     (c) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

     (d) No Rights to Continued Service. Nothing contained in this Agreement shall be
construed as giving the Participant any right to be retained in any position as a consultant or
director of the Company or its Affiliates or shall interfere with or restrict in any way the right
of the Company or its Affiliates, which is hereby expressly reserved, to remove, terminate or
discharge the Participant at any time for any reason whatsoever.

     (e) Beneficiary of Non-Québec Participant. The Participant, other than a Participant
residing in the Province of Québec, may file with the Committee a written designation of a
beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or
revoke such designation. Any notice should be made to the attention of the Director, Corporate
Compensation at the Company’s principal executive office. If no designated beneficiary survives
the Participant, the Participant’s estate shall be deemed to be Participant’s beneficiary.

     (f) Beneficiary of Québec Participant. The Participant residing in the Province of
Québec may only designate a beneficiary by will. Upon the death of the Participant residing in the
Province of Québec, the Company shall settle the RSUs pursuant to Section 2(b) of this Agreement to
the liquidator, administrator or executor of the estate of the Participant.

     (g) Successors. The terms of this Agreement shall be binding upon and inure to the
benefit of the Company and its successors and assigns, and of the Participant and the
beneficiaries, executors, administrators, heirs and successors of the Participant.

4

 

     (h) Entire Agreement. This Agreement and the Plan contain the entire agreement and
understanding of the parties hereto with respect to the subject matter contained herein and
supersede all prior communications, representations and negotiations in respect thereto. No
change, modification or waiver of any provision of this Agreement shall be valid unless the same be
in writing and signed by the parties hereto, except for any changes permitted without consent under
Section 9 of the Plan.

     (i) Governing Law. This Agreement shall be construed and interpreted in accordance
with the laws of the State of Delaware without regard to principles of conflicts of law thereof, or
principles of conflicts of laws of any other jurisdiction which could cause the application of the
laws of any jurisdiction other than the State of Delaware.

     (j) Headings. The headings of the Sections hereof are provided for convenience only
and are not to serve as a basis for interpretation or construction, and shall not constitute a
part, of this Agreement.

          IN WITNESS WHEREOF, the Company has executed this Agreement as of the day first written above.

	 	 	 	 	 	 	 

	 	 	ABITIBIBOWATER, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

5exv10w13

EXHIBIT 10.13

ABITIBIBOWATER

EXECUTIVE RESTRICTED STOCK UNIT PLAN

Effective as of April 1, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	1.

	 	Purpose
	 	 	1	 
	 	 	 	 	 	 	 
	2.

	 	Definitions
	 	 	1	 
	 	 	 	 	 	 	 
	3.

	 	Administration
	 	 	4	 
	 	 	 	 	 	 	 
	4.

	 	Election for RSU Award
	 	 	4	 
	 	 	 	 	 	 	 
	5.

	 	Restricted Stock Units
	 	 	6	 
	 	 	 	 	 	 	 
	6.

	 	Vesting
	 	 	7	 
	 	 	 	 	 	 	 
	7.

	 	Payment
	 	 	8	 
	 	 	 	 	 	 	 
	8.

	 	Designation of Beneficiary
	 	 	8	 
	 	 	 	 	 	 	 
	9.

	 	No Rights as Stockholder
	 	 	9	 
	 	 	 	 	 	 	 
	10.

	 	Transferability
	 	 	9	 
	 	 	 	 	 	 	 
	11.

	 	Notices and Communications
	 	 	9	 
	 	 	 	 	 	 	 
	12.

	 	Limitation of Rights of the Participant
	 	 	9	 
	 	 	 	 	 	 	 
	13.

	 	No Rights to Employment
	 	 	9	 
	 	 	 	 	 	 	 
	14.

	 	Payments To Incompetents
	 	 	9	 
	 	 	 	 	 	 	 
	15.

	 	Claims Procedures
	 	 	10	 
	 	 	 	 	 	 	 
	16.

	 	Construction
	 	 	10	 
	 	 	 	 	 	 	 
	17.

	 	Amendment or Termination
	 	 	11	 
	 	 	 	 	 	 	 
	18.

	 	Funding
	 	 	11	 
	 	 	 	 	 	 	 
	19.

	 	Governing Law
	 	 	11	 
	 	 	 	 	 	 	 
	20.

	 	Currency
	 	 	12	 
	 	 	 	 	 	 	 
	21.

	 	Headings
	 	 	12	 

 

 

AbitibiBowater Executive Restricted Stock Unit Plan

	1.	 	Purpose. This AbitibiBowater Executive Restricted Stock Unit Plan (the “Plan”)
provides eligible employees with an avenue to further align their interests with shareholders
of the Company by providing eligible employees the opportunity to convert a portion of their
annual cash incentive compensation (“Incentive Award”) into restricted stock units (“RSUs”).
This document sets forth the terms and conditions for the grant of restricted stock units
(“RSUs”) in lieu of an Incentive Award.
	 
	 	 	The Plan is intended to comply with Code Section 409A and the Income Tax Act (Canada)
(“Canadian Tax Act”) and shall be interpreted, administered and operated as necessary to
comply with the requirements of Code Section 409A, the Canadian Tax Act and applicable
regulations.
	 
	2.	 	Definitions. The following words and phrases, when used in this Plan with an initial
capital letter, unless the context clearly indicates otherwise, shall have the following
meanings, or the meanings as set forth elsewhere in this Plan. Wherever applicable, the
masculine pronoun shall include the feminine pronoun and the singular shall include the
plural.

	 	(a)	 	“Account” means a bookkeeping account established for the benefit of a
Participant used to record, for each RSU Award, (i) amounts elected to be converted
into RSUs, (ii) the number of corresponding RSUs, (iii) the number of Premium RSUs,
(iii) any earnings or losses on such amounts, and/or (iv) any other information
determined by the Administrator as necessary or appropriate.
	 
	 	(b)	 	“Administrator” means the Senior Vice President, Human Resources and Public
Affairs, of the Company.
	 
	 	(c)	 	“Affiliate” has the meaning ascribed to it in Rule 12b-2 of the Securities
Exchange Act of 1934, as amended.
	 
	 	(d)	 	“Beneficiary” means the person or persons (including, without limitation, any
trustee) last designated by a Participant in accordance with Section 8 to receive the
balance of his Account in the event of the Participant’s death. If there is no
effective designated Beneficiary on file or surviving Beneficiary, the Participant’s
estate shall be the Participant’s Beneficiary.
	 
	 	(e)	 	“Board” means the Board of Directors of the Company.
	 
	 	(f)	 	“Canadian Participant” means a Participant who is subject to taxation under the
Canadian Tax Act.
	 
	 	(g)	 	“Cause” means (i) the Company, an Affiliate or a Subsidiary having “cause” to
terminate a Participant’s employment or service, as defined in any employment or
consulting agreement between the Participant and the Company, an Affiliate or a
Subsidiary in effect at the time of such termination or (ii) in the absence of any such
employment or consulting agreement (or the absence of any definition of

 

 

	 	 	 	“Cause” contained therein), (A) the Participant’s commission of a felony or a crime
involving moral turpitude, or other material act or omission involving dishonesty or
fraud, (B) Participant’s engaging in conduct that would bring or is reasonably
likely to bring the Company, or any of its Affiliates or Subsidiaries into public
disgrace or disrepute or that would affect the Company’s or any Affiliate’s or
Subsidiary’s business in any material way, (C) the Participant’s failure to perform
duties as reasonably directed by the Company (which, if reasonably curable, is not
cured within 10 days after notice thereof is provided to the Participant) or (D) the
Participant’s gross negligence, willful malfeasance or material act of disloyalty or
other breach of fiduciary duty with respect to the Company, its Affiliates or
Subsidiaries (which, if reasonably curable, is not cured within 10 days after notice
thereof is provided to the Participant). Any determination of whether Cause exists
shall be made by the Committee in its sole discretion.
	 
	 	(h)	 	“Code” means the US Internal Revenue Code of 1986, as amended from time to
time. A reference to any provision of the Code shall be deemed to include any
regulations or other interpretative guidance under such section, and any amendments or
successor provisions to such section, regulation or guidance.
	 
	 	(i)	 	“Committee” means the Human Resources and Compensation/Nominating and
Governance Committee of the Board or such members of the Board as are selected by the
Board from time to time to administer the Plan.
	 
	 	(j)	 	“Company” means AbitibiBowater Inc.
	 
	 	(k)	 	“Conversion Date” means, unless otherwise determined by the Committee, the date
on which the Incentive Award would otherwise be paid in cash to the Participant.
	 
	 	(l)	 	“Eligible Employee” means an individual employed by the Company or any
Affiliate in Salary Grade 29 or higher.
	 
	 	(m)	 	“Effective Date” means April 1, 2011, the date the Company established the
Plan.
	 
	 	(n)	 	“Fair Market Value” means, on a given date, (i) if the Stock is listed on a
national securities exchange, the simple arithmetic mean between the highest and lowest
prices per share at which the Stock is traded as reported for the national securities
exchange for the trading day immediately preceding that date, or if not so traded, the
simple arithmetic mean between the closing bid-and-asked prices thereof as reported for
such national securities exchange for the trading day immediately preceding that date,
rounded to the nearest number within two decimal places; (ii) if the Stock is not
listed on any national securities exchange but is quoted in an inter-dealer quotation
system on a last sale basis, the simple arithmetic mean between the closing
bid-and-asked prices thereof as reported for such quotation system for the applicable
date of determination, rounded to the nearest number within two decimal places; or
(iii) if the Stock is not listed on a national securities

2

 

	 	 	 	exchange or quoted in an inter-dealer quotation system on a last sale basis, the
amount determined by the Committee in good faith to be the fair market value of the
Stock.
	 
	 	(o)	 	“Incentive Award” means the annual cash incentive award earned by and payable
to a Participant under a regular, annual incentive plan or program established by the
Company, but does not include any other cash incentive, non-recurring or multi-year
incentive award, unless authorized by the Committee.
	 
	 	(p)	 	“Participant” means an Eligible Employee who has made an election for a RSU
Award pursuant to the Plan and for whom an Account is maintained hereunder.
	 
	 	(q)	 	“Plan” means the AbitibiBowater Executive Restricted Stock Unit Plan, as
provided herein and as may be amended from time to time.
	 
	 	(r)	 	“Premium RSUs” means the number of RSUs covered by an RSU Award that represents
a number of RSUs determined by dividing 10% of the amount of the Incentive Award
elected to be subject to the RSU Award by the Fair Market Value of a share of Stock on
the Conversion Date.
	 
	 	(s)	 	“Restricted Stock Unit” or “RSU” means the right to receive payment in cash in
an amount equal to the Fair Market Value of one share of Stock, determined as of the
Vesting Date. Unless otherwise provided or if the context requires otherwise, the
reference to RSUs includes Premium RSUs.
	 
	 	(t)	 	“RSU Award” means the grant of RSUs pursuant to a valid and timely filed
written election by an Eligible Employee to convert a permitted and elected percentage
of his Incentive Award into RSUs as of the Conversion Date.
	 
	 	(u)	 	“Separation from Service” means a termination of employment with the Company
and other entities affiliated with the Company. For U.S. Participants, whether a
Separation from Service occurs shall be determined and interpreted in accordance with
Code Section 409A and applicable regulations. For purposes of interpreting Code
Section 409A, whether an entity is affiliated with the Company shall be determined
pursuant to the controlled group rules of Code Section 414, as modified by Code Section
409A.
	 
	 	(v)	 	“Stock” means the common stock of the Company, par value $.001.
	 
	 	(w)	 	“Subsidiary” means any corporation, partnership, joint venture or other entity
during any period in which at least a fifty percent voting or profits interest is
owned, directly or indirectly, by the Company (or by any entity that is a successor to
the Company), and any other business venture designated by the Committee in which the
Company (or any entity that is a successor to the Company) has a significant interest,
as determined in the discretion of the Committee.
	 
	 	(x)	 	“U.S. Participant” means a Participant who is subject to taxation under the US
Internal Revenue Code.

3

 

	 	(y)	 	“Vesting Date” means the date on which all or a portion of the non-Premium RSUs
become payable and the Premium RSUs become nonforfeitable and payable.

	3.	 	Administration. The Committee shall administer the Plan, provided that the Committee
may delegate responsibility for administration to such person or persons as it deems
appropriate from time to time. The Committee shall have all the discretion and authority to
take any action that it may deem necessary or desirable in connection with the administration
of the Plan, including without limitation:

	 	(a)	 	to establish, modify and revoke rules relating to the Plan;
	 
	 	(b)	 	to interpret and construe the terms of the Plan, any rules under the Plan and
the terms and conditions of any RSU Award granted under the Plan;
	 
	 	(c)	 	to approve the form and content of any documentation relating to RSU Awards
under the Plan or Plan administration; and
	 
	 	(d)	 	consistent with the express provisions of the Plan, to approve, establish and
amend the terms governing an RSU Award under the Plan.

	 	 	All determinations, interpretations and decisions made by the Committee under or with
respect to the Plan shall be final, conclusive and binding on the Company, and Participants
and any Beneficiary. No member of the Committee shall be liable for any action taken in
good faith with respect to the Plan. Notwithstanding the foregoing, the Administrator shall
have the authority to approve the form and content of any election or beneficiary forms for
the efficient administration of the Plan.
	 
	4.	 	Election for RSU Award. For any given Incentive Award, the Committee has the
discretion to offer the opportunity to Eligible Employees to make an election to receive a RSU
Award. If the Committee offers such opportunity, an Eligible Employee may elect to receive
50% or 100% of his Incentive Award as an RSU Award if he completes and timely delivers to the
Administrator (or his designee) a written election. Once made, the Eligible Employee shall
become a Participant in the Plan. An election for an RSU Award shall only be given effect if
the Incentive Award to which it relates is otherwise approved and paid in the calendar year
following the calendar year in which the Incentive Award is earned (i.e. the performance
period). To be considered timely, a Participant must deliver the written election as follows
and as determined by the Administrator:

	 	(a)	 	General Rule.

	 	(i)	 	Canadian Participants. A Canadian Participant’s
written election for an RSU Award shall be filed with the Administrator by
December 15 of the calendar year preceding the Conversion Date. In this
circumstance, the election shall be irrevocable as of December 16 of the
calendar year preceding the Conversion Date.

4

 

	 	(ii)	 	U.S. Participants. A U.S. Participant’s written
election for an RSU Award shall be filed with the Administrator before the
beginning of the calendar year in which the Incentive Award is earned (i.e. the
performance period). In this circumstance, the election shall be irrevocable
as of January 1 of the calendar year in which the Incentive Award is earned.

	 	(b)	 	Performance Based Exception. To the extent the Committee determines that an
Incentive Award constitutes “performance based compensation” (within the meaning of
Code Section 409A and regulations issued thereunder), the Administrator may permit a
U.S. Participant to file a written election with the Administrator no later than June
30 (or such earlier date) of the performance period for the Incentive Award. In no
event shall a written election for performance based compensation be filed when such
compensation is readily ascertainable (within the meaning of Code Section 409A and
regulations issued thereunder). In this circumstance, the election shall be
irrevocable as of the deadline established by the Administrator.
	 
	 	(c)	 	Newly Eligible Employees. Notwithstanding the foregoing, an individual who
first becomes an Eligible Employee and intends to receive an RSU Award must complete
and file an election with the Administrator.

	 	(i)	 	Canadian Eligible Employees. A Canadian Eligible
Employee’s written election for an RSU Award shall be filed with the
Administrator by December 15 of the calendar year preceding the Conversion
Date. In this circumstance, the election shall be irrevocable as of December
16 of the calendar year preceding the Conversion Date.
	 
	 	(ii)	 	U.S. Eligible Employees. A U.S. Eligible Employee’s
written election for an RSU Award shall be filed with the Administrator within
30 days after such individual becomes an Eligible Employee. In this
circumstance, the election shall be irrevocable as of the day after the 30 day
period expires. Any RSU Award received in respect of such election shall be
determined pursuant to Section 5(a), but taking into account only the Incentive
Award earned for calendar months beginning after the election is filed and
accepted by the Administrator, unless Section 4(b) permits the election to
apply to the entire Incentive Award earned by such U.S. Eligible Employee.

	 	(d)	 	Annual Elections. An Eligible Employee must make a separate election for each
Incentive Award that he intends to defer as an RSU Award. A Participant’s written
election shall constitute the Participant’s acceptance of the terms and conditions of
the Plan and each RSU Award. If no election is made or the Committee does not offer
the RSU Award election opportunity, the Participant shall receive his entire Incentive
Award in cash at the time it would otherwise be paid.

5

 

	 	(e)	 	Election Forms. The election materials shall provide the Participant with all
materials terms of the RSU Award, including, but not limited to, the percentage of the
premium offered and vesting schedule.
	 
	 	(f)	 	Termination of Employment. In the event an Eligible Employee Separates from
Service after he files an election for an RSU Award and before the Conversion Date, the
Eligible Employee shall not receive the RSU Award subject to such election. Instead,
the Eligible Employee shall receive payment, if any, of his Incentive Award pursuant to
the terms of the short-term incentive plan or program that governs such Incentive
Award.

	5.	 	Restricted Stock Units.

	 	(a)	 	Determination of RSUs. For each RSU Award elected by a Participant, a number
of RSUs will be credited to the Participant’s Account as of the Conversion Date.
Unless otherwise decided by the Committee, the number of RSUs (including fractional
RSUs) to be credited is determined by dividing (i) 110% of the amount of the Incentive
Award elected by the Participant to be subject to a RSU Award by (ii) the Fair Market
Value of the Stock as of the Conversion Date. The Committee reserves the discretion to
modify the premium to be applied for any given RSU Award, which premium shall be
communicated when the election is solicited. The Accounts shall not be used to
segregate assets for payment of any amounts deferred or allocated under the Plan, and
shall not constitute or be treated as a trust fund of any kind. The Administrator
shall provide a Participant with a statement, in such form as he determines, containing
the material terms of the RSU Award, including the number of non-Premium RSUs and
Premium RSUs covered by the RSU Award.
	 
	 	(b)	 	Earnings and Adjustments.

	 	(i)	 	Dividend Equivalents. With respect to dividend record
dates occurring during the period in which RSUs are credited to a Participant’s
Account, the Participant’s Account will be credited with additional RSUs
(including a fractional RSU), the number of which will be determined by
dividing: (A) the product obtained by multiplying the amount of each dividend
(including extraordinary dividend if so determined by the Company) declared and
paid by the Company on the Stock on a per share basis during the Vesting Period
by the number of RSUs credited to a Participant’s Account on the record date
for payment of any such dividend, by (B) the Fair Market Value of one share of
Stock on the dividend payment date for such dividend. The additional RSUs
shall be payable at the same time and in the same proportion as the RSUs
covered by the RSU Award to which the dividend equivalents relate. Dividend
equivalents that relate to Premium RSUs shall vest at the same time and in the
same proportion as the Premium RSUs to which they relate. No additional RSUs
shall be accrued with respect to an RSU Award for the benefit of a Participant
for any record dates occurring prior to, or record

6

 

	 	 	 	dates occurring on or after the date, if any, on which a Participant has
received payment of the RSUs and/or forfeited any Premium RSUs.
	 
	 	(ii)	 	Adjustments. In the event of (A) a corporate
transaction involving the Company (including, without limitation, any dividend
(other than regular cash dividends or other distribution (whether in the form
of cash, shares of Stock, other securities or other property), stock split,
extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, split-up, spin-off, sale of assets or subsidiaries, combination
or exchange of shares, issuance of warrants or other rights to acquire Stock or
other securities of the Company), (B) other similar corporate transaction or
event that affects the shares of Stock, or (C) unusual or nonrecurring events
affecting the Company, any Affiliate or Subsidiary, or the financial statements
of the Company, any Affiliate or Subsidiary, or changes in applicable rules,
rulings, regulations or other requirements of any governmental body or
securities exchange or inter-dealer quotation system, accounting principles or
law, then the Committee shall make an adjustment to the amount payable with
respect to the RSUs that the Committee determines to be equitable to prevent
undue dilution or enlargement of the intended benefits or potential benefits of
the RSU Award consistent with the purposes of the Plan. The Company shall give
each Participant notice of any adjustment. Any such adjustment shall be
conclusive and binding for all purposes.

	6.	 	Vesting.

	 	(a)	 	For any given RSU Award, a Participant shall, at all times, have a
nonforfeitable right to non-Premium RSUs, which are (i) the number of RSUs determined
by dividing 100% of the amount of the Incentive Award elected by a Participant to be
subject to the RSU Award by the Fair Market Value of a share of Stock on the Conversion
Date and (ii) any additional RSUs credited as dividend equivalents that relate to such
RSUs.
	 
	 	(b)	 	Subject to continued employment with the Company or any Affiliate and
subsection (c), the Premium RSUs shall vest over a period that begins on January 1
preceding the Conversion Date and ending on December 15 of the second year following
the year containing the Conversion Date (the “Vesting Period”). During the Vesting
Period, one-third of the Premium RSUs (rounded to the nearest whole RSU) shall vest on
each December 15.
	 
	 	(c)	 	In the event of a Participant’s death or Separation from Service for any reason
other than a voluntary termination of employment or Cause (including involuntary
termination without Cause or disability), the Participant shall become vested in all
non-vested Premium RSUs. In the event of a Separation from Service due to Cause, the
Participant shall forfeit any vested, but not paid, and non-vested Premium RSUs. In
the event of a voluntary Separation from Service, the Participant shall forfeit any
non-vested Premium RSUs.

7

 

	7.	 	Payment.

	 	(a)	 	Time of Payment. Non-Premium RSUs and vested Premium RSUs shall be paid in a
single lump sum cash payment as follows:

	 	(i)	 	Canadian Participants. Payment to Canadian
Participants shall be made as soon as administratively feasible upon the
earliest to occur of:

	 	(A)	 	the applicable Vesting Date described in
Section 6(b),
	 
	 	(B)	 	the Participant’s Separation from Service, and
	 
	 	(C)	 	the Participant’s death.

	 	 	 	In no event shall payment of any RSUs be made later than December 31 of the
second calendar year following the calendar year in which the Conversion
Date occurs.
	 
	 	(ii)	 	U.S. Participants. Payment to U.S. Participants shall
be made as soon as administratively feasible upon the earliest to occur of:

	 	(A)	 	the applicable Vesting Date described in
Section 6(b),
	 
	 	(B)	 	the first day of the seventh month following
the Participant’s Separation from Service, and
	 
	 	(C)	 	the Participant’s death.

	 	(b)	 	Amount of Payment. The Participant shall be entitled to receive an amount
equal to the Fair Market Value of a share of Stock multiplied by the number of
non-Premium RSUs and vested Premium RSUs to be settled. Fair Market Value shall be
determined as of the Vesting Date described in Section 6(b) or 6(c), as applicable,
except that if payment for a U.S. Participant is made pursuant to Section 7(a)(ii)(B),
Fair Market Value shall be determined as of the first day of the seventh month
following such U.S. Participant’s Separation from Service. Any amount paid to a
Participant shall be less any required taxes.

	8.	 	Designation of Beneficiary.

	 	(a)	 	Each Participant other than a Participant residing in the Province of Québec
shall designate on forms provided by the Administrator, signed by the Participant and
delivered to the Administrator, the Beneficiary or Beneficiaries to receive the balance
credited to the Participant’s Account in the event of his death. A Participant may,
from time to time, change the designated Beneficiary or Beneficiaries, without the
consent of such Beneficiary or Beneficiaries, by delivering to the Administrator a new
written and signed designation of Beneficiary. The Participant’s spouse, if any, shall
not be required to consent in writing to any non-spouse designation. The Participant
may designate primary or

8

 

	 	 	 	contingent Beneficiaries. The written designation last delivered and signed by the
Participant shall be effective and supersede all prior designations on file with the
Administrator.
	 
	 	(b)	 	Each Participant residing in the Province of Québec may only designate a
beneficiary by will. Upon the death of a Participant residing in the Province of
Québec, the Participant’s Account shall be distributed to the liquidator, administrator
or executor of his estate.

	9.	 	No Rights as Stockholder. A Participant shall not be a shareholder of record with
respect to RSUs and shall have no voting rights with respect to the RSUs.
	 
	10.	 	Transferability. Unless otherwise provided by the Committee in writing, the RSUs
shall not be transferable by the Participant other than by will or the laws of descent and
distribution.
	 
	11.	 	Notices and Communications. All notices, statements, reports and other
communications from the Administrator to any Participant, Beneficiary or other person required
or permitted under the Plan shall be deemed to have been duly given when personally delivered
to, when transmitted via facsimile or other electronic media or when mailed overnight or by
first-class mail, postage prepaid and addressed to, such Participant, Beneficiary or other
person at his last known address on the Company’s records. All elections, designations,
requests, notices, instructions and other communications from a Participant, Beneficiary or
other person to the Administrator required or permitted under the Plan shall be in such form
as is prescribed from time to time by the Administrator, and shall be mailed by first-class
mail, transmitted via facsimile or other electronic media or delivered to such location as
shall be specified by the Administrator. Such communication shall be deemed to have been
given and delivered only upon actual receipt by the Administrator at such location.
	 
	12.	 	Limitation of Rights of the Participant. Inclusion under the Plan shall not give a
Participant any right or claim to a benefit, except as specifically defined in this Plan. The
establishment of the Plan shall not be construed as giving any Participant a right to be
continued in service as a Participant of the Company.
	 
	13.	 	No Rights to Employment. Nothing contained in the Plan or any communication provided
to Participants shall be construed as giving any Participant a right to be retained, in any
position, as an employee, consultant or director of the Company or its Affiliates or shall
interfere with or restrict in any way the right of the Company or its Affiliates, which are
hereby expressly reserved, to remove, terminate or discharge a Participant at any time for any
reason whatsoever.
	 
	14.	 	Payments To Incompetents. In the event that any payment hereunder becomes payable to
a person adjudicated to be incompetent, payment thereof to the guardian or legal
representative of such person shall constitute full and complete compliance herewith and
entitle the Company to discharge with respect thereto.

9

 

	15.	 	Claims Procedures

	 	(a)	 	Initial Claims. If an individual believes he is entitled to benefits, or to
greater benefits than are paid under the Plan, the individual may file a claim for
benefits with the Claims Administrator. The Director, Corporate Compensation, will
serve as the Claims Administrator for all initial claims for benefits and will either
accept or deny the claim, and will notify the claimant of acceptance or denial of the
claim.
	 
	 	 	 	The Administrator shall notify the claimant of an adverse benefit determination
within 90 days after receipt of the claim by the Claims Administrator, unless the
Claims Administrator determines that special circumstances require an extension of
time for processing the claim. If the Claims Administrator determines that an
extension of time for processing is required, written notice of the extension shall
be furnished to the claimant prior to the termination of the initial 90 day period.
	 
	 	(b)	 	Right to Appeal. A claimant may appeal the denial of his claim and have the
Claims Administrator reconsider the decision. The claimant or the claimant’s
authorized representative has the right to request an appeal by written request to the
Claims Administrator no later than 60 days after receipt of notice from the Claims
Administrator denying the employee’s claim.
	 
	 	 	 	The claimant will be advised of the Claims Administrator’s decision on the appeal in
writing, no later than 60 days after receipt of the claimant’s request for review by
the Claims Administrator, unless the Claims Administrator determines that special
circumstances require an extension of time for processing the claim. If the Claims
Administrator determines that an extension of time for processing is required,
written notice of the extension shall be furnished to the claimant prior to the
termination of the initial 60-day period. In no event shall such extension exceed a
period of 60 days from the end of such initial period. The extension notice shall
indicate the special circumstances requiring an extension of time and the date by
which the Claims Administrator expects to render the determination on review.
	 
	 	 	 	In no event shall a claimant or any other person be entitled to challenge a decision
of the Administrator in court or in any other administrative proceeding unless and
until the claim and appeal procedures described above have been complied with and
exhausted. Any such action must be initiated not more than 180 days after receipt
of the determination on review of the adverse claim decision.
	 
	 	 	 	Decisions and any notices may be furnished electronically.

	16.	 	Construction.

	 	(a)	 	The decision of the Committee on all matters concerning the interpretation and
administration of this Plan shall be final. Each Participant agrees, as a condition to
participation herein, to be bound by all actions and interpretations regarding this
Plan by the Committee. Neither the Board, the Committee, any individual

10

 

	 	 	 	Participant nor any persons acting on their behalf shall be subject to any liability
to any Participant or other person in the construction and administration of this
Plan.
	 
	 	(b)	 	Notwithstanding any other provision of this Plan, it is intended that all RSUs
granted under this Plan which are considered to be deferred compensation subject to
Code Section 409A shall be provided and paid in a manner, and at such time, including
without limitation payment only in connection with a permissible payment event
contained in Code Section 409A (e.g., separation from service from the Company and its
affiliates as defined for purposes of Code Section 409A), and in such form, as complies
with the applicable requirements of Code Section 409A, to avoid the unfavorable tax
consequences provided therein for non-compliance. In addition, it is intended that all
RSUs granted to Canadian Participants under this Plan shall be provided and paid in a
manner, and at such time, and in such form, as complies with the applicable
requirements of paragraph (k) of the definition of “salary deferral arrangement” in
Section 248 of the Canadian Tax Act, to avoid the unfavorable tax consequences provided
therein for non-compliance. Notwithstanding the foregoing, none of the Company or its
affiliates or the Committee shall be liable to any person if such person is subject to
any additional tax, penalty or interest as a result of failure to comply with Code
Section 409A or paragraph (k) of the definition of “salary deferral arrangement” in
Section 248 of the Canadian Tax Act.

	17.	 	Amendment or Termination. The Company reserves the right at any time, and from time
to time, by action of a majority of the Committee to amend, in whole or in part, any or all of
the provisions of this Plan. The Company reserves the right to terminate the Plan at any
time. Notwithstanding the foregoing, no such amendment or termination shall adversely affect
benefits under this Plan already being paid or having become unconditionally payable pursuant
to the terms hereof. Upon termination of the Plan, the Company reserves the discretion to
accelerate distribution of Participants’ Accounts in accordance with regulations promulgated
by the Department of the Treasury under Code Section 409A.
	 
	18.	 	Funding. The Company’s obligations under this Plan shall be unfunded and the Company
shall not be obligated under any circumstances to fund its obligations under this Plan.
Notwithstanding the foregoing, the Company may, but shall have no obligation to, authorize the
creation of one or more trusts and deposit therein cash or property, or make other
arrangements to meet the payment obligations under the Plan; provided that such trusts or
other arrangements, if established, shall be consistent with the unfunded status of the Plan.
The rights of a Participant to the payment of benefits under the Plan shall be no greater than
the rights of an unsecured creditor of the Company, and nothing in the Plan shall be construed
to give any Participant or any other person rights to any specific assets of the Company, any
of its subsidiaries or affiliates, or any other person.
	 
	19.	 	Governing Law. This Plan shall be governed by and interpreted in accordance with the
laws of the State of Delaware and, subject to Section 17 above, shall be binding upon the

11

 

	 	 	Company and its successors, including any successor which acquires all or substantially all
of the assets of the Company.
	 
	20.	 	Currency. Payments made under the Plan shall be determined in the same currency in
which a Participant receives his other cash compensation.
	 
	21.	 	Headings. Headings and subheadings in the Plan are inserted for convenience only and
are not to be considered in the construction of the provisions hereof.

*    *    *

          IN WITNESS WHEREOF, the following authorized officer of the Company has executed the Plan to
evidence its adoption by the Company as of the date set forth below.

	 	 	 	 	 
	 	ABITIBIBOWATER INC.

 	 
	 	By:  	/s/  Richard Garneau
 	 
	 	 	Richard Garneau 	 
	 	Its:	President and Chief Executive Officer 	 
	 	Dated: March 30, 2011	 
	 

12

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