Document:

Exhibit 10.46

   Exhibit 10.46 
 ABITIBIBOWATER INC.
PERFORMANCE-BASED VESTING
RESTRICTED STOCK UNIT AGREEMENT 
      THIS
RESTRICTED STOCK UNIT AGREEMENT, dated as of [Insert Date] (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. 2008 Equity Incentive Plan (the "Plan"), pursuant to which restricted stock units may be granted in respect of shares of the Company's common
stock, par value $1.00 per share ("Stock"); and 
      WHEREAS, the Human Resources and Compensation Committee of the Company (the "Committee") has
determined that it is in the best interests of the Company and its stockholders to grant the restricted stock unit award provided for herein to Participant subject to the terms set forth herein. 
      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
[                    ] restricted stock units (the "RSUs") (the "Target Amount"), on the terms and conditions set forth in this
Agreement and as otherwise provided in the Plan. Each RSU represents the right to receive payment in respect of one share of Stock as of the Settlement Date, to the extent the participant is vested in such RSUs 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 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 Participant and his legal representative in respect of any questions arising under the Plan or this Agreement. 
      (c) Approval of the Plan. The RSUs granted under this Agreement are subject to the Plan being approved by the shareholders of the Company, as set forth in the Plan. If the shareholders do not
approve the Plan, then the RSU granted under this Agreement shall become automatically void and of no further force or effect. 
      (d) Acceptance of
Agreement. Unless you notify your local human resources in writing within 14 days after the Date of Grant that you do not wish to accept this Agreement, you will be deemed to have accepted this Agreement and will be bound by the terms of
the Agreement and the Plan. 
 2. Terms and Conditions. 
      (a) Performance Target.
Subject to continued employment or service with the Company, the RSUs shall vest if both (i) the Participant is actively employed or in service with the Company on December 31, 2010, and (ii) the Company achieves cumulative EBITDA
during the three-year performance period beginning January 1, 2008 and ending December 31, 2010 ("Cumulative EBITDA") equal to or in excess of the amounts set forth on Exhibit A (the "Performance Target"). The
actual number of RSUs that may vest may range from zero to 200% of the Target Amount based on the extent to which the Performance Target is achieved, in accordance with the methodology set out on Exhibit A. If the 
 
 
 

  

  
 
  
 Company does not achieve the
minimum Performance Target as set out on Exhibit A, then no RSUs shall vest and all RSUs shall be cancelled in its entirety. Notwithstanding anything to the contrary, no vesting shall occur unless and until the Committee certifies that the
Performance Target has been met (the "Certification"). 
      (b) Settlement. The obligation to make payments and distributions with respect to
RSUs shall be satisfied through cash payments (the "settlement") and the settlement of the RSUs, may be subject to such conditions, restrictions and contingencies as the Committee shall determine. The RSUs shall be settled as soon as
practicable after the RSUs vest (the "Settlement Date"), but in no event later than March 15, 2011. Notwithstanding the foregoing, the payment dates set forth in this Section 2(b) have been specified for the purpose of complying with the
provisions of 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 payments obligations hereunder. 
      (c) Dividends and Voting Rights. The right to dividends (including extraordinary dividends if so determined by the Committee) declared and paid to other shareholders shall be accrued during the
vesting period and paid in cash to the Participant (based on the number of RSUs vested) upon the Vesting Date, less any applicable withholding taxes. No dividends shall be accrued for the benefit of the Participant with respect to record dates
occurring prior to the Date of Grant, or with respect to record dates occurring on or after the date, if any, on which the Participant has forfeited the RSUs. The Participant shall not be a shareholder of record with respect to the RSUs and shall
have no voting rights with respect to the RSUs. 
 3. Termination of Employment or Service with the Company. 
      (a) Retirement. (i) If the Participant's employment or service with the Company terminates as a result of (i) "Retirement", or (ii) involuntary termination by the Company when the
Participant would otherwise be eligible for Retirement as of the date of such termination (or following the expiration of any applicable severance period), then the Participant's RSUs shall continue to vest as if the Participant remained an active
employee; provided that if the Participant dies prior to the date that the RSUs vest, the Participant shall be treated in accordance with Section 3(c). The term "Retirement" shall mean termination of employment at a time when the Participant
qualifies for the payment of benefits immediately due to the participant's status as a "retired" employee under any qualified or registered defined benefit pension plan maintained by the Company (or would so qualify if the Participant was a
participant in such plan). 
      (b) Termination by the Company without Cause. If the Participant's employment or service with the Company is
involuntarily terminated without Cause, other than on account of Disability, Retirement, or eligibility for Retirement on the date of termination, then the Participant shall become vested in a prorated number of RSUs. The Participant's prorated RSUs
shall be determined by multiplying the RSUs by a fraction the numerator of which shall be the number of days elapsed from January 1, 2008 until the date of the Participant's termination (including any applicable severance period) and the
denominator of which shall be 1096. 
      (c) Death. If the Participant's employment or service with the Company terminates due to the Participant's
death, then the Participant shall become vested in a prorated number of RSUs. The Participant's prorated RSUs shall be determined by multiplying the RSUs by a fraction the numerator of which shall be the number of days elapsed from January 1,
2008 until the Participant's death and the denominator of which shall be 1096. 
      (d) Disability. If the Participant's employment or service with the
Company terminates due to the Participant's Disability, then the Participant shall become vested in a prorated number of RSUs. The Participant's prorated RSUs shall be determined by multiplying the RSUs by a fraction the numerator of which shall be
the number of days elapsed from January 1, 2008 until the termination by the Company due 
 
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 to the Participant's
Disability (for the avoidance of doubt, the RSU shall continue vesting during any applicable short-term disability period prior to termination of employment) and the denominator of which shall be 1096. 
      (e) Termination by the Company for Cause. If the Participant's employment or service with the Company terminates for Cause, then the entire RSU shall
immediately terminate. 
      (f) Other Termination. If the Participant's employment or service with the Company terminates other than as otherwise
described in the foregoing provisions of this Section 3, then any outstanding RSUs shall immediately terminate. 
 Notwithstanding anything contained to the contrary in this
Section 3, in no event shall any RSUs be settled unless and until both (i) the Performance Target is achieved, and (ii) the Certification occurs. 
 4. Compliance with
Legal Requirements. The granting and settlement of the RSU, and any other obligations of the Company under this Agreement, shall be subject to all applicable federal, 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 RSU
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 this RSU. 
      (c) Tax Withholding. All
distributions under the Plan are subject to withholding of all applicable federal, state, local and foreign taxes, and the Committee may condition the settlement of the RSUs on satisfaction of the applicable withholding 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, 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 Employment. Nothing contained in this Agreement shall be construed as giving Participant any 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 Participant at any time for any reason whatsoever. 
 
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      (e) Beneficiary. The Participant 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. If no designated beneficiary survives the Participant, the Participant's estate shall be deemed to be Participant's beneficiary. 
      (f) 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. 
      (g) 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. 
      (h) 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
principals 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. 
      (i) 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:  	 	 
	 

 
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 Exhibit A
[Performance Target Vesting Matrix]  
 
	 Exhibit A 
 2008 Performance-Based RSU Grant – Vesting Criteria

 
  The Vesting criteria for the 2008 Performance Based RSUs granted will be as follows:    
 ●     RSUs granted will
vest based on the Company's EBITDA performance over the 3-year  performance  period (2008 – 2010)  according to the table below.  
   RSU Vesting Level (1)  

   
 

	  
	   Minimum   

  Threshold  

    0%  

 	   Target   

   100%   

 	   Maximum   

   200%    

 
	  EBITDA 2008 

	   $700 M  

 	   $1.0 B  

 	   $1.2 B  

 
	   EBITDA 2009  

 	   $700 M  

 	   $1.1 B  

 	   $1.3 B  

 
	   EBITDA 2010  

 	   $700 M  

 	   $1.2 B  

 	   $1.4 B  

 
	   3-year Total EBITDA  

 	   $2.1 B or below  

 	   $3.3 B  

 	   $3.9 B or Above  

 

   (1) Vesting of
100% of the performance-based RSUs is subject to achievement of the 3-year Total EBITDA at Target ($3.3 billion). If 3-year Total EBITDA achieved ("Actual EBITDA") is less than or equal to the Minimum Threshold level ($2.1 billion),
then no RSUs shall vest.   If Actual EBITDA achieved is equal to or greater than the Maximum level ($3.9 billion), then 200% of the RSUs shall vest.   If Actual EBITDA achieved is greater than Minimum Threshold level but less than Target
level, then the number of RSUs that vest shall be reduced based on straight line linear interpolation between the Minimum Threshold and Target EBITDA levels.   If Actual EBITDA achieved is greater than Target level but less than Maximum level,
then the number of RSUs that vest shall be increased based on straight line linear interpolation between the Target and Maximum EBITDA levels but in no event greater than 200%.  

   
 
  

 
5Exhibit 10.48

   Exhibit 10.48 
 FORM OF
ASSUMPTION AND CONSENT TO ASSIGNMENT AGREEMENT 
 THIS AGREEMENT made the
                     day of
                    , 20           
 BETWEEN: 
 ABITIBI-CONSOLIDATED INC., a
corporation constituted under the laws of Canada 

(the "Corporation") 
 – and – 
 ABITIBIBOWATER INC., a corporation 
constituted under the laws of Delaware 
 (the
"Assignee") 
 – and – 
                                       
  , an individual residing in the
City of                     , in
                     
 (the "Executive") 
 RECITALS: 
 
	A.	 	The Corporation and the Executive have entered into a Severance Compensation Agreement dated                     ,
20                     (the "Severance Agreement"), attached hereto as Schedule 1.

 

	B.	 	Pursuant to Section 8 of the Severance Agreement, the Corporation undertook to require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
the Corporation, by agreement in form and substance satisfactory to the Executive, to expressly assume and agree to perform the Severance Agreement in the same manner and to the same extent that the Corporation would be required to perform it if no
such succession had taken place.

 
	C.	 	The Corporation has entered into a definitive agreement with Bowater Incorporated to combine in a all stock merger of equals (the "Transaction").

 
	D.	 	In the context of the Transaction, the Corporation has requested and the Assignee has agreed to be bound by the terms of the Severance Agreement, upon and subject to the closing of the Transaction.

 
 
 

  

  
 
  
 

 
	E.	 	The effective date (the "Effective Date") for purposes of this Agreement will be the date of closing of the Transaction.

      NOW
THEREFORE in consideration of these premises and the mutual covenants herein contained, the Corporation, the Assignee and the Executive hereby covenant and agree as follows: 
 1.
Assignment by the Corporation 
      The Corporation hereby assigns and transfers to Assignee all covenants, agreements, obligations and provisions to be
performed, discharged or observed by the Corporation under the Severance Agreement, as of the Effective Date. 
 2. Assignee's Obligations 
      As of the Effective Date, Assignee covenants and agrees to be named party to the Severance Agreement and to fully perform, discharge and observe all covenants,
agreements, obligations and provisions to be performed, discharged or observed by the Corporation under the Severance Agreement, the whole to the same extent and effect as if the Assignee had been an original party to the Severance Agreement, in the
place and stead of the Corporation. 
 3. Consent to Assignment by the Executive 
      The
Executive hereby consents to the assignment by the Corporation to the Assignee and to the assumption by the Assignee of the Severance Agreement as more fully described above. 
 4.
Release of the Corporation's Obligations 
      Upon the execution of this Assumption and Consent to Assignment Agreement, the Corporation shall be released
from all obligations under the Severance Agreement. 
 5. Conditional Assignment, Assumption and Consent 
      The assignment, assumption and consent as described in 3 are conditional upon the completion of the Transaction. In the event that the Transaction is not completed within 180 days of this Agreement, this
Agreement shall be deemed null and void and of no effect whatsoever. 
 6. Representations and Warranties 
      Each of the Corporation and the Assignee represents and warrants to the other that it has the capacity, right and power to execute this Agreement and to perform the obligations resulting there from and that
it has taken all necessary action to authorize the execution of this Agreement. 
 
 
 

  

  
 
  
 7. Entire Agreement

      This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof and supercedes and replaces the terms of
any prior discussions, negotiations or agreements in this respect. No amendments or waiver of this Agreement shall be binding unless executed in writing by both parties hereto. 
 8.
Choice of Law 
      This Agreement shall be governed and interpreted in accordance with the laws of the Province of Québec and the courts of the
Province of Québec shall be the sole and proper forum with respect to any suits brought with respect to this Agreement. The present agreement has been drafted in English at the request of the Executive. La présente entente à
été rédigée en anglais a la demande de l'employé. 
 9. Copy of Agreement 
      The Executive hereby acknowledges receipt of a copy of this Agreement duly signed by the Corporation and the Assignee. 
      IN WITNESS WHEREOF the parties hereto have duly executed and delivered this Agreement. 
 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	ABITIBI-CONSOLIDATED INC.	 	 
	  
	 	 	 	 	 	 	 	 
	  
	 	 	 	By:	 	 	 	 
	  
	 	 	 	 	 	  
	 	 
	  
	 	 	 	By:	 	 	 	 
	  
	 	 	 	 	 	  
	 	 
	  
	 	 	 	 	 	 	 	 
	 	 	 	 	ABITIBIBOWATER INC.	 	 
	 
	  
	 	 	 	By:	 	 	 	 
	  
	 	 	 	 	 	  
	 	 
	  
	 	 	 	By:	 	 	 	 
	  
	 	 	 	 	 	  
	 	 
	  
	 	 	 	 	 	 	 	 
	 	 	 	 	THE EXECUTIVE	 	 
	  
	 	 	 	 	 	 	 	 
	  
	 	 	 	By:	 	 	 	 
	 Witness:
	 	 	 	 	 	 	 	 
	  
	 	  
	 	  
	  
	  
	 	 

 
 
 

 
   FORM OF
 SEVERANCE COMPENSATION AGREEMENT   
  THIS AGREEMENT   made the [*]
day of [*],[*].  
  BETWEEN:  
  ABITIBI–CONSOLIDATED INC.  , a company amalgamated under the laws of Canada
(the "Corporation")  
  – and –  
  [*]  , an individual residing in [*] (the "Executive") 

  RECITALS:  
  A.  The Executive is a senior officer of the Corporation and is considered by the Board of Directors of the Corporation to be a
valued employee of the Corporation and has acquired outstanding and special skills and abilities and an extensive background in and knowledge of the Corporation's business and the industry in which it is engaged.
 
B.  The Board of Directors recognizes that it is essential and in the best interests of the Corporation and its shareholders that the Corporation retain the continuing dedication of the Executive to his office and employment.

  C.  The Board of Directors further believes that the past service of the Executive to the Corporation requires that the Executive receive fair treatment, in the event of a change in control of
the Corporation.
  D.  It is desirable to clarify the scope of the arrangements under this Agreement. 
  NOW THEREFORE   in consideration of these premises and the mutual covenants herein contained and in consideration of the Executive continuing in office and in the employment of the Corporation, the Corporation and the Executive hereby covenant and agree
as follows:  
  Article I.                   
 Definitions 
  In this Agreement,  
 (a)    "Agreement" means this agreement and
all schedules attached to this agreement, in each case as they may be restated, amended or supplemented from time to time, and the expressions "hereof, "herein", "hereto", "hereunder", "hereby", and
similar expressions refer to this agreement and, unless otherwise indicated, references to sections are to sections in this agreement;(b)    "Annual Compensation" means the
aggregate of (i) the annual base salary of the Executive, payable by the Corporation as at the end of the month immediately preceding the month in which the termination of employment hereunder takes effect; and (ii) the greater of
(A) the last bonus payment earned by the Executive pursuant to the Key Executive Incentive Plan in the fiscal year immediately preceding the termination of the Executive's employment hereunder; or (B) an amount equal to the average of the
bonus payments earned by the Executive pursuant to the Key Executive Incentive Plan in the  
 
 two fiscal years immediately preceding the termination of the Executive's employment hereunder; (c)
     "Change of Control" means any of: 
                   (i)      The acquisition, directly or indirectly and by any means whatsoever, by any person, or by a group of persons acting jointly or in concert, of that number of Voting Shares which is equal to or greater than 35% of the
total issued and outstanding Voting Shares immediately after such acquisition unless another person or group of persons has previously acquired and continues to hold a number of Voting Shares which represents a greater percentage than the
first-mentioned person or group of persons;                             (ii)      The election or appointment by any holder of Voting Shares, or by any group of holders of Voting Shares acting jointly or in concert, of a number of members of the Board of Directors of the Corporation equal to or
greater than one third of the members of the Board of Directors unless another holder or group of holders has previously elected or appointed a greater number of members of the Board of Directors and re-elects such greater number of members at the
same time as the first-mentioned holder or group of holders; 
                (iii)      Any transaction or
series of transactions, whether by way of reconstruction, reorganization, consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise, whereby assets of the Corporation become the property of any other person (other than a
subsidiary of the Corporation) if such assets which become the property of any other person have a fair market value (net of the fair market value of any then existing liabilities of the Corporation assumed by such other person as part of the same
transaction) equal to 50% or more of the Market Capitalization of the Corporation immediately before such transaction; or                            (iv)      The completion of any transaction or the first of a series of transactions which would have the
same or similar effect as any transaction or series of transactions referred to in paragraphs (i), (ii) and (iii) above;
 (d)    "Disability" means the mental or physical
state of the Executive such that:                                    (i)      The directors of the Corporation, other than the Executive if he is a director, unanimously
determine that the Executive has been unable, due to illness, disease, mental or physical disability or similar cause, to fulfill his obligations as an employee or officer of the Corporation either for any consecutive 6 month period or for any
period of 12 months (whether or not consecutive) in any consecutive 24 month period; or
                 (ii)      A court of competent jurisdiction has declared the Executive to be mentally incompetent or incapable of managing his affairs; (e)    "Good Reason"
means: 
 
                   (i)      Without the express written consent of the Executive,
the assignment to the Executive of any duties materially inconsistent with his positions, duties and responsibilities with the Corporation immediately prior to the date hereof or any removal of the Executive from, or any failure to re-elect the
Executive to, material positions, duties and responsibilities with the Corporation, except in connection with the termination of the Executive's employment for Just Cause, Disability or Retirement or as a result of the Executive's death or by the
Executive other than for Good Reason;                               
(ii)      A reduction by the Corporation in the Executive's salary as in effect on the date hereof or as the same may be increased from time to time; 
                (iii)      The failure by the Corporation to continue in effect any incentive or compensation plan, or any
pension, life insurance, health and accident or disability plan in which the Executive is participating at the date hereof, (or plans providing the Executive with substantially similar benefits) unless such plans have been replaced by new plans
providing the Executive with benefits that are as good as or better than the benefits provided in such plans, or the taking of any action by the Company which would adversely affect the Executive's participation in or materially reduce the
Executive's benefits under any of such plans or deprive the Executive of any material fringe benefit enjoyed by him at the date hereof;                (iv)      The requirement that the Executive be based anywhere other than the Corporation's principal
executive offices except for required travel on the Corporation's business to an extent substantially consistent with the Executive's present employment or travel obligations, or in the event the Executive consents to any such relocation, the
failure by the Corporation to pay (or reimburse the Executive for) all reasonable moving expenses incurred by the Executive or to indemnify the Executive against any excess in (A) the cost of a principal residence in the new location which is
comparable to the Executive's principal residence at the time of the relocation, over (B) the amount realized by the Executive upon the sale of his principal residence at the time of the relocation; or
                 (v)      Any reason which would be considered to amount to constructive dismissal by a court of competent
jurisdiction; (f)      "Just Cause" means willful failure of the Executive to properly carry out his duties after written notice by the Corporation of the failure to do so and
an opportunity for the Executive to correct the same within a reasonable time from the date of receipt of such written notice from the Corporation, or theft, fraud or dishonesty or material misconduct by the Executive involving the property or
affairs of the Corporation or the carrying out of the Executive's duties;
 
 (g)    "Key Executive Incentive Plan" means any program adopted by the Corporation from time to time with
the intention of providing bonus or similar compensation to the executives of the Corporation; (h)    "Market Capitalization of the Corporation" at any time means the product of
(i) the number of outstanding common shares of the Corporation at that time, and (ii) the average of the closing prices for the common shares of the Corporation on the principal securities exchange (in terms of volume of trading) on which the
common shares of the Corporation are listed at that time for each of the last 10 days prior to such time on which the common shares of the Corporation traded on such securities exchange;
 (i)      "Person" means includes an individual, partnership, association, body corporate, trustee, executor, administrator, legal representative and any national, provincial, state or municipal
government;(j)      "Retirement" means the retirement or early retirement of the Executive in accordance with the terms of the Retirement Agreement; 
 (k)    "Retirement Agreement" means any agreement between the Corporation and the Executive, under which the Corporation agreed to pay the Executive a retirement allowance following his retirement or
early retirement from employment with the Corporation, in accordance with the terms of that agreement and including any amendments made from time to time to such agreement;(l)     
"Stock Option Plans" means the Abitibi-Consolidated Inc. Stock Option Plan and any similar plan of the Corporation under which the Corporation from time to time grants options to purchase Voting Shares of the Corporation and loans for the
purpose of exercising such options;
 (m) "Subsidiary" has the meaning ascribed to it in the Canada Business Corporations Act, as in force on the date hereof; and (n)    "Voting Shares" means any securities of the Corporation ordinarily carrying the right to vote at elections of directors. 
  Article II.                  Scope of Agreement 
  The parties hereto intend that this Agreement set out their respective rights and obligations in certain circumstances in which the Executive's employment is terminated. This Agreement does not purport to provide
for any other terms of the Executive's employment with the Corporation.  
  Article III.               Position, Duties and Responsibilities of Executive 
  The Executive
shall continue to have the responsibilities and powers that he currently has or such other responsibilities and powers as he and the Corporation may from time to time agree upon. The Executive shall devote the whole of his working time to the
Executive's duties and shall use his best efforts to promote the interests of the Corporation.  

  Article IV.               Termination of Employment by the Corporation for Just Cause 
  The
Corporation may terminate the Executive's employment at any time without notice or further obligations to the Executive under this Agreement for reasons of Just Cause. Notwithstanding the foregoing, the Executive shall not be deemed to have been
terminated for Just Cause unless and until there has been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board of Directors of the Corporation
(excluding the Executive if the Executive is at that time a director of the Corporation) at a meeting of the Board called and held for the purpose (after reasonable notice to the Executive and an opportunity for the Executive, together with his
legal counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Executive was guilty of conduct constituting Just Cause and specifying the particulars thereof. The effective date of any termination pursuant to
this section shall be the date on which such resolution is given to the Executive.
  Article V.                  Termination of Employment by the Corporation Without Just Cause or by the Executive for Good Reason
 
  If at any time within two years following a Change of Control the Executive's employment is terminated, (a) by the Corporation other than for Just Cause or (b) by the Executive in
response to a Good Reason, the following provisions shall apply:
 (a)    The Executive shall be entitled to receive, and the Corporation shall pay to the Executive, immediately following
termination, a cash amount equal to three times the Annual Compensation of the Executive less required statutory deductions;(b)    The Executive shall continue to receive until the earlier of
(i) three years after the date of termination or (ii) receipt of equivalent benefits from a new employer, all group benefits including health, dental, life and car allowance (excluding all maintenance and operating expenses) other than
disability insurance benefits on the scale provided by the Corporation to the Executive as at the date of termination or in lieu of such continued coverage, the Executive shall be entitled to receive a cash amount equal to the value to the Executive
(as determined by a chartered accountant or firm of chartered accountants acceptable to the Corporation and the Executive) of such coverage for such period of time;
 (c)    The Executive will
also be entitled to receive on termination the normal and any supplementary pension benefits in effect on the date of termination according to the terms of the Corporation's registered pension plans and the Retirement Agreement or according to
similar provisions of any successor plan, of which the Executive is a member at the date of termination (the "Retirement Plans"). The Executive's total pension entitlement and retirement options will be determined on the basis that the Executive had
three years of credited service and age under the Retirement Plans at his date of termination of employment (over and above his actual years of credited service as otherwise determined). In addition, such additional years of service shall be
included for the purpose of determining final or best average earnings assuming that the Executive's monthly rate of salary at date of termination would have continued unchanged during the   
 
  period of
additional service. For Retirement Plans that include performance bonuses in the definition of pensionable earnings, the average of the highest three actual bonuses earned in the five years immediately prior to the date of termination shall be used
for calculating the bonuses for each year during the severance period used for the purpose of determining final or best average earnings. Any portion of the total pension entitlement of the Executive not eligible to be paid under provisions of the
registered pension plans of the Corporation shall be payable as supplementary payments in accordance with the Retirement Agreement;
 (d)    If at the date of termination of the Executive's
employment, the Executive holds options for the purchase of shares under the Stock Option Plans, all options so held shall, unless the Executive has breached the terms of section 13 hereof, (i) immediately vest to the extent they have not already
vested at such date and (ii) continue to be held, in both cases, notwithstanding the terms of the Stock Option Plans, on the same terms and conditions as if the Executive continued to be employed by the Corporation;
 (e)
    If at the date of the termination of the Executive's employment, the Executive owes any money to the Corporation pursuant to loans to the Executive for the purchase of shares under the Stock Option Plans or for
assisting the Executive to purchase property, such loans shall, notwithstanding the terms of any other agreement between the Corporation and the Executive respecting these loans, be repayable by the Executive in the same manner and at the same time
as if the Executive continued to be employed by the Corporation following such termination, provided that if the Executive has breached the terms of section 13 hereof, the loans shall become immediately due on the date of such breach and shall be
repaid forthwith. For greater certainty, this section 5 applies with respect to each Change of Control until this Agreement has been terminated in accordance with section 14 hereof. In addition, with
respect to a particular Change of Control, this section 5 expires two years following such Change of Control unless this Agreement is otherwise terminated in accordance with section 14 hereof. This section 5 does not apply in the event of the
termination of the employment of the Executive as a result of death, Disability or Retirement or by the Executive otherwise than in response to a Good Reason or by the Corporation for Just Cause. If the Executive or the Corporation intend to
terminate the Executive's employment as contemplated in this section, the party having such intention shall give the other notice thereof and the effective date of such termination shall be the date on which such notice is given to the other party.
 
  Article VI.               Disability 
  In the event of Disability of the Executive, this Agreement may be terminated by the Corporation on thirty days' notice. Notwithstanding anything contained in this
Section 6, the Executive shall be entitled to all benefits provided under the disability and pension plans of the Corporation applicable to the Executive at the date of this Agreement.  
 
Article VII.            No Obligation to Mitigate 
  The Executive shall not be required to mitigate the amount of any payment or benefit provided for in section 5 of this Agreement by seeking other employment or otherwise,  
 
  nor shall
the amount of any payment provided for in section 5(a) be reduced by any compensation earned by the Executive as a result of employment by another employer after termination or otherwise.  
 
Article VIII.         Binding on Successors 
 (a)    The
Corporation will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Corporation, by agreement in form and substance satisfactory to the
Executive, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform it if no such succession had taken place. Failure of the Corporation to obtain such
agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Executive to compensation from the Corporation on the same terms and conditions as the Executive would be entitled hereunder if the
Executive terminated his employment for Good Reason. As used in this Agreement, "Corporation" shall mean the Corporation as hereinbefore defined and any successor to its business and/or assets as aforesaid which executes and delivers the agreement
provided for in this section 8 (a) or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. (b)    This Agreement shall ensure to the
benefit of and be enforceable by the Executive's successors or legal representatives but otherwise it is not assignable. If the Executive should die while any amounts would still be payable to the Executive hereunder if the Executive had continued
to live, all such amounts unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive's estate.
  Article
IX.               Expenses  
  The Corporation agrees to pay all legal
fees and expenses incurred by the Executive as a result of the termination of his employment in circumstances covered by this Agreement (including all such fees and expenses, if any, incurred in contesting or disputing any such termination or in
seeking to obtain or enforce any right or benefit provided by this Agreement).  
  Article X.                  Entire Agreement 
  Except for the Executive's rights
to continued participation in the Corporation's employee benefit plans, including, without limitation, the Corporation's Stock Option Plans, this Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter
hereof and superceedes and replaces the terms of the Prior Agreements. Upon execution of the present Agreement, the Prior Agreements will be of no further force or effect. No amendment or waiver of this Agreement shall be binding unless executed in
writing by both parties hereto.  

  Article XI.              
Confidential Information 
  In the event of termination of employment of the Executive, the Executive agrees to keep confidential all information of a
confidential or proprietary nature concerning the Corporation, its subsidiaries and affiliates and their respective operations, assets, finances, business and affairs and further agrees not to use such information for personal advantage, provided
that nothing herein shall prevent disclosure of information which is publicly available or which is required to be disclosed under appropriate statutes, rules or law or legal process.  
  Article XII.            Choice of Law 
  This Agreement
shall be governed and interpreted in accordance with the laws of the Province of Québec and the courts of the Province of Québec shall be the sole and proper forum with respect to any suits brought with respect to this Agreement. The
present agreement has been drafted in English at the request of the Executive. La présente entente a été rédigée en anglais à la demande de l'employé.  
  Article XIII.         Non-Competition  
  The Executive agrees that in the event of his termination of service with the Corporation under Section 5 of this Agreement, the Executive will not for a period of 2 years beginning on the date of such
termination, without written approval of the Board of Directors, undertake or carry on, either alone or in partnership, or either on his own account or on behalf of or as agent or employee or director of any person or persons, firm or corporation
(other than the Corporation), or be employed or interested or engaged (other than as a holder of securities of not more than five percent (5%) of the stock or equity of any corporation the capital stock of which is publicly traded) in any business
in competition with that carried on by the Corporation at the date of termination.  
  Article XIV.          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: 
  [*] 

  (b)    If to the Corporation: 
  Abitibi-Consolidated Inc.
 Att. Jacques Vachon 
 1155, Metcalfe Street, Suite 800
 Montréal (Québec) H3B 5H2 
  Attention:  Chairman of the H.R.C.C. 
 Telecopier: (416) 367-3549  
  Article XV.             Termination  
  This Agreement shall terminate immediately on the occurrence of any
of the following events: (i) the date of death of the Executive; (ii) voluntary resignation by the Executive from the Corporation otherwise than in response to a Good Reason; (iii) the giving of notice by the Corporation in the event
of Disability as contemplated by section 6 hereof; (iv) termination for Just Cause; (v) termination of employment of the Executive at any time when there has been no Change of Control or more than two years after the immediately preceding
Change of Control; or (vi) satisfaction by the Corporation of its obligations under section 5 of this Agreement in the event of termination of the Executive in the circumstances contemplated by section 5.  
  Article XVI.          Copy of
Agreement           
  The Executive hereby acknowledges receipt of a copy of this Agreement duly signed by the Corporation.  
  
   
   IN WITNESS WHEREOF   the parties hereto have duly executed and delivered this Agreement.  

   

	    
	   ABITIBI-CONSOLIDATED INC. 
    

	   
	    By:   

 
	    
	    

	   
	   By:   

 
	    
	    

	  Witness: 
	  EXECUTIVE: 
    

	     

 	     

 
	    
	    

	    
	    

	    
	    

    
 
  
     Abitibi Consolidated U.S. Severance Compensation Agreement  
  [US SCA Memo for U.S.
Executives][I, [*], hereby acknowledge that the Severance Compensation Agreement entered into with Abitibi-Consolidated Inc. (the Company), has been amended under sections No. 5 and No. 13 in order to ensure the agreement complies with
legislative requirements, notably the American Jobs Creation Act.  
  I understand that these amendments will cause a delay in the remittance of compensation defined in the terms of the Agreement until
the seventh (7th) month anniversary of my termination.  
  Signed:       __________________________ 
  Dated:        __________________________ ]

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