EXHIBIT 10.8
FIRST AMENDMENT
TO
AGREEMENT DATED JULY 24, 1998
This First Amendment to a certain Agreement dated July 24, 1998, by and
between Xxxxx X. Xxxxxxx, of the City of Burlington, in the Province of Ontario
(hereinafter called the "Executive") and BOWATER INCORPORATED, a corporation
incorporated under the laws of Delaware (hereinafter called the "Corporation");
RECITALS
WHEREAS, the parties have previously entered an Agreement dated July
24, 1998 (the "Agreement"), to provide for the Executive's continued employment;
WHEREAS, the Agreement provided for the amendment and termination of
certain employment agreements and in exchange therefore provided for certain
benefits in respect of the continued employment of the Executive during and
following such employment;
WHEREAS, the Executive has continued his employment with the
Corporation through the date hereof and intends to continue such employment
indefinitely;
WHEREAS, in recognition and appreciation of such continued employment,
the Corporation and the Executive have agreed to amend the Agreement to provide
for the immediate payment to the Executive of certain benefits which were
previously to be paid only upon the termination of such employment.
NOW, THEREFORE, the parties hereto agree as follows:
1. The heading to Section 5 and Section 5(a) are hereby amended
and restated in their entirety as follows:
"5. Payment of Termination Benefit
(a) In recognition of the long service and experience of the
Executive in the business carried on by Bowater Canada the
Corporation will pay or cause Bowater Canada to pay to the
Executive a principal sum of $2 million (Canadian) together
with interest thereon, calculated daily from July 24, 1998 to
October 26, 2001, at a rate equal to the LIBOR one-year rate
as of July 24, 1998, for the period July 24, 1998, to December
31, 1998, as of January 1, 1999, and January 1, 2000, for
years 1999 and 2000, respectively, and as of January 1, 2001,
for the period from
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January 1, 2001, to October 26, 2001. Interest shall be
compounded annually."
2. Section 5(b) is hereby amended and restated in its entirety as
follows:
"(b) The Termination Benefit shall be paid to the Executive as
a lump sum payment."
3. This First Amendment may be signed in counterparts by each
party and, when both parties shall have so signed, this First
Amendment shall be effective and binding.
4. All other terms and conditions of the Agreement shall remain
the same.
IN WITNESS WHEREOF, this First Amendment has been executed by the
parties hereto as of the day and year first above written.
BOWATER INCORPORATED
By /s/ Xxxxxx X. Xxxxxxx
-------------------------------------
Xxxxxx X. Xxxxxxx
Chairman, President and
Chief Executive Officer
Signed in the )
presence of: )
___________________________________ ) /s/ Xxxxx X. Xxxxxxx
-------------------------------------
Witness ) Xxxxx X. Xxxxxxx
Name:_______________________________)
Date: _____________________________)
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