BOW Bowhead Specialty Holdings Inc

On November 26, 2007, Bowater Incorporated (the “Company”) and Pierre Monahan, the Company’s Executive Vice President – Building Products, entered into certain arrangements providing for the termination of Mr. Monahan’s employment. Pursuant to a letter agreement dated November 26, 2007 (the “Letter Agreement”), Mr. Monahan’s employment was terminated effective as of November 24, 2007. The letter agreement also provided that Mr. Monahan is entitled to: (1) severance pay, in accordance with the terms of his employment agreement, of C$1,581,023; (2) a lump sum payment of his retirement benefits under the Company’s retirement plans, calculated as if he had met the years-of-service threshold (a benefit conferred in exchange for his execution of a Release Agreement described below) (the extra benefit totaling C$322,000); (3) accelerated vesting of outstanding equity awards, which will entitle Mr. Monahan to 11,860 shares of common stock of AbitibiBowater Inc., the Company’s parent company; and (4) perquisites of $30,000. The Letter Agreement also provides for the cancellation of Mr. Monahan’s Change in Control Agreement as of November 23, 2007 and the continuation of non-competition and non-disclosure obligations.

In connection with the Company’s agreement to calculate Mr. Monahan’s retirement benefits as if he had met the years-of-service threshold as well as the perquisite allowance, Mr. Monahan executed a Final Release, dated November 26, 2007, pursuant to which he released the Company and its affiliates from any and all actions, demands, suits, debts or other claims he may have against the Company, whether presently known or unknown, arising from any matter relating to or arising from his employment or termination by the Company.

Copies of the Letter Agreement and the Final Release are filed as Exhibits 10.1 and 10.2 to this report.