Document:

exv10w109

Exhibit 10.109

Agreement

relating to

Electricity hedges

Carter Holt Harvey Limited

CHH

and

Whakatane Mill Limited

WML

Date May 4, 2010

BELL GULLY

AUCKLAND VERO CENTRE, 48 SHORTLAND STREET

PO BOX 4199, AUCKLAND 1140, DX CP20509, NEW ZEALAND

TEL 64 9 916 8800 FAX 6438391683801

 

 

BELL GULLY

	 	 	 

	This Agreement is made on

	 	May 4, 2010

	 	 	 	 	 	 	 

	between

	 	 	(1	)	 	Carter Holt Harvey Limited (CHH)
	 
	 	 	 	 	 	 
	and

	 	 	(2	)	 	Whakatane Mill Limited (WML)

Introduction

	A.	 	CHH is party to the following electricity hedging agreements:

	 	(i)	 	an electricity hedging arrangement with Mighty River Power Limited as set
forth in the International Swap Dealers Association, Inc. (ISDA) Master Agreement
between CHH and Mighty River Power Limited dated 1 February 2000 (the Mighty River
Power ISDA Agreement), the schedule to the Mighty River Power ISDA Agreement dated
1 February 2000 and the Electricity Swap Confirmation dated 18 March 2004
(as supplemented by a letter dated 19 December 2005 from Mighty River Power Limited)
insofar as it relates to Grid Reference Point ARI1101 for the quantity of 10MW
(together, the Mighty River Power Agreement); and

	 	(ii)	 	an electricity hedging agreement with Contact Energy Limited as set forth in the ISDA Master
Agreement between Seller and Contact Energy Limited dated 9 August 2001 (the Contact ISDA
Master Agreement), the schedule to the Contact ISDA Master Agreement dated 9 August 2001 and
the Electricity Swap Confirmation dated 11 December 2006 insofar as it relates to
Grid Reference Point WRK2201 for the quantity of 5MW (together, the Contact Energy Agreement).

	B.	 	Pursuant to an asset purchase agreement between CHH and the WML dated on or about the date of
this agreement (the Asset Purchase Agreement), CHH is proposing to sell to WML, and WML is
proposing to purchase from CHH, the business assets of CHH’s Whakatane mill.

	C.	 	The parties wish to enter into this Agreement to record their agreement in respect of the
Mighty River Power Agreement, the Contact Energy Agreement (together, the Existing Hedging
Agreements) and any additional or replacement electricity hedging agreements which are
relevant to WML as owner of the Whakatane Mill.

It is agreed

	1.	 	Interpretation

In this Agreement, unless the context indicates otherwise:

1.1 Definitions

	 	 	 	Business Day means a day (other than a Saturday or Sunday) on which registered banks
in Auckland and Whakatane are open for business;

	 	 	 	Confidential Information includes, but is not limited to, the terms of this Agreement, all
strategies, forecasts, projects, plans, financial information of a party or any of its
related companies, terms of supply and all other documents, records and information (in
whatever form) of a party or any of its related companies which is of a confidential
nature;

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	 	 	Counterparty means:

	 	(a)	 	in respect of the Existing Hedging Agreements, Mighty River Power Limited
or Contact Energy Limited (as the case may be); and

	 	(b)	 	in respect of any New Electricity Hedging Agreement, the counterparty to
the New Electricity Hedging Agreement entered into by CHH;

	 	 	Electricity Hedging Agreements means the Existing Hedging Agreements together with any New
Electricity Hedging Agreement;

	 	 	New Electricity Hedging Agreement means any additional or replacement electricity hedging
agreement which is relevant to WML and approved by WML in accordance with this Agreement;

	 	 	Relevant Portion means the extent to which an Electricity Hedging Agreement is relevant to
WML, being:

	 	(a)	 	in the case of the Mighty River Power Agreement, Grid Reference Point
ARI1101 for the quantity of 10MW;

	 	(b)	 	in the case of the Contact Energy Agreement, Grid Reference Point WRK2201
for the quantity of 5MW; and

	 	(c)	 	in the case of any New Electricity Hedging Agreement, the grid reference
point and electricity MW specified by CHH under clause 6.1 (or as otherwise agreed by
the parties);

	 	 	Term has the meaning ascribed to it in clause 2 of this Agreement; and

	 	 	Whakatane Mill means the mill at Whakatane to be transferred from CHH to WML pursuant to
the Asset Purchase Agreement.

	1.2	 	General references

	 	 	In this Agreement, unless the context otherwise requires:

	 	(a)	 	any reference to information includes information in any form, whether
provided orally, or provided or stored in a visible, electronic or other form;

	 	(b)	 	a reference to a clause is a reference to a clause of this Agreement,;

	 	(c)	 	a reference to this Agreement or another document includes any variation,
novation or replacement of either of them;

	 	(d)	 	the singular includes the plural and vice versa;

	 	(e)	 	the word person includes an individual, a body corporate, an association of
persons (whether corporate or not), a trust, government or any public, statutory,
governmental, regulatory or judicial entity, department, agency or authority, in each
case, whether or not having a separate legal personality;

	 	(f)	 	a reference to a statute or other law includes regulations and other
instruments under it and consolidations, amendments, re-enactments of any of them;

	 	(g)	 	words importing one gender include the other genders;

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	 	(h)	 	if a party comprises more than one person, each of those person’s liability is
joint and several;

	 	(i)	 	a reference to a party to this Agreement or another document includes that
party’s successors and permitted assigns and substitutes; and

	 	(j)	 	where a word or phrase is given a particular meaning, other parts of
speech and grammatical forms have corresponding meanings.

	2.	 	Term

	 	 	 	The Term commences as at the date of this Agreement and continues until terminated in
accordance with clause 7 of this Agreement.

	3.	 	Performance

	3.1	 	Performance by CHH

	 	 	 	CHH will procure that:

	 	(a)	 	Mighty River Power Limited and Contact Energy Limited (each as a
Counterparty) will perform their respective obligations under the Existing Hedging
Agreements; and

	 	(b)	 	each Counterparty to any New Electricity Hedging Agreement to which this
Agreement applies will perform its obligations under that New Electricity Hedging
Agreement,

	 	 	to the extent of the Relevant Portion of each Electricity Hedging Agreement.

	3.2	 	Performance by WML

	 	(a)	 	Subject to clause 4 of this Agreement, WML will perform all obligations of CHH
under each Electricity Hedging Agreement to the extent of the Relevant Portion of
that Electricity Hedging Agreement, as if WML was a party to that Electricity Hedging
Agreement.

	 	(b)	 	For the avoidance of doubt, WML will be under no obligation to perform the
obligations specified in clause 3.2(a) prior to the commencement of the Term.

	4.	 	Payment

	4.1	 	Prior notification by CHH

	 	 	CHH will provide WML with written notice of all amounts due and payable by CHH under
the Electricity Hedging Agreements once CHH is advised or becomes aware of any amounts due
and payable. CHH will use reasonable endeavours to maximise the notice given to WML of any
payment to be made by WML under clause 4.2. It is acknowledged by WML that circumstances
relating to the Electricity Hedging Agreements will mean that the period of notice will
vary from time to time.

	4.2	 	Prior payment

	 	 	Subject to receipt of a notice from CHH under clause 4.1, WML will pay all amounts due
and payable by CHH under the Electricity Hedging Agreements (to the extent the payment
relates to the Relevant Portion of that Electricity Hedging Agreement) to CHH not less
than

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	 	 	one Business Day prior to the date which CHH is required to make that payment to a third
party under the relevant Electricity Hedging Agreement.

	4.3	 	Payment by CHH

	 	 	CHH will pay all amounts received by it from any Counterparty under any Electricity
Hedging Agreement (to the extent the payment relates to the Relevant Portion of that
Electricity Hedging Agreement) to WML within seven Business Days of receipt of that
payment from that Counterparty. For clarity, CHH will not be liable to WML in the event
that any Counterparty fails to make payment as required under any Electricity Hedging
Agreement.

	4.4	 	Payments

	 	 	Any payments made by WML or CHH under this clause 4 will:

	 	(a)	 	be in New Zealand dollars;

	 	(b)	 	be made without counter-claim or set-off;

	 	(c)	 	be made before 3.00pm New Zealand time on the due date for payment in the
manner specified by CHH or WML (as the case may be).

	5.	 	Variations and termination

	 	 	CHH shall not agree to any amendment or termination of any Electricity Hedging
Agreement to the extent relevant to any Relevant Portion, except with the prior written
approval of WML, such approval not to be unreasonably withheld or delayed.

	6.	 	New Electricity Hedging Agreements

	6.1	 	Terms

	 	 	In the event that CHH proposes to enter into a New Electricity Hedging Agreement after
the date of this Agreement, CHH will advise WML of the terms of the proposed Electricity
Hedging Agreement relevant to WML (by grid reference point and electricity MW).

	6.2	 	Prior approval of WML

	 	 	This Agreement will only apply to a New Electricity Hedging Agreement if WML has given
its prior approval in respect of that agreement. For the avoidance of doubt, WML can
decide not to give its approval at its sole discretion. WML acknowledges that CHH may be
required to enter into a New Electricity Hedging Agreement within a very short time period
and WML will, to the extent reasonably practicable, provide a response to CHH within the
response period specified by CHH, acting reasonably. WML will be deemed to have not given
its approval if it fails to respond to CHH within the time period specified by CHH when
seeking WML’s approval.

	6.3	 	Approval by WML

	 	 	Once WML has given its approval to CHH entering into a New Electricity Hedging
Agreement:

	 	(a)	 	that approval may not be revoked;

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	 	(b)	 	CHH may take such steps as it considers necessary to complete the documentation
for, and give effect to, the New Electricity Hedging Agreement; and

	 	(c)	 	that New Electricity Hedging Agreement will be subject to this Agreement to
the extent of the Relevant Portion.

	7.	 	Termination

	7.1	 	Termination of agreement for cause

	 	 	If any party (Defaulting Party) commits a material breach of this Agreement, which is
not capable of being remedied, or if the breach is capable of being remedied, is not
remedied within five Business Days after notice of such breach from another party
(Notifying Party), then the Notifying Party may:

	 	(a)	 	if the breach relates to a particular Electricity Hedging Agreement,
terminate the provisions of this Agreement to the extent they relate to that
Electricity Hedging Agreement; or

	 	(b)	 	terminate this Agreement,

	 	 	in each case by giving 15 days prior written notice to the Defaulting Party. If a party
terminates the provisions of this Agreement to the extent they relate to a particular
Electricity Hedging Agreement, then neither party will be required to pay any amounts
which become payable after the date of termination under clause 4.2 or clause 4.3 in
respect of that particular Electricity Hedging Agreement.

	7.2	 	Termination for insolvency

	 	 	A party may terminate this Agreement immediately by notice in writing to the other
party if any step is taken to appoint a receiver, a receiver and manager, a provision
liquidator, a liquidator, an administrator or other like person of the whole or part of
that other party’s assets, operations or business, or any action is taken by any person
that is analogous to the foregoing.

	7.3	 	Mutually agreed termination

	 	 	The parties may mutually agree in writing to terminate this Agreement prior to the
expiry of the Term.

	7.4	 	Change of control

	 	(a)	 	Either party may terminate this Agreement upon a change of control of either
party, with effect from the date on which such change of control occurs.

	 	(b)	 	For the purposes of this Agreement, change of control means:

	 	(i)	 	where a party ceases to be controlled directly or indirectly by
Mr. Graeme Richard Hart;

	 	(ii)	 	where there is a change in direct or indirect control of a
party (but, for the avoidance of doubt, if a party is controlled directly or
indirectly by Mr Graeme Richard Hart, there will not be a change in control of
that party arising from any transfer or other transaction if, following that
transfer or transaction, that party continues to be controlled directly or
indirectly by Mr. Graeme Richard Hart);

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	 	(iii)	 	a sale of the majority of the assets comprising the Whakatane Mill to a
third party who is not controlled directly or indirectly by Mr. Graeme Richard
Hart; or
	 
	 	(iv)	 	a sale of the majority of the assets of CHH or WML to a third
party who is not controlled directly or indirectly by Mr. Graeme Richard Hart.

	7.5	 	Termination without prejudice

	 	(a)	 	The termination of this Agreement will not of itself:

	 	(i)	 	relieve a party of its obligation to pay any money outstanding
(that is property due under this Agreement) on the date of termination;

	 	(ii)	 	constitute a waiver of any remedy to which a party may be
entitled in respect of any breach of this Agreement; or

	 	(iii)	 	affect the rights and obligations of the parties, or relieve
them of any liability, in respect of prior events.

	 	(b)	 	In the event the provisions of this Agreement are only terminated to the
extent they relate to a particular Electricity Hedging Agreement, clause 7.5(a) will
be applied in respect of that Electricity Hedging Agreement and the rights and
obligations of the parties under this Agreement in respect of any other Electricity
Hedging Agreement will be unaffected.

	8.	 	Assignment

	 	 	This Agreement may not be assigned by either party without the prior written consent
of the other party. Such consent can be withheld by a party at that party’s sole
discretion.

	9.	 	Dispute resolution process

	9.1	 	Procedure

	 	 	If any dispute arises between the parties under or in connection with this Agreement:

	 	(a)	 	the dispute must initially be referred to the parties’ respective nominated
representatives who are responsible for the management of this Agreement;

	 	(b)	 	the representatives must then use their reasonable endeavours to resolve
the dispute; and

	 	(c)	 	if the parties’ representatives are unable to resolve the dispute within 30
days of the referral, or such other period as is agreed in writing, the dispute must
be referred to the parties’ respective Chief Executives who will use their reasonable
endeavours to resolve the dispute within 10 days.

	9.2	 	No resolution

	 	 	If the dispute cannot be resolved by the parties’ respective Chief Executives within
the time period specified in clause 9.1(c), either party may require the dispute to be
referred to an Independent Expert as defined in clause 9.4. The Independent Expert’s
decision will be final and binding on the parties, save for manifest error.

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	9.3	 	Confidentiality

	 	 	The parties will hold confidential, unless otherwise required by law or at the
direction of a court of competent jurisdiction, all information relating to the subject
matter of the dispute as disclosed during or for the purposes of dispute resolution under
this clause 9.

	9.4	 	Independent Expert

	 	 	The independent Expert will be appointed in accordance with the following provisions:

	 	(a)	 	the Independent Expert will be appointed by both parties or, where the
parties cannot agree within 10 Business Days, appointed by the President of the New
Zealand Law Society;

	 	(b)	 	the Independent Expert will act as an expert and not as an arbitrator and
the law relating to arbitration will not apply to the Independent Expert’s
determination; and

	 	(c)	 	the costs and expenses of the Independent Expert will be shared by the
parties equally.

	10.	 	Confidential Information

	10.1	 	Confidentiality

	 	 	Each party acknowledges that it may during the Term receive Confidential Information
from the other party. Each party will treat all Confidential Information as confidential
and must not:

	 	(a)	 	disclose the Confidential Information to any person (except the parties’
employees, contractors, agents and advisers and then only to such extent as may be
required to enable the relevant parties to comply with the provisions of this
Agreement);

	 	(b)	 	use or exploit the Confidential Information other than for the purpose for
which it has been provided to the relevant party pursuant to this Agreement; or

	 	(c)	 	make any public disclosure or announcement of this Agreement or its terms,

	 	 	without the prior written consent of the other party. The obligations imposed by this
clause survive the termination of this Agreement.

	10.2	 	Exceptions

	 	 	The obligations of confidentiality under clause 10.1 do not apply to the extent that:

	 	(a)	 	disclosure of Confidential Information is required by law or by the listing
requirements of any relevant stock exchange;

	 	(b)	 	Confidential Information is, or becomes, available in the public domain
without breach by a party of its confidentiality obligations (including under this
Agreement); or

	 	(c)	 	disclosure is necessary to obtain the benefits of, and fulfil obligations
under, this Agreement.

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	11.	 	Notices
	 
	11.1	 	Notices

	 	 	Any notice or other communication (including any request, demand, consent or approval)
to or by a party to this Agreement:

	 	(a)	 	Method

	 	 	 	may be given by personal service, post, facsimile or email;

	 	(b)	 	In writing

	 	 	 	must be in writing, legible and in English addressed as shown below:

	 	(i)	 	Carter Holt Harvey Limited

	 	 	 	 	 

	 

	 	Address:
	 	Physical Address
	 

	 	 	 	Kinleith Site
	 

	 	 	 	State Highway 1
	 

	 	 	 	Kinleith
	 

	 	 	 	Tokoroa 3491
	 
	 	 	 	 
	 

	 	 	 	Postal Address
	 

	 	 	 	Private Bag 6
	 

	 	 	 	Tokoroa 3444
	 

	 	Attention:
	 	Karl Klinge
	 

	 	Telephone:
	 	07 885 5999
	 

	 	Facsimile:
	 	07 886 3614
	 

	 	Email:
	 	Karl.Klinge@chh.co.nz
	 
	 	 	 	 
	 	 	Copy to each of the persons named below:
	 
	 	 	 	 
	 

	 	Address:
	 	173 Captain Springs Road
	 

	 	 	 	Te Papapa
	 

	 	 	 	Private Bag 92-106
	 

	 	 	 	Auckland 1142
	 

	 	Attention:
	 	Business Legal Counsel — Pulp, Paper and Packaging
	 

	 	Facsimile:
	 	09 633 0601
	 
	 	 	 	 
	 	 	Rank Group Limited
	 

	 	Address:
	 	Level Nine
	 

	 	 	 	148 Quay Street
	 

	 	 	 	PO Box 3515
	 

	 	 	 	Auckland
	 

	 	Attention:
	 	Greg Cole
	 

	 	Facsimile:
	 	09 366 6263
	 

	 	Email:
	 	Greg.Cole@rankgroup.co.nz
	 
	 	 	 	 
	 	 	Rank Group Limited
	 

	 	Address:
	 	Level Nine
	 

	 	 	 	148 Quay Street
	 

	 	 	 	PO Box 3515
	 

	 	 	 	Auckland
	 

	 	Attention:
	 	Helen Golding
	 

	 	Facsimile:
	 	09 366 6263
	 

	 	Email:
	 	Helen.Golding@rankgroup.co.nz

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	 	(ii)	 	Whakatane Mill Limited

	 	 	 	 	 

	 

	 	Address:
	 	Mill Road
	 

	 	 	 	Whakatane
	 

	 	Attention:
	 	Graham Millar
	 

	 	Telephone:
	 	07 306 3800
	 

	 	Facsimile:
	 	07 306 3655
	 

	 	Email:
	 	Graham.Millar@chh.co.nz
	 
	 	 	 	 
	 	 	Copy to each of the persons named below:
	 
	 	 	 	 
	 

	 	SIG Group	 	 
	 

	 	Address:
	 	Laufengasse 18 CH-8212 Neuhausen am Rheinfall
	 

	 	 	 	Switzerland
	 

	 	Attention:
	 	Marco Haussener
	 

	 	Facsimile:
	 	0041 52 674 7200
	 

	 	Email:
	 	Marco.Haussener@sig.biz
	 
	 	 	 	 
	 

	 	SIG Group	 	 
	 

	 	Address:
	 	Laufengasse 18 CH-8212 Neuhausen am Rheinfall
	 

	 	 	 	Switzerland
	 

	 	Attention:
	 	Daniel Petitpierre
	 

	 	Facsimile:
	 	0041 52 674 6556
	 

	 	Email:
	 	Daniel.Petitpierre@sig.biz

	 	 	 	or to any other address last notified by the party to the sender by notice given in
accordance with this clause 11.1;

	(c)	 	Signature

	 	 	 	in the case of a corporation, must be signed by an officer or authorised representative of
the sender; and

	(d)	 	Receipt

	 	 	 	is deemed to be given by the sender and received by the addressee:

	 	(i)	 	Delivery
	 
	 	 	 	if delivered in person, when delivered to the addressee;
	 
	 	(ii)	 	Post

	 	 	 	if sent by post, on the third Business Day after posting if posted in New Zealand, or
on the seventh Business Day if posted to or from a place outside New Zealand, in each
case from and including the date of postage;
	 
	 	(iii)	 	Facsimile
	 
	 	 	 	if sent by facsimile transmission, on the date and time shown on the transmission
report by the machine from which the facsimile was sent which indicates that the
facsimile was sent in its entirety and in legible form to the facsimile number of the
addressee notified for the purposes of this clause 11.1; or

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	 	(iv)	 	Email
	 
	 	 	 	if sent by email, on the date and time at which it enters the addressee’s
information system (as shown in a confirmation of delivery report from the
sender’s information system, which indicates that the email was sent to the
email address of the addressee notified for the purposes of this clause 11.1),

	 	 	but if the delivery or receipt is on a day which is not a Business Day or is after 5.00 pm
(addressee’s time), it is deemed to have been received at 9.00 am on the next Business
Day.

	11.2	 	Reliance on notice

	 	 	A notice or communication given in accordance with clause 11.1 can be relied on by the
addressee and the addressee is not liable to any other person for any consequences of that
reliance if the addressee believes it to be genuine, correct and authorised by the sender.

	12.	 	General

	12.1	 	Waivers in writing

	 	 	No waiver by either party (the Waiving Party) of any provision of or right, remedy or
power of the Waiving Party under this Agreement, is to be effective unless it is in
writing signed by the Waiving Party and any such waiver is to be effective only in the
specific instance and for the specific purpose for which it is given. No failure or delay
by a party to exercise any right, remedy or power under this Agreement or to insist on
strict compliance by the other party with any obligation under this Agreement, and no
custom or practice of the parties at variance with the terms of this Agreement, will
constitute a waiver of the right of that party to demand exact compliance with this
Agreement.

	12.2	 	Severability

	 	 	If any provision of this Agreement is, or becomes, unenforceable, illegal or invalid
for any reason, the relevant provision is to be deemed to be modified to the extent
necessary to remedy such unenforceability, illegality or invalidity or if this is not
possible then such provision must be severed from this Agreement, without affecting the
enforceability, legality or validity of any other provision of this Agreement.

	12.3	 	Further assurances

	 	 	Each party will make all applications, execute all documents and do or procure all
other acts and things reasonably required to implement and to carry out its obligations
under, and the intention of, this Agreement.

	12.4	 	Entire agreement

	 	 	This Agreement contains the entire understanding between the parties concerning the
subject matter of this Agreement and supersedes and cancels any previous agreements,
understandings or arrangements (whether written or oral) between the parties.

	12.5	 	Amendment and variations

	 	 	This Agreement cannot be amended or varied except in writing signed by the parties.

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	12.6	 	Governing law and jurisdiction

	 	 	This Agreement is governed by the laws of New Zealand and the parties submit to the
non-exclusive jurisdiction of the courts of New Zealand in respect of any dispute or
proceeding arising out of this Agreement,

	12.7	 	Counterparts

	 	(a)	 	This Agreement may be executed in any number of counterparts each of which is to
be deemed an original, but all of which together will constitute a single instrument.

	 	(b)	 	A party may enter into this Agreement by executing any counterpart.

	 	(c)	 	This Agreement may be executed on the basis of an exchange of facsimile
copies and execution of this Agreement by such means is to be a valid and sufficient
execution.

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Execution

Executed as an agreement.

Executed by Carter Holt Harvey 
Limited

/s/ Helen D. Golding

 

Authorised Signatory

HELEN D. GOLDING

 

Print Name

Executed by Whakatane Mill 
Limited

/s/ Helen D. Golding

 

Authorised Signatory

HELEN D. GOLDING

 

Print Name

12exv10w110

Exhibit 10.110

EXECUTION COPY

TRANSITION SERVICES AGREEMENT

     THIS TRANSITION SERVICES AGREEMENT, dated as of May 4, 2010 (“Effective Date”), by and
between Carter Holt Harvey Limited (“CHH”) and Evergreen Packaging Inc. (“Evergreen”) (this
“Agreement”).

     WHEREAS, Evergreen is contemporaneously with the execution and delivery of this Agreement
being sold by subsidiaries of Service Provider to Reynolds Group Holdings Inc. (the “Buyer”);

     WHEREAS, Buyer and Evergreen desire in connection with the aforementioned transaction that the
Service Provider (as defined below) provide the services identified on Schedule I hereto
(“Services”) to Evergreen and its affiliates engaged in the beverage packaging business (Evergreen,
together with such affiliates, the “Service Receivers”) pursuant to the terms of this Agreement.

     NOW, THEREFORE, in consideration of the foregoing and the respective warranties, covenants and
agreements below, and intending to be legally bound, the parties agree as follows:

     Section 1. Definitions

     In this Agreement, the following terms shall have the following meanings.

     “Hart Group” means (i) Graeme Hart, (ii) his spouse and members of his immediate family
(including siblings, children, grandchildren and children and grandchildren by adoption) and (iii)
in the event of incompetence or death of any of the persons described in clauses (i) and (ii)
hereof, such person’s transferee by will, estate, executor, administrator, committee or other
personal representative.

     “GST” means taxes payable pursuant to the GST Act.

     “GST Act” means the New Zealand Goods and Services Tax Act 1985.

     “Person” means an individual, corporation, partnership, limited liability company,
association, trust or other entity or organization, including a government or political subdivision
or an agency or instrumentality thereof.

     “Recipient” has the meaning set forth in Section 8(a).

     “Required Consents” means any consent, waiver, permit or sublicense required under the terms
of any agreement between the Service Provider and a third party in order for the Service Provider
to provide the Services.

     “Service Provider” means CHH or any of its affiliates (other than any Service Receiver)
providing the Services pursuant to this Agreement.

 

 

     “Service Receiver Data” means all of the data provided by the Service Receiver or created by
or for the Service Provider solely on behalf of the Service Receiver that is used by the Service
Provider in relation to the provision of the Services, including employee information, customer
information, product details and pricing information.

     “Supplier” has the meaning set forth in Section 8(a).

     “Taxable Supply” shall have the meaning given to it in the GST Act.

     Section 2. Services; Parties’  Obligations

          (a) Commencing on the Effective Date, the Service Provider shall provide the Services to the
Service Receiver in accordance with this Agreement.

          (b) If, after the execution of this Agreement, a Service Receiver determines that a service is
provided to it by one of the Service Providers as of the Effective Date, but such service was
inadvertently omitted from the applicable Schedule, the Service Receiver shall so notify the
Service Provider and such omitted service shall be added by amendment to Schedule I, with
reasonable adjustments to pricing (which shall in any event be determined using the same
methodology as for the other Services hereunder) and term as might be appropriate under the
circumstances.

          (c) The Service Receiver may request an additional service by providing the Service Provider
with reasonable prior written notice. The parties shall negotiate in good faith the provision of
such additional service. If the parties reach agreement regarding the terms on which such service
will be provided, Schedule I shall be amended by adding such additional service.

          (d) The Service Provider shall perform the Services (i) in a manner substantially consistent
with its past practices, including as to nature, scope, volume, quality and timeliness, using at
least the same standard of care that the Service Provider used in the six (6) months’ period
immediately prior to the Effective Date in performing the Services for the business of the Service
Receiver, and (ii) in compliance with all applicable laws.

          (e) The Service Provider will comply with all health and safety and other reasonable policies
and procedures of the Service Receiver in providing the Services at the premises of the Service
Receiver (to the extent such policies and procedures are identified to the Service Provider).

          (f) To the extent that CHH or Evergreen will not itself provide or receive, respectively, any
Service because such Service is to be provided or received by another Service Provider and Service
Receiver, respectively, then CHH and Evergreen shall be liable for the due and timely performance
of the obligations hereunder by such Service Provider or Service Receiver, respectively.

2

 

     Section 3. Fees and Costs; Audit

          (a) The Service Receiver shall pay the Service Provider a fee equal to the Service Provider’s
actual internal costs and expenses reasonably incurred in providing the Services, including, for
the avoidance of doubt, the cost of the Service Provider’s personnel and employees providing the
Services. The fee for a given Service shall be as set forth on Schedule I.

          (b) The Service Receiver shall reimburse the Service Provider for any actual third-party costs
and expenses that the Service Provider reasonably incurs in providing the Services, including (i)
the cost of any third-party software licenses required to perform the Services, and (ii) the
services of any third-party consultants reasonably required to deliver the Services.

          (c) Within twenty-one (21) days of the last day of each calendar month, the Service Provider
shall provide to the Service Receiver an invoice for the preceding month’s Services, which shall
include (i) a description of the Services provided by the Service Provider to the Service Receiver
for such month, (ii) the costs and expenses due in respect of such Services, which shall be a fixed
amount (the “Fixed Amount”) based on budgeted costs plus the corresponding GST (if any),
the cost of which shall be borne by the Service Receiver in accordance with Section 8, and (iii)
reasonable documentation verifying such costs and expenses. The Fixed Amount shall be paid by the
Service Receiver in full within fifteen (15) days of the Service Receiver’s receipt of the invoice
to an account designated by the Service Provider.

          (d) Before March 31 of a given calendar year, the Service Provider shall conduct an annual
adjustment of the Fixed Amounts paid by the Service Receiver during the preceding calendar year to
adjust the actual costs and expenses incurred by the Service Provider in connection with the
provision of the Services during such preceding year. If the adjustment discloses that the Service
Receiver owes additional amounts to the Service Provider, the Service Receiver shall pay such
amounts promptly after the receipt of the notice thereof from the Service Provider, such notice to
be accompanied with reasonable documentation verifying such costs and expenses. Conversely, if the
adjustment discloses that the Service Receiver has overpaid with respect to any Services, the
Service Provider shall promptly return any such funds to the Service Receiver.

          (e) At the request and expense of the Service Receiver, the Service Provider shall permit the
Service Receiver or its authorized representatives, at reasonable intervals and times and upon
reasonable notice (but no more than once in any twelve (12)-month period), to examine the Service
Provider’s books and records relating to the costs and expenses of the Services. If, as a result of
such audit, the Service Receiver determines that:

     (i) the Service Provider has overcharged the
Service Receiver, the Service Receiver shall notify the Service
Provider thereof and the parties shall discuss in good faith the
overcharged amount. If, within thirty (30) days of commencement of such
discussion, the Service Provider does not agree with the overcharged
amount, the dispute shall be resolved according to the procedures set
forth in Section 5 hereof. If, on the other hand, the Service Provider
agrees to the overcharged amount, the Service Provider shall pay
promptly to the Service

3

 

Receiver the amount of the overcharge, plus interest at the rate per annum equal to the 90-Day
Treasury Rate in effect on the date the audit is completed, calculated from the date of receipt by
the Service Provider of the overcharged amount until the date of payment to the Service Receiver.

     (ii) the Service Provider has undercharged the Service Receiver, the Service
Provider shall promptly invoice the Service Receiver and the Service Receiver shall
promptly pay the additional amount due.

     Section 4. Representations; Disclaimer of Warranties

          (a) Each party warrants and represents to the other party that such party
(i) has the legal capacity and authority to enter into this Agreement, to become legally obligated
under the terms of this Agreement, and to perform its obligations under this Agreement, and
(ii) will comply at all times during the term hereof with applicable laws associated with
providing the Services hereunder.

          (b) EXCEPT AS PROVIDED IN THIS AGREEMENT, CHH MAKES NO
REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED,
INCLUDING ANY REPRESENTATION OR WARRANTY AS TO THE QUALITY OR
CONDITION OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF
THE SERVICES TO BE PROVIDED UNDER THIS AGREEMENT.

     Section 5. Project Managers; Resolution of Disputes

          (a) The parties shall each appoint a person to act as its project manager in relation to the
Services (each, a “Project Manager”) to facilitate orderly provision and receipt of the Services
and to deal with issues arising out of the performance of the Services and to hold preliminary
discussions to resolve any claims or disputes (“Disputes”) in connection with the Agreement. The
Project Manager for CHH will be Jonathan Iles, and the Project Manager for Evergreen will be Larry
Shutzberg.

          (b) If the parties’ Project Managers are unable to resolve any Dispute during the 45-day
period beginning on the date the Project Manager of a party receives written notice of the Dispute
from the Project Manager of the other party, then the parties shall jointly submit the unresolved
Dispute to Pat O’Connell (or his successor), or a person chosen by Pat O’Connell (or his
successor), who shall act as an arbitrator to determine the Dispute as soon as practicable.

     Section 6. Ownership of Data

     The Service Receiver Data (including all intellectual property rights therein) shall be and
shall remain the property of the Service Receiver. All other data, information and intellectual
property used by the Service Provider in connection with provision of the Services shall remain
property of the Service Provider.

4

 

     Section 7. Third-Party Arrangements

          (a) The Service Receiver acknowledges that the Services provided through third parties or
using third-party information, systems, software and/or equipment are subject to the terms of
applicable agreements between the Service Provider and such third parties, and the Service Receiver
agrees to comply with such terms, provided they have been first disclosed to the Service
Receiver in writing and relate to the Service Receiver’s use of the Services.

          (b) Subject to Section 7(c), the Service Provider shall grant to the Service Receiver a
sub-license or sub-lease, as applicable, under rights it may have, if any, in such third party
information, systems, software or equipment, but only to the extent it has the right to grant such
sub-license or sub-lease.

          (c) To the extent that the Service Provider requires a Required Consent in order to provide
the Services, including products and services under third-party procurement contracts, the Service
Provider must use its commercially reasonable efforts to obtain any such Required Consent. In the
event that the Service Provider is unable to obtain any such Required Consent, the parties will
work together to agree upon a commercially reasonable alternative arrangement.

     Section 8. Goods and Services Tax

          (a) If one party (“Supplier”) makes a Taxable Supply to another party (“Recipient”) pursuant
to this agreement, then the Recipient will pay to the Supplier, in addition to, in the same manner
and at the same time as, any other consideration that is payable to the Supplier for that supply,
an amount equal to the GST on that supply and the Supplier will issue a tax invoice to the
Recipient in respect of that supply.

          (b) Whenever section 25(1) of the GST Act applies, the Supplier must issue to the Recipient a
credit note or debit note (as appropriate) and the Recipient must pay to the Supplier, or the
Supplier must pay to the Recipient, an amount equal to the GST shown in that document.

          (c) If a party is entitled under this agreement to be reimbursed or indemnified by another
party, the amount claimed by the party seeking reimbursement or indemnification must be net of any
input tax credit or deduction from output tax to which the party seeking reimbursement or
indemnification, or where that party is a member of a GST group under section 55 of the GST Act,
the representative member of that group, is entitled.

     Section 9. Term; Termination and Effects of Termination

          (a) Subject to Section 8(c) or as otherwise indicated on Schedule I, this Agreement
commences on the Effective Date and shall remain in effect with respect to a given Service (or part
of a Service) until the Service Receiver terminates such Service (or part of a Service) in
accordance with Section 8(b). Notwithstanding the foregoing, this Agreement (i) shall terminate
from and after the date on which all or a portion of the equity interests of Evergreen or CHH or
any parent entity of Evergreen or CHH is issued to or sold, assigned or otherwise transferred to
any Person that is not controlled directly or indirectly by the Hart Group,

5

 

(ii) shall terminate with respect to a given Service Receiver (other than Evergreen), from and
after the date on which all or a portion of the equity interests of such Service Receiver is issued
to or sold, assigned or otherwise transferred to any Person that is not controlled directly or
indirectly by the Hart Group and (iii) shall terminate, with respect to a given Service, from and
after the date on which all or a portion of the equity interests of the Service Provider providing
such Service (other than CHH) is issued to or sold, assigned or otherwise transferred to any Person
that is not controlled directly or indirectly by the Hart Group. Upon termination of this Agreement
under this Section 8(a), any Service Receiver may elect to continue receiving the Services from the
Service Providers for a period of up to six (6) months, in which case the following Sections shall
survive any such termination during such six (6)-month period: Sections 2(e)-(f); Section 3;
Section 5(b); Section 7; and Sections 8(b)-(c).

          (b) The Service Receiver may discontinue a particular Service, or part of a Service, by giving
the Service Provider (i) (10) ten days’ prior written notice or (ii) such notice as required under
the terms of the third-party agreement pursuant to which such Service (or part thereof) is being
provided; provided, however, if any Service Receiver intends to terminate a
particular Service (or part thereof) because such Service Receiver wishes to receive such Service
(or part thereof) from a third party and the Service Provider reasonably determines that it would
incur costs that would not have been incurred but for such Service termination, the Service
Receiver shall bear all such costs. The Service Receiver will not be obliged to pay any further
costs or expenses in respect of any such discontinued Services or part of a Service.

          (c) In the event that a party (“Defaulting Party”) commits a material breach of any of the
terms or conditions of this Agreement, which is not cured within ten (10) days after notice of such
breach by the other party (“Notifying Party”), the Notifying Party may terminate this Agreement by
giving notice in writing to the Defaulting Party (it being understood that a good faith dispute
over an invoice shall not constitute a breach of this Agreement).

          (d) Upon termination or expiration of this Agreement, the Service Receiver shall pay to the
Service Provider all monies due to the Service Provider in respect of Services provided prior to
such termination or expiration. In addition, each party shall, at the disclosing party’s option,
return or destroy the Confidential Information of the other party and shall return any other
property of the other party to that other party.

     Section 10. Limitation of Liability

          (a) Other than with respect to a party’s willful misconduct, negligence, or fraud, in no event
shall a party’s liability under this Agreement exceed the total fees payable under this Agreement.

          (b) NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, NO PARTY, NOR ANY OF ITS AFFILIATES OR
ITS OR THEIR REPRESENTATIVES (NOR ANY SUCCESSORS OR ASSIGNS OF SUCH PERSONS) SHALL BE LIABLE FOR
ANY INCIDENTAL, SPECIAL, INDIRECT, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF
PROFIT OR LOSS OF REVENUE) OF THE OTHER PARTY, ITS SUCCESSORS, ASSIGNS OR THEIR RESPECTIVE
AFFILIATES AND REPRESENTATIVES, IN ANY WAY DUE TO, RESULTING FROM OR

6

 

ARISING IN CONNECTION WITH THIS AGREEMENT OR THE SERVICES PROVIDED HEREUNDER, REGARDLESS OF WHETHER
SUCH LIABILITY ARISES IN TORT (INCLUDING NEGLIGENCE), CONTRACT, BREACH OF WARRANTY, STRICT
LIABILITY, INDEMNIFICATION OR OTHERWISE AND REGARDLESS OF WHETHER ANY SUCH DAMAGES ARE FORESEEABLE
OR WHETHER A PERSON HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES.

     Section 11. Notices

     All notices and other communications provided for herein shall be dated and in writing and in
English and shall be deemed to have been duly given (x) on the date of delivery, if delivered
personally or by facsimile, receipt confirmed, or (y) on the second following business day, if
delivered by a recognized overnight courier service within the United States, or (z) on the fifth
following business day, if delivered by international courier, in each case, to the party to whom
it is directed at the following address (or at such other address as any party shall hereafter
specify by notice in writing to the other party):

	 	(a)	 	If to CHH to:
	 
	 	 	 	Rank Group Limited

Level Nine

148 Quay Street

P.O. Box 3515

Auckland, New Zealand

Attention: Helen Golding

Facsimile: +61 2 9268 6671

E-mail: helen.golding@rankgroup.co.nz
	 
	 	(b)	 	If to Evergreen to:
	 
	 	 	 	Joseph B. Hanks

Vice President & General Counsel

Evergreen Packaging 

5350 Poplar Avenue, Suite 600 

Memphis, Tennessee 38119 USA 

+01-901-821-5363 (office)

+01-901-821-5392 (fax)

7

 

	 	 	 	with a copy to:
	 
	 	 	 	Rank Group

Level Nine, 148 Quay Street 

P.O. Box 3515 

Auckland, New Zealand

Fax No.: +61 2 9268 6671

Attention: Helen Golding

     Section 12. Confidentiality of Information

          (a) All data and information disclosed between the Service Provider and the Service Receiver
pursuant to this Agreement, including information relating to or received from third parties, is
deemed confidential, except for information that: (i) is or subsequently becomes part of the public
domain through no action of the receiving party, (ii) is subsequently received by the receiving
party from a third party which has no obligation of confidentiality to the party disclosing the
confidential information, or (iii) is independently developed by employees of the receiving party
who have had no access to the confidential information disclosed hereunder (“Confidential
Information”).

          (b) A party receiving Confidential Information of the other party will not use such
information for any purpose other than for which it was disclosed and, except as otherwise
permitted by this Agreement, shall not disclose to third parties any Confidential Information.

          (c) Notwithstanding Sections 12(a) and (b), Confidential Information may be disclosed by the
receiving party:

     (i) to the receiving party’s affiliates, directors, officers, employees,
agents (including, in the case of the Service Provider, any third parties
engaged to
provide the Services), auditors, consultants and financial advisers
(collectively,
“Agents”), provided that (x) the relevant Agent reasonably needs to
know the
information, and (y) receiving party ensures that such Agents comply with this
Section 12; and

     (ii) as required by applicable laws, provided that, if reasonably
practicable, written notice of such requirement shall be given promptly to the
disclosing party so that it may take reasonable actions to minimize the extent
of
such disclosure, and the receiving party shall cooperate with the disclosing
party
as reasonably requested by the disclosing party in connection with such
actions, at
the expense of the disclosing party.

          (d) The receiving party shall notify the disclosing party in writing
immediately upon discovery of any unauthorized use or disclosure of the disclosing party’s
Confidential Information. If, at any time, the disclosing party determines that the receiving
party
has disclosed, or sought to disclose, the disclosing party’s Confidential Information in
violation
of this Agreement, that any unauthorized personnel of the receiving party has accessed the
disclosing party’s Confidential Information, or that the receiving party or any of its
personnel has
engaged in activities that may lead to the unauthorized access to, use of, or disclosure of
the
disclosing party’s Confidential Information, the disclosing party shall immediately terminate
any

8

 

such personnel’s access to its Confidential Information and immediately notify the receiving party.
In addition, either party shall have the right to deny personnel of the other party access to such
party’s Confidential Information upon notice to the other party in the event that such party
reasonably and in good faith believes that such personnel pose a security concern. Each party will
cooperate with the other party in investigating any apparent unauthorized access to or use of the
other party’s Confidential Information.

     Section 13. Miscellaneous

          (a) Severability. If any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any rule of law, or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect. The parties shall
negotiate in good faith to replace the invalid, illegal or unenforceable provision with a valid,
legal and enforceable provision that has the effect nearest to that of the provision being
replaced.

          (b) Interpretation. The headings contained in this Agreement are solely for the purpose of
reference, and shall not affect the interpretation of this Agreement. As used in this Agreement,
(i) an “affiliate” of, or a person “affiliated” with, a specified person, is a person directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, the person specified, and (ii) “including” shall mean including without limitation.
No provision of this Agreement will be construed adversely to a party solely on the ground that the
party was responsible for preparation of this Agreement or any provision of it.

          (c) Counterparts. This Agreement may be executed and delivered (including by facsimile
transmission or otherwise electronically) simultaneously in counterparts, each of which when
executed will be deemed an original but all of which together will constitute one and the same
instrument.

          (d) Entire Agreement. This Agreement and the Schedule referred to herein constitute the entire
agreement between the parties with respect to the subject matter hereof and supersede all other
prior agreements and understandings, both written and oral, between the parties with respect to the
subject matter hereof.

          (e) Binding Effect; Assignment. This Agreement and all of the provisions hereof shall be
binding upon and shall inure to the benefit of the parties and their respective successors and
permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder
shall be assigned, directly or indirectly, including by operation of law, by any party without the
prior written consent of the other party. Notwithstanding the foregoing, either party may without
the consent of the other party assign any or all of its rights hereunder to any of its affiliates.

          (f) Governing Law; Jurisdiction. This Agreement will be governed by, and construed and
enforced in accordance with, the laws of the State of New York (without giving effect to its
principles or rules of conflict of laws, to the extent such principles or rules are not mandatorily
applicable by statute and would permit or require the application of laws of any other
jurisdiction) as to all matters, including matters of validity, construction, effect,

9

 

performance and remedies. Each of the parties irrevocably and unconditionally submits itself and
its property to the exclusive jurisdiction of the Courts of the State of New York sitting in the
County of New York, the United States District Court for the Southern District of New York, and
appellate courts having jurisdiction of appeals from any of the foregoing.

          (g) Amendment; Waivers, etc. An amendment or variation of this Agreement
must be in writing signed by the parties. Waiver of any right, power, authority, discretion or
remedy arising on a breach of or default under this Agreement must be in writing and signed by
the party granting the waiver. A party is not entitled to rely on the conduct of the other
party or
on a delay in the exercise or non-exercise of a right, power, authority, discretion or remedy
arising from a breach of this Agreement or default under this Agreement as constituting a
waiver
of that right, power, authority, discretion or remedy.

          (h) Independent Contractor Status. The Service Provider shall be deemed to
be an independent contractor to the Service Receiver. Nothing contained in this Agreement
shall
create or be deemed to create the relationship of employer and employee between the Service
Provider and the Service Receiver or between the Service Provider’s employees and the Service
Receiver. The relationship created between the Service Provider and the Service Receiver
pursuant to or by this Agreement is not and shall not be one of partnership or joint venture.
No
party is now, shall become, or shall be deemed to be an agent or representative of the other
party.

          (i) Survival. The following Sections and provisions shall survive any
termination or expiration of this Agreement: Section 1, Section 4, Section 6, the last
sentence of
Section 9(a) (including the provisions set forth therein), the last sentence of Section 9(b),
Section
9(d) and Sections 10-13.

          (j) Further Assurances. Each party must execute and deliver such documents and take such other
action as may reasonably be required in order to consummate more effectively the transactions
contemplated by this Agreement.

          (k) No Third-Party Beneficiaries. Except as otherwise provided herein, nothing in this
Agreement shall confer any rights upon any person or entity other than the parties and their
respective successors and permitted assigns.

[REMAINDER OF PAGE INTENTIONALLY BLANK — SIGNATURE PAGE TO FOLLOW]

10

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first
above written.

	 	 	 	 	 
	 	CARTER HOLT HARVEY LIMITED

 	 
	 	By:  	/s/ Robert B. Bailey
 	 
	 	 	Name:  	Robert B. Bailey 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	EVERGREEN PACKAGING INC.

 	 
	 	By:  	/s/ Robert B. Bailey
 	 
	 	 	Name:  	Robert B. Bailey 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature Page to Services Agreement between CHH and Evergreen]

 

 

SCHEDULE I

	 	 	 	 	 
	Service	 	Monthly Fee (NZ$)	 
	Infotech Basis support
	 	 	10,560	 
	 
	 	 	 	 
	Infotech Wintel support
	 	 	4,945	 
	 
	 	 	 	 
	Infotech Networks support
	 	 	3,300

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