Document:

Pine and Amory Hardwood Roundwood Supply Agreement - Columbus, Mississippi

 Exhibit 10.21 
 COLUMBUS PINE AND AMORY HARDWOOD ROUNDWOOD SUPPLY AGREEMENT 
 PINE AND HARDWOOD ROUNDWOOD SUPPLY
AGREEMENT (this “Agreement”) made this 5th day of March 2007 between WEYERHAEUSER COMPANY, a Washington corporation (hereinafter referred to as “Weyerhaeuser”), and DOMTAR PAPER COMPANY, LLC, a Delaware limited liability
company (hereinafter referred to as “Domtar”). 
 RECITALS 
  

	 	A.	Pursuant to an Amended and Restated Transaction Agreement dated as of January 25, 2007 (“Transaction Agreement”) Domtar will be conveyed, inter alia,
certain assets located at Columbus and Amory, Mississippi. 

  

	 	B.	Weyerhaeuser has available for sale pine and hardwood roundwood that it produces or will produce from its timberlands harvesting operations located in Mississippi, Alabama and
Tennessee (the “Timberlands’). Unless the context otherwise requires, all references herein to “Pine and Hardwood Roundwood”, will be deemed to refer to pine and hardwood fiber that is produced from the Timberlands
owned by Weyerhaeuser and sold and delivered in roundwood form to customer mills. 

  

	 	C.	Domtar requires or may require Pine and Hardwood Roundwood, and is desirous of purchasing a portion of such Pine and Hardwood Roundwood produced by Weyerhaeuser from
Weyerhaeuser’s Timberlands harvesting operations for its coated ground wood paper mill situated in Columbus, Mississippi and for its hardwood chip plant located in Amory, Mississippi. 

 AGREEMENT 
 NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereafter contained, Domtar and Weyerhaeuser agree herein as follows: 
  

	1.	TERM, RENEWAL AND TERMINATION: 

 1.1 This Agreement shall be effective as of April 1, 2007 (the “Effective Date”) and shall remain in effect until March 31,
2008 (the “Initial Term”). 
 1.2 Weyerhaeuser agrees to sell and Domtar agrees to buy Pine and Hardwood Roundwood under
this Agreement for an additional term of Four (4) years (the “Second Term”), which shall commence upon expiration of the Initial Term. Weyerhaeuser and Domtar agree to notify the other party at least Twelve (12) months
prior to the expiration of the Second Term if either party wishes to not renew this Agreement. The terms set forth under Section 2, Quantities, and Section 7.1, Price, Payment and Price Determination, will be reviewed and
agreed to annually by both parties during the Second Term. For each successive year during the Second Term, quantities will be adjusted to reflect available Weyerhaeuser harvests and the price will be adjusted to reflect the then current fair market
value. By June 30 of each calendar year during the Second Term, 

 
Weyerhaeuser will provide Domtar with a rolling estimate of the available quantities for the next three (3) years. Any dispute, issue, or controversy
arising pursuant to this Section 1.2 shall be handled by the Dispute Resolution process outlined in Section 9.1 of this Agreement. 
 1.3 This Agreement shall terminate automatically upon: 
  

	 	(i)	the bankruptcy of either party or the making of an assignment for the benefit of creditors, or the appointment of a trustee or receiver and manager or liquidator for such party or
for all or a substantial part of its property, or the commencement of bankruptcy, reorganization, arrangement, insolvency or similar proceedings by or against such party under the laws of any jurisdiction; 

  

	 	(ii)	the default of a party in performing a material obligation hereunder, provided that: (a) the other party shall have first given written notice of such default to the party in
default (a “Default Notice”), which Default Notice shall set out in reasonable detail the particulars of the default alleged, and (b) such default shall not have been remedied within 15 days of receipt thereof by the party in
default; or 

  

	 	(iii)	the mutual consent of the parties. 

  

	2.	QUANTITIES: 

 Subject to
Section 8, Weyerhaeuser agrees to sell, and Domtar agrees to purchase such quantities of Pine and Hardwood Roundwood which Domtar requires, delivered at the times required, for its coated groundwood paper mill which Domtar owns at Columbus,
Mississippi and for its hardwood chip plant which Domtar owns at Amory, Mississippi (the “Mills”). Weyerhaeuser shall supply to Domtar on an annual basis approximately 64,000 tons of Pine Roundwood, from its Timberlands operations
during the Initial Term. The parties will meet quarterly, beginning in June, 2007, to discuss the volume of Hardwood Roundwood Weyerhaeuser will supply to Domtar each quarter. The parties have agreed that the volume of Hardwood Roundwood for the
first quarter of the Initial Term shall be approximately 14,000 tons. 
  

	3.	SPECIFICATION AND QUALITY: 

 3.1 Pine and Hardwood Roundwood sold hereunder shall be of a quality which is satisfactory for use in the Mills of the type being operated by Domtar and shall meet the roundwood log specifications set forth in Exhibit
“A”. 
 3.2 Payment will be made in accordance with Exhibit “B” and only for the actual quantity of Pine and
Hardwood Roundwood that meet the specifications set forth in Exhibit “A”. No payment will be made for Pine and Hardwood Roundwood which, for any reason, fail to meet these specifications. 
 3.3 Domtar shall make statistically valid measurements and tests as it, in its absolute discretion, deems necessary to determine the quantity and quality
of Pine and Hardwood 

  

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Roundwood supplied by Weyerhaeuser. Domtar shall communicate the results of the measurements and tests in a timely manner. Weyerhaeuser shall accept and be
bound by such measurements and tests, and the results thereof, subject always to Weyerhaeuser’s right to verify said measurements, tests and results upon reasonable prior notice and during regular business hours. Any correction required to be
made by a party to an amount paid for a particular shipment of Pine and Hardwood Roundwood as a result of this Section 3.3 shall not, in any case, be made to an amount paid for a shipment of Pine and Hardwood Roundwood delivered more than
90 days prior to such measurement and testing. 
 3.4 In the event that an individual trailer load or partial trailer load of Pine and
Hardwood Roundwood fails to conform to the specifications set forth in Exhibit “A”, Domtar shall have the right to refuse acceptance of any such trailer load or partial load upon delivery at scales. Domtar shall have the
right to refuse further deliveries of Pine and Hardwood Roundwood until such time Domtar is satisfied that satisfactory steps have been taken by Weyerhaeuser to rectify the cause of the failure to meet the Pine and Hardwood Roundwood specifications
set forth in Exhibit “A”. 
  

	4.	WEIGHT DETERMINATION: 

 All Pine and Hardwood Roundwood delivered hereunder shall be weighed by Domtar. Weighing and basis for payment for truck delivered Pine and Hardwood Roundwood shall be by ton weight. A ton is 2,000 pounds. Subject to Section 3.3,
Weyerhaeuser agrees to be bound by Domtar’s weigh scale. 
  

	5.	DELIVERY: 

 5.1 All Pine and Hardwood
Roundwood shall be delivered by Weyerhaeuser in approximately equal monthly instalments and as near as possible at uniform daily rates, subject to alternative delivery schedules as Domtar and Weyerhaeuser may from time to time agree upon in writing
so as to accommodate, where possible, the other party’s production schedules, and subject, where possible, to any plant or logging shutdowns incurred by either party. Delivery shall take place at the Mills’ weight station or at an
alternative location designated by Domtar. The parties will endeavour to agree on any changes, for example price and volume, to reflect such proposed changes to the delivery location. Should the parties fail to agree upon any changes, either party
may, by written notice, request that the matter be determined in accordance with the procedures for dispute resolution set forth in Section 9 of this Agreement. 
 5.2 Weyerhaeuser and Domtar agree to mutually explore techniques and methods to improve truck turn around time to benchmark levels. Weyerhaeuser and Domtar representatives will meet at least once each quarter to
review progress toward this goal, establish action steps/deadlines and assign responsibility. 
  

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	6.	TITLE AND RISK OF LOSS: 

 All Pine and Hardwood Roundwood to be supplied by Weyerhaeuser under this Agreement shall be supplied free and clear of any and all prior claims, security
interests, mortgages, liens, charges or any other encumbrances whatsoever. Title to, all rights of property in, and all risks of loss or damage or destruction to the Pine and Hardwood Roundwood shall pass to Domtar upon delivery to the Mills’
truck weight station or at an alternative location designated by Domtar. 
  

	7.	PRICE, PAYMENT AND PRICE DETERMINATION: 

 7.1 The price per ton for Pine Roundwood for the Initial Term is set forth in Exhibit “B”. Prices are paid on an adjusted quarterly basis
to reflect expected conditions encountered during the Initial Term. The price per ton for Hardwood Roundwood for the first quarter of the Initial Term is set forth in Exhibit “B”. The price per ton thereafter during the Initial Term
shall be determined by the parties on a quarterly basis, beginning in June, 2007, at the same time the parties negotiate the next quarter’s volume of Hardwood Roundwood. 
 7.2 All prices are exclusive of sales and any other taxes applicable to the sale of Pine and Hardwood Roundwood under this Agreement. 
 7.3 Domtar shall pay for Pine and Hardwood Roundwood delivered as specified hereunder within fifteen (15) days from the last day of the week in which
deliveries were made. 
 7.4 Each party shall maintain detailed records of: (i) all measurements and tests made by it pursuant to this
Agreement; and (ii) all costs incurred by it for which it is, pursuant to this Agreement, entitled to be reimbursed in whole or in part by the other party. Each party shall make such records available to the other party for inspection at all
reasonable times at the expense of the party making the request for an inspection. 
  

	8.	FORCE MAJEURE: 

 The
duties of either party hereunder shall be excused to the extent and for the period of time necessitated by the occurrence of any fire, flood, earthquake, other natural disaster, labor dispute, war, direct act or intervention of any government or
subdivision thereof, or other event of force majeure beyond the control of any party. The affected party invoking this provision shall promptly notify the other party in writing of the nature and estimated duration of the suspension period, and
shall exercise all reasonable diligence in curing such condition, except in cases where such suspension is of a permanent nature and such condition is not curable as a result. The party unable to obtain performance by reason of force majeure shall
be free to deal with third parties, provided it acts in a manner not inconsistent with its obligations under this Agreement. 
  

	9.	DISPUTE RESOLUTION: 

 9.1 Any issue, dispute or controversy arising pursuant to this Agreement (a “Dispute”) shall be settled in the following manner. Upon written request of either party, the representatives of Domtar and of Weyerhaeuser shall
promptly confer and exert their commercially reasonable efforts without the necessity of any formal proceeding related thereto 

  

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to reach a reasonable and equitable resolution of such Dispute. If such representatives are unable to resolve such Dispute within ten (10) business
days, the Dispute shall be referred to the responsible senior management of each party for resolution. Neither party shall seek any other means of resolving any Dispute arising in connection with this Agreement until both parties’ responsible
senior management have had at least five (5) business days to resolve the Dispute following its referral to them. 
 9.2 If the Dispute
cannot be resolved by senior management, then the Dispute shall be submitted to binding arbitration. If arbitration is required, the arbitration proceedings shall be administered by the American Arbitration Association (the “AAA”)
or such other administrator as the parties shall mutually agree, and conducted in accordance with the AAA Commercial Arbitration Rules. Judgment upon any award rendered in arbitration may be entered in any court having competent jurisdiction. The
arbitration shall be conducted at a location in the State of Mississippi selected by the AAA or other administrator. 
  

	10.	WARRANTY; INDEMNITY AND LIMITATION OF LIABILITY: 

 10.1 Weyerhaeuser warrants to Domtar that Weyerhaeuser has good, clear and unencumbered title to the Pine and Hardwood Roundwood sold hereunder and has
the full lawful right to sell said Pine and Hardwood Roundwood. Weyerhaeuser further warrants that each delivery of Pine and Hardwood Roundwood shall meet the specifications contained in Exhibit “A”. Weyerhaeuser’s obligation
under this warranty is limited to the replacement of the defective portion of the shipment with Pine and Hardwood Roundwood that meet the specifications set forth in Exhibit “A”. THIS WARRANTY IS EXPRESSLY IN LIEU OF ALL OTHER
WARRANTIES EXPRESSED OR IMPLIED, INCLUDING MERCHANTABILITY, AND ALL OTHER OBLIGATIONS OR LIABILITIES ARISING OUT OF WEYEHAEUSER’S FAILURE TO MEET SAID SPECIFICATIONS, INCLUDING LIABILITIES ARISING FROM CLAIMS OF CONTRACT OR TORT. 
 10.2 Each party agrees to indemnify and hold harmless the other party from and against all claims, liabilities and expense (including reasonable
attorney’s fees) arising out of the manufacture, sale, purchase and use of the Pine and Hardwood Roundwood which are proximately caused by the negligence or wilful misconduct of the indemnifying party. 
 10.3 In no event will either party be liable to the other for any special, incidental or consequential damages (including, without limiting the generality
of the foregoing, or punitive damages), regardless of whether the party knows or should have known of the possibility of such damages being incurred by the aggrieved party. 
  

	11.	ASSIGNMENT: 

 No attempted assignment
of this Agreement, whole or in part, by operation of law or otherwise, shall have any force or effect whatsoever without the prior written consent of the other party. In the event of the sale or other form of transfer of all or substantially all of
the assets composing Weyerhaeuser’s Timberlands, such sale or transfer shall not be completed by Weyerhaeuser unless 

  

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this Agreement is assigned by Weyerhaeuser to any purchaser(s) of all or substantially all of Weyerhaeuser’s Timberlands and such purchaser(s)
undertakes in writing to Domtar to be bound by each of the terms hereof as if it was an original party to this Agreement. In the event that such measures are complied with, Weyerhaeuser shall be released from any ongoing obligations hereunder as to
the portion sold as and from the date of sale or transfer of such assets. In the event of the sale or other form of transfer of all or substantially all of the assets composing the Mill, such sale or transfer shall not be completed by Domtar unless
this Agreement is assigned by Domtar to the purchaser of the Mill and such purchaser undertakes in writing to Weyerhaeuser to be bound by each of the terms hereof as if it was an original party to this Agreement. In the event that such measures are
complied with, Domtar shall be released from any ongoing obligations hereunder as and from the date of transfer of such assets. 
  

	12.	NOTICES: 

 Any notice, consent,
approval, authorization, waiver or permission hereunder shall be ineffective unless in writing, signed by a representative of the sender authorized to do so by an officer of the sender, and shall be deemed given only when delivered in person to an
officer of the addressee or when transmitted by facsimile (provided confirmation is sent by mail within 1 business day) or upon receipt when such notice was sent by mail. The term “sent by mail” shall mean deposited in the mail, registered
or certified mail return receipt requested, postage prepaid, addressed to the receiving party at the address and to the attention of the person below or such other address or person as the receiving party may notify the other: 
  

			
	 To Weyerhaeuser:
	    	Weyerhaeuser Company
		    	P.O. Box 1830
		    	Columbus, MS39703-1830
		    	Attention: Jim Leist
		    	Facsimile: (662) 245-5228
		
	 To Domtar:
	    	Domtar Paper Company, LLC
		    	Attn: Mill Manager
		    	Columbus, MS 39703-1830

  

	13.	INTERPRETATION: 

 The laws of the
State of Mississippi shall govern all aspects of this Agreement, including its validity, interpretation, performance, operation and enforcement. It is the intent of the parties that this Agreement be the binding and enforceable obligation of each
party and be interpreted as aforesaid from and after the date of execution hereof. 
  

	14.	COMPLIANCE WITH LAWS: 

 Weyerhaeuser agrees to comply with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the Fair Labor Standards Act, Social Security Act, Occupational Safety and
Health Act, unemployment compensation laws, Worker’s Compensation 

  

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laws, Department of Transportation regulations, and Weyerhaeuser specifically agrees to indemnify and hold Domtar harmless from any claims, liabilities or
expenses arising out of the violation of any such laws, rules and regulations by Weyerhaeuser its officers, agents, employees and/or contractors. 
  

	15.	SUBCONTRACTORS: 

 Weyerhaeuser shall
assure that each subcontractor shall agree with Weyerhaeuser to be bound to Weyerhaeuser by the terms of this Agreement relevant to the portion of the work to be performed by such subcontractor and to assume toward Weyerhaeuser such obligations and
responsibilities that will insure that no arrangement or agreement with any subcontractor is inconsistent with this Agreement or adversely affects Domtar’s exercise of its rights hereunder. Weyerhaeuser agrees that it is fully responsible to
Domtar for the acts and omissions of its subcontractors and of persons directly or indirectly employed by them. Nothing contained herein shall create any contractual relations between Domtar and any subcontractor or alter such subcontractor’s
status as an independent contractor. 
  

	16.	INSURANCE 

 During the performance of
this Agreement, Weyerhaeuser shall maintain and keep in force, at its own expense, the following insurance coverage’s and minimum limits: 
  

	 	a.	Worker’s Compensation or Industrial Accident as required by law, including employer’s liability with minimum limit of $100,000 per accident. Comprehensive or Commercial
General Liability (Occurrence form), including contractual and completed operations, with minimum limits of $500,000 per occurrence and $1,000,000 general aggregate. 

  

	 	b.	Comprehensive Automobile Liability Insurance, covering owned, non-owned, hired and other vehicles, with minimum limits of $1,000,000 for bodily injury, death and property damage
each or per occurrence. 

 All such policies of insurance shall provide the same shall not be cancelled nor the coverage
modified nor the limits changed without first giving thirty (30) days prior written notice thereof to Domtar. No such cancellation, modification or change shall affect Weyerhaeuser’s obligation to maintain the insurance coverages required
by this Agreement. Except for Workers’ Compensation Insurance, Domtar shall be named as an Additional Insured on all such required policies. All liability insurance policies shall be written on an “occurrence” policy form and by
insurance companies acceptable to Domtar. Weyerhaeuser shall be responsible for payment of any and all deductibles from insured claims under its policies. The coverage afforded under any insurance policy obtained by Weyerhaeuser pursuant to this
Section 16 shall be primary coverage regardless of whether or not Domtar has similar coverage. Weyerhaeuser shall not perform any work under this Agreement unless and until evidence of such insurance, including renewals thereof, has been
delivered to and approved by Domtar. The minimum limits of coverage required by this Agreement may be satisfied by a combination of primary and excess or umbrella insurance policies. The maintenance of this insurance shall not in any way operate to
limit the liability of Weyerhaeuser to Domtar under this Agreement. 
  

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	17.	INTEGRATION AND PREVIOUS AGREEMENTS: 

 This Agreement supersedes all prior agreements and communications and shall not be altered by either party except by consent of both parties in writing
executed by their duly authorized representatives. 
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
mentioned. 
  

									
	WEYERHAEUSER COMPANY	 		 	DOMTAR PAPER COMPANY, LLC
					
		 		 		 	By:	 	 WEYERHAEUSER COMPANY, AS ITS SOLE MEMBER
  

					
	By:	 	 /S/ SANDY MCDADE
  
	 		 	By:	 	 /S/ SANDY MCDADE
  

					
	Its:	 	 Senior Vice President 
  
  
	 		 	Its:	 	 Senior Vice President of Weyerhaeuser Company, the sole member
  

  

 Page 8 of 8Agreement for the Purchase and Sale of Pulp - Kamloops, British Columbia

 Exhibit 10.22 
 KAMLOOPS AGREEMENT FOR THE PURCHASE AND SALE OF PULP 
 THIS KAMLOOPS AGREEMENT FOR THE PURCHASE AND
SALE OF PULP (“Agreement”) is made as of March 5, 2007, by and between WEYERHAEUSER COMPANY, a Washington corporation (“Weyerhaeuser”), and DOMTAR PULP AND PAPER PRODUCTS INC., a Canadian corporation (“Domtar”).

 WHEREAS, pursuant to the terms of that certain Amended and Restated Transaction Agreement dated as of January 25, 2007
(“Transaction Agreement”), on or prior to the Closing Date Weyerhaeuser will transfer the Newco Assets and Newco Liabilities to Newco (as those terms are defined therein) upon the terms and subject to the conditions set forth in the
Amended and Restated Contribution and Distribution Agreement of even date therewith (“Contribution Agreement”), which include those Newco Assets and Newco Liabilities relating to the wood pulp mill in Kamloops, British Columbia
(“Kamloops Mill”); 
 WHEREAS, pursuant to the terms of the Contribution Agreement, at a time on or prior to the Distribution Date
(as defined therein), Weyerhaeuser will sell, assign, transfer, convey and deliver to Domtar, and Domtar will accept from Weyerhaeuser, all the Newco Assets, and Domtar will assume and agree to faithfully pay, perform and discharge when due all the
Newco Liabilities, which Newco Assets and Newco Liabilities include certain Transferred Contracts (as defined therein) relating to the Kamloops Mill, as more particularly described in Exhibit A attached hereto (“Kamloops Pulp
Contracts”); 
 WHEREAS, the parties desire that, in lieu of assigning and assuming the Kamloops Pulp Contracts at a time on or prior to
the Distribution Date (and obtaining the necessary Consents relating thereto), such assignment and assumption will be deferred and the Kamloops Pulp Contracts will be deemed Delayed Transfer Assets and Delayed Transfer Liabilities (as such terms are
defined in the Contribution Agreement), such that, until the expiration or earlier termination of this Agreement: (i) Weyerhaeuser will retain and hold such Kamloops Pulp Contracts for the benefit of Domtar, and (ii) Weyerhaeuser purchase
from Domtar, and Domtar will sell to Weyerhaeuser, under the terms hereof, those quantities and grades of pulp, at those certain prices, described herein (the “Goods”); and 
 WHEREAS, the parties desire that, upon the expiration or earlier termination of this Agreement, Weyerhaeuser and Domtar will carry out the assignment and
assumption of the Kamloops Pulp Contracts and obtain the necessary Consents therefor, and Weyerhaeuser will commence its appointment as Domtar’s sales agent for the Goods under the terms of that certain Kamloops Agency Agreement of even date
herewith. 
 NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, the parties,
intending to be legally bound, hereby agree as follows: 
  

			
	SECTION 1.0:
QUANTITY AND
DESCRIPTION OF
GOODS	  	Domtar agrees to sell, and Weyerhaeuser agrees to purchase, during the Term, the grades and quantities
(measured in Air Dry Metric Tons of 2,204.6 pounds per ton) of pulp manufactured by
Domtar in accordance
with the table on Exhibit B attached hereto. Weyerhaeuser agrees to order Goods at least twenty one (21) days
from the Kamloops Mill before the delivery date specified on Weyerhaeuser’s purchase order
(“Purchase
Order”). Domtar agrees that the Goods shall be delivered to the designated delivery area at the Port of
Vancouver dock specified on the Purchase Order on the dates provided therein and in the time window
allowed by the
marine shipper, unless the parties agree otherwise in

			
	 	  	 writing. If upon receipt of a Purchase Order, or any time thereafter, Goods cannot be shipped or rendered
within the time specified in the
Purchase Order, immediate notice thereof must be given to Weyerhaeuser with
advice as to the earliest possible delivery date. If the Purchase Order is placed at least twenty one (21) days to
the Kamloops Mill before the specified delivery date
and there is a failure (other than for reasons of force
majeure or a failure caused by Weyerhaeuser) to make shipment on or before the specified date and in the
specified quantities as listed on the Purchase Order, Weyerhaeuser shall have the
option of canceling the
Purchase Order and seeking replacement Goods from an alternate source (“Cover Goods”), and Domtar shall
promptly reimburse Weyerhaeuser for any additional costs incurred as a result of Weyerhaeuser’s
purchase
and/or production of Cover Goods, provided that Weyerhaeuser uses commercially reasonable efforts to
mitigate such costs. For Purchase Orders received less than twenty one (21) days for the Kamloops Mill
before the specified
delivery date, Domtar will notify Weyerhaeuser within one (1) business day whether the
delivery date can be achieved and shall at that time accept or decline the order. If the order is timely declined,
Weyerhaeuser shall have the option of
purchasing Cover Goods but Domtar shall not be responsible for any
additional costs incurred by Weyerhaeuser in connection therewith. If the order is accepted and not timely
delivered, Domtar shall be responsible for additional costs incurred
by Weyerhaeuser to purchase Cover
Goods, provided that Weyerhaeuser uses commercially reasonable efforts to mitigate such costs.
Weyerhaeuser may change delivery schedules or direct temporary suspension of scheduled shipments and will
be
responsible for additional costs incurred by Domtar as a result of such changes or suspensions. Unless
otherwise specified, the Goods shall be delivered in such shipments sizes as Domtar may reasonably
determine from time to time to be most
expedient.
  
 Weyerhaeuser shall be deemed to have fulfilled its obligations to purchase
the quantities provided for in this
Agreement if it has ordered not less than 95% of the total quantity for each grade stated on Exhibit B. Domtar
shall be deemed to have fulfilled its obligations to deliver the quantities provided for in this
Agreement if it
has delivered not less than 95% of the quantity stated in each Purchase Order. Unless contrary to the import
regulations of the receiving country or unless loading exact is specified in any order under this Agreement,
the
quantity described in any such Purchase Order may be increased or decreased by not more than 5%. If Domtar
or Weyerhaeuser shall propose a change in the quantity or grade of pulp covered by this Agreement, Domtar
and Weyerhaeuser agree
to negotiate in good faith in response to such proposal, but neither party is obligated
to agree to the other party’s proposal.
  
 If by the end of the Term Weyerhaeuser has not issued Purchase Orders for at least 95% of the total quantity
for each grade stated on Exhibit B (as such total
quantity may be adjusted from time to time upon agreement
of the parties) then Weyerhaeuser may, at its election do one, or a combination, of the following: (i) issue a
Purchase Order to Domtar for such quantity shortfall, which may be
fulfilled in more than one month if the
quantity with respect thereto exceeds the monthly maximum; or (ii) pay the purchase price of such quantity
shortfall.
  

Domtar and Weyerhaeuser agree to cooperate in the implementation of ordering, accounting and other
processes relating to this Agreement, including, without
limitation, those processes described in Exhibit D.

  

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	 SECTION 2.0:
 TERM
	  	This Agreement shall become effective as of March 5, 2007 and terminate on June 3, 2007, unless terminated earlier as provided herein (the “Term”).
		
	 SECTION 3.0: PRICE AND
 TERMS
 OF PAYMENT
	  	See Exhibit C attached hereto with respect to Price. Domtar shall assume the costs of transportation and insurance from point of manufacture to the destination specified on Exhibit B.
Terms of payment shall be net 30. Remittances shall be made free of exchange or other charges in U.S. funds to the location specified by Domtar. A late payment charge of 1.25% per month on the unpaid balance will be made on all past due accounts.
Should this rate exceed the maximum rate that is lawful under the circumstances, that maximum rate shall apply.
		
	SECTION 4.0: GENERAL TERMS OF SALE	  	 4.1. WARRANTY AND LIMITATIONS
 Domtar warrants that the
Goods to be delivered hereunder will meet the specifications and tolerances described in Section 4.6 below, free and clear of liens and encumbrances. Domtar’s obligation under this warranty is limited to refund to Weyerhaeuser its purchase
price or replace the non-conforming Goods with Goods conforming to the specifications set forth in Section 4.6. THIS WARRANTY IS EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES EXPRESSED OR IMPLIED, INCLUDING MERCHANTABILITY, AND ALL OTHER OBLIGATIONS OR
LIABILITIES ARISING OUT OF DOMTAR’S FAILURE TO MEET SAID SPECIFICATIONS, INCLUDING LIABILITIES ARISING FROM CLAIMS OF CONTRACT OR TORT. THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE FOREGOING, AND DOMTAR’S SOLE OBLIGATION THEREUNDER IS
AS EXPRESSLY STATED HEREIN. DOMTAR AND WEYERHAEUSER SHALL NOT BE LIABLE FOR CONSEQUENTIAL, INDIRECT, PUNITIVE OR INCIDENTAL DAMAGES.
  
 4.2. PRODUCTION, SHIPMENT AND DELIVERY
 Unless agreed to by Weyerhaeuser in
advance in writing, Domtar shall produce and ship from the mill specified on Exhibit B as the exclusive source of supply and shall make delivery on the delivery date(s) specified in Weyerhaeuser’s Purchase Order. All Goods shall be delivered
subject to Weyerhaeuser’s inspection and right of rejection and/or revocation of acceptance.
  
 4.3. INSPECTION AND CLAIMS
 Weyerhaeuser shall have 120 days to inspect and/or test the Goods for conformance with the
applicable specifications and grade profile set forth in Section 4.6 and if Weyerhaeuser fails to give notice of acceptance or non-conformance within such 120-day period the Goods shall be deemed accepted. If Weyerhaeuser gives written notice to
Domtar of any failure of Goods to meet the foregoing standards, and if such failure is established under procedures customary in the industry or otherwise established to Domtar’s satisfaction, then at Domtar’s option Domtar will make an
allowance for such Goods, refund to Weyerhaeuser its purchase price or replace it with Goods conforming to the warranty described in Section 4.1 above and those specifications described in Section 4.6 below.

  

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		  	 4.4. TITLE AND RISK OF LOSS
 Title and risk of loss shall
pass from Domtar to Weyerhaeuser upon delivery to the destination specified on Exhibit B.
  
 4.5 ASSIGNMENT
 Neither party may assign this Agreement without the express prior written consent of the other; provided, however, Domtar and
Weyerhaeuser may assign this Agreement to a subsidiary or affiliate.
  
 4.6.
QUALITY
 The Goods delivered and invoiced hereunder must (i) conform with the specifications on the Purchase Order, which shall be within the established
grade profiles for Kamloops Pulp and within the permitted specifications set forth in the Kamloops Pulp Contracts, unless otherwise agreed to by Domtar. If Weyerhaeuser’s test of any of the parameters in the grade profile or the air dry
contents of any shipment indicates non-conformance with the specifications and/or the grade profile or an air dry weight difference greater than 1% of the invoiced weight, Weyerhaeuser shall notify Domtar immediately. If the parties are unable to
resolve the difference, a retest or joint test shall be made in accordance with the then prevailing rules for testing approved by Technical Association of the Pulp and Paper Industry of the U.S. (“TAPPI”). All incidental expenses relating
to this Section 4.6 shall be paid by the party in error.
  
 4.7. FORCE MAJEURE/SUSPENSION
OF PERFORMANCE
 The duties of either party hereunder shall be excused to the extent and for the period of time necessitated by the occurrence of any fire,
flood, earthquake, other natural disaster, labor dispute, market curtailment, war, direct act or intervention of any government or subdivision thereof, or other event of force majeure beyond the control of any party. The affected party invoking this
provision shall promptly notify the other party in writing of the nature and estimated duration of the suspension period, and shall exercise all reasonable diligence in curing such condition, except in cases where such suspension is of a permanent
nature and such condition is not curable as a result. The party unable to obtain performance by reason of force majeure shall be free to deal with third parties, provided it acts in a manner not inconsistent with its obligations under this
Agreement. In the event of any cause or circumstance excusing Domtar, Domtar shall have the right to utilize its available production and/or supply of Goods to satisfy its own requirements, including those of its subsidiaries and affiliates, in
full, and to allocate any remaining production and/or supply of Goods among its contract customers, in a fair and reasonable manner.
  
 4.8. TAXES
 Any and all taxes or charges of any nature (other than taxes
imposed on the gross or net income of Domtar), imposed by any governmental authority, which shall become payable by reason of the sale, delivery and/or use of Goods hereunder shall be deemed for Weyerhaeuser’s account.
  
 4.9. TERMINATION
 Except for any payment obligations, if either party fails to comply in any material respect with all of the covenants, agreements or conditions of this

  

 4 

			
	 	  	 Agreement and such failure continues for thirty (30) days after written notice from the non-breaching party,
then the non-breaching party may,
at its sole discretion and in addition to any other rights or remedies
available to the non-breaching party under this Agreement or at law or in equity, elect to terminate this
Agreement by providing the other party with an additional ten (10)
days notice.
  
 4. 10. WAIVER
 No right of either party hereunder shall be deemed to have been waived by any failure of such party to
exercise any right in any prior instance or
instances.

		
	 SECTION 5.0:
 ASSIGNMENT
 AND
 ASSUMPTION OF KAMLOOPS PULP CONTRACTS
	  	In lieu of assigning and assuming the Kamloops Pulp Contracts at a time on or prior to the Distribution Date (and obtaining the necessary Consents relating thereto), such assignment and
assumption shall be deferred and the Kamloops Pulp Contracts shall be deemed Delayed Transfer Assets and Delayed Transfer Liabilities (as such terms are defined in the Contribution Agreement), such that, until the expiration or earlier termination
of this Agreement, Weyerhaeuser will retain and hold such Kamloops Pulp Contracts for the benefit of Domtar. Upon the expiration or earlier termination of this Agreement, Weyerhaeuser and Domtar will carry out the assignment and assumption of the
Kamloops Pulp Contracts and obtain the necessary Consents therefor. If the parties are unable to obtain the Consent for assignment and assumption from a customer with respect to any Kamloops Pulp Contract, Weyerhaeuser will continue to hold such
Kamloops Pulp Contract for the remainder of its term (determined as of the March 5, 2007) for the benefit of Domtar and Domtar shall pay, perform and discharge its obligations thereunder. Any monies received by Weyerhaeuser from customers as payment
for Goods ordered from Domtar after the expiration or earlier termination of this Agreement shall be paid over to Domtar, less only those amounts permitted to be paid or reimbursed to Weyerhaeuser under the terms of the Contribution
Agreement.
		
	 SECTION 6.0: JURISDICTION;
 DISPUTE
 RESOLUTION
	  	This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario, regardless of the laws that might otherwise govern under applicable principles of
conflicts of laws thereof, and the parties expressly agree that the Convention on the International Sale of Goods shall not apply. Any issue, dispute or controversy arising pursuant to this Agreement (a “Dispute”) shall be settled in the
following manner. Upon written request of either party, the representatives of Domtar and of Weyerhaeuser shall promptly confer and exert their commercially reasonable efforts without the necessity of any formal proceeding related thereto to reach a
reasonable and equitable resolution of such Dispute. If such representatives are unable to resolve such Dispute within ten (10) business days, the Dispute shall be referred to the responsible senior management of each party for resolution. Neither
party shall seek any other means of resolving any Dispute arising in connection with this Agreement until both parties’ responsible senior management have had at least five (5) business days to resolve the Dispute following its referral to
them. If the Dispute cannot be resolved by senior management, then the parties may proceed with binding arbitration. The Dispute shall be settled by a single arbitrator in the city of Toronto, Ontario, in accordance with the International
Arbitration Rules of ADR Chambers International (or successor) then in effect. The procedures for

  

 5 

			
		
		  	arbitration shall be governed by the Arbitration Act (Ontario) as amended or supplemented from time to time. The single arbitrator shall have expertise in the area of the pulp and forestry
industry. The arbitrator may award costs to the substantially prevailing party. The arbitrator’s decision shall be final and binding upon the parties.

 IN WITNESS WHEREOF, the parties have caused this Agreement for the Purchase and Sale of Pulp to be executed by
their duly authorized representatives as of the date first above mentioned. 
  

							
	WEYERHAEUSER COMPANY	 	DOMTAR PULP AND PAPER PRODUCTS INC.
				
	By:	 	 /S/ SANDY MCDADE
	 	By:	 	 /S/ PATRICK M. LANE

				
	Name:	 	 Sandy McDade
	 	Name:	 	 Patrick M. Lane

				
	Title:	 	 Senior Vice President
	 	Title:	 	 Vice President

  

 6

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