Document:

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EXHIBIT 4.22

                             EXCHANGE AGENT WARRANT

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR (B)
AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER THAT ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD
PURSUANT TO RULE 144 UNDER THAT ACT.

                               SSP SOLUTIONS, INC.

                        WARRANT TO PURCHASE COMMON STOCK

Warrant No.: EA-1                                       Number of Shares: ______
Date of Issuance: November 19, 2003

         SSP SOLUTIONS, INC., a Delaware corporation (the "COMPANY"), hereby
certifies that, for $10.00 and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, ___________________,
the registered holder hereof or its permitted assigns, is entitled, subject to
the terms set forth below, to purchase from the Company upon surrender of this
Warrant, at any time or times on or after the Exercisability Date (as defined
herein), but not after 11:59 P.M. Eastern Standard Time on the Expiration Date
(as defined herein), ____________________ (______) fully paid nonassessable
shares of Common Stock (as defined herein) of the Company (the "WARRANT SHARES")
at the Warrant Exercise Price (as defined herein).

1. PURCHASE AGREEMENT.

         This Warrant is being issued to the holder as transferee of Burnham
Hill Partners ("BHP") as part of the holder's compensation for efforts in
assisting BHP in raising capital for the Company pursuant to the Securities
Purchase Agreement dated as of November 19, 2003, among the Company and the
Persons referred to therein (the "AGREEMENT"). Capitalized terms not defined
herein shall have the same meaning as in the Agreement.

2. DEFINITIONS.

         The following words and terms as used in this Warrant shall have the
following meanings:

         (a) "BUSINESS DAY" means any day other than a Saturday, Sunday or other
day on which the Principal Market is authorized or required to be closed to
trading.

         (b) "CLOSING SALE PRICE" means, for any security as of any date, the
last closing trade price for such security on the Principal Market as reported
by Bloomberg Financial Markets ("BLOOMBERG"), or, if the Principal Market begins
to operate on an extended hours basis and does not designate the closing trade

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price, then the last trade price at 4:00 p.m., New York City Time (or such other
time as the Principal Market publicly announces is the official close of
trading), as reported by Bloomberg, or, if the foregoing do not apply, the last
closing trade price of such security in the over-the-counter market on the
electronic bulletin board for such security as reported by Bloomberg, or, if no
closing trade price is reported for such security by Bloomberg, the last closing
ask price for such security as reported by Bloomberg, or, if no last closing ask
price is reported for such security by Bloomberg, the average of the highest bid
price and the lowest ask price of any market makers for such security as
reported in the "pink sheets" by the National Quotation Bureau, Inc. If the
Closing Sale Price cannot be calculated for that security on that date on any of
the foregoing bases, the Closing Sale Price of such security on such date shall
be the fair market value as mutually determined by the Company and the holders
of Warrants representing at least two-thirds (2/3) of the shares of Common Stock
issuable upon the exercise of the Warrants then outstanding. If the Company and
the holders of the Warrants are unable to agree upon the fair market value of
the Common Stock, then the Company shall immediately submit via facsimile the
disputed determination of the fair market value to an independent, reputable
investment banking firm. The Company shall cause the investment banking firm to
perform the determinations or calculations and notify the Company and the holder
of the results no later than 48 hours from the time it receives the disputed
determinations or calculations. The investment banking firm's determination or
calculation, as the case may be, shall be deemed conclusive absent manifest
error.

         (c) "COMMON STOCK" means (i) the Company's common stock, par value
$0.01 per share, and (ii) any capital stock into which the Common Stock has been
changed or any capital stock resulting from a reclassification of the Common
Stock.

         (d) "CONVERTIBLE SECURITIES" means any stock or securities (other than
Options) directly or indirectly convertible into or exchangeable or exercisable
for Common Stock.

         (e) "EFFECTIVE DATE" means the date the Registration Statement (as
defined in the Registration Rights Agreement) is declared effective by the SEC.

         (f) "EXERCISABILITY DATE" means the date of the Company Stockholder
Meeting (as defined in and contemplated by Section 6.12 of the Agreement).

         (g) "EXPIRATION DATE" means the date five years from the date of this
Warrant or, if such date does not fall on a Business Day or on a day on which
trading takes place on the principal exchange or automated quotation system on
which the Common Stock is traded, then the next Business Day.

         (h) "OTHER SECURITIES" means shares of Common Stock issued upon (i)
exercise of warrants of the Company issued prior to, and outstanding on, the
date of issuance of this Warrant, (ii) conversion of Convertible Securities of
the Company issued prior to, and outstanding on the date of, issuance of this
Warrant, and (iii) conversion of the Series A Preferred Stock issued by the
Company pursuant to the Agreement.

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         (i) "OPTIONS" means any rights, warrants or options to subscribe for or
purchase Common Stock or Convertible Securities.

         (j) "PERSON" means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a government or any department or agency thereof. (k)
"PREFERRED SHARES" means the shares of the Company's Series A Preferred Stock
issued pursuant to the Agreement.

         (l) "PRINCIPAL MARKET" means The Nasdaq National Market, or, if the
Common Stock is not traded on The Nasdaq National Market, then the principal
securities exchange or trading market for the Common Stock.

         (m) "SECURITIES ACT" means the Securities Act of 1933, as amended.

         (n) "SUBSCRIPTION FORM" means the Subscription Form attached hereto and
incorporated herein as EXHIBIT A.

         (o) "WARRANT" means this Warrant and all Warrants issued in exchange,
transfer or replacement of this Warrant.

         (p) "WARRANT EXERCISE PRICE" means $0.01 per share, subject to
adjustment as hereinafter provided.

3. EXERCISE OF WARRANT.

         3.1 EXERCISE; DELIVERY OF CERTIFICATES. This Warrant may be exercised,
at the option of the holder, at any time and from time to time (a) on or after
the Exercisability Date and (b) prior to the end of business on the Expiration
Date, for all or any part of the Warrant Shares. This Warrant may be exercised
by delivering the payment of the Warrant Exercise Price for the number of
Warrant Shares being purchased and concurrently surrendering this Warrant to the
Company at its principal office (the "DESIGNATED OFFICE"), together with the
Subscription Form attached hereto duly completed and signed. The Warrant Shares
purchased under this Warrant shall be and are deemed to be issued to the holder
as the record owner of those shares as of the close of business on the date on
which this Warrant was surrendered and payment made therefor. Certificates for
Warrant Shares so purchased shall be delivered to the holder within three
Business Days after this Warrant has been exercised, and, in case of a purchase
of less than all of the Warrant Shares purchasable upon exercise of this
Warrant, the Company shall cancel this Warrant and, within three Business Days,
shall execute and deliver to the holder a new Warrant of like tenor for the
balance of the Warrant Shares. Each stock certificate so delivered shall be
registered in the name of the holder or, subject to compliance with applicable
laws, such other name as shall be designated by the holder.

         3.2 PAYMENT OF WARRANT PRICE. Payment of the Warrant Exercise Price may
be made, at the option of the holder (i) by certified or official bank check,
(ii) by wire transfer, or (iii) by "Cashless Exercise" as described in SECTION
3.4.

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         3.3 NO FRACTIONAL SHARES. No fractional shares of Common Stock are to
be issued upon the exercise of this Warrant, but rather the number of shares of
Common Stock issued upon exercise of this Warrant shall be rounded up or down to
the nearest whole number.

         3.4 CASHLESS EXERCISE. Notwithstanding anything contained herein to the
contrary, the holder of this Warrant may, at its election exercised in its sole
discretion on or after the Exercisability Date and prior to the end of business
on the Expiration Date, exercise this Warrant in whole or in part and, in lieu
of making the cash payment otherwise contemplated to be made to the Company upon
such exercise in payment of the aggregate Warrant Exercise Price, elect instead
to receive upon such exercise the "net number" of shares of Common Stock
determined according to the following formula (a "CASHLESS EXERCISE"):

         Net Number = (A X B) - (A X C)
                      -----------------
                              B

                  For purposes of the foregoing formula:

                           A = the total number of shares with respect to which
                           this Warrant is then being exercised.

                           B = the Closing Sale Price of the Common Stock on the
                           date immediately preceding the date of the
                           subscription notice.

                           C = the Warrant Exercise Price then in effect for the
                           applicable Warrant Shares at the time of such
                           exercise.

         3.5 EXERCISE RESTRICTIONS.

                  3.5.1 BENEFICIAL OWNERSHIP LIMITATION. Notwithstanding
         anything herein to the contrary, the holder may not exercise, and the
         Company may not cause the holder to exercise, this Warrant to the
         extent such exercise would result in the holder, together with any
         affiliate thereof, beneficially owning (as determined in accordance
         with Section 13(d) of the Exchange Act and the rules promulgated
         thereunder) in excess of 4.99% of the then issued and outstanding
         shares of Common Stock. Since the holder will not be obligated to
         report to the Company the number of shares of Common Stock it may hold
         at the time of an exercise hereunder, unless the exercise at issue
         would result in the issuance of shares of Common Stock in excess of
         4.99% of the then outstanding shares of Common Stock without regard to
         any other shares which may be beneficially owned by the holder or an
         affiliate thereof, the holder shall have the authority and obligation
         to determine whether the restriction contained in this SECTION 3.5 will
         limit any particular exercise hereunder and to the extent that the
         holder determines that the limitation contained in this SECTION 3.5
         applies, the determination of the amount of this Warrant is exercisable
         shall be the responsibility and obligation of the holder. If the holder
         has delivered a Subscription Form that, without regard to any other
         shares that the holder or its affiliates may beneficially own, would
         result in the issuance in excess of the permitted amount hereunder, the
         Company shall notify the holder of this fact and shall honor the
         exercise for the maximum amount permitted to be exercised on the
         exercise date in accordance with this SECTION 3.5. If this Warrant was
         not surrendered on the exercise date, the Company shall provide the
         holder written notice of the amount actually exercised. If the holder
         surrendered this Warrant on the exercise date, the Company shall, at
         the option of the holder, either retain any portion of the Warrant

                                      -4-

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         Exercise Price tendered for exercise in excess of the permitted amount
         hereunder for future exercises or return such excess portion of the
         Warrant Exercise Price to the holder. The provisions of this SECTION
         3.5 may be waived by the holder (but only as to itself and not to any
         other holder of Preferred Shares or Warrants) in whole or in part upon
         not less than 61 days prior notice to the Company. Other holders of
         Preferred Shares and Warrants shall be unaffected by any such waiver.

                  3.5.2 LIMITATION ON NUMBER OF SHARES ISSUABLE. Notwithstanding
         anything herein to the contrary, the Company shall not be required to
         issue to the holder, upon conversion of the Preferred Shares and
         exercise of the Warrants, in excess of 19.9999% of the number of shares
         of Common Stock of the Company outstanding as of the Closing Date
         multiplied by a fraction, the numerator of which is the maximum number
         of shares of Common Stock issuable upon exercise of this Warrant and
         conversion of all Preferred Shares held by the holder and the
         denominator of which is the aggregate maximum number of shares of
         Common Stock issuable upon exercise of all Warrants and conversion of
         all Preferred Shares issued pursuant to the Agreement PLUS the
         aggregate number of shares of Common Stock otherwise issued or issuable
         to all holders of Warrants (the "MAXIMUM AGGREGATE SHARE AMOUNT"),
         unless the Company first obtains stockholder approval permitting such
         issuances in accordance with Nasdaq rules. If the number of shares of
         Common Stock which would, notwithstanding the limitation set forth
         herein, be issuable and sold to the holder equals or exceeds the
         Maximum Aggregate Share Amount, then, at any time thereafter, from time
         to time, at the sole election of the holder, in whole or in part, the
         Company shall honor the exercise of this Warrant by the holder at the
         lowest possible exercise price (but not below the Warrant Exercise
         Price) which would permit such exercise without violating Nasdaq Rule
         4350(i).

         3.6 INTENTIONALLY OMITTED.

4. COVENANTS AS TO COMMON STOCK.

         The Company hereby covenants and agrees as follows:

         (a) This Warrant is, and any Warrants issued in substitution for or
replacement of this Warrant will upon issuance be, duly authorized and validly
issued.

         (b) All Warrant Shares which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be validly issued, fully
paid and nonassessable and free from all taxes, liens and charges with respect
to the issue thereof.

         (c) During the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized and
reserved at least 100% of the number of shares of Common Stock needed to provide
for the exercise of the rights then represented by this Warrant and the par
value of said shares will at all times be less than or equal to the applicable
Warrant Exercise Price.

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         (d) The Company shall promptly secure the listing of the shares of
Common Stock issuable upon exercise of this Warrant upon each national
securities exchange or automated quotation system, if any, upon which shares of
Common Stock are then listed (subject to official notice of issuance upon
exercise of this Warrant) and shall maintain, so long as any other shares of
Common Stock shall be so listed, such listing of all shares of Common Stock from
time to time issuable upon the exercise of this Warrant; and the Company shall
so list on each national securities exchange or automated quotation system, as
the case may be, and shall maintain such listing of, any other shares of capital
stock of the Company issuable upon the exercise of this Warrant if and so long
as any shares of the same class shall be listed on such national securities
exchange or automated quotation system.

         (e) The Company will not, by amendment of its Certificate of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed by it hereunder, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the
taking of all such action as may reasonably be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant
against dilution or other impairment, consistent with the tenor and purpose of
this Warrant.

         (f) This Warrant will be binding upon any entity succeeding to the
Company by merger, consolidation or acquisition of all or substantially all of
the Company's assets.

5. TAXES.

         The Company shall pay any and all taxes which may be payable with
respect to the issuance and delivery of Warrant Shares upon exercise of this
Warrant.

6. WARRANT HOLDER NOT DEEMED A STOCKHOLDER.

         Except as otherwise specifically provided herein, no holder, as such,
of this Warrant shall be entitled to vote or receive dividends or be deemed the
holder of shares of the Company for any purpose, nor shall anything contained in
this Warrant be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or otherwise),
receive notice of meetings, receive dividends or subscription rights, or
otherwise, prior to the issuance to the holder of this Warrant of the Warrant
Shares which it is then entitled to receive upon the due exercise of this
Warrant. In addition, nothing contained in this Warrant shall be construed as
imposing any liabilities on such holder to purchase any securities (upon
exercise of this Warrant or otherwise) or as a stockholder of the Company,
whether such liabilities are asserted by the Company or by creditors of the
Company. Notwithstanding this SECTION 6, the Company will provide the holder of
this Warrant with copies of the same notices and other information given to the
stockholders of the Company generally, contemporaneously with the giving thereof
to the stockholders.

                                      -6-

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7. REPRESENTATIONS OF HOLDER.

         The holder of this Warrant, by the acceptance hereof, represents that
it is acquiring this Warrant and the Warrant Shares for its own account and not
with a view towards, or for resale in connection with, the public sale or
distribution of this Warrant or the Warrant Shares, except pursuant to sales
registered or exempted under the Securities Act. The holder of this Warrant
further represents, by acceptance hereof, that, as of this date, the holder is
an "accredited investor" as that term is defined in Rule 501(a)(3) of Regulation
D promulgated by the Securities and Exchange Commission under the Securities
Act. Upon exercise of this Warrant, the holder shall, if requested by the
Company, confirm in writing, in a form satisfactory to the Company,
representations concerning the Warrant Shares in substantially the form of the
first sentence of this SECTION 7.

8. OWNERSHIP AND TRANSFER.

         (a) The Company shall maintain at its principal executive offices (or
such other office or agency of the Company as it may designate by notice to the
holder hereof), a register for this Warrant, in which the Company shall record
the name and address of the person in whose name this Warrant has been issued,
as well as the name and address of each transferee. The Company may treat the
person in whose name any Warrant is registered on the register as the owner and
holder thereof for all purposes, notwithstanding any notice to the contrary, but
in all events recognizing any transfers made in accordance with the terms of
this Warrant.

         (b) This Warrant and the rights granted hereunder shall be assignable
by the holder hereof without the consent of the Company.

         (c) The Company is obligated to register the Warrant Shares for resale
under the Securities Act pursuant to the Agreement and the initial holder of
this Warrant (and certain assignees thereof) is entitled to the registration
rights in respect of the Warrant Shares as set forth in the Agreement.

9. ADJUSTMENT OF WARRANT EXERCISE PRICE AND NUMBER OF SHARES.

         The Warrant Exercise Price and the number of shares of Common Stock
issuable upon exercise of this Warrant shall be adjusted from time to time as
follows:

         9.1 ADJUSTMENT OF WARRANT EXERCISE PRICE AND NUMBER OF SHARES UPON
ISSUANCE OF COMMON STOCK. If and whenever on or after the date of issuance of
this Warrant, the Company issues or sells, or is deemed to have issued or sold,
any shares of Common Stock (including the issuance or sale of shares of Common
Stock owned or held by or for the account of the Company, but excluding Excluded
Securities, as that term is defined in the Company's Certificate of Designation
creating its Series A Preferred Stock) for a consideration per share less than a
price equal to the Warrant Exercise Price in effect immediately prior to such
issuance or sale (a "DILUTIVE ISSUANCE"), then effective immediately upon the
Dilutive Issuance, the Warrant Exercise Price shall be adjusted so as to equal
an amount determined by multiplying such Warrant Exercise Price by the following
fraction:

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                                     N0 + N1

                                   -----------

                                     N0 + N2

                  where:

                  N(0) = the number of shares of Common Stock outstanding
         immediately prior to the issuance, sale or deemed issuance or sale of
         such additional shares of Common Stock in such Dilutive Issuance
         (without taking into account any shares of Common Stock issuable upon
         conversion, exchange or exercise of any Convertible Securities or
         Purchase Rights, including the Preferred Shares and Warrants);

                  N(1) = the number of shares of Common Stock which the
         aggregate consideration, if any, received or receivable by the Company
         for the total number of such additional shares of Common Stock so
         issued, sold or deemed issued or sold in such Dilutive Issuance (which,
         in the case of a deemed issuance or sale, shall be calculated in
         accordance with SECTIONS 9.2 and 9.3) would purchase at the Conversion
         Price in effect immediately prior to such Dilutive Issuance; and

                  N(2) = the number of such additional shares of Common Stock so
         issued, sold or deemed issued or sold in such Dilutive Issuance.

         Upon each such adjustment of the Warrant Exercise Price pursuant to the
immediately preceding sentence, the number of shares of Common Stock acquirable
upon exercise of this Warrant shall be adjusted to the number of shares
determined by multiplying the Warrant Exercise Price in effect immediately prior
to such adjustment by the number of shares of Common Stock acquirable upon
exercise of this Warrant immediately prior to such adjustment and dividing the
product thereof by the Warrant Exercise Price resulting from such adjustment.

         9.2 DEEMED ISSUANCE IN CERTAIN EVENTS. For purposes of determining the
adjusted Warrant Exercise Price under SECTION 9.1, the following shall be
applicable:

                  9.2.1 ISSUANCE OF OPTIONS. If the Company in any manner grants
         any Options and the lowest price per share for which one share of
         Common Stock is issuable upon the exercise of any such Option or upon
         conversion, exchange or exercise of any Convertible Securities issuable
         upon exercise of any such Option is less than the Warrant Exercise
         Price, then such share of Common Stock shall be deemed to be
         outstanding and to have been issued and sold by the Company at the time
         of the granting or sale of such Option for such price per share. For
         purposes of this SECTION 9.2.1, the "lowest price per share for which
         one share of Common Stock is issuable upon exercise of such Options or
         upon conversion, exchange or exercise of such Convertible Securities"
         shall be equal to the sum of the lowest amounts of consideration (if
         any) received or receivable by the Company with respect to any one
         share of Common Stock upon the granting or sale of the Option, upon
         exercise of the Option and upon conversion, exchange or exercise of any
         Convertible Security issuable upon exercise of such Option. No further
         adjustment of the Warrant Exercise Price shall be made upon the actual
         issuance of such Common Stock or of such Convertible Securities upon
         the exercise of such Options or upon the actual issuance of such Common
         Stock upon conversion, exchange or exercise of such Convertible
         Securities.

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                  9.2.2 ISSUANCE OF CONVERTIBLE SECURITIES. If the Company in
         any manner issues or sells any Convertible Securities and the lowest
         price per share for which one share of Common Stock is issuable upon
         such conversion, exchange or exercise thereof is less than the Warrant
         Exercise Price, then such share of Common Stock shall be deemed to be
         outstanding and to have been issued and sold by the Company at the time
         of the issuance or sale of such Convertible Securities for such price
         per share. For the purposes of this SECTION 9.2.2, the "lowest price
         per share for which one share of Common Stock is issuable upon such
         conversion, exchange or exercise" shall be equal to the sum of the
         lowest amounts of consideration (if any) received or receivable by the
         Company with respect to one share of Common Stock upon the issuance or
         sale of the Convertible Security and upon conversion, exchange or
         exercise of such Convertible Security. No further adjustment of the
         Warrant Exercise Price shall be made upon the actual issuance of such
         Common Stock upon conversion or exchange of such Convertible
         Securities, and if any such issue or sale of such Convertible
         Securities is made upon exercise of any Options for which adjustment of
         the Warrant Exercise Price had been or are to be made pursuant to other
         provisions of this SECTION 9.2, no further adjustment of the Warrant
         Exercise Price shall be made by reason of such issue or sale.

                  9.2.3 CHANGE IN OPTION PRICE OR RATE OF CONVERSION. If the
         purchase price provided for in any Options, the additional
         consideration, if any, payable upon the issue, conversion or exchange
         of any Convertible Securities, or the rate at which any Convertible
         Securities are convertible into or exchangeable for Common Stock
         changes at any time, the Warrant Exercise Price in effect at the time
         of such change shall be adjusted to the Warrant Exercise Price which
         would have been in effect at such time had such Options or Convertible
         Securities provided for such changed purchase price, additional
         consideration or changed conversion rate, as the case may be, at the
         time initially granted, issued or sold and the number of shares of
         Common Stock acquirable hereunder shall be correspondingly readjusted.
         For purposes of this SECTION 9.2.3, if the terms of any Option or
         Convertible Security that was outstanding as of the date of issuance of
         this Warrant are changed in the manner described in the immediately
         preceding sentence, then such Option or Convertible Security and the
         Common Stock deemed issuable upon exercise, conversion or exchange
         thereof shall be deemed to have been issued as of the date of such
         change. No adjustment shall be made if such adjustment would result in
         an increase of the Warrant Exercise Price then in effect.

         9.3 EFFECT ON WARRANT EXERCISE PRICE OF CERTAIN EVENTS. For purposes of
determining the adjusted Warrant Exercise Price under SECTIONS 9.2 AND 9.3, the
following shall be applicable:

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                  9.3.1 CALCULATION OF CONSIDERATION RECEIVED. In case any
         Option is issued in connection with the issue or sale of other
         securities of the Company, together comprising one integrated
         transaction in which no specific consideration is allocated to such
         Options by the parties thereto, the Options will be deemed to have been
         issued for a consideration of $.01. If any Common Stock, Options or
         Convertible Securities are issued or sold or deemed to have been issued
         or sold for cash, the consideration received therefor will be deemed to
         be the net amount received by the Company therefor. If any Common
         Stock, Options or Convertible Securities are issued or sold for a
         consideration other than cash, the amount of such consideration
         received by the Company will be the fair value of such consideration,
         except where such consideration consists of marketable securities, in
         which case the amount of consideration received by the Company will be
         the Closing Sale Price of such securities on the date of receipt of
         such securities. If any Common Stock, Options or Convertible Securities
         are issued to the owners of the non-surviving entity in connection with
         any merger in which the Company is the surviving entity, the amount of
         consideration therefor will be deemed to be the fair value of such
         portion of the net assets and business of the non-surviving entity as
         is attributable to such Common Stock, Options or Convertible
         Securities, as the case may be. The fair value of any consideration
         other than cash or securities will be determined jointly by the Company
         and the holders of Warrants representing at least two-thirds of the
         shares of Common Stock obtainable upon exercise of the Warrants then
         outstanding. If such parties are unable to reach agreement within ten
         days after the occurrence of an event requiring valuation (the
         "VALUATION EVENT"), the fair value of such consideration will be
         determined within five Business Days after the tenth day following the
         Valuation Event by an independent, reputable appraiser jointly selected
         by the Company and the holders of Warrants representing at least
         two-thirds of the shares of Common Stock obtainable upon exercise of
         the Warrants then outstanding. The determination of such appraiser
         shall be final and binding upon all parties absent error and the fees
         and expenses of such appraiser shall be borne by the Company.

                  9.3.2 RECORD DATE. If the Company takes a record of the
         holders of Common Stock for the purpose of entitling them (a) to
         receive a dividend or other distribution payable in Common Stock,
         Options or in Convertible Securities or (b) to subscribe for or
         purchase Common Stock, Options or Convertible Securities, then such
         record date will be deemed to be the date of the issue or sale of the
         shares of Common Stock deemed to have been issued or sold upon the
         declaration of such dividend or the making of such other distribution
         or the date of the granting of such right of subscription or purchase,
         as the case may be.

         9.4 ADJUSTMENT OF WARRANT EXERCISE PRICE UPON SUBDIVISION OR
COMBINATION OF COMMON STOCK. If the Company at any time after the date of
issuance of this Warrant subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of
Common Stock into a greater number of shares, the Warrant Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced and
the number of shares of Common Stock obtainable upon exercise of this Warrant
will be proportionately increased. If the Company at any time after the date of
issuance of this Warrant combines (by combination, reverse stock split or
otherwise) one or more classes of its outstanding shares of Common Stock into a
smaller number of shares, the Warrant Exercise Price in effect immediately prior
to such combination will be proportionately increased and the number of shares
of Common Stock obtainable upon exercise of this Warrant will be proportionately
decreased. Any adjustment under this SECTION 9.4 shall become effective at the
close of business on the date the subdivision or combination becomes effective.

                                      -10-

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         9.5 DISTRIBUTION OF ASSETS. If the Company declares or makes any
dividend or other distribution of its assets (or rights to acquire its assets)
to holders of Common Stock, by way of return of capital or otherwise (including,
without limitation, any distribution of cash, stock or other securities,
property or options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a "Distribution"), at any time
after the issuance of this Warrant, then, in each such case:

         (a) the Warrant Exercise Price in effect immediately prior to the close
of business on the record date fixed for the determination of holders of Common
Stock entitled to receive the Distribution shall be reduced, effective as of the
close of business on such record date, to a price determined by multiplying such
Warrant Exercise Price by a fraction of which (A) the numerator shall be the
Closing Sale Price of the Common Stock on the trading day immediately preceding
such record date minus the value of the Distribution (as determined in good
faith by the Company's Board of Directors) applicable to one share of Common
Stock, and (B) the denominator shall be the Closing Sale Price of the Common
Stock on the trading day immediately preceding such record date; and

         (b) either (A) the number of Warrant Shares obtainable upon exercise of
this Warrant shall be increased to a number of shares equal to the number of
shares of Common Stock obtainable immediately prior to the close of business on
the record date fixed for the determination of holders of Common Stock entitled
to receive the Distribution multiplied by the reciprocal of the fraction set
forth in the immediately preceding clause (a), or (B) if the Distribution is of
common stock of a company whose common stock is traded on a national securities
exchange or a national automated quotation system, then the holder of this
Warrant shall receive an additional warrant to purchase Common Stock, the terms
of which shall be identical to those of this Warrant, except that such warrant
shall be exercisable into the amount of the assets that would have been payable
to the holder of this Warrant pursuant to the Distribution had the holder
exercised this Warrant immediately prior to such record date and with an
exercise price equal to the amount by which the exercise price of this Warrant
was decreased with respect to the Distribution pursuant to the terms of the
immediately preceding clause (a).

         9.6 CERTAIN EVENTS. If any event occurs of the type contemplated by the
provisions of this SECTION 9 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights,
phantom stock rights or other rights with equity features), then the Company's
Board of Directors will make an appropriate adjustment in the Warrant Exercise
Price and the number of shares of Common Stock obtainable upon exercise of this
Warrant so as to protect the rights of the holders of the Warrants; provided
that no such adjustment will increase the Warrant Exercise Price or decrease the
number of shares of Common Stock obtainable as otherwise determined pursuant to
this SECTION 9.

                                      -11-

<PAGE>

         9.7 NOTICES.

         (a) Immediately upon any adjustment of the Warrant Exercise Price, the
Company will give written notice thereof to the holder of this Warrant, setting
forth in reasonable detail, and certifying, the calculation of such adjustment.

         (b) The Company will give written notice to the holder of this Warrant
at least 20 days prior to the date on which the Company closes its books or
takes a record (A) with respect to any dividend or distribution upon the Common
Stock, (B) with respect to any pro rata subscription offer to holders of Common
Stock or (C) for determining rights to vote with respect to any Organic Change
(as defined below), dissolution or liquidation, provided that such information
shall be made known to the public prior to or in conjunction with such notice
being provided to such holder.

         (c) The Company will also give written notice to the holder of this
Warrant at least 20 days prior to the date on which any Organic Change,
dissolution or liquidation will take place, provided that such information shall
be made known to the public prior to or in conjunction with such notice being
provided to such holder.

10. PURCHASE RIGHTS; REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR
SALE.

         (a) In addition to any adjustments pursuant to SECTION 9, if at any
time the Company grants, issues or sells any Options, Convertible Securities or
rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any class of Common Stock (the "PURCHASE RIGHTS"), then the
holder of this Warrant will be entitled to acquire, upon the terms applicable to
the Purchase Rights, the aggregate Purchase Rights which the holder could have
acquired if the holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant immediately before the date on which a
record is taken for the grant, issuance or sale of such Purchase Rights, or, if
no record is taken, the date as of which the record holders of Common Stock are
to be determined for the grant, issue or sale of the Purchase Rights.

         (b) Any recapitalization, reorganization, reclassification,
consolidation, merger, sale of all or substantially all of the Company's assets
to another Person or other transaction which is effected in such a way that
holders of Common Stock are entitled to receive (either directly or upon
subsequent liquidation) stock, securities or assets with respect to or in
exchange for Common Stock is referred to herein as an "ORGANIC Change." Prior to
the consummation of any (i) sale of all or substantially all of the Company's
assets to an acquiring Person or (ii) other Organic Change following which the
Company is not a surviving entity, the Company will secure from the Person
purchasing the assets or the successor resulting from the Organic Change (in
each case, the "ACQUIRING ENTITY") written agreement (in form and substance
satisfactory to the holders of Warrants representing at least two-thirds of the
shares of Common Stock obtainable upon exercise of the Warrants then
outstanding, whose approval shall not unreasonably be withheld) to deliver to
each holder of Warrants in exchange for the Warrants, a security of the
Acquiring Entity evidenced by a written instrument substantially similar in form
and substance to this Warrant and satisfactory to the holders of the Warrants
(including, an adjusted warrant exercise price equal to the value for the Common
Stock reflected by the terms of such consolidation, merger or sale, and

                                      -12-

<PAGE>

exercisable for a corresponding number of shares of Common Stock acquirable and
receivable upon exercise of the Warrants (without regard to any limitations on
exercises), if the value so reflected is less than the Warrant Exercise Price in
effect immediately prior to such consolidation, merger or sale). Prior to the
consummation of any other Organic Change, the Company shall make appropriate
provision (in form and substance satisfactory to the holders of Warrants
representing at least two-thirds of the shares of Common Stock obtainable upon
exercise of the Warrants then outstanding) to ensure that each of the holders of
the Warrants will thereafter have the right to acquire and receive in lieu of or
in addition to (as the case may be) the shares of Common Stock immediately
theretofore acquirable and receivable upon the exercise of the holder's Warrants
(without regard to any limitations on exercises), such shares of stock,
securities or assets that would have been issued or payable in such Organic
Change with respect to or in exchange for the number of shares of Common Stock
which would have been acquirable and receivable upon the exercise of the
holder's Warrant as of the date of the Organic Change (without taking into
account any limitations or restrictions on the exercisability of this Warrant).

11. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT.

         If this Warrant is lost, stolen, mutilated or destroyed, the Company
shall promptly, on receipt of an indemnification undertaking (or in the case of
a mutilated Warrant, the Warrant), issue a new warrant of like denomination and
tenor as the Warrant so lost, stolen, mutilated or destroyed.

12. NOTICE.

         Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Warrant must be in writing and
will be deemed to have been delivered: (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the
sending party); or (iii) one Business Day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such
communications shall be:

                  If to the Company:

                           SSP Solutions, Inc.
                           17861 Cartwright Road
                           Irvine, California 92614
                           Telephone:       949-851-1085
                           Facsimile:       949-851-8679
                           Attention:       President

                                      -13-

<PAGE>

                  With copy to:

                           Rutan & Tucker, LLP
                           611 Anton Boulevard, Fourteenth Floor
                           Costa Mesa, California 92626-1998
                           Telephone:       714-641-5100
                           Facsimile:       714-546-9035
                           Attention:       Gregg Amber, Esq.

         If to a holder of this Warrant, to it at the address and facsimile
number set forth on EXHIBIT A to the Agreement, with copies to the holder's
representatives as set forth on EXHIBIT A to the Agreement, or at such other
address and facsimile as is delivered to the Company upon the issuance or
transfer of this Warrant. Each party shall provide five days' prior written
notice to the other party of any change in address or facsimile number. Written
confirmation of receipt (A) given by the recipient of the notice, consent,
waiver or other communication, (B) mechanically or electronically generated by
the sender's facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of the transmission or (C) provided by a
nationally recognized overnight delivery service shall be rebuttable evidence of
personal service, receipt by facsimile or receipt from a nationally recognized
overnight delivery service in accordance with clause (i), (ii) or (iii) above,
respectively.

13. DATE.

         The date of this Warrant is November 19, 2003 (the "WARRANT DATE").
This Warrant, in all events, shall be wholly void and of no effect after the
close of business on the Expiration Date, except that notwithstanding any other
provisions hereof, the provisions of SECTION 7 shall continue in full force and
effect after such date as to any Warrant Shares or other securities issued upon
the exercise of this Warrant.

14. AMENDMENT AND WAIVER.

         Except as otherwise provided herein, the provisions of the Warrants may
be amended and the Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company has
obtained the written consent of the holders of Warrants representing at least
two-thirds of the shares of Common Stock issuable upon exercise of the Warrants
then outstanding; provided that no such action may increase the Warrant Exercise
Price of the Warrants or decrease the number of shares or class of stock
issuable upon exercise of any Warrant without the written consent of the holder
of that Warrant.

15. SECTION DESCRIPTIVE HEADINGS; GOVERNING LAW.

         The descriptive headings of the several sections and paragraphs of this
Warrant are inserted for convenience only and do not constitute a part of this
Warrant. The corporate laws of the State of Delaware shall govern all issues
concerning the relative rights of the Company and its stockholders. All other
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be governed by the internal laws of the State of
California, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of California or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the
State of California. In any action, dispute, litigation or other proceeding
concerning this Warrant (including arbitration), exclusive jurisdiction shall be
with the courts of California, with the County of Orange being the sole venue
for the bringing of the action or proceeding.

                                      -14-

<PAGE>

16. COSTS.

         The Company agrees to pay to the holder of this Warrant upon demand all
reasonable costs and expenses incurred (including, without limitation reasonable
fees and expenses of counsel) in connection with (i) the enforcement of the
terms of or protection of the holder's rights under this Warrant, (ii) any
waiver requested by the Company of any of the holder's rights under this Warrant
and (iii) any proposed amendment, modification or restructuring of this Warrant.

17. WAIVER OF JURY TRIAL.

         BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL
TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND
EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY
(RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE
RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE
BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, AND
UNDERSTANDING THEY ARE WAIVING A CONSTITUTIONAL RIGHT, THE PARTIES HERETO WAIVE
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE
ANY DISPUTE, WHETHER IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED
WITH, RELATED TO, OR INCIDENTAL TO, THIS WARRANT, THE AGREEMENT AND/OR ANY
RELATED AGREEMENT OR THE TRANSACTIONS COMPLETED HEREBY OR THEREBY.

                            [SIGNATURE PAGE FOLLOWS]

                                      -15-

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed as
of the 19th day of November, 2003.

                                  SSP SOLUTIONS, INC.

                                  By:
                                      ------------------------------------------
                                      Marvin J. Winkler, Chief Executive Officer

                                  By:
                                      ------------------------------------------
                                      Thomas E. Schiff, Chief Financial Officer

                                      -16-

<PAGE>

                              EXHIBIT A TO WARRANT
                              --------------------

                                SUBSCRIPTION FORM

        TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

                               SSP SOLUTIONS, INC.

         The undersigned holder hereby exercises the right to purchase
_________________ of the shares of Common Stock ("WARRANT SHARES") of SSP
Solutions, Inc., a Delaware corporation (the "COMPANY"), evidenced by the
attached Warrant (the "WARRANT"). Capitalized terms used herein and not
otherwise defined shall have the respective meanings set forth in the Warrant.

         1. FORM OF WARRANT EXERCISE PRICE. The holder intends that payment of
the Warrant Exercise Price shall be made as:

        ____________       "CASH EXERCISE" with respect to _________________
                           Warrant Shares; and/or

        ____________       "CASHLESS EXERCISE" with respect to _________________
                           Warrant Shares (to the extent permitted by the terms
                           of the Warrant).

         2. PAYMENT OF WARRANT EXERCISE PRICE. If the holder has elected a Cash
Exercise with respect to some or all of the Warrant Shares to be issued pursuant
hereto, the holder shall pay the sum of $___________________ to the Company in
accordance with the terms of the Warrant.

         3. DELIVERY OF WARRANT SHARES. The Company shall deliver to the holder
__________ Warrant Shares in accordance with the terms of the Warrant.

         Date: _______________ __, ______

                                          ______________________________________
                                          Name of Registered Holder

                                          By: __________________________________

                                          Name: ________________________________

                                          Title: _______________________________

                                      -17-

<PAGE>

                                 ACKNOWLEDGMENT

         The Company hereby acknowledges this Subscription Form and hereby
directs [TRANSFER AGENT] to issue the above indicated number of shares of Common
Stock in accordance with the Transfer Agent Instructions dated __________, 200__
from the Company and acknowledged and agreed to by [TRANSFER AGENT].

                                         SSP SOLUTIONS, INC.

                                         By: ___________________________________

                                         Name: _________________________________

                                         Title: ________________________________

                                      -18-

<PAGE>

                              EXHIBIT B TO WARRANT
                              --------------------

                              FORM OF WARRANT POWER

         FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to
________________, Federal Identification No. __________, a warrant to purchase
____________ shares of the capital stock of SSP Solutions, Inc., a Delaware
corporation, represented by warrant certificate no. _____, standing in the name
of the undersigned on the books of said corporation. The undersigned does hereby
irrevocably constitute and appoint ______________, attorney to transfer the
warrants of said corporation, with full power of substitution in the premises.

Dated:  _________, 200_                    _____________________________________

                                           By:__________________________________

                                              Its:______________________________

                                      -19-QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.10    
    

EURO 500,106,406 FACILITY AGREEMENT 

dated May 7, 2003 

among

SAPPI PAPIER HOLDING AG
  as Borrower 

and

SAPPI INTERNATIONAL S.A.
  as Guarantor 

and

BANK AUSTRIA CREDITANSTALT AG
  as Mandated Lead Arranger and Agent 

and

the Lenders listed in Schedule 1 

          

(Stamp Duty exempt pursuant to Sec 33 TP 19 para 4 nr 4 Stamp Duty Act)  

  

THIS AGREEMENT is dated May 7, 2003 and made between: 

	(1)
	SAPPI
PAPIER HOLDING AG (the "Borrower");

	(2)
	SAPPI
INTERNATIONAL S.A. (the "Guarantor");

	(3)
	BANK
AUSTRIA CREDITANSTALT AG (the "Mandated Lead Arranger" and "Agent"); and

	(4)
	the
Lenders listed in Schedule 1 

IT
IS AGREED as follows: 

PREAMBLE  

Whereas
the Sappi Group has acquired Potlatch Corporation's Coated Fine Paper Division for a purchase price amounting to USD 480,000,000 which was partially financed by Intercompany
Financings from Sappi Papier Holding AG to Sappi Lanaken Press Paper N.V., Belgium, S.D. Warren Company, USA and Sappi UK Holdings B.V., Netherlands. 

Sappi
now intends to partially refinance these Intercompany Financings through the Loan provided for under this Agreement. 

The
Loan provided for under this Agreement will be refinanced by the Lenders from Oesterreichische Kontrollbank Aktiengesellschaft under refinancing arrangements on the basis of guarantees by "aval"
for the Borrower as acceptor of bills of exchange under sec 2 of the Export Guarantees Act 1981 ("Ausfuhrförderungsgesetz 1981"). For this reason this Agreement is stamp duty
exempt pursuant to sec 33 TP 19 para 4 nr 4 of the Austrian Stamp Duty Act. 

 
 

SECTION 1    INTERPRETATION    
    

1.    Definitions and Interpretation  

	1.1.
	Definitions 

"Affiliate" means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding
Company. 

"Agreement" means this Facility Agreement. 

"Amount" means, in relation to the Loan, the amount specified in the Drawdown Request delivered by the Borrower for that Loan adjusted to reflect any
repayment, prepayment or cancellation of the Loan as the case may be. 

"Annual Compliance Certificate" means a Compliance Certificate in respect of the last Quarter of any financial year of the Borrower. 

"Applicable Facility Fee" means the fee specified in Schedule 10 (Applicable Facility Fee). 

"Authorisation" means an authorisation, consent, approval, resolution, licence, exemption, filing or registration. 

"Available Facility" means the aggregate of the Lenders' Available Facility Commitments. 

"Available Facility Commitment" means, with respect to a Lender, such Lender's Commitment minus: 

	(a)
	the
amount of its participation in any outstanding Loans 

2

 

	(b)
	in
relation to any proposed Drawdown, the amount of its participation in any Loans that are due to be made on or before the proposed Drawdown Date. 

"Availability Period" means the period from and including the date of this Agreement to and including July 31, 2003. 

"Break Costs" means (i) as long as the Facility is refinanced by OeKB, the amount (if any) determined by OeKB as cost associated with placing the
prepaid principal amount otherwise for the respective duration (such cost will be calculated by OeKB as the present value of the difference between the interest OeKB would have received had the
principal amount not been prepaid and the interest OeKB is able to obtain by placing an amount equal to the prepaid principal amount at the respective money market interest rates or capital market
interest rates prevailing at the time of the notice of the prepayment for the respective duration which interest rate shall also be used as discount rate for the calculation of present value of such
difference) and (ii) if at any time any outstanding portion of the Facility is no longer refinanced by OeKB, the amount by which interest which a Lender would have received for the period from
the date of receipt of the prepaid principal amount to the last day of the current Interest Period, had the principal received been paid on the last day of that Interest Period exceeds the interest
which that Lender would be able to obtain by placing an amount equal to the prepaid principal amount received by it on deposit with a leading bank in the Relevant Interbank Market for a period
starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period. 

"Business Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in Vienna and which is a TARGET Day. 

"Commitment" means 

	(a)
	in
relation to an Original Lender, the aggregate amount set opposite its name under the headings "Tranche A Commitment" and "Tranche B Commitment" in Schedule 1 (The Original
Lenders) and the amount of any other commitment transferred to it under this Agreement; and

	(b)
	in
relation to any other Lender, the amount of any commitment transferred to it under this Agreement, 

to
the extent not cancelled, reduced or transferred by it under this Agreement. 

"Compliance Certificate" means a Certificate substantially in the form set out in Schedule 6 (Form of Compliance Certificate). 

"Default" means any event or circumstance specified in Clause 24 (Events of Default) which would (with the expiry of a grace period, the lapse of
time, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default. 

"Disposal" means a sale, transfer or other disposal (including by way of lease or loan) by a person of all or part of its assets, whether by one
transaction or a series of transactions. 

"Drawdown" means the drawdown under the Facility. 

"Drawdown Date" means the date of the Drawdown, being the date on which a Loan is to be made. 

"Drawdown Request" means a notice substantially in the form set out in Schedule 3 (Requests). 

"Environmental Claim" means any claim, proceeding or investigation by or a payment obligation to, a person in respect of any Environmental Law. 

3

 

"Environmental Law" means any applicable law in any jurisdiction in which any Group Company conducts business which relates to the pollution or
protection of the environment or harm to or the protection of human health or the health of animals or plants. 

"EURIBOR" means, in relation to any Loan: 

	(a)
	the
applicable Screen Rate; or

	(b)
	(if
no Screen Rate is available for the period of the Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request quoted by
the Reference Banks to leading banks in the European interbank market for the offering of deposits in Euro for a period comparable to the Interest Period of the Loan to be determined at
11.00 a.m. London time two TARGET Days before the first day of any period for which an interest rate is to be determined. 

"Event of Default" means any event or circumstance specified as such in Clause 24 (Events of Default). 

"Facility" means the loan facility made available under this Agreement as described in Clause 2.1 (The Facility). 

"Facility Outstandings" means the aggregate of the Amount from time to time of the Loan. 

"Facility Office" means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that
date, by not less than five Business Days' written notice) as the office or offices through which it will perform its obligations under this Agreement. 

"Finance Document" means this Agreement, the SISA Guarantee and any Mandate Letter. 

"Finance Party" means the Agent, the Mandated Lead Arranger or a Lender. 

"Financial Indebtedness" means (without double counting) any indebtedness for or in respect of 

	(a)
	moneys
borrowed;

	(b)
	any
amount raised by acceptance under any acceptance credit facility;

	(c)
	any
amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock, participation rights ("Genussrechte" under Austrian law) or any similar
instrument;

	(d)
	the
amount of any liability in respect of any hire purchase agreement, conditional sale agreement or lease which would, in accordance with generally accepted accounting standards in
the relevant jurisdiction be treated as a finance or capital lease;

	(e)
	any
guarantee, bond, stand-by letter of credit or other similar instrument;

	(f)
	any
interest rate or currency swap agreement or any other hedging or derivatives instrument or agreement (valued at risk as certified by the Group's auditors);

	(g)
	any
arrangement entered into primarily as a method of raising finance pursuant to which any asset sold or otherwise disposed of by that person is or may be leased to or reacquired by
a Group Company (whether following the exercise of an option or otherwise); or

	(h)
	any
guarantee, indemnity or similar insurance against financial loss given in respect of the obligation of any person falling within any of paragraphs (a) to (g) above, 

except
that indebtedness owing by one Group Company to another Group Company shall not be taken into account as Financial Indebtedness. 

4

 

"Group" means each Obligor and their respective Subsidiaries for the time being and "Group Company"
means any one of the same. 

"Holding Company" means, in relation to a company or corporation, any other company or corporation in respect of which such other company or corporation
is a Subsidiary. 

"IAS" means the international accounting principles formulated by the International Accounting Standards Committee. 

"Initial Financial Statements" means the audited consolidations of the financial statements of the Obligors and their respective subsidiaries and the
audited unconsolidated financial statements of the Obligors (if required to be produced by law) for the financial year ended September 30, 2002, prepared in accordance with IAS. 

"Intercompany Financings" means the financings from Sappi Papier Holding AG, Austria to Sappi Lanaken Press Paper N.V., Belgium, of
Euro 228,600,000, S.D. Warren Company, USA of USD 130,000,000 and Sappi UK Holdings BV, Netherlands of Euro 133,179,102 for the purpose of
the acquisition of Potlatch Corporation's Coated Fine Paper Division for USD 480,000,000. 

"Interest Period" means each period determined in accordance with Clause 12 (Interest Periods and Terms) and, in relation to an Unpaid Sum, each
period determined in accordance with Clause 11.5 (Default Interest). 

"Lender" means: 

	(a)
	any
Original Lender; and

	(b)
	any
bank or financial institution which has become a Party as a Lender in accordance with Clause 25 (Changes to the Lenders), which in each case has not ceased to be a Party in
accordance with the terms of this Agreement. 

"Loan" means a loan made or to be made under the Facility or the principal Amount outstanding for the time being of that loan. 

"Majority Lenders" means: 

	(a)
	as
long as there are no Facility Outstandings, a Lender or Lenders whose Commitments are in aggregate 66 (sixtysix) or more per cent of the Total Commitments;

	(b)
	at
any other time, a Lender or Lenders whose participations in the Facility Outstandings at such time are in the aggregate 66 (sixtysix) or more per cent thereof, and

	(c)
	for
the purpose of para 10.7. of section 4 regulating a mandatory prepayment in case of breach of certain ratios, a Lender or Lenders whose participations in the
Facility Outstandings at such time are in the aggregate 50 (fifty) or more per cent thereof. 

"Mandate Letter" means the letter dated April 4, 2003 addressed by the Mandated Lead Arranger to the Borrower and any other fee letter or letters
dated on or about the date of this Agreement between the Agent and the Borrower setting out any of the fees referred to in Clause 14 (Fees). 

"Mandatory Cost" means the percentage rate per annum calculated by the Agent in accordance with Schedule 4 (Mandatory Cost Formulae). 

"Material Adverse Effect" means a material adverse effect in the reasonable opinion of the Majority Lenders on the ability of the Obligors (taken
together) to perform their payment obligations under the Finance Documents or the ability of the Borrower to comply with the financial undertakings set out in Clause 23.1 (Financial Covenants). 

5

 

"Material Subsidiary" means, at any time, a subsidiary of an Obligor which has: 

	(a)
	earnings
before interest and tax representing 10 per cent or more of the consolidated earnings before interest and tax of the Group (the "Consolidated Earnings"); or

	(b)
	total
assets representing 10 per cent or more of the consolidated total assets of the Group (the "Consolidated Assets"); and

	(c)
	in
the event that those Group Companies falling within (a) and (b) above when taken together with the Obligors do not account for at least 90 per cent of the
Consolidated Earnings and at least 90 per cent of the Consolidated Assets, such other Group Companies as are necessary to ensure that the Material Subsidiaries when taken together with the
Obligors account for at least 90 per cent of the Consolidated Earnings and at least 90 per cent of the Consolidated Assets (with Group Companies being included as Material Subsidiaries
in the order in which their earnings before interest and tax and/or gross assets are closest to 10 per cent of the Consolidated Earnings or, as the case may be, the Consolidated Assets), 

in
each case as set out, until the first Annual Compliance Certificate is delivered, in the list provided to the Agent pursuant to Schedule 12 (Material Subsidiaries) and thereafter in the most
recent Annual Compliance Certificate (for the avoidance of doubt, calculated by reference to the latest annual consolidated financial statements of the Group delivered by the Borrower to the Agent
pursuant to Clause 21.1 (Financial Statements)) and as updated from time to time by a Material Subsidiary Update Certificate. 

"Material Subsidiary Update Certificate" means a certificate delivered pursuant to Clause 21.12 (Change in Material Subsidiaries). 

"New Lender" means a credit institution within the meaning of the Austrian Stamp Duty Act to which the rights and/or obligations are
assigned/transferred in accordance with Clause 25.1 (Assignment and transfer by the Lenders). 

"Obligors" means the Borrower and the Guarantor. 

"OeKB" means Oesterreichische Kontrollbank Aktiengesellschaft, Am Hof 4, 1010 Vienna, Austria. 

"OeKB Financing Rates" means the OeKB Fixed Financing Rate and the OeKB Floating Financing Rate. 

"OeKB Fixed Financing Rate" means an interest rate of 3.60 per cent per annum as stipulated by OeKB for Tranche B of this specific
transaction. 

"OeKB Floating Financing Rate" means the floating interest rate of the export financing scheme operated by OeKB for export contracts ("Rahmen I
Finanzierung") as published by OeKB on its Website (www.oekb.at) from time to time. At the time of entering into this Agreement, the OeKB Floating Financing Rate is
3.80 per cent per annum. 

"OeKB Refinancing" means the refinancing of the Facility by OeKB pursuant to various agreements among OeKB and each of the Lenders. 

"Original Lender" means each lender identified in Schedule 1 (The Original Lenders). 

6

  

"Paper Business" means, any one or more of the following businesses: 

	(a)
	the
production, manufacture, distribution, supply, sale, purchase and trading in respect of paper (including but not limited to fine paper, coated and uncoated woodfree paper,
packaging paper, publication paper and newsprint);

	(b)
	pulp
(including all chemical or other manufacturing processes relating to pulp); and

	(c)
	wood
products (including all initial processes, manufacturing or otherwise relating to paper, pulp and paper pulp), the growing of timber supplies 

and
any other businesses related or ancillary to any of the foregoing. 

"Participating Member State" means any member state of the European Union that adopts or has adopted the euro as its lawful currency in accordance with
legislation of the European Union relating to European Monetary Union. 

"Party" means a party to this Agreement and includes its successors in title, permitted assignees and permitted transferees. 

"Potlatch Acquisition" means the acquisition by the Sappi Group of Potlatch Corporation's coated Fine Paper Division. 

"Qualifying Lender" has the meaning given to it in Clause 15 (Tax Gross Up and Indemnities). 

"Quarter" means each period of three months ending on a Quarter Date. 

"Quarter Date" means the Borrower's quarterly accounting date (which is usually the last Sunday of the month) of any March, June, September or December. 

"Reference Banks" means the principal London offices of Citibank N.A. and J.P. Morgan and the principal Munich office of Bayerische Hypo-
und Vereinsbank AG or such other banks as may be appointed by the Agent after consultation with the Borrower. 

"Relevant Interbank Market" means the European interbank market. 

"Reservations" means the principle that equitable remedies are remedies which may be granted or refused at the discretion of the court, the limitation
of enforcement by laws relating to bankruptcy, insolvency, liquidation, reorganisation, moratoria, administration and other laws generally affecting the rights of creditors, defences of
set-off or counterclaim and similar principles, rights and defences under the laws of any foreign jurisdictions in which relevant obligations may have to be performed, and any
qualifications relating to matters of law contained in or referred to in the legal opinions to be delivered to the Agent pursuant to paragraph 2 of Schedule 2 (Conditions Precedent). 

"Sappi" means Sappi Limited, a company incorporated in the Republic of South Africa with registered number 1936/008963/06. 

"Sappi Group" means Sappi and any Subsidiary of Sappi. 

"Sappi Group Company" means Sappi and any Subsidiary of Sappi other than a Group Company. 

"Screen Rate" means, in relation to "EURIBOR", the percentage rate per annum determined by the Banking Federation of the European Union for the relevant
period, displayed on the appropriate page of the Reuters "EURIBOR" screen. If the agreed page is replaced or service ceases to be available, the Agent may specify another page or service displaying
the appropriate rate after consultation with the Borrower and the Lenders. 

"SD Warren Group" means SDW Holdings Corporation, a Delaware corporation with its business address at 225 Franklin Street, Boston, MA 02110, USA, and
its Subsidiaries. 

7

 

"Security" means a mortgage, charge, pledge, lien, right of set-off, retention of title provision, or any other security interest securing
any obligation of any person or any other agreement or arrangement having the effect of giving security or preferential ranking to a creditor. 

"SISA Guarantee" means the guarantee dated on or about the date of this Agreement granted by the Guarantor in favour of the Agent for and on behalf of
the Finance Parties substantially in the form set forth in Schedule 11. 

"Specified Time" means 10 Business Days prior to the proposed Drawdown Date at 10.00 am Central European Time. 

"Subsidiary" means in relation to any company or corporation, a company or corporation: 

	(a)
	which
is controlled, directly or indirectly, by the first mentioned company or corporation;

	(b)
	more
than half of the issued share capital of which is owned, directly or indirectly, by the first mentioned company or corporation; or

	(c)
	which
is a Subsidiary of another Subsidiary of the first mentioned company or corporation, 

and
for this purpose, a company or corporation shall be treated as being controlled by another if that other company or corporation is able to direct its affairs and/or to control the composition of
its board of directors or equivalent body. 

"TARGET" means Trans-European Automated Real-time Gross Settlement Express Transfer payment system. 

"TARGET Day" means any day on which TARGET is open for the settlement of payments in euro. 

"Tax" means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with
any failure to pay or any delay in paying any of the same). 

"Total Commitments" means the aggregate of the Commitments, being Euro 500,106,406 at the date of this Agreement. 

"Transfer Certificate" means a Certificate substantially in the form set out in Schedule 5 (Form of Transfer Certificate) or any other form
agreed between the Agent and the Borrower. 

"Tranche A" means the floating rate portion of the Facility amounting to 20 per cent thereof. 

"Tranche A Loan" means a Loan made under Tranche A. 

"Tranche A Outstandings" means the aggregate of all Loans outstanding under Tranche A. 

"Tranche B" means the fixed rate portion of the Facility amounting to 80 per cent thereof. 

"Tranche B Loan" means a Loan made under Tranche B. 

"Tranche B Outstandings" means the aggregate of all Loans outstanding under Tranche B. 

"Transfer Date" means, in relation to a transfer, the later of 

	(a)
	the
proposed transfer date specified in the Transfer Certificate; and

	(b)
	the
date on which the Agent executes the Transfer Certificate. 

"Unpaid Sum" means any sum due and payable but unpaid by an Obligor under the Finance Documents. 

8

 

"VAT" means value added tax as provided for in the Value Added Tax Act ("Umsatzsteuergesetz") 1994 as amended and any other tax of a similar nature. 

	1.2.
	Constructions

	(a)
	Any
reference in this Agreement to:

	(i)
	"assets" includes present and future properties, revenues and rights of every description;

	(ii)
	the  "European interbank market" means the interbank market for Euro operating in Participating Member States;

	(iii)
	a
"Finance Document" or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as
amended or novated;

	(iv)
	"indebtedness" includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether
present or future, actual or contingent;

	(v)
	a
Lender's "participation", in relation to a Loan, means the amount of such Loan that is owed to such Lender or, as the case may be,
the amount of such Loan that such Lender is obliged to make available; and

	(vi)
	a
"person" includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or
partnership (whether or not having separate legal personality) or two or more of the foregoing;

	(vii)
	a
"regulation" includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but,
in so far as the same applies to a class of financial institutions of which a Lender is one, if not having the force of law, being a regulation or the like with which such financial institutions
customarily comply in the ordinary course of their business) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other
authority or organisation;

	(viii)
	a
provision of law is a reference to that provision as amended or re-enacted; and

	(ix)
	unless
a contrary indication appears, a time of day is a reference to Vienna time.

	(b)
	Where
there is reference in this Agreement to any amount, limit or threshold specified in Euro, in ascertaining whether or not that amount, limit or threshold has been attained,
broken or achieved, as the case may be, a non-euro amount shall be counted on the basis of the equivalent in Euro of that amount using the Agent's spot rate of exchange.

	(c)
	Section,
Clause and Schedule headings are for ease of reference only.

	(d)
	Unless
a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement.

	(e)
	A
Default is "continuing" if it has not been remedied or waived.

	1.3.
	Currency
symbols and definitions 

"EUR"
and "Euro" means the single currency unit of the Participating Member States. 

9

  

 
 

SECTION 2    THE FACILITY    
    

2.     The Facility  

	2.1.
	The
Facility 

Subject
to the terms of this Agreement, the Lenders make available to the Borrower a loan facility in a maximum aggregate amount of Euro 500,106,406 in two tranches as follows: 

	(a)
	Tranche
A: Euro 100,021,281.20

	(b)
	Tranche
B: Euro 400,085,124.80

	2.2.
	Finance
Parties' rights and obligations

	(a)
	The
obligations of each Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the
obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

	(b)
	The
rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance
Party from an Obligor shall be a separate and independent debt.

	(c)
	A
Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents. 

3.     Purpose  

	3.1.
	Purpose 

The
Borrower shall apply all amounts borrowed by it under the Facility for the refinancing of the Intercompany Financings only. 

	3.2.
	Monitoring

The
Agent is entitled but not bound to monitor the application of the proceeds under the Loans borrowed pursuant to this Agreement. The Borrower will provide all necessary information to the Agent
upon request to verify the application of the proceeds. 

4.     Conditions of Drawdown  

	4.1.
	Initial
conditions precedent 

The
Borrower may not deliver the Drawdown Request unless the Agent has received all of the documents and other evidence listed in Schedule 2 (Conditions Precedent) in form and substance
satisfactory to the Agent. The Agent shall notify the Borrower and the Lenders promptly upon being so satisfied. 

	4.2.
	Further
conditions precedent 

The
Lenders will only be obliged to comply with Clause 5.4 (Lenders' participation) if on the date of the Drawdown Request and on the proposed Drawdown Date: 

	(i)
	no
Default is continuing or would result from the proposed Loan, as the case may be; and

	(ii)
	all
representations to be made by each Obligor under the Finance Documents are true in all respects.

	4.3.
	(Intentionally
omitted)

	4.4.
	Number
of Drawdowns 

The
Facility shall be drawn in 1 (one) Drawdown. 

10

 

 
 

SECTION 3    DRAWDOWN    
    

5.     Drawdown  

	5.1.
	Delivery
of Drawdown Request 

The
Borrower may draw under the Facility by delivery to the Agent of the duly completed Drawdown Request not later than at the Specified Time. 

	5.2.
	Completion
of Drawdown Request 

The
Drawdown Request is irrevocable and will not be regarded as having been duly completed unless 

	(i)
	the
proposed Drawdown Date is a Business Day within the Availability Period; and

	(ii)
	the
currency and amount of the Drawdown comply to Clause 5.3 (Currency and amount).

	5.3.
	Currency
and amount

	(a)
	The
currency specified in the Drawdown Request must be Euro.

	(b)
	The
amount of the proposed Drawdown must not exceed the Available Facility.

	5.4.
	Lenders'
participation

	(a)
	If
the conditions set out in this Agreement have been met, each Lender shall make its participation in the Loan available through its Facility Office.

	(b)
	The
amount of each Lender's participation in the Loan will be equal to the proportion of its Commitment immediately prior to making of the Loan.

	5.5.
	Notification 

The
Agent shall (i) notify each Lender of the Amount of the Loan seven Business Days prior to the Drawdown Date and (ii) confirm that he has received all documents listed in
Schedule 2 (Conditions Precedent) to this Agreement. 

6.     Splitting of Loan  

The
Amounts specified in the Drawdown Request shall be divided into and paid as (i) one Tranche A Loan and (ii) one Tranche B Loan in a way that the Tranche A Loan
is equal to 20 per cent and the Tranche B Loan is equal to 80 per cent of such amount. 

7.     (intentionally omitted)  

11

  

 
 

SECTION 4    REPAYMENT, PREPAYMENT AND CANCELLATION    
    

	8.
	Repayment

(a)
The Borrower shall repay the Tranche A Outstandings on the last Business Day of the calendar year 2004. 

(b)
The Borrower shall repay the Tranche B Outstandings on the last Business Day of the calendar year 2010. 

	9.
	(intentionally omitted)

	10.
	Prepayment and cancellation

	10.1.
	Illegality,
termination of OeKB Refinancing 

If,
at any time after the date of this Agreement, it becomes unlawful in any jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund its participation
in any Loan or the OeKB Refinancing is terminated and such termination is not attributable to the respective Lender: 

	(i)
	that
Lender shall promptly notify the Agent upon becoming aware of that event;

	(ii)
	upon
the Agent notifying the Borrower, the Commitment of that Lender will be immediately cancelled; and

	(iii)
	if
the relevant Lender so requires, the Borrower shall repay that Lender's participation in the Loans on the last day of the Interest Period for each Loan occurring
after the Agent has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period
permitted by law).

	10.2.
	Change
of control

	(a)
	For
the purposes of this Clause 10.2, "associated person" means, in relation to any person, a person within the meaning of Sec 23 of the Austrian Takeover Code in
connection with Sec 9 of the first regulation to the Takeover Code.

	(b)
	If,
on any date, without the prior written consent of the Majority Lenders (such consent not to be unreasonably withheld or delayed) a person (whether alone or together with any
associated person) becomes the owner of shares in the issued share capital of Sappi carrying the right to exercise, or control the exercise of, more than 35 per cent of the maximum number of
votes exercisable at a general meeting of Sappi then, on the date (a "Prepayment Date") falling 90 days after such date:

	(i)
	the
Borrower shall prepay the Loan; and

	(ii)
	the
Lenders' obligations under the Agreement shall be terminated and the Total Commitments reduced to zero.

	10.3.
	Intercompany
Financings 

If
the aggregate outstanding amount of the Intercompany Financings is lower than the outstanding Loans under the Facility, the Borrower shall prepay the difference amount (such difference amount to be
calculated as the difference between the aggregate of the Tranche A Outstandings and the Tranche B Outstandings under the Facility and all outstanding amounts under the Intercompany Financings). The
Borrower shall notify to the Agent at each Quarter Date the amount, if any, of such difference and shall make, upon request of the Agent, the prepayment on the date (a "Prepayment Date")
falling 30 Business Days after such request. The Agent may also demand payment of such difference amount determined on the basis of the financial statements to be provided in accordance with
Clause 21.1. 

12

 
	10.4.
	Voluntary
cancellation

	(a)
	During
the Availability Period, the Borrower may, if it gives the Agent not less than 3 Business Days (or such shorter period as the Majority Lenders may agree) prior notice, cancel
the whole or any part (being a minimum amount of Euro 50,000,000 and in integral multiples of Euro 10,000,000) of the Available Facility.

	(b)
	Any
amounts that have not been drawn at the end of the Availability Period are deemed to be cancelled.

	10.5.
	Voluntary
prepayment of the Loan 

The
Borrower may, if it gives the Agent not less than 30 Business Days prior notice, prepay the whole or any part of the Loan (but if in part, being an amount that reduces the Loan by a minimum amount
of Euro 10,000,000 unless the outstanding amount is less). 

	10.6.
	Right
of repayment and cancellation in relation to a single Lender

	(a)
	If

	(i)
	any
sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 15.2 (Tax gross-up); or

	(ii)
	any
Lender claims indemnification from the Borrower under Clause 15.3 (Tax indemnity) or Clause 16.1 (Increased costs), 

the
Borrower may, whilst the circumstance giving rise to the requirement or indemnification continues, give the Agent notice of cancellation of the Commitment of that Lender and its intention to
procure the repayment of that Lenders' participation in the Loans. 

	(b)
	On
receipt of a notice referred to in paragraph (a) above, the Commitment of that Lender shall immediately be reduced to zero.

	(c)
	On
the last day of each Interest Period in respect of a Loan outstanding under the Facility in respect of which the Borrower has given notice under paragraph (a) above (or, if
earlier, the date specified by the Borrower in that notice), the Borrower shall repay that Lender's participation in that Loan.

	10.7.
	Mandatory
Prepayments in case of breach of certain ratios

	(a)
	In
the event that the average of the ratios (calculated on basis of the audited consolidated annual statements of the Group as of September 30, 2005 and as of
September 30, 2006) of Net Debt (as defined in Clause 23.2. hereof) to EBITDA of the Group ("the Net Debt: EBITDA Ratio") exceeds 3.0:1, the Borrower shall prepay the Facility
Outstandings in full on the last Business Day of the calendar year 2007.

	(b)
	If
the Net Debt:EBITDA Ratio exceeds 3.0:1 due to the inclusion in the calculation of Net Debt of any indebtedness incurred only as consequence of a Securitisation Event, the
expression "exceeds 3.0:1" in sub-clause (a) above shall be read as "exceeds 3.5:1". 

A
"Securitisation Event" means, in relation to the receivables securitisation programme of the Group not exceeding the total sum of facilities of EUR 240 million and
USD 205 million as stated in the note 30 ("Financial Instruments"), subparagraph 5 ("asset backed securitisation") to the consolidated financial statements of the Group as of
September 2002, or its countervalue in other currencies, 

	(i)
	the
termination of such securitisation programme due to a downgrading of a bank providing standby facilities to the receivables purchasing entity, or 

13

 

	(ii)
	a
change in IAS rules in the years 2005 or 2006 which leads to an inclusion of receivables previously sold in the balance sheets of the Group.

	(c)
	If,
however, upon the breach of the above mentioned ratios the Majority Lenders decide to nevertheless continue the Loan, the Borrower shall be obliged to prepay only the Facility
Outstandings relating to those Lenders that did not vote in favour of continuing the Loan. The Arranger shall notify the Borrower of the decision of the Majority Lenders, outlining which Lenders did
not vote in favour of the continuation, within two months from submission of the audited financial statements of the Group for the financial year 2006. The decision of the Majority Lenders shall be
without prejudice to a decision of the Lenders about the continuation of the Loan in case of subsequent breaches of the ratios.

	10.8.
	Prepayments
and cancellation

	(a)
	Any
notice of cancellation or prepayment given by any Party under this Clause 10 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify
the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

	(b)
	Unless
otherwise provided for under this Agreement, any prepayment under this Agreement shall be made at the end of an Interest Period together with accrued interest on the amount
prepaid and, subject to any Break Costs, without premium or penalty.

	(c)
	Any
prepayment under this Agreement shall be applied in inverse order of maturity (firstly to be appropriated to the Tranche B Loan until no further amount remains outstanding
thereunder, thereafter to the Tranche A Loan).

	(d)
	The
Borrower may not reborrow any part of the Facility which is prepaid.

	(e)
	The
Borrower shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this
Agreement.

	(f)
	No
amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

	(g)
	If
the Agent receives a notice under this Clause 10, it shall promptly forward a copy of that notice to either the Borrower or the affected Lender, as appropriate. 

14

  

 
 

SECTION 5    COSTS OF DRAWING    
    

11.   Interest  

	11.1.
	Tranche A
interest rate 

The
rate of interest for the Tranche A Outstandings for each Interest Period is calculated as a floating rate interest. The percentage rate per annum is the aggregate of 

	(i)
	the
applicable OeKB Floating Financing Rate;

	(ii)
	the
Applicable Facility Fee; and

	(iii)
	Mandatory
Costs, if any.

	11.2.
	Tranche B
interest rate 

The
rate of the interest for the Tranche B Outstandings for each Interest Period is a fixed interest rate. The percentage rate per annum is the aggregate of 

	(i)
	the
OeKB Fixed Financing Rate;

	(ii)
	the
Applicable Facility Fee; and

	(iii)
	Mandatory
Cost, if any.

	11.3.
	Calculation
of interest 

Interest
will be calculated on the Facility Outstandings from time to time on the basis of the actual number of days elapsed in a year of 360 days. 

	11.4.
	Payment
of interest 

Subject
to clause 12.2. below, on the last Business Day of each Interest Period the Borrower shall pay accrued interest on the Loan to which that Interest Period relates. 

	11.5.
	Default
interest

	(a)
	If
the Borrower fails to pay any amount payable by it under a Finance Document on its due date, it shall pay default interest as follows: 

Default
interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate 2.00 per cent above the interest rate which is
determined pursuant to Clause 11.1 or 11.2, but subject to the following: 

	(i)
	if
the OeKB Refinancing is extended at an interest rate not higher than the OeKB Floating Financing Rate prevailing from time to time, such interest rate shall replace
the OeKB Financing Rates for Tranches A and B for the purpose of calculating the default interest; or

	(ii)
	in
any other case, the EURIBOR for the relevant Interest Period as specified by the Agent plus 0.5 per cent per annum shall replace the OeKB Financing Rates for
the purpose of calculating the default interest.

	(b)
	Any
interest accruing under this Clause 11.5 shall be immediately payable by the Borrower on demand by the Agent. Default interest (if unpaid) arising on an overdue amount will
be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount, but will remain immediately due and payable. 

15

 

	11.6.
	Notification
of rates of interest 

The
Agent shall promptly notify the Borrower and the Lenders of a determination of a rate of interest under this Agreement. 

12.   Interest period  

	12.1.
	Interest
Period 

Each
Interest Period relating to a Loan shall be of three months and shall coincide with calender quarters, the first Interest Period however being from the date of Drawdown up to the end of
the then current calendar quarter. 

	12.2.
	Non-Business
Days 

If
an Interest Period ends on a day which is not a Business Day, the calculation of the interest shall be made for the respective Interest Period including such day. In such case payment shall be made
on the next Business Day. 

13.   Break Costs  

	13.1.
	Break
Costs

	(a)
	The
Borrower shall, within three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs.

	(b)
	Each
Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs. 

14.   Fees  

	14.1.
	Commitment
fee

	(a)
	The
Borrower shall pay to the Agent (for the account of each Lender) a fee computed at the rate of 0.25 per cent per annum on the Available Commitment for the Availability
Period.

	(b)
	The
accrued commitment fee will be calculated on the daily undrawn and uncancelled amount of the Available Committment during the Availability Period on the basis of the actual number
of days elapsed in a year of 360 days. The accrued commitment fee is payable on the last Business Day of each calendar quarter.

	14.2.
	OeKB
Administration Fee 

The
Borrower shall pay directly to OeKB the OeKB Administration Fee ("Wechselbürgschaftsentgelt") in the manner prescribed by OeKB, which is, for information purposes, currently as
described below. 

The
OeKB Administration Fee is at a rate of 0.05% per quarter. It accrues quarterly and will be calculated in advance based on the Facility Outstandings ("Finanzierungsbedarf") at the beginning of
each calendar quarter. 

The
OeKB Administration Fee falls due for payment as from the date of the guarantee by "aval" on bills of exchange ("Wechselbürgschaft") of the Republic of Austria and subsequently for
each commenced calendar quarter. The OeKB Administration Fee is payable upon receipt of the debit orders from OeKB through direct debit to the Borrower's current account. 

Contrary
to the above, in the first relevant calendar quarter, the OeKB Administration Fee will fall due on the date of the issuance of the guarantee by "aval" and will be calculated proportionally on
a daily basis and on the basis of the Loan to be made during such calendar quarter. 

16

 

	14.3.
	Arrangement
fee 

The
Borrower shall pay to the Mandated Lead Arranger an arrangement fee in the amount and at the times as agreed in the Mandate Letter. 

	14.4.
	Agency
Fees 

The
Borrower shall pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in the Mandate Letter. 

17

  

 
 

SECTION 6    ADDITIONAL PAYMENT OBLIGATIONS    
    

15.   Tax gross up and indemnities  

	15.1.
	Definitions

In
this Clause 15: 

"Protected Party" means a Finance Party which is or will be, for or on account of Tax, subject to any liability or required to make any payment in
relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document. 

"Qualifying Lender" means a Lender which is (on the date a payment falls due) entitled (subject to the completion of any necessary procedural
formalities) to that payment without a Tax Deduction. 

"Tax Credit" means a credit against, relief or remission for, or repayment of any Tax. 

"Tax Deduction" means a deduction or withholding for or on account of Tax from a payment under a Finance Document. 

"Tax Payment" means an increased payment made by an Obligor to a Finance Party under Clause 15.2 (Tax gross-up) or a payment under
Clause 15.3 (Tax indemnity). 

	15.2.
	Tax
gross-up

	(a)
	Each
Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law.

	(b)
	An
Obligor or a Lender shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify
the Agent accordingly. If the Agent receives such notification from a Lender it shall notify the relevant Obligor.

	(c)
	If
a Tax Deduction is required by law to be made by an Obligor in one of the circumstances set out in paragraph (d) below, the amount of the payment due from that Obligor shall
be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

	(d)
	The
circumstances referred to in paragraph (c) above are where a person entitled to receive the payment:

	(i)
	is
the Agent (on its own behalf and, in the case of payments made under the SISA Guarantee, acting in its capacity as trustee for the Finance Parties) or the Mandated
Lead Arranger (on its own behalf); or

	(ii)
	is
a Lender which is a Qualifying Lender in respect of which the completion of procedural formalities is required before the relevant Obligor can make payments thereto
without a Tax Deduction but such procedural formalities have not been completed; or

	(iii)
	is
a Lender which would have been a Qualifying Lender but for any change after the date of this Agreement in (or in the interpretation, administration, or application
of) any law or double taxation agreement or any published practice or published concession of any relevant taxing authority.

	(e)
	If
an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed
and in the minimum amount required by law. 

18

 

	(f)
	Within
thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for
the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant
taxing authority.

	(g)
	A
Qualifying Lender and each Obligor which makes a payment to which that Qualifying Lender is entitled shall co-operate in completing any procedural formalities necessary
for that Obligor to obtain authorisation to make that payment without a Tax Deduction.

	15.3.
	Tax
indemnity

	(a)
	Subject
to Clause 15.5 (Stamp Taxes), the Borrower shall (within five Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or
cost which that Protected Party reasonably determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party.

	(b)
	Paragraph (a)
above shall not apply with respect to any Tax assessed on a Finance Party:

	(i)
	under
the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is
treated as resident for tax purposes; or

	(ii)
	under
the law of the jurisdiction in which that Finance Party's Facility Office is located in respect of amounts received or receivable in that jurisdiction, 

if
that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party. 

	(c)
	A
Protected Party making, or intending to make a claim pursuant to paragraph (a) above shall promptly notify the Agent of the event which will give, or has given, rise to the
claim, following which the Agent shall notify the Borrower.

	(d)
	A
Protected Party shall, on receiving a payment from an Obligor under this Clause 15.3, notify the Agent.

	15.4.
	Tax
credit 

If
an Obligor makes a Tax Payment and the relevant Finance Party determines that: 

	(a)
	a
Tax Credit is attributable to that Tax Payment; and

	(b)
	that
Finance Party has obtained, utilised and retained that Tax Credit, on a consolidated group basis, 

the
Finance Party shall pay an amount to the Obligor which that Finance Party determines in its absolute discretion will leave it (after that payment) in the same after-Tax position as it
would have been in had the Tax Payment not been made by the Obligor. 

	15.5.
	Stamp
taxes 

The
Borrower shall pay and, within five Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to all stamp duty, registration
and other similar Taxes payable in respect of any Finance Document or other document which relates to any Finance Document. 

19

 
	15.6.
	Value
added tax

	(a)
	All
consideration payable under a Finance Document by an Obligor to a Finance Party shall be deemed to be exclusive of any VAT. If VAT is chargeable, the Obligor shall pay to the
Finance Party (in addition to and at the same time as paying the consideration) an amount equal to the amount of the VAT.

	(b)
	Where
a Finance Document requires an Obligor to reimburse a Finance Party for any costs or expenses, that Obligor shall also at the same time pay and indemnify that Finance Party
against all VAT incurred by that Finance Party in respect of the costs or expenses save to the extent that that Finance Party is entitled to repayment or credit in respect of the VAT.

	15.7.
	Filings

In
circumstances where an Obligor is required (or would in the absence of any such filing be required) to make a deduction or withholding for or on account of Taxes or any other deduction contemplated
by this Clause 15, such Obligor and each relevant Finance Party shall make reasonable endeavours to file such forms and documents as the appropriate taxation authority may reasonably require in
order to enable such Obligor to make relevant payments under the Finance Documents without having to make such deduction or withholding. 

	15.8.
	Exemptions
from gross up 

Notwithstanding
anything contained in this Clause 15 (Tax gross up and indemnities), no additional amount will be payable to a Lender under Clause 15.2 (Tax gross up) in respect of Taxes
to the extent that such additional amount would not be payable if that Lender had complied with its obligations under Clause 15.7 (Filings) (unless such failure to comply resulted from a
failure by any Obligor to comply with its obligations there under). 

16.   Increased costs  

	16.1.
	Increased
costs

	(a)
	Subject
to Clause 16.3 (Exceptions) the Borrower shall, within three Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased
Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation or application of) any law or regulation
occurring after the date of this Agreement or (ii) compliance with any law or regulation made after the date of this Agreement.

	(b)
	In
this Agreement "Increased Costs" means:

	(i)
	a
reduction in the rate of return from the Facility or on a Finance Party's (or its Affiliate's) overall capital attributable to making or maintaining a Loan or
Commitment hereunder;

	(ii)
	additional
or increased cost resulting from a change of law, regulation, minimum reserve requirements or similar reasons; or

	(iii)
	a
reduction of any amount due and payable under any Finance Document 

other
than, in each case, any payment on account of Tax imposed on the overall net income of the relevant Finance Party which is incurred or suffered by a Finance Party or any of its Affiliates to the
extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its obligations under any Finance Document. For the avoidance of doubt, any costs paid
to the Lenders as Mandatory Costs shall not be deemed to be Increased Costs. 

20

 

	16.2.
	Increased
cost claims

	(a)
	A
Finance Party intending to make a claim pursuant to Clause 16.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent
shall promptly notify the Borrower.

	(b)
	Each
Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount of its Increased Costs.

	16.3.
	Exceptions

	(a)
	Clause 16.1
(Increased costs) does not apply to the extent any Increased Cost is:

	(i)
	attributable
to a Tax Deduction required by law to be made by an Obligor;

	(ii)
	attributable
to any cost, increased cost, liability or reduction resulting from any change in the rate of taxation on the overall net income or gross turnover of a
Lender imposed in the jurisdiction in which the principal office of the relevant Lender is located or the overall net income or gross turnover of the Facility Office of the relevant Lender imposed in
the jurisdiction in which such Facility Office is located;

	(iii)
	compensated
for by Clause 15.3 (Tax indemnity) (or would have been compensated for under Clause 15.3 (Tax indemnity) but was not so compensated solely
because one of the exclusions in paragraph (b) of Clause 15.3 (Tax indemnity) applied);

	(iv)
	compensated
for by the payment of the Mandatory Cost; or

	(v)
	attributable
to the breach by the relevant Finance Party or its Affiliates of any law or regulation or failure to comply with any request from or requirement of any
central bank or other fiscal, monetary or other authority (whether or not having the force of law).

	(b)
	In
this Clause 16.3, a reference to a "Tax Deduction" has the same meaning given to the term in Clause 15.1 (Definitions). 

17.   Other indemnities  

	17.1.
	Currency
indemnities

	(a)
	If
any sum due from an Obligor under the Finance Documents (a "Sum"), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the
"First Currency") in which that Sum is payable into another currency (the "Second Currency") for the purpose of

	(i)
	making
or filing a claim or proof against that Obligor;

	(ii)
	obtaining
or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings, 

that
Obligor shall as an independent obligation, within five Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a
result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of
exchange available to that person at the time of its receipt of that Sum. 

	(b)
	Each
Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to
be payable. 

21

 

	17.2.
	Other
indemnities 

Each
Obligor shall, within five Business Days of demand, indemnify each Lender against any cost, loss or liability incurred by that Lender as a result of 

	(a)
	the
occurrence of any Event of Default;

	(b)
	a
failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of
Clause 30 (Sharing Among the Lenders);

	(c)
	funding,
or making arrangements to fund, its participation in a Loan requested by the Borrower in the Drawdown Request but not made by reason of the operation of any one or more of
the provisions of this Agreement (other than by reason of default or negligence by that Lender alone);

	(d)
	a
Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower.

	17.3.
	Indemnity
of the Agent 

The
Borrower shall promptly indemnify the Agent against any cost, loss or liability incurred by the Agent (acting reasonably) as a result of 

	(a)
	investigating
any event which it reasonably believes is a Default; or

	(b)
	acting
or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised, provided that such notice, request or
instruction is given in accordance with this Agreement. 

18.   Mitigation by the Lender  

	18.1.
	Mitigation

	(a)
	Each
Finance Party shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable
under, or cancelled pursuant to, any of Clause 10.1 (Illegality, termination of OeKB-refinancing), Clause 15 (Tax gross up and indemnities) or Clause 16 (Increased
costs) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office or any other financial institution.

	(b)
	Paragraph (a)
above does not in any way limit the obligations of any Obligor under the Finance Documents.

	18.2.
	Limitation
of liability

	(a)
	The
Borrower shall indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 18.1
(Mitigation).

	(b)
	A
Finance Party is not obliged to take any steps under Clause 18.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might have an adverse
effect on its business, operations or financial condition. 

22

 

19.   Costs and expenses  

	19.1.
	Transaction
expenses 

The
Borrower shall promptly on demand pay the Agent and the Mandated Lead Arranger the amount of all reasonable costs and expenses (including legal fees and fees payable to OeKB in connection with the
application for, and the issuance of, the guarantees by "aval" ("Wechselbürgschaften") other than in case of an assignment or transfer of a Lender's Commitment or participation in a
Loan) incurred by any of them in connection with the negotiation, preparation, documents, execution and syndication of 

	(a)
	this
Agreement and any other documents referred to in this Agreement; and

	(b)
	any
other Finance Documents executed after the date of this Agreement.

	19.2.
	Amendment
costs 

If
an Obligor requests an amendment, waiver or consent, the Borrower shall, within three Business Days of demand, reimburse the Agent for the amount of all reasonable costs and expenses (including
legal fees) incurred by the Agent in responding to, evaluating, negotiating or complying with that request or requirement. 

	19.3.
	Enforcement
costs 

The
Borrower shall, within three Business Days of demand, pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by that Finance Party in connection with the
enforcement of, or the preservation of any rights under, any Finance Document. 

23

  

 
 

SECTION 7    REPRESENTATION, UNDERTAKINGS AND EVENTS OF DEFAULT    
    

	20.
	Representations

Each
Obligor makes the representations and warranties set out in this Clause 20 to each Finance Party on the date of this Agreement and on the Drawdown Date. 

	20.1.
	Corporate
Status

	(a)
	It
is a corporation ("Kapitalgesellschaft"), duly incorporated and validly existing under the law of its jurisdiction of incorporation.

	(b)
	It
and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted.

	20.2.
	Power
and authority 

It
has the power to enter into and perform its obligations under, and has taken all necessary action to authorise its entry into and performance of its obligations under the Finance Documents to which
it is a party and the transactions contemplated by those Finance Documents. 

	20.3.
	Binding
obligations 

The
obligations expressed to be assumed by it in each Finance Document are subject to the Reservations legal, valid and binding obligations enforceable in accordance with their terms. 

	20.4.
	Non-conflict
with other obligations 

The
entry into and performance by it of, and the transaction contemplated by, the Finance Documents do not and will not conflict with: 

	(a)
	any
law or regulation applicable to it;

	(b)
	the
constitutional documents of any Group Company; or

	(c)
	to
an extent which could reasonably be expected to have a Material Adverse Effect, any applicable financing agreement or instrument binding upon it or any Group Company or any of
their assets.

	20.5.
	Validity
and admissibility in evidence 

All
Authorisations required or desirable: 

	(a)
	to
enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party; and

	(b)
	so
that the Finance Documents to which it is a party can be presented in court proceedings as evidence in its jurisdiction of incorporation, 

have
been obtained or effected and are in full force and effect. 

	20.6.
	No
proceedings pending or threatened 

No
litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency have been started against any Group Company which are reasonably likely to be adversely
determined and which, if so determined, are reasonably likely to have a Material Adverse Effect. 

	20.7.
	Financial
Statements 

The
Initial Financial Statements were prepared in accordance with IAS consistently applied and give a true and fair view of the consolidated financial position of the Group as at the date they were
prepared. 

24

 
	20.8.
	Business
Authorisations 

Each
Authorisation required by each Group Company in connection with its business has been obtained and there has been no default in the observance of the same except, where failure to obtain or any
such default is not reasonably likely to have a Material Adverse Effect. 

	20.9.
	Pari
passu 

Its
payment obligations under the Finance Documents rank at least pari passu with the claims of all its other present and future unsecured and unsubordinated creditors, except for obligations
mandatorily preferred by law applying to companies generally. 

	20.10.
	Environmental
compliance 

Each
Group Company has complied at all times in all respects with all Environmental Law save to the extent that non-compliance would not reasonably be likely to have a Material Adverse
Effect. 

	20.11.
	Environmental
claim 

No
Environmental Claim has been commenced against any Group Company which would be reasonably likely to have a Material Adverse Effect. 

	20.12.
	No
Material Adverse Effect 

Since
30 September 2002, there has been no change in the business, condition (financial or otherwise), operations or performance of any Group Company that has had or would have, a Material
Adverse Effect. 

	20.13.
	No
Default 

No
Event of Default or Default is continuing or might reasonably be expected to result from the making of the Drawdown. 

	20.14.
	No
misleading information 

The
factual information contained in the annual and quarterly reports of the Group submitted and the bank presentation posted to intralinks on April 8, 2003 was true and accurate in all
material respects when given. 

	20.15.
	Ownership
of each Obligor 

Each
Obligor is 100 per cent directly or indirectly beneficially owned by Sappi. 

	20.16.
	Repayment
of syndicated loan 

The
Borrower has repaid the outstandings under and cancelled Tranche B of the EUR 900,000,000 syndicated loan facility for the Borrower through the issuing of a bond according to Rule 144 A
and/or Regulations S under the U.S. Securities Act on June 28, 2002. 

	21.
	Positive undertakings

The
undertakings in this Clause 21 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force. 

25

 
	21.1.
	Financial
statements 

The
Borrower shall supply to the Agent in sufficient copies for all the Lenders: 

	(a)
	as
soon as the same become available, but in any event within 180 days after the end of each of its financial years the audited consolidated financial statements for the Group
and the audited unconsolidated financial statements of each Obligor (if required to be produced by law) for that financial year; and:

	(b)
	as
soon as the same become available, but in any event within 45 days of each Quarter Date, the unaudited consolidated interim report for the Group for the period of
3 months ending on such Quarter Date.

	21.2.
	Compliance
Certificate 

The
Borrower shall supply to the Agent, with each set of financial statements or interim report delivered pursuant to Clause 21.1 (Financial statements), a Compliance Certificate signed by a
director of the Borrower setting out (in reasonable detail) computations as to compliance with Clause 23 (Financial Covenants) as at the date at which those financial statements were drawn up. 

The
Borrower shall supply to the Agent, with the financial statements for the financial year ending on September 30, 2006, a Compliance Certificate signed by a director of the Borrower setting
out (in reasonable detail) computations as to compliance with the ratios set forth in Clause 10.7 (Mandatory Prepayments). 

	21.3.
	Requirements
as to Financial statements

	(a)
	Each
set of financial statements delivered by the Borrower pursuant to Clause 21.1 (Financial statements) shall be certified by a director of the Borrower as fairly
representing the financial condition of the Group as at the date as at which those financial statements were drawn up.

	(b)
	The
Borrower shall procure that each set of financial statements or interim report delivered pursuant to Clause 21.1 (Financial statements) is prepared using IAS, and
accounting practices and financial reference periods consistent with those applied in the preparation of the Initial Financial Statements unless, in relation to any set of financial statements or
interim report, it notifies the Agent that there has been a material change in IAS, or the accounting practices or reference periods and its auditors deliver to the Agent:

	(i)
	a
description of any change necessary for those financial statements to reflect IAS, accounting practices and reference periods upon which that Obligor's Initial
Financial Statements were prepared; and

	(ii)
	sufficient
information, in form and substance as may be reasonably required by the Agent, to enable the Lenders to determine whether Clause 23.1 (Financial
Covenants) has been complied with and make an accurate comparison between the financial position indicated in those financial statements or interim report and the Initial Financial Statements.

	(c)
	If
the Borrower notifies the Agent of a change in accordance with paragraph (b) above, then the Borrower and Agent shall enter into negotiations in good faith with a view to
agreeing:

	(i)
	whether
or not the change might result in any material alteration in the commercial effect of any of the terms of this Agreement; and

	(ii)
	if
so, any amendments to this Agreement which may be necessary to ensure that the change does not result in any material alteration in the commercial effect of those
terms, 

and
if any amendments are agreed they shall take effect and be binding on each of the Parties in accordance with their terms. 

26

 

Any
reference in this Agreement to those financial statements or that interim report shall be construed as a reference to those financial statements or that interim report as adjusted to reflect the
basis upon which the Initial Financial Statements were prepared. 

	21.4.
	Information

Each
Obligor shall provide the Agent (in sufficient copies for all the Lenders, if the Agent so requests) promptly with all information regarding the financial condition, business and operation of the
Group or one or more Group Companies reasonably requested by the Agent or any Lender through the Agent. 

OeKB
or its trustee (which shall be bound by a confidentiality obligation) shall at any time (i) be provided by the Borrower with all information requested in relation to the Group's financial
situation and (ii) be entitled to inspect the Borrower's books and other documents in this respect. 

	21.5.
	Notification
of default

	(a)
	Each
Obligor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence.

	(b)
	Promptly
upon a request by the Agent, the Borrower shall supply to the Agent a certificate signed by a director or senior officer on its behalf certifying whether a Default has
occurred (and if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

	21.6.
	Authorisation

Each
Obligor shall promptly obtain, comply with and do all that is necessary to maintain in full force and effect any Authorisation required to enable it to perform its obligations under the Finance
Documents and to ensure the legality, validity and (subject to the Reservations) enforceability or admissibility in evidence in its jurisdiction of incorporation of each Finance Document. 

	21.7.
	Pari
passu ranking 

Each
Obligor shall ensure that its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other present and future unsecured and unsubordinated creditors,
except for obligations mandatorily preferred by law applying to companies generally. 

	21.8.
	Compliance
with laws 

Each
Obligor shall procure that each Group Company shall comply with all laws, regulations (including, without limitation, Environmental Law) and agreements to which it may be subject or by which it
may be bound to the extent that failure so to comply does not have, or is not reasonably likely to have, a Material Adverse Effect. 

	21.9.
	Environmental
Claims 

Each
Obligor shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests) promptly upon becoming aware of the same, the details of any Environmental Claim made
against a Group Company which has, or would reasonably be likely to have, a Material Adverse Effect. 

27

 
	21.10.
	Litigation

Each
Obligor shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent request so) promptly upon becoming aware of them, the details of any litigation, arbitration or
administrative proceedings which are commenced against any Group Company which is reasonably likely to be adversely determined and which, if so determined, is reasonably likely to have a Material
Adverse Effect. 

	21.11.
	Insurance

Each
Obligor shall procure that each Group Company shall maintain levels of insurance in respect of its assets and business in a manner customary for businesses in the same business as such Group
Company. 

	21.12.
	Change
in Material Subsidiary 

In
the event that an Obligor becomes aware that a Group Company has either ceased to be a Material Subsidiary or has become a Material Subsidiary, such Obligor shall promptly serve a certificate (a
"Material Subsidiary update Certificate") on the Agent setting out the relevant change of circumstances. 

	21.13.
	Payments
to OeKB 

The
Borrower shall pay all amounts due to OeKB for the guarantee by "aval" on bills of exchange ("Wechselbürgschaft") at the place at and in a manner in which they are expressed to be
paid. 

	21.14.
	Bills
of exchange 

Upon
request of a New Lender, the Borrower shall accept bills of exchange issued by the New Lenders in the amount and number required for the OeKB Refinancing. Upon such acceptance by the Borrower,
the Agent shall use reasonable efforts that OeKB invalidates the bills of exchange issued by the Existing Lender replaced by the New Lender. 

Upon
return of bills of exchange invalidated by OeKB to the Finance Parties, such bills of exchange shall be returned to the Borrower. 

	22.
	Negative undertakings

	22.1.
	Negative
pledge 

Each
Obligor shall not (and shall ensure that no other Group Company will) create or permit to subsist any Security over any of its assets other than: 

	(i)
	any
Security entered into pursuant to this Agreement;

	(ii)
	any
Security arising by operation of law;

	(iii)
	any
Security granted in the ordinary course of trade of any Group Company;

	(iv)
	any
Security over accounts created pursuant to any deposit or retention of purchase price arrangements granted in the ordinary course of trade;

	(v)
	any
netting or set-off arrangement entered into by any Group Company granted in the ordinary course of trade;

	(vi)
	any
Security created by the operation of any cash pooling arrangements for the purpose of netting debit and credit balances;

	(vii)
	any
Security over an asset of a Group Company established to hold assets of any share option scheme of the Group securing any loan to finance the acquisition of such
assets; 

28

 

	(viii)
	any
Security over an asset of a Group Company to secure Financial Indebtedness incurred by such Group Company for the purpose of purchasing that asset when recourse
for that Financial Indebtedness is limited solely to such Security;

	(ix)
	any
Security over or affecting any property or asset of a Group Company acquired after the date of this Agreement, where the Security is created prior to the date on
which that company becomes a Group Company, if

	(a)
	the
Security was not created in contemplation of the acquisition of that company;

	(b)
	the
principal amount secured has not increased in contemplation of or since the acquisition of that company; and

	(c)
	the
Security is removed or discharged within 6 months of that Company becoming a Group Company, provided however that this lit (c) shall not apply to Securities over
payment undertaking agreements or similar products in defeasance structures in cross border leasing transactions;

	(x)
	any
Security over or affecting any property or asset acquired by a Group Company after the date of this Agreement if

	(a)
	the
Security was not created in contemplation of the acquisition of that asset by a Group Company;

	(b)
	the
principal amount secured has not been increased in contemplation of, or since the acquisition of that asset by a Group Company; and

	(c)
	the
Security is removed or discharged within 6 months of the date of acquisition of such asset, provided however that this lit (c) shall not apply to Securities over
payment undertaking agreements or similar products in defeasance structures in cross border leasing transactions;

	(xi)
	any
Security notified to the Agent prior to the signing of this Agreement and listed in Schedule 7 (Existing Security) or created with the prior consent of the
Majority Lenders;

	(xii)
	any
Security granted by a Group Company over trade receivables as part of any invoice discounting, factoring, securitisation or like financing which trade receivables
have a maturity of less than 364 days;

	(xiii)
	any
Security granted by a Group Company (other than an Obligor) in favour of any other Group Company; and

	(xiv)
	any
Security not falling within any of paragraphs (i) to (xiii) above in respect of any assets having a value (as certified by the Borrower (acting
reasonably) to the Agent on the date such Security is granted) not exceeding in aggregate Euro 50,000,000. (For these purposes, if this paragraph (xiv) is satisfied on the grant of a particular
Security, any subsequent rise in the value of the asset to which such Security relates shall not, of itself, be deemed a breach of this Clause 22.1).

	22.2.
	Disposals

	(a)
	Each
Obligor shall not (and shall ensure that no other Group Company will), enter into a Disposal other than a Disposal:

	(i)
	in
the ordinary course of business of a Group Company or on arms' length terms;

	(ii)
	by
a Group Company (other than an Obligor) to another Group Company;

	(iii)
	of
cash on terms not otherwise prohibited by this Agreement;

	(iv)
	of
an asset for an asset comparable or superior as to type, value and quality; 

29

  

	(v)
	of
a business in exchange for another business where the earnings before interest or tax and the gross assets of the second mentioned business are not less than,
respectively, the earnings before interest and tax and gross assets of the first mentioned business;

	(vi)
	of
an asset which is obsolete for the purpose for which such an asset is normally utilised; or

	(vii)
	(not
falling within paragraph (i) to (vi) above) which does not result in the gross book value of all the assets the subject of all such Disposals made
after the date of this Agreement, exceeding in aggregate 15 per cent of the total gross assets of the Group (as at the date of this Agreement).

	22.3.
	Financial
Indebtedness 

The
Borrower shall ensure that each Group Company (other than the Obligors) shall not incur any Financial Indebtedness other than Financial Indebtedness: 

	(i)
	owed
by one Group Company to another Group Company;

	(ii)
	under
working capital and short term cash management facilities in an aggregate amount of not exceeding Euro 200,000,000;

	(iii)
	incurred
by any member of the SD Warren Group in an aggregate amount not exceeding USD 110,000,000; and

	(iv)
	not
included in paragraphs (i) to (iii) above which does not exceed (for the Group) an aggregate amount of Euro 50,000,000.

	22.4.
	Loans
and Guarantees 

Each
Obligor shall not (and shall ensure that no other Group Company shall): 

	(a)
	make
any loans or grant any credit (other than to another Group Company) which would constitute Long Term Financial Indebtedness (as defined below) unless it is made and granted in
compliance with paragraph (b) below or:

	(i)
	the
debtor in respect of that Long Term Financial Indebtedness (the "Debtor") has either (1) delivered satisfactory security to the creditor Group Company (the
"Creditor") or (2) in the event that the delivery of such satisfactory security by the Debtor would be (A) unduly onerous or impractical in the reasonably opinion of the Majority Lenders
or (B) unlawful or prohibited, entered into arrangements with the Creditor approved by the Majority Lenders (such approval not to be unreasonably withheld or delayed) whereby such arrangements
give the same (or reasonably similar) commercial effect as the granting of satisfactory security pursuant to (1) above and delivered to the Agent a legal opinion (in form and content reasonably
satisfactory to the Agent) in respect thereof; or

	(ii)
	at
the same time as such loans are made or credit granted, an equivalent amount is made unconditionally available to the Creditor or any other Group Company from a
person (other than a Group Company) by way of

	(1)
	equity
contribution or subscription; or

	(2)
	loan
(but only to the extent permitted under Clause 22.3 (Financial Indebtedness)); or

	(3)
	loan
subordinated on terms reasonably acceptable to the Majority Lenders (to the extent that such a loan would not be permitted under Clause 22.3 (Financial Indebtedness); 

30

 

	(b)
	otherwise
than pursuant to the Finance Documents give any guarantee or indemnity or enter into any other instrument of suretyship (other than in favour of another Group Company) or
make any loans or grant any credit (other than to another Group Company or as permitted pursuant to paragraphs (i) and (ii) above) which would constitute Long Term Financial Indebtedness
(as defined below) if it would result (without double counting) in the aggregate of (1) the principal amount of Financial Indebtedness of the Group under all such guarantees, indemnities and
instruments and (2) the amount of all such Long Term Financial Indebtedness (not falling within paragraph (a) above), exceeding Euro 50,000,000. 

For
the purposes of the above, 

	(i)
	"Long
Term Financial Indebtedness" means Financial Indebtedness falling within paragraphs (a) to (d) inclusive of the definition thereof other than any
such Financial Indebtedness which is payable on demand or has an original scheduled maturity of no more than a year; and

	(ii)
	"satisfactory
security" means documentation creating, evidencing or granting (subject to any prior interests) Security in respect of the obligation of the Debtor to the
Creditor in respect of such Long Term Financial Indebtedness, over assets of the Debtor or over assets of any other person (in each case, such assets shall at least be equivalent in value to the
amount of such Long Term Financial Indebtedness (as valued by, in the case of such Long Term Financial Indebtedness being less than Euro 50,000,000, the Borrower and in all other cases, Deloitte and
Touche (or any other agreed accountancy firm)), in favour of and on terms reasonably acceptable to the Creditor together with a legal opinion (in form and content reasonably satisfactory to the Agent)
in respect thereof.

	22.5.
	Merger

	(i)
	No
Group Company shall enter into any amalgamation, demerger or merger with a company that is not a Group Company without the consent of the Majority Lenders, and if
involving an Obligor which is not the surviving entity, with the consent of all Lenders (such consent not to be unreasonably withheld or delayed).

	(ii)
	Without
limitation to paragraph (i) above, no Obligor shall enter into any amalgamation, demerger or merger, if such Obligor is not the surviving entity, unless
the liabilities owed to the Lenders under the Finance Documents will survive and such event does not violate OeKB's regulations or requirements.

	22.6.
	Change
of Business 

The
Obligors shall procure that the business of the Group taken as a whole, remains the Paper Business. 

23.   Financial covenants  

	23.1.
	Financial
covenants 

Each
Obligor shall ensure that: 

	(a)
	on
each Quarter Date the average of the ratios (each such ratio being calculated on the last day of each Quarter) of EBITDA to Consolidated Net Interest Expense in respect of the
period of 4 Quarters ending on such Quarter Date shall not be less than 3.00:1;

	(b)
	on
each Quarter Date the average of the ratios (each such ratio being calculated on the last day of each Quarter) of EBITDA to Consolidated Net Interest Expense in respect to the
period of 8 Quarters ending on such Quarter Date shall not be less than 3.50:1; 

31

 

	(c)
	the
ratio of the Consolidated Capital to the Consolidated Assets of the Group shall not, on any Quarter Date, be less than 0.30:1; and

	(d)
	the
ratio of Net Debt to Capitalisation shall not, on any Quarter Date, be greater than 0.60:1.

	23.2.
	Financial
definitions 

"Capitalisation" means, at any time, the aggregate amount of Consolidated Capital and Net Debt at such time. 

"Consolidated Assets" means, at any time, the consolidated total assets of the Group. 

"Consolidated Capital" means, at any time, the aggregate of 

	(a)
	the
aggregate amount of the paid up share capital of each of the Obligors (excluding any of the same that is owned by another Group Company);

	(b)
	the
total of the amount standing to the credit of the consolidated capital and revenue reserves of the Group but including any minority interest in a Group Company; and

	(c)
	the
principal amount of any Financial Indebtedness of either Obligor which is owed to any Sappi Group Company where such Financial Indebtedness is subordinated on terms acceptable to
the Majority Lenders (acting reasonably). 

"Consolidated Net Interest Expense" means, in relation to any period, the aggregate of 

	(a)
	all
interest, commissions and other financing charges payable by any Group Company to any person who is not a Group Company in respect of that period;

	(b)
	to
the extent not included in paragraph (a) above, all finance costs charged to the profit and loss account of the Group in respect of that period;

	(c)
	all
amounts payable by any Group Company in respect of that period under any interest rate protection agreement (less any amounts receivable by any Group Company in respect of that
period under any interest rate protection agreement); and

	(d)
	the
interest element of all rentals or, as the case may be, other amounts payable in respect of that period under any finance lease entered into by any Group Company, 

less
any interest receivable (other than interest receivable from Group Companies) by Group Companies. 

"EBITDA" means, in respect of any period, the consolidated profit on ordinary activities of the Group before taxation and extraordinary items for such
period but adjusted by adding back: 

	(a)
	Consolidated
Net Interest Expenses for such period;

	(b)
	depreciation
for such period; and

	(c)
	any
amount amortised in that period against the consolidated profit and loss account of the Group. 

"Net Debt" means the aggregate, on a consolidated basis, of 

	(a)
	that
part of the Financial Indebtedness of Group Companies which relates to obligations for the payment or repayment of money in respect of principal incurred in respect of

	(i)
	monies
borrowed or raised;

	(ii)
	any
bond, note, loan stock, participation right, debenture or similar instrument; or 

32

 

	(iii)
	any
acceptance credit, bill discounting, note purchase, factoring or documentary credit facility (including, for the avoidance of doubt, any Financial Indebtedness
under this Agreement); and

	(b)
	the
capital element of all rentals or, as the case may be, other payments payable under any finance lease entered into by any Group Company, 

less:

	(i)
	cash
at hand and at bank of Group Companies;

	(ii)
	bonds,
notes and commercial paper beneficially owned by Group Companies with a maturity of not more than 6 months and rated at least A-1 by
Standard & Poor's Rating Group or at least P-1 by Moody's Investors Services, Inc. (or an equivalent rating of another agency which the Agent reasonably determines to be
comparable); and

	(iii)
	bonds
or notes maturing within 6 months and rated at least AA by Standard & Poor's Rating Group or at least Aa2 by Moody's Investors
Services, Inc. (or an equivalent rating of another agency which the Agent reasonably determines to be comparable).

	23.3.
	Financial
Testing 

The
financial covenants set out in Clause 23 (Financial covenants) shall be tested by reference to each of the financial statements and interim reports delivered pursuant to Clause 21
(Positive undertakings). 

	23.4.
	Accounting
terms 

All
accounting expressions which are not otherwise defined herein shall be construed in accordance with IAS. 

24.   Events of Default  

Each
of the events or circumstances set out in Clauses 24.1 to 24.14 is an Event of Default. 

	24.1.
	Non-payment

An
Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless: 

	(c)
	its
failure to pay is caused by administrative or technical error; and

	(d)
	payment
is made within 5 Business Days of its due date.

	24.2.
	Financial
covenants 

Any
requirement of Clause 23 (Financial covenants) is not satisfied. 

	24.3.
	Other
obligations 

An
Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 24.1 (Non payment) and Clause 24.2 (Financial covenants)) and, if the
failure to comply is capable of remedy, it is not remedied within 30 days of the Agent giving notice to the Borrower or an Obligor becoming aware of the failure to comply. 

33

 
	24.4.
	Misrepresentation

Any
representation or statement made or deemed to be made by an Obligor in the Finance Documents, the information specified in Clause 20.14., the OeKB presentation dated April 16, 2002
and the applications dated March 18, 2002 and March 27, 2003 for the issuance of the commitment to guarantee bills of exchange by "aval" ("Wechselbürgschaftszusage") is or
proves to have been incorrect in any material respect when made and where the circumstances making such representation or statement incorrect are capable of being altered so that such representation
or statement is correct, such circumstances are not so altered within 30 days of the Agent notifying the relevant Obligor of such representation or statement being incorrect. 

	24.5.
	Cross
default

	(a)
	Any
Financial Indebtedness of any Group Company is not paid when due and payable nor within any applicable grace period.

	(b)
	Any
Financial Indebtedness of any Group Company is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of a default or an event of default
(however described).

	(c)
	Any
creditor of any Group Company becomes entitled to declare any Financial Indebtedness of any Group Company due and payable prior to its specified maturity as a result of a default
or an event of default (however described).

	(d)
	No
Event of Default will occur under this Clause 24.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within
paragraphs (a) to (c) above is less than Euro 5,000,000.

	24.6.
	Creditors'
process 

Expropriation,
attachment, sequestration, distress or execution affects any asset or assets of Group Companies having an aggregate value or at least Euro 5,000,000 and is not discharged
within 30 days. 

	24.7.
	Insolvency

	(a)
	An
Obligor or any Material Subsidiary is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or commences negotiations with one
or more of its creditors with a view to rescheduling any class of its indebtedness.

	(b)
	A
moratorium is declared in respect of any class of indebtedness of an Obligor or any Material Subsidiary. 

34

 

	24.8.
	Insolvency
proceedings 

Any
insolvency proceeding or other similar procedure is (i) opened with respect to an Obligor or (ii) an Obligor has filed an application for such proceedings or (iii) a third
party has filed an application for such proceedings and, with respect to (i) or (iii) above such proceeding or application, as the case may be, is not dismissed (for a reason other than
a lack of assets) or withdrawn within 10 Business Days from the date the respective Obligor has obtained knowledge thereof or such longer period as caused by the inactivity of the competent
court or authority evidenced to the reasonable satisfaction of the Agent in relation to: 

	(a)
	the
bankruptcy, the suspension of payments, winding-up, dissolution, liquidation, annulment as a legal entity, administration or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of an Obligor or any Material Subsidiary other than a solvent liquidation or a solvent reorganisation of any Material Subsidiary or (to the extent
mandatorily required pursuant to sec 19 of the Austrian Business Reorganisation Act ("Unternehmensreorganisationsgesetz")) a solvent reorganisation of the Borrower;

	(b)
	a
general composition, assignment or arrangement with all of the creditors of an Obligor or any Material Subsidiary relating to a general rescheduling of its financial indebtedness;

	(c)
	the
appointment of a liquidator (other than in respect of a solvent liquidation of any Material Subsidiary), receiver, administrator, administrative receiver, compulsory manager, an  administrateur judiciaire/gerechtelijk
bestuurder, a speciaal commissaris/commissaire special, a sequestre/sekwester or other similar officer in respect
of an Obligor or any Material Subsidiary or all or any part of its assets (having an aggregate value of at least Euro 5.000.000,—); or

	(d)
	the
enforcement of any Security over all or substantially all of the assets of an Obligor or any Material Subsidiary, or any analogous procedure or step is taken in any jurisdiction.

	24.9.
	Unlawfulness

It
is or becomes unlawful for an Obligor to perform any of its obligations under the Finance Documents. 

	24.10.
	Repudiation 

An
Obligor repudiates a Finance Document or evidences an intention to repudiate a Finance Document. 

	24.11.
	Cessation
of business 

An
Obligor or any Material Subsidiary ceases to carry on all or a substantial part of its business (other than as a result of a solvent liquidation or reorganisation of any Material Subsidiary and
other than as a result of corporate restructurings within the Group) and such cessation would result in the Group as a whole, ceasing to carry on the Paper Business. 

	24.12.
	Litigation
adversely determined 

Any
litigation is determined against any Group Company which has, or is reasonably likely to have, a Material Adverse Effect. 

	24.13.
	Payments
to OeKB 

An
Obligor does not pay on the due date any amount payable to OeKB at the place at and in the manner in which it is to be paid unless that in case of non-payment of the
"Wechselbürgschaftsentgelt" such non-payment is caused by a default of OeKB. 

35

 
	24.14.
	Ownership
of each Obligor 

Sappi
ceases to be the beneficial, direct or indirect owner of the whole of the issued share capital of either Obligor without the prior written consent of the Majority Lenders (such consent not to be
unreasonably withheld or delayed) and the Borrower does not repay all Loans, together with accrued interest, and all other amounts accrued under the Finance Documents within 30 (thirty) days after the
occurrence of such event. 

	24.15.
	Acceleration 

On
and at any time after the occurrence of an Event of Default which is continuing the Agent may, and shall if so directed by the Majority Lenders, by notice to the Borrower: 

	(a)
	cancel
the Total Commitments whereupon they shall immediately be cancelled; and

	(b)
	declare
that all or part of the Loans, together with accrued interest, and all other amounts accrued under the Finance Documents be immediately due and payable, whereupon they shall
become immediately due and payable. 

36

  

 
 

SECTION 8    CHANGE TO PARTIES    
    

25.   Change to the Lenders  

	25.1.
	Assignment
and transfer by the Lenders 

Subject
to this Clause 25, a Lender (the "Existing Lender") may: 

	(a)
	assign
any of its rights; or

	(b)
	transfer
any of its rights and obligations, 

to
a New Lender. 

	25.2.
	Conditions
of assignment or transfer

	(a)
	The
consent of the Borrower is required for an assignment or transfer by a Lender, unless the assignment or transfer is to another Lender, an Affiliate of a Lender or OeKB.

	(b)
	The
consent of the Borrower to an assignment or transfer must not be unreasonably withheld or delayed. The Borrower will be deemed to have given its consent five Business Days after
the Lender has requested it unless consent is expressly refused by the Borrower within that time.

	(c)
	The
Borrower shall not bear any increased cost that arise at the time of or will arise with the lapse of time as a direct result of an assignment or transfer solely by reason of the
same.

	(d)
	An
assignment or transfer by a Lender is subject to the prior written consent of OeKB.

	(e)
	An
assignment or transfer by a Lender of its Commitments under the Facility may be in whole or in part, but if in part shall be in minimum an aggregate amount of
Euro 5,000,000.

	(f)
	(intentionally
omitted)

	(g)
	An
assignment or transfer to a New Lender other than OeKB will only be effective if the procedure set out in Clause 25.5 (Procedure of transfer and assignment) is complied
with.

	(h)
	If

	(i)
	a
Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and

	(ii)
	as
a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender
acting through its new Facility Office under Clause 15 (Tax gross up and indemnities) or Clause 16 (Increased costs), 

then
the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its
previous Facility Office would have been if the assignment, transfer or change had not occurred. 

	25.3.
	Assignment
or transfer fee 

The
New Lender shall, on the date upon which an assignment or transfer takes effect (other than to OeKB), pay to the Agent (for its own account) a fee of Euro 1,500. 

37

 
	25.4.
	Limitation
of responsibility of Existing Lenders

	(a)
	Unless
expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

	(i)
	the
legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents;

	(ii)
	the
financial condition of any Obligor;

	(iii)
	the
performance and observance by any Obligor of its obligations under the Finance Documents or any other documents; or

	(iv)
	the
accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document, 

and
any representations or warranties implied by law are excluded. 

	(b)
	Each
New Lender confirms to the Existing Lender and the other Finance Parties that it:

	(i)
	has
made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in
connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; and

	(ii)
	will
continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under
the Finance Documents or any Commitment is in force.

	(c)
	Nothing
in any Finance Document obliges an Existing Lender to:

	(i)
	accept
a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause 25; or

	(ii)
	support
any losses directly or indirectly incurred by the New Lender by reason of the nonperformance by any Obligor of their obligations under the Finance Documents or
otherwise.

	25.5.
	Procedure
of transfer and assignment

	(a)
	Subject
to the conditions set out in Clause 25.2 (Conditions of assignment or transfer) an assignment or transfer (to a person other than to OeKB) is effected in
accordance with paragraph (b) below when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender. The Agent shall, as soon
as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of
this Agreement, execute that Transfer Certificate and hold in accordance with Clause 27.15 (Agent to hold original documents).

	(b)
	On
the Transfer Date:

	(i)
	to
the extent that in the Transfer Certificate the Existing Lender seeks to assign or transfer its rights and obligations under the Finance Documents each of the
Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another shall be cancelled (being
the "Discharged Rights and Obligations"); 

38

 

	(ii)
	each
of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights
and Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender;

	(iii)
	the
Agent, the Mandated Lead Arranger and the other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have
acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Mandated Lead
Arranger and the Existing Lender shall each be released from further obligations to each other under this Agreement; and

	(iv)
	the
New Lender shall become a Party as a "Lender".

	25.6.
	Disclosure
of information

	(a)
	Subject
to this Clause 25.6 (Disclosure of information) each Lender shall treat all information received in connection with a Finance Document confidential. 

Any
Lender may disclose to any of its Affiliates, OeKB and any other person: 

	(i)
	to
(or through) whom that Lender assigns or transfers (or may potentially assign or transfer), in accordance with this Agreement, all or any of its rights and
obligations under this Agreement;

	(ii)
	with
(or through) whom that Lender enters into (or may potentially enter into), in accordance with this Agreement, any subparticipation in relation to, or any other
transaction under which payments are to be made by reference to, this Agreement or any Obligor; or

	(iii)
	to
whom, and to the extent that, information is required to be disclosed by any applicable law or regulation, 

any
information about any Obligor, the Group and the Finance Documents as such person shall consider appropriate if, in relation to sub-paragraphs (i) and (ii) above, the
person to whom the information is to be given has entered into a confidentiality undertaking in the form set out in Schedule 9. 

	(b)
	For
the purposes only of and under the conditions set forth in this Clause 25.6, each Obligor waives any rights it may have in respect of banking secrecy pursuant to the
Austrian Banking Act ("Bankwesengesetz").

	25.7.
	No
Limitation of risk participation 

Nothing
contained in this Clause 25 shall prevent the Lenders from entering into risk participation or sub-participation agreements with other banks. 

26.   Changes to the Obligors  

	26.1.
	Assignment
and transfer by Obligors 

No
Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents. 

39

  

 
 

SECTION 9    THE FINANCING PARTIES    
    

27.   Role of the Agent and the Mandated Lead Arranger  

	27.1.
	Appointment
of the Agent

	(a)
	The
Mandated Lead Arranger and each of the Lenders appoints the Agent to act as their agent under and in connection with the Finance Documents.

	(b)
	The
Mandated Lead Arranger and each of the Lenders authorises the Agent to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in
connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions, and such rights may, subject to Clause 27.7 below, exclusively be exercised
by the Agent.

	27.2.
	Duties
of the Agent

	(a)
	The
Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

	(b)
	If
the Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the
Lenders.

	(c)
	The
Agent shall promptly notify the Lenders and the Borrower of any Default.

	(d)
	The
Agent's duties under the Finance Documents are solely mechanical and administrative in nature.

	(e)
	The
Agent shall fulfil all tasks in connection with the OeKB Refinancing, including, without limitation, the tasks provided for under this Agreement and under the power of attorney
granted to the Agent in the form as provided for in Schedule 8.

	27.3.
	Role
of the Mandated Lead Arranger 

Except
as specifically provided in the Finance Documents, the Mandated Lead Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document. 

	27.4.
	No
fiduciary duties

	(a)
	Nothing
in this Agreement constitutes the Agent or the Mandated Lead Arranger as a trustee or fiduciary of any other person.

	(b)
	Neither
the Agent nor the Mandated Lead Arranger shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

	27.5.
	Business
with the Group 

The
Agent and the Mandated Lead Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any Group Company. 

	27.6.
	Rights
and discretions of the Agent

	(a)
	The
Agent may rely on:

	(i)
	any
representation, notice or document believed by it to be genuine, correct and appropriately authorised; and

	(ii)
	any
statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or
within his power to verify. 

40

 

	(b)
	The
Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that:

	(i)
	no
Default has occurred or will occur (unless it has actual knowledge of a Default arising under Clause 24.1 (Non payment));

	(ii)
	any
right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised; and

	(iii)
	any
notice or request made by the Borrower (other than the Drawdown Request) is made on behalf of and with the consent and knowledge of the Guarantor.

	(c)
	The
Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.

	(d)
	The
Agent may act in relation to the Finance Documents through its personnel and agents.

	27.7.
	Majority
Lenders' instructions

	(a)
	Unless
a contrary indication appears in a Finance Document, the Agent shall (a) act in accordance with any instructions given to it by the Majority Lenders (or, if so
instructed by the Majority Lenders, refrain from acting or exercising any right, power, authority or discretion vested in it as Agent) and (b) not be liable for any act (or omission) if it acts
(or refrains from taking any action) in accordance with such an instruction of the Majority Lenders.

	(b)
	Unless
a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Lenders and the Mandated Lead Arranger.

	(c)
	The
Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require
for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions.

	(d)
	In
the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders) the Agent may act (or refrain from taking action) as it considers to be in the best
interest of the Lenders.

	(e)
	No
Finance Party is authorised to start any legal or arbitration proceedings relating to any Finance Document without prior written approval of the Majority Lenders, unless the Agent
has notified the Borrower about the occurrence of an Event of Default pursuant to Clause 24.15 (Acceleration).

	27.8.
	Responsibility
for documentation 

Neither
the Agent nor the Mandated Lead Arranger 

	(a)
	is
responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, the Mandated Lead Arranger, an Obligor or any other
person given in or in connection with any Finance Document; or

	(b)
	is
responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or
executed in anticipation of or in connection with any Finance Document. 

41

 

	27.9.
	Exclusion
of liability

	(a)
	Without
limiting paragraph (b) below, the Agent will not be liable for any action taken by it under or in connection with any Finance Document, unless directly caused by its
gross negligence or wilful misconduct.

	(b)
	No
Party may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of
any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent may rely on this Clause.

	(c)
	The
Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent if the
Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that
purpose.

	27.10.
	Lenders'
indemnity to the Agent 

Each
Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero)
indemnify the Agent, within three Business Days of demand, against any cost, loss or liability incurred by the Agent (otherwise than by reason of the Agent's gross negligence or wilful misconduct) in
acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document). 

	27.11.
	Resignation
of the Agent

	(a)
	The
Agent may resign and appoint one of its Affiliates acting through an office as successor by giving notice to the Lenders and the Borrower.

	(b)
	Alternatively
the Agent may resign by giving notice to the Lenders and the Borrower, in which case the Majority Lenders (after consultation with the Borrower) may appoint a successor
Agent.

	(c)
	If
the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given, the Agent
(after consultation with the Borrower) may appoint a successor Agent.

	(d)
	The
retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request
for the purposes of performing its functions as Agent under the Finance Documents.

	(e)
	The
Agent's resignation notice shall only take effect upon the appointment of a successor.

	(f)
	Upon
the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of
this Clause 27. Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

	(g)
	After
consultation with the Borrower, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with paragraph (b) above. In this event, the Agent
shall resign in accordance with paragraph (b) above.

	(h)
	Any
appointment of a new agent requires the prior consent of the Borrower which shall not be unreasonably withheld. 

42

 

	27.12.
	Confidentiality

	(a)
	In
acting as agent for the Finance Parties, the Agent shall be regarded as acting through its respective department which shall be treated as a separate entity from any other of its
divisions or departments.

	(b)
	If
information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have
notice of it.

	(c)
	Notwithstanding
any other provision of any Finance Document to the contrary, neither the Agent nor the Mandated Lead Arranger is obliged to disclose to any other person (i) any
confidential information or (ii) any other information if the disclosure would or might in its responsible opinion constitute a breach of any law or a breach of a fiduciary duty.

	27.13.
	Relationship
with the Lenders

	(a)
	The
Agent may treat each Lender as a Lender, entitled to payments under this Agreement and acting through its Facility Office unless it has received not less than five Business Days
prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

	(b)
	Each
Lender shall supply the Agent with any information required by the Agent in order to calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost Formulae).

	27.14.
	Credit
appraisal by the Lenders 

Without
affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Agent and the Mandated Lead
Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document
including but not limited to: 

	(a)
	the
financial condition, status and nature of each Group Company;

	(b)
	the
legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document;

	(c)
	whether
that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the
transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;
and

	(d)
	the
adequacy, accuracy and/or completeness of any information provided by the Agent, any Party or by any other person under or in connection with any Finance Document, the
transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.

	27.15.
	Agent
to hold original documents 

The
Agent shall hold one of each of the complete originals of this Agreement, the SISA Guarantee and any Transfer Certificate for the benefit of the Finance Parties and each copy shall be clearly
marked "Agent's Copy". 

43

 

28.   (intentionally omitted)  

29.   Conduct of business by the Financing Parties  

No
provision of this Agreement will: 

	(a)
	interfere
with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

	(b)
	oblige
any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

	(c)
	oblige
any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax. 

30.   Sharing among the Lenders  

	30.1.
	Payment
to Lenders 

If
a Lender (a "Recovering Lender") receives or recovers any amount from an Obligor other than in accordance with Clause 31 (Payment mechanics) and applies that amount to a payment due under
the Finance Documents then: 

	(a)
	the
Recovering Lender shall, within three Business Days, notify details of the receipt or recovery, to the Agent;

	(b)
	the
Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Lender would have been paid had the receipt or recovery been received or made by
the Agent and distributed in accordance with Clause 31 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or
distribution; and

	(c)
	the
Recovering Lender shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the "Sharing Payment") equal to such receipt or recovery (together with
interest thereon at the rate determined by the Agent) less any amount which the Agent determines may be retained by the Recovering Lender as its share of any payment to be made, in accordance with
Clause 31.5 (Partial payments).

	30.2.
	Redistribution
of payments 

The
Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Lender) in accordance with
Clause 31.5 (Partial payments). 

	30.3.
	Recovering
Lenders' rights

	(a)
	On
a distribution by the Agent under Clause 30.2 (Redistribution of payments), the Recovering Lender will be subrogated to the rights of the Finance Parties which have shared
in the redistribution.

	(b)
	If
and to the extent that the Recovering Lender is not able to rely on its rights under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Lender for a
debt equal to the Sharing Payment which is immediately due and payable. 

44

 

	30.4.
	Reversal
of redistribution 

If
any part of the Sharing Payment received or recovered by a Recovering Lender becomes repayable and is repaid by that Recovering Lender, then: 

	(a)
	each
Lender which has received a share of the relevant Sharing Payment pursuant to Clause 30.2 (Redistribution of payments) shall, upon request of the Agent, pay to the Agent
for account of that Recovering Lender an amount equal to its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Lender for its proportion of any
interest on the Sharing Payment which that Recovering Lender is required to pay); and

	(b)
	that
Recovering Lender's rights of subrogation in respect of any reimbursement shall be cancelled and the relevant Obligor will be liable to the reimbursing Lender for the amount so
reimbursed.

	30.5.
	Exceptions

	(a)
	This
Clause 30 shall not apply to the extent that the Recovering Lender would not, after making any payment pursuant to this clause, have a valid and enforceable claim against
the relevant Obligor.

	(b)
	A
Recovering Lender is not obliged to share with any other Lender any amount which the Recovering Lender has received or recovered as a result of taking legal or arbitration
proceedings, if

	(i)
	it
notified the other Lenders of the legal or arbitration proceedings; and

	(ii)
	the
other Lenders had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice
or did not take separate legal or arbitration proceedings. 

45

  

 
 

SECTION 10    ADMINISTRATION    
    

31.   Payment mechanics  

	31.1.
	Payment
to the Agent

	(a)
	On
each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Agent (unless a
contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the
place of payment.

	(b)
	Payment
shall be made to such account in the principal financial centre of a Participating Member State or London as the Agent specifies.

	31.2.
	Distribution
by the Agent 

Each
payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 31.3 (Distribution to an Obligor) and Clause 31.4 (Clawback) be made available
by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such
account as that Party may notify to the Agent by not less than five Business Days' notice with a bank in the principal financial centre of a Participating Member State or London. 

	31.3.
	Distribution
to an Obligor 

The
Agent may (with the consent of the Obligor or in accordance with Clause 32 (Set-off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the funds of
receipt) of any amount due from that Obligor under the Finance Documents. 

	31.4.
	Clawback

	(a)
	Where
a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any
related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum. In such a case, the Agent will inform the other Parties of its decision to
delay payment. If the decision to delay payment causes such a delay in passing on the money to the other Parties that the other Parties receive the amounts to which they are entitled late, the Party
which violated the obligation to effect payment to the Agent shall pay any costs incurred, less any realised investment profits.

	(b)
	Subject
to Clause (a) above, if the Agent is not notified in writing by the Borrower at least five Business Days prior to the due date that a payment owed under this Agreement
will not be rendered by the due date, the Agent is entitled to assume that the payment will be paid and, in reliance thereon, to make available to the respective Party on the applicable payment date
an amount of the expected payment to be attributed to such Party.

	(c)
	If
the Agent pays an amount to another party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of
any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent,
calculated by the Agent to reflect its cost of funds. Any such costs, less any realised investment profits, will be charged to the Party which violated the obligation to effect payment to the Agent. 

46

 

	31.5.
	Partial
payments

	(a)
	If
the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Agent shall apply that payment
towards the obligations of that Obligor under the Finance Documents in the following order:

	(i)
	first,
in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent under the Finance Documents;

	(ii)
	second,
in or towards payment pro rata of any accrued interest due but unpaid under this Agreement;

	(iii)
	third,
in or towards payment pro rata of amounts of principal due but unpaid under this Agreement; and

	(iv)
	fourth,
in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

	(b)
	The
Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.

	(c)
	Paragraphs (a)
and (b) above will override any appropriation made by an Obligor.

	31.6.
	No
set-off by Obligors 

All
payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim or bank charges. 

	31.7.
	Business
Day

	(a)
	Unless
otherwise provided for under this Agreement, any payment which is due to be made on a day that is not a Business Day shall be made on the immediately preceeding Business Day.

	(b)
	During
any extension of the due date for payment of any principal or an Unpaid Sum under this Agreement interest is payable on the principal at the rate payable on the original due
date.

	31.8.
	Currency
of account 

The
currency of account is Euro and payment for any sum due from an Obligor under any Finance Document shall be in Euro. 

	31.9.
	Notice
of payments 

Not
later than 10 Business Days prior to each date on which payments are due to be paid by an Obligor to the Lenders in accordance with the provisions of this Agreement the Agent shall notify
the respective Obligor of such amounts provided that failure to give such notice shall not relieve an Obligor of its obligation to make payments of such amounts when due. For the avoidance of doubt,
this Clause 31.9 shall not apply to the payment of the OeKB Administration Fee. 

47

 

32.   Set-off  

Without
prejudice to the rights of the Finance Parties at law, whilst an Event of Default is continuing unremedied and unwaived, a Finance Party may set off any matured obligation due from an Obligor
under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment,
booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of
business for the purpose of the set-off. 

33.   Notice  

	33.1.
	Communications
in writing 

Any
communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter. 

	33.2.
	Addresses

Subject
to the other terms of this Agreement, the address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any
communication or document to be made or delivered under or in connection with the Finance Documents is: 

	(a)
	in
the case of each of the Borrower and the Guarantor to 

Sappi
International S.A.

154 Chaussée de la Hulpe,

B-1170 (Watermael- Boitsfort),

Brussels,

Belgium 

Attention:
Executive Director

Fax: +32 2 676 9601 

	(b)
	in
the case of each Lender, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and

	(c)
	in
the case of the Agent: 

Bank
Austria Creditanstalt AG

Schottengasse 6

A-1010 Vienna

Austria 

Attention:
Ulrike Guggenberger

Fax: +43 (0) 5050-44209 

or
any substitute address, fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than
five Business Days' notice. 

	33.3.
	Delivery

	(a)
	Any
communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

	(i)
	if
by way of fax, when received in legible form; or 

48

 

	(ii)
	if
by way of letter, when it has been left at the relevant address seven Business Days after being deposited in the post postage prepaid in an envelope addressed to it
at that address; 

and,
if a particular department or officer is specified as part of its address details provided under Clause 33.2 (Addresses), if addressed to that department or officer. 

	(b)
	Any
communication or document to be made or delivered to the Agent will be effective only when actually received by the Agent and then only if it is expressly marked for the attention
of the department or officer identified with the Agent's signature below (or any substitute department or officer as the Agent shall specify for this purpose).

	(c)
	All
notices from or to an Obligor shall be sent through the Agent.

	33.4.
	Notification
of address and fax number 

Promptly
upon receipt of notification of an address and fax number or change of address or fax number pursuant to Clause 33.2 (Addresses) or changing its own address or fax number, the Agent
shall notify the other Parties. 

	33.5.
	Electronic
Communication

	(a)
	Any
communication to be made between the Parties under or in connection with the Finance Documents (other than (i) delivery of the Drawdown Request, a certificate in accordance
with Clause 21.2 (Compliance Certificate) or any request for an amendment to or waiver of this Agreement, (ii) in the case of the Guarantor, delivery of any request for an amendment or
waiver of this Agreement) may be made by electronic mail or other electronic means and the Parties shall notify each other (in particular, the Agent) in writing of their electronic mail address and/or
any other information required to enable the sending and receipt of information by that means.

	(b)
	Each
Party shall promptly notify each other Party (in particular, the Agent) of any change to their electronic mail address or any other such information supplied by them.

	(c)
	Any
electronic communication made:

	(i)
	by
the Agent to another Party will be effective only when actually received by the relevant recipient and then only if it is addressed in such a manner as that relevant
Lender or Obligor shall specify to the Agent for this purpose; and

	(ii)
	by
a Lender or any Obligor to the Agent will be effective only when actually received by the Agent, as the case may be, and then only if it is addressed in such a
manner as the Agent shall specify to that Lender or, as the case may be, that Obligor for this purpose.

	(d)
	Each
Party shall notify any affected Parties promptly upon becoming aware that its electronic mail system or other electronic means of communication cannot be used due to technical
failure (and that failure is continuing for more than 36 hours). Until that Party has notified the other affected Parties that the failure has been remedied, all notices between those Parties
shall be sent by fax or letter in accordance with this Clause 33 (Notice).

	(e)
	In
the case of notification of Rates of Interest by the Agent pursuant to Clause 11.6 (Notification of Rates of Interest) and in the case of the delivery of any document by the
Agent pursuant to paragraph (a) of Clause 27.2 (Duties of the Agent), the Agent may refer a Lender or an Obligor (by fax, letter or e-mail) to a web site and to the location
of the relevant information an such web site in discharge of such notification or delivery obligation. 

49

 

	33.6.
	English
language

	(a)
	Any
notice given under or in connection with any Finance Document must be in English.

	(b)
	All
other documents provided under or in connection with any Finance Document must be:

	(i)
	in
English; or

	(ii)
	if
not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the
document is a constitutional, statutory or other official document. 

34.   Calculation and Certificates  

	34.1.
	Accounts 

In
any litigation or arbitration proceedings arising out of or in connection with a Finance Document the entries made in the accounts maintained by the Agent and/or a Finance Party are prima facie
evidence of the matters to which they relate. 

	34.2.
	Certificates
and determinations 

Any
certification or determination by the Agent and/or a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which
it relates. 

	34.3.
	Day
count convention 

Any
interest or fee payable to a Finance Party accruing under a Finance Document will accrue from day to day and is calculated an the basis of the actual number of days elapsed and a year of
360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice. 

35.   Partial invalidity  

If,
at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired. 

36.   Remedies and waivers  

No
failure to exercise, nor any delay in exercising, on the part of the Agent and/or any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single
or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not
exclusive of any rights or remedies provided by law. 

37.   Amendments and waivers  

	37.1.
	Required
consents

	(a)
	Subject
to Clause 37.2 (Exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Obligors and any such
amendment or waiver will be binding on all Parties.

	(b)
	The
Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause. 

50

 

	37.2.
	Exceptions

	(a)
	An
amendment or waiver that has the effect of changing or which relates to:

	(i)
	the
definition of "Majority Lenders" in Clause 1.1 (Definitions);

	(ii)
	an
extension to the date of payment of any amount under the Finance Documents;

	(iii)
	a
reduction in the Applicable Facility Fee, the amount of, or the currency of any payment of principal, interest or fees payable;

	(iv)
	an
increase in Commitment;

	(v)
	a
change to the legal entity that is the Borrower or Guarantor;

	(vi)
	any
provision which expressly requires the consent of all the Lenders; or

	(vii)
	Clause 2.2
(Finance Parties' rights and obligations), Clause 21.1 (Financial Statements) except for reasonable extensions of periods for the submission
of the statements under Clause 21.1 (b), Clause 25 (Changes to the Lenders), Clause 30 (Sharing among the Lenders) or this Clause 37 (Amendments and waivers), 

shall
not be made without the prior consent of all the Lenders. 

	(b)
	An
amendment or waiver which relates to the rights or obligations of the Agent or the Mandated Lead Arranger may not be effected without the consent of the Agent or the Mandated Lead
Arranger. 

38.   Counterparts  

	38.1.
	Multiple
counterparts 

Each
Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures an the counterparts were on a single copy of the Finance Document. 

	38.2.
	Complete
originals 

There
shall only be two complete originals of the Finance Documents (other than the Mandate Letter). For these purposes "complete" means execution by each relevant Party to such Finance Document in
any number of counterparts. 

39.   (intentionally omitted)  

51

  

 
 

SECTION 11 GOVERNING LAW AND ENFORCEMENT    
    

40.   Governing law  

        This Agreement is governed by Austrian law excluding its conflicts of law rules. 

41.   Enforcement  

	41.1.
	Jurisdiction
of Austrian Courts

	(a)
	The
competent courts of Vienna have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute regarding the existence,
validity or termination of this Agreement) (a "Dispute").

	(b)
	This
Clause 41.1 is for the benefit of the Finance Parties only. As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other
courts with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions. 

52

  

	 
	 

	Signatories	 
	

    	

 
	

	

 
	Sappi Paper Holding AG	 
	by:	 
	Title:	 
	

	

 
	Sappi International S.A.	 
	by:	 
	Title:	 
	

	

 
	Bank Austria Creditanstalt AG	 
	by:	 
	Title:	 
	

	

 
	Erste Bank der oesterreichischen Sparkassen AG	 
	by:	 
	Title:	 
	

	

 
	Fortis Bank S.A.	 
	by:	 
	Title:	 
	

	

 
	BNP Paribas S.A. Belgium Branche	 
	by:	 
	Title:	 
	

	

 
	Bayerische Landesbank Girozentrale	 
	by:	 
	Title:	 
	

	

 
	Baden-Württembergerische Bank AG	 
	by:	 
	Title:	 
	

	

 
	Commerzbank Aktiengesellschaft Succursale de Bruxelles	 
	by:	 
	Title:	 
	

	

 
	Investkredit Bank AG	 
	by:	 
	Title:	 

53

 

	 
	 

	

	

 
	WestLB AG	 
	by:	 
	Title:	 
	

	

 
	ABN AMRO BANK N.V.	 
	Niederlassung Deutschland	 
	by:	 
	Title:	 
	

	

 
	Barclays Bank plc	 
	by:	 
	Title:	 
	

	

 
	Bank für Arbeit und Wirtschaft Aktiengesellschaft	 
	by:	 
	Title:	 
	

	

 
	Österreichische Volksbanken-Aktiengesellschaft	 
	by:	 
	Title:	 
	

	

 
	Credit Agricole Indosuez	 
	by:	 
	Title:	 
	

	

 
	Raiffeisenlandesbank Oberöstereich registrierte	 
	Genossenschaft mit beschränkter Haftung	 
	by:	 
	Title:	 
	

	

 
	ING BHF-Bank Aktiengesellschaft Niederlassung Hannover	 
	by:	 
	Title:	 
	

	

 
	Vorarlberger Landes- und Hypothekenbank	 
	Aktiengesellschaft	 
	by:	 
	Title:	 
	

	

 
	Salzburger Landes- und Hypothekenbank Aktiengesellschaft	 
	by:	 
	Title:	 

54

  

 
 

SCHEDULE 1:    THE ORIGINAL LENDERS    
    

	Name of Original Lender
 
	 	Address
	 	Tranche A

Commitment
	 	Tranche B

Commitment

	Bank Austria Creditanstalt AG	 	Schottengasse 6-8, A-1010 Vienna, Austria	 	19,703,281.20	 	78,813,124.8
	

Erste Bank der oesterreichischen Sparkassen AG	
 	

Graben 21, A-1010 Vienna, Austria	
 	

14,980,000	
 	

59,920,000
	

Fortis Bank S.A.	
 	

3 Montagne du Prac, B-1000 Brussels, Belgium	
 	

5,320,000	
 	

21,280,000
	

BNP Paribas S.A. Belgium Branche	
 	

Avenue Louise 489, B-1050 Brussels, Belgium	
 	

5,320,000	
 	

21,280,000
	

Bayerische Landesbank Girozentrale	
 	

Brienner Straße 20, D-80333 Munich	
 	

5,320,000	
 	

21,280,000
	

Baden-Württembergerische Bank AG	
 	

Kleiner Schlossplatz 11,. D-70173 Stuttgart, Germany	
 	

5,320,000	
 	

21,280,000
	

Commerzbank Aktiengesellschaft Succursale de Bruxelles	
 	

Boulevard Louis Schmidt 87, B-1040 Brussels, Belgium	
 	

5,320,000	
 	

21,280,000
	

Investkredit Bank AG	
 	

Renngasse 10, A-1013 Vienna, Austria	
 	

5,320,000	
 	

21,280,000
	

WestLB AG	
 	

Friedrichstraße 62-68, D-40217 Düsseldorf, Germany	
 	

5,320,000	
 	

21,280,000
	

ABN AMRO BANK N.V.	
 	

Theodor-Heuss-Allee 80	
 	

5,320,000	
 	

21,280,000
	

Niederlassung Deutschland	
 	

D-60486 Frankfurt am Main	
 	

5,320,000	
 	

21,280,000
	

Barclays Bank plc	
 	

54 Lombard Street, EC3P 3AH London, United Kingdom	
 	

5,320,000	
 	

21,280,000
	

Bank für Arbeit und Wirtschaft Aktiengesellschaft	
 	

Seitzergasse 2-4, A-1010 Vienna, Austria	
 	

3,920,000	
 	

15,680,000
	

Österreichische Volksbanken Aktiengesellschaft	
 	

Peregringasse 3, A-1090 Vienna, Austria	
 	

3,920,000	
 	

15,680,000
	

Credit Agricole Indosuez	
 	

9, Quai du President Paul Doumer, F-92920 Paris La Defense, France	
 	

3,920,000	
 	

15,680,000
	

Raiffeisenlandesbank Oberösterreich registrierte	
 	

Europaplatz la, A-4020 Linz, Austria	
 	

1,960,000	
 	

7,840,000
	

Genossenschaft mit beschränkter Haftung	
 	

 	
 	

 	
 	

 
	ING BHF-BANK Aktiengesellschaft Niederlassung Hannover	 	Georgsplatz 9, D-30159 Hannover, Germany	 	1,960,000	 	7,840,000
	

Vorarlberger Landes- und Hypothekenbank Aktiengesellschaft	
 	

Hypo-Passage 1, A-6900 Bregenz, Austria	
 	

980,000	
 	

3,920,000
	

Salzburger Landes- und Hypothekenbank Aktiengesellschaft	
 	

Petersbrunnstraße 3, A-5020 Salzburg, Austria	
 	

798,000	
 	

3,192,000
	 	 	 	 	
	 	

	 	 	 	 	100,021,281.20	 	400,085,124.80
	 	 	 	 	
	 	

	
Total of Tranche A and Tranche B	
 	

 	
 	

 	
 	
500,106,406.00

55

  

 
 

SCHEDULE 2:    CONDITIONS PRECEDENT    
    

Conditions
Precedent for Drawdown 

1.     Obligors  

	(a)
	A
certified copy of the constitutional documents of each Obligor.

	(b)
	A
certified copy of a resolution of the board of directors of the Borrower and (ii) the board of the Guarantor:

	(i)
	approving
the terms of, and the transactions contemplated by, the Finance Documents and resolving that it executes the Finance Documents to which it is a party;

	(ii)
	authorising
a specified person or persons to execute the Finance Documents on its behalf; and

	(iii)
	authorising
a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, the Drawdown Request) to be signed
and/or despatched by it under or in connection with the Finance Documents.

	(c)
	A
copy of a resolution of the supervisory board of the Borrower approving the terms of, and transactions contemplated by, the Finance Documents to which it is a party and resolving
that it executes the Finance Documents to which it is a party.

	(d)
	(intentionally
omitted)

	(e)
	A
certificate of the Borrower (signed by a director) confirming that borrowing the Facility would not cause any borrowing or similar limit binding on either Obligor to be exceeded.

	(f)
	A
certificate of an authorised signatory of the relevant Obligor certifying that each copy document relating to it specified in this Schedule 2 is correct, complete and in full
force and effect as of a date no earlier than the date of this Agreement.

	(g)
	Each
of the Lenders shall have received bills of exchange duly accepted by the Borrower in the amounts and number required for the OeKB Refinancing. 

2.     Legal opinions  

	(a)
	A
legal opinion of Binder Grösswang Rechtsanwälte OEG, legal counsel licensed in Austria in form and substance reasonably satisfactory to the Agent.

	(b)
	A
legal opinion of Freshfields Bruckhaus Deringer Brussels, legal counsel licensed in Belgium in form and substance reasonably satisfactory to the Agent. 

3.     OeKB  

	(a)
	Each
of the Lenders shall have received on the bills of exchange accepted by the Borrower in relation to the Facility a guarantee by "aval" of the Republic of Austria under the
Austrian Export Guarantees Act 1981 ("Ausfuhrförderungsgesetz 1981").

	(b)
	Each
of the Lenders and OeKB shall have concluded a refinancing agreement in relation to the Facility.

	(c)
	Receipt
of payment from OeKB under the OeKB Refinancing. 

56

 

4.     Other documents and evidence  

	(a)
	Evidence
that the fees, costs and expenses then due from the Borrower pursuant to Clause 14 (Fees) and Clause 19 (Costs and expenses) have been paid or will be paid
within 5 Business Days from the date of this Agreement.

	(b)
	A
certificate of an authorised signatory of the Borrower that the Intercompany Financings (i) have been disbursed (such disbursement also evidenced by the respective bank
confirmations) and (ii) are outstanding at least in the amount of the aggregate Loans.

	(c)
	A
copy of any other authorisation or other document in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and
enforceability of any Finance Document required by law or which the Agent has reasonably requested from the Borrower until signing of this Agreement.

	(d)
	The
SISA Guarantee duly executed by the Guarantor and the Agent.

	(e)
	The
Initial Financial Statements. 

57

  

 
 

SCHEDULE 3:    REQUESTS    
    

Drawdown
Request 

	 
	 	 

	From:	 	Sappi Papier Holding AG
	

To:	
 	

Bank Austria Creditanstalt AG as Agent
	

Dated:	
 	

    

Dear
Sirs, 

Sappi Papier Holding AG—Euro 500,106,406 Facility Agreement dated May 7, 2003 (the "Facility Agreement")  

	 
	 
	 	 
	 
	 

	1.	We wish to borrow a Loan on the following terms
	

 	

Proposed Drawdown Date:	
 	

[	

]	

(or, if that is not a Business Day, the next Business Day)
	

 	

Amount:	
 	

[	

]	

 
	

2.	

We confirm that each condition specified in Clause 4.2 (Further conditions precedent) of the Facility Agreement referred to above is satisfied on the date of this Drawdown Request.
	

3.	

The proceeds of this Loan should be credited to [account].
	

4.	

This Drawdown Request is irrevocable and signed at [            ].

	 
	 	 
	 	 

	 	 	  

Yours faithfully	 	 
	

 	
 	

	
 	

 
	 	 	authorised signatory for

SAPPI PAPIER HOLDING AG	 	 

58

  

 
 

SCHEDULE 4:    MANDATORY COST FORMULA    
    

	1.
	The
Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with the requirements of the European Central Bank or the central bank of any
other country arising after the date of this Agreement.

	2.
	On
the first day of each Interest Period (or as soon as possible thereafter) the Agent shall calculate, as a percentage rate, a rate (the "Additional Cost Rate") for each Lender, in
accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the Agent as a weighted average of the Lenders' Additional Cost Rates (weighted in proportion to the percentage
participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum.

	3.
	The
Additional Cost Rate for any Lender lending from a Facility Office in a Participating Member State will be the percentage notified by that Lender to the Agent as the net cost of
complying with the minimum reserve requirements of the European Central Bank after taking into account remuneration payable to it by the European Central Bank under Council Regulation (EC)
No. 2531/98 of 23 November 1998 and Council Regulation (EC) No. 2828/98 of 1 December 1998.

	4.
	The
Additional Cost Rate for any Lender lending from a Facility Office in country other than a Participating Member State will be the percentage notified by that Lender to the Agent as
the net cost of complying with the minimum reserve requirements of the respective central bank.

	5.
	Each
Lender shall supply any information required by the Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation, each Lender shall supply
the following information in writing on or prior to the date on which it becomes a Lender:

	(a)
	its
jurisdiction of incorporation and the jurisdiction of its Facility Office; and

	(b)
	any
other information that the Agent may reasonably require for such purpose. 

Each
Lender shall promptly notify the Agent in writing of any change to the information provided by it pursuant to this paragraph. 

	6.
	The
percentages or rates of charge of each Lender for the purpose of item 1 above shall be determined by the Agent based upon the information supplied to it pursuant to paragraphs 3
and 4 above and on the assumption that, unless a Lender notifies the Agent to the contrary, each Lender's obligations in relation to the requirements described in item 1 are the same as those of a
typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office.

	7.
	The
Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled to assume that
the information provided by any Lender pursuant to paragraphs 3, 4 and 5 above is true and correct in all respects.

	8.
	The
Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the
information provided by each Lender pursuant to paragraphs 3 and 4 above.

	9.
	Any
determination by the Agent pursuant to this Schedule in relation to, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the absence of manifest
error, be conclusive and binding on all Parties. 

59

 
	10.
	The
Agent may from time to time, after consultation with the Borrower and the Lenders, determine and notify to all Parties any amendments which are required to be made to this
Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the European Central Bank (or, in any case, any other authority which replaces all or
any of its functions) or the central bank of any other country and any such determination shall, in the absence of manifest error, be conclusive and binding an all Parties. 

60

  

 
 

SCHEDULE 5:    FORM OF TRANSFER CERTIFICATE    
    

	To:	 	Bank Austria Creditanstalt AG as Agent
	

From:	
 	

[The Existing Lender] (the "Existing Lender") and [The New Lender] (the "New
Lender")
	

Dated:	
 	

 

Sappi Papier Holding AG—Euro 500,106,406 Facility Agreement dated May 7, 2003 (the "Facility
Agreement")

	1.
	We
refer to Clause 25.5 (Procedure of transfer) of the Facility Agreement:

	(a)
	The
Existing Lender and the New Lender agree to the Existing Lender and the New Lender [assigning/transferring] all or part of the Existing Lender's
Commitment, rights and obligations referred to in the Schedule in accordance with Clause 25.5 (Procedure of transfer) of the Facility Agreement.

	(b)
	The
proposed Transfer Date is [    ].

	(c)
	The
Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 33.2 (Addresses) of the Facility Agreement are set
out in this Schedule.

	2.
	The
New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in paragraph (c) of Clause 25.4 (Limitation of responsibility of
Existing Lenders) of the Facility Agreement.

	3.
	This
Transfer Certificate is governed by Austrian law. All capitalized words and expressions, which are not expressly defined herein, shall have the meaning attributed to them in the
Facility Agreement.

	4.
	This
Transfer Certificate is signed at [    ]. 

61

 
 
 

THE SCHEDULE    

Commitment/rights
and obligations to be transferred or assigned 

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for payments]  

	

[Existing Lender]

By:	
 	

[New Lender]

By:
	

 	
 	

 

This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as [    ]. 

[Agent]

By:

62

  

 
 

SCHEDULE 6:    FORM OF COMPLIANCE CERTIFICATE    
    

	To:	 	Bank Austria Creditanstalt AG as Agent
	

From:	
 	

Sappi Papier Holding AG
	Dated:	 	 

Dear
Sirs, 

Sappi Papier Holding AG—Euro 500,106,406 Facility Agreement dated May 7, 2003 (the "Facility Agreement")

	1.
	We
refer to the Facility Agreement. All capitalized words and expressions, which are not expressly defined herein, shall have the meaning attributed to them in the Facility Agreement.
This is a Compliance Certificate.

	2.
	We
confirm that:

	(i)
	in
respect of the Quarter ending on [    ] and each of the three immediately preceding Quarters the mean average of EBITDA was
[    ] and the mean average of Consolidated Net Interest Expense was [    ]. Therefore EBITDA was
[    ] times Consolidated Net Interest Expense and the covenant contained in sub-clause (a) of Clause 23.1 (Financial Covenants)
[has/has not] been complied with;

	(ii)
	in
respect of the Quarter ending on [    ] and each of the seven immediately preceding Quarters the mean average of EBITDA was
[    ] and the mean average of Consolidated Net Interest Expense was [    ]. Therefore EBITDA was
[    ] times Consolidated Net Interest Expense and the covenant contained in sub-clause (b) of Clause 23.1 (Financial Covenants)
[has/has not] been complied with;

	(iii)
	in
respect of the Quarter ending on [    ] the Consolidated Capital of the Group was [    ] and the Consolidated
Assets of the Group was [    ] as at the end of that Quarter. Therefore the Consolidated Capital of the Group was [    ] times the
Consolidated Capital of the Group and the covenant contained in sub-clause (c) of Clause 23.1 (Financial Covenants) [has/has not] been complied with;
and

	(iv)
	in
respect of the Quarter ending on [    ] Net Debt was [    ] and Capitalisation for such Quarter was
[    ] as at the end of that Quarter. Therefore Net Debt at that time [was/was not] equal to or in excess of
[    ] and the covenant contained in sub-clause (d) of Clause 23.1 (Financial Covenants) [has/has not] been complied
with.

	3.
	[As
at [end of Quarter], the Material Subsidiaries are as follows: [    ] 

We
confirm that the above companies account for at least 90 per cent of the Consolidated Earnings and at least 90 per cent of the Consolidated Assets (as such terms are defined in the definitions of
Material Subsidiary set out in the Facility Agreement).](1) 

	4.
	[We
confirm that no Default is continuing.](2) 

	(1)
	Paragraph
3 only included in the Annual Compliance Certificate, as such term is defined in the Facility Agreement.

	(2)
	If
this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it. 

63

 
	5.
	[The
average of the ratios (calculated on the basis of the audited consolidated annual statements of the Group as of September 30, 2005 and as of
September 30, 2006) of Net Debt to EBITDA of the Group does not exceed 3.0:1 / does exceed 3.0:1 due to a Securitisation Event, but does not exceed 3.5:1.](3)

	6.
	This
Compliance Certificate is signed at [    ]. 

Signed:

Director
for and an behalf of

Sappi Papier Holding AG 

	(3)
	Required
only in the Annual Compliance Certificate delivered with the financial statements for the financial year ending on September 30, 2006. 

64

  

 
 

SCHEDULE 7:    EXISTING SECURITY    
    

	Name of Obligor
 
	 	Security
	 	Total Principal Amount of

Indebtedness Secured

	Sappi Fine Paper North America	 	 	 	 
	—Town of Skowhegan/Michigan

    Strategic Fund/City of Westbrook	 	Land and Buildings	 	107m USD
	
Sappi Alfeld	
 	

 	
 	

 
	—Allianz AG	 	Assets	 	9m EUR
	
Sappi Gratkorn	
 	

 	
 	

 
	—Wasserwirtschaftsfonds	 	Bonds	 	9m EUR

65

  

 
 

SCHEDULE 8:    FORM OF POWER OF ATTORNEY    
    

To
Bank Austria Creditanstalt AG 

Re:  

Dated:                                       
                   ,
2003 

 
 

POWER OF ATTORNEY    
    

We,
[...Bank...] a legal entity duly organised under the laws of [...country of
incorporation] and registered with the commercial register at                        under
[...number of
registration], with principal place of business in [...address] ("Bank"), hereby authorise
and appoint Bank Austria Creditanstalt AG, Schottengasse 6, 1010 Vienna ("Attorney") in connection with (i) the EUR [500,106,406] Credit Facility Agreement, concluded
between Sappi Papier Holding AG Austria, as borrower, Sappi International S.A. as Guarantor and Bank Austria Creditanstalt AG, as mandated lead arranger and agent, and the syndicate of banks as listed
in the afore mentioned Credit Facility Agreement and (ii) the respective refinancing agreement concluded between the Bank and Oesterreichische Kontrollbank Aktiengesellschaft ("OeKB") (the
"Refinancing Agreement") to: 

	1)
	demand
and receive payments from OeKB under the Refinancing Agreement upon receipt of a drawdown notice from the Borrower; and

	2)
	to
make to the Bank's account with OeKB all re-payments of principal and payments of interest and fees under the Refinancing Agreement upon receipt of the relevant funds
from the borrower; and

	3)
	do
all other acts and things and sign, execute and deliver any and all other documents and give all notices which may be required or which the Attorney shall in its absolute and
unfettered discretion consider desirable thereto in connection with clauses 1. and 2. hereof. 

The
Bank shall indemnify the Attorney and keep the Attorney indemnified against any and all reasonable costs, claims and liabilities which the Attorney may incur as a result of anything done by the
Attorney in the exercise of any of its powers conferred, or purported to be conferred, on him by this Power of Attorney. 

The
Attorney shall be entitled to grant sub-powers of attorney. 

The
authority conferred on the Attorney by this Power of Attorney shall terminate on [... insert date]. 

This
Power of Attorney is governed by, and shall be construed in accordance with, Austrian law. 

IN
WITNESS WHEREOF this Power of Attorney has been executed by the Bank and is intended to be made on the date above written. 

By: 

Title: 

	 
	 

	Note:	Unless the signatories can be verified from a signatories' book of the Bank, a notary public has to certify as to the authenticity of the signatures and his/her/their authority to validly represent the Bank, a company
duly incorporated and validly existing, upon the issuance of this power of attorney.

66

  

 
 

SCHEDULE 9:    FORM OF CONFIDENTIALITY UNDERTAKING    
    

	From:	 	[Proposed Transferee]
	

To:	
 	

Sappi Papier Holding AG

[                        ]
200[    ] 

Facility Agreement dated May 7, 2003 among (1) Sappi Papier Holding AG as Borrower (2) Sappi International S.A. as Guarantor (3) Bank Austria
Creditanstalt AG as Agent and (4) certain Lenders named therein (the "Facility Agreement")

	1.
	We
refer to the Facility Agreement. All capitalized words and expressions, which are not expressly defined herein, shall have the meaning attributed to them in the Facility Agreement.

	2.
	Subject
as provided below, we undertake to keep confidential and undertake not to, without your prior written consent, (i) disclose any information (other than information which
is publicly available other than as a result of a breach of this letter) supplied by or on behalf of Sappi Papier Holding AG, or (ii) use any such information other than in relation to the
Facility. However, you agree that we are entitled to disclose information:

	(a)
	in
connection with any legal proceedings arising out of or in connection with the Facility Agreement or any audit requirement;

	(b)
	if
required to do so by an order of a court of competent jurisdiction whether under any procedure for discovering documents or otherwise;

	(c)
	pursuant
to any law or regulation in accordance with which we and/or any of our affiliates and/or subsidiaries are required or accustomed to act;

	(d)
	to
a governmental banking, taxation or other regulatory authority of any competent jurisdiction;

	(e)
	to
our accountants or legal or other professional advisers in connection with this letter or the Facility;

	(f)
	which,
after such information has been made available to us, becomes generally available to third parties by publication or otherwise through no breach of this letter;

	(g)
	which
was lawfully in our possession or in the possession of our advisers prior to such disclosure and which was not acquired directly or indirectly from any Group Company or Sappi
Group Company;

	(h)
	the
disclosure of which is made to any of our affiliates in circumstances where it is our usual practice to make such disclosure or where such disclosure is required as part of our
management or reporting policies;

	(i)
	where
such disclosure is, in our reasonable opinion, required, following the occurrence of a Default, to protect our position, or to assist in the recovery of amounts, under the
Facility Agreement; or

	(j)
	where
such disclosure is made to the Agent, the Mandated Lead Arranger or any Lender.

	3.
	The
obligations in this letter shall cease (a) if we become a party to or otherwise acquire (by assignment or sub participation) an interest, direct or indirect in the Facility
or (b) twelve months after we have returned all information received by you relating to the Facility (other than such information which has been disclosed under paragraph 2 above). 

67

 
	4.
	This
letter sets out the full extent of our obligations of confidentiality owed to you in relation to the information with respect to the Facility. The terms of this letter and our
obligations under this letter may only be amended or modified by written agreement between us.

	5.
	(a)   The
terms of this letter may be enforced and relied upon only by you and us.

	(b)
	Notwithstanding
any provisions of this letter, the parties to this letter do not require the consent of any other person to rescind or vary this letter at any time.

	6.
	This
letter (including the agreement constituted by your acknowledgement of its terms) shall be governed by and construed in accordance with the laws of Austria and the parties submit
to the exclusive jurisdiction of the common courts in Vienna.

	7.
	This
letter is signed at [    ]. 

Please
countersign this letter to confirm your agreement to its terms. 

Yours
faithfully, 

[name
of proposed Transferee] 

68

  

 
 

SCHEDULE 10:    APPLICABLE FACILITY FEE    
    

The
Applicable Facility Fee shall be calculated as follows: 

	(a)
	During
the Availability Period, the Applicable Facility Fee shall be 0.50 per cent per annum.

	(b)
	After
the end of the Availability Period, the Applicable Facility Fee shall be a rate determined by the Agent at the end of any Interest Period for the next succeeding Interest Period
according to the following table: 

	 
	Standard & Poors credit rating for Sappi
 
	 	Applicable Facility Fee per annum

	 	A or higher	 	0.20 per cent
	 	A–	 	0.30 per cent
	 	BBB+	 	0.40 per cent
	 	BBB	 	0.50 per cent
	 	BBB–	 	0.60 per cent
	 	Below BBB–	 	1.00 per cent

From the time a Standard & Poor credit rating is available for the Borrower, such credit rating shall apply. 

If
neither for Sappi nor for the Borrower a Standard & Poors credit rating is available, the above table shall without further action or analysis refer to the equivalent ratings used by
Moody's. 

If
neither Standard & Poors nor Moody's nor an equivalent rating agency reasonably acceptable to the Agent publishes a credit rating for Sappi or the Borrower, the applicable credit rating
shall be deemed to be "Below BBB–". 

69

  

 
 

SCHEDULE 11:    FORM OF GUARANTEE    
    

Form of irrevocable, unconditional guarantee for payment  

This
guarantee is dated the [    ] day of [    ], 200[    ] and made between: 

	(1)
	SAPPI
INTERNATIONAL S.A. (the "Guarantor") and

	(2)
	BANK
AUSTRIA CREDITANSTALT AG (the "Agent"). 

It
is hereby agreed as follows: 

	1.
	Preamble

SAPPI
PAPIER HOLDING AG has entered into a facility agreement dated May 7, 2003 among (1) Sappi Papier Holding AG as Borrower (2) Sappi International S.A. as Guarantor
(3) Bank Austria Creditanstalt AG as Agent and (4) certain Lenders named therein (the "Facility Agreement"), whereby the Lenders will on the terms and subject to the conditions therein
contained, advance to the Borrower funds for the purpose as defined in the Facility Agreement. The Guarantor has agreed to guarantee the payment obligations of the Borrower under the Facility
Agreement. 

All
capitalized words and expressions, which are not expressly defined herein, shall have the meaning attributed to them in the Facility Agreement. 

	2.
	Guarantee  

The
Guarantor hereby irrevocably and unconditionally guarantees to the Agent for the benefit of the Lenders and the Agent, as principal obligor and not merely as surety, the payment when due of all
amounts stated by the Agent to be owed by the Borrower to the Lenders under the Facility Agreement. 

	3.
	Immediate Recourse  

The
Guarantor waives any right it may have of first requiring the Lenders to proceed against or enforce any other rights or security of or claim payment from the Borrower or any other person before
claiming from the Guarantor hereunder. 

	4.
	Payment

	4.1
	The
Guarantor agrees to pay from time to time on first demand by the Agent against delivery by letter or tested telex to the Guarantor of a demand stating that (i) a specified
amount has become due and payable by the Borrower under the Facility Agreement and (ii) has not been paid by the Borrower within five days after the due date. 

If
such demand is delivered to the Guarantor, then, on the fifth Business Day after the date of delivery of such demand, the Guarantor shall pay without review on the underlying legal relationship and
waiving all defenses thereunder the amounts specified in such certificate and demand (including principal, interest, default interest, fees and ancillary claims) exclusively to the account or the
accounts (as the case may be) designated by the Agent. 

	4.2
	All
payments to be made by the Guarantor hereunder shall be made free and clear of and without deduction for or on account of any set-off, counterclaim or withholding
taxes. 

If
the Guarantor is required by law to make such deductions, the sum payable by the Guarantor shall be increased by such amounts as may be necessary in order that the net amounts remaining after such
deduction shall equal the respective amounts due hereunder. 

70

 
	4.3
	If
the Guarantor makes a Tax Payment and the relevant Finance Party determines that:

	(a)
	a
Tax Credit is attributable to that Tax Payment; and

	(b)
	that
Finance Party has obtained, utilised and retained that Tax Credit, on a consolidated group basis, 

the
Finance Party shall pay an amount to the Guarantor which that Finance Party determines in its absolute discretion will leave it (after that payment) in the same after-Tax position as
it would have been in had the Tax Payment not been made by the Guarantor. 

	4.4
	The
repayment obligation of a Finance Party pursuant to clause 4.3 above shall not become due before the Guarantor has fulfilled its payment obligations under a demand
hereunder and shall in no event reduce the payment obligation of the Guarantor under a demand hereunder.

	4.5
	The
Agent may from time to time make one or more demands for payment under this Guarantee.

	5.
	Non-competition  

So
long as any amounts are or may be owed by the Borrower under the Facility Agreement, the Guarantor shall not by virtue of any payment made, security realised or moneys received for or on account of
the Guarantor's liability hereunder: 

	a)
	be
subrogated to any rights, security or moneys held, received or receivable by the Lender or be entitled to any right of contribution;

	b)
	be
entitled and shall not claim to rank as creditor in the bankruptcy or liquidation of the Borrower in competition with the Lenders;

	c)
	receive,
claim or have the benefit of any payment, distribution or security from or on account of the Borrower or exercise any right of set-off as against the Borrower or
any other person or claim the benefit of any security or moneys held by or for the account of the Lenders; 

The
Guarantor shall forthwith pay to the Lenders an amount equal to any such set-off in fact exercised by it and shall hold in trust for and forthwith pay or transfer, as the case may be,
to the Lenders any such payment or distribution or benefit of security in fact received by it. 

	6.
	Preservation of Rights  

The
obligations of the Guarantor herein contained shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any sums of money by the Borrower is rescinded or
must otherwise be returned by the Lender upon the insolvency, bankruptcy or reorganisation of the Borrower, or otherwise, all as though such payment had not been made. 

	7.
	Transferability, Assignment  

The
Guarantor may not assign or transfer the whole or part of its obligations hereunder without the prior written consent of the Agent acting on the instructions of all Lenders. 

If
a new agent is appointed in accordance with Clause 27.11 of the Facility Agreement (Resignation of the Agent), the resigning agent may without the Guarantor's consent assign all or any part
of its rights hereunder. In any other case, the Agent may not assign its rights hereunder except with the prior written consent of the Guarantor. 

	8.
	Duration  

This
Guarantee shall be valid so long as any amounts under the Facility Agreement are or may be outstanding. 

71

 
	9.
	No Immunity  

To
the extent that the Guarantor has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process with respect to itself or its property, the Guarantor hereby
irrevocably waives such immunity in respect of its obligations under this Guarantee. 

	10.
	Partial Invalidity, Governing Law  

If,
at any time, any provision of this agreement is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of
the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired. 

This
Agreement is governed by Austrian law excluding its conflicts of law rules. 

The
competent courts of Vienna shall have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or
termination of this Agreement) (a "Dispute"). 

This
Clause 10. is for the benefit of the Agent and the Lenders only. As a result, the Agent shall not be prevented from taking proceedings relating to a dispute in any other courts with
jurisdiction. To the extent allowed by law, the parties to this agreement may take concurrent proceedings in any number of jurisdictions. 

	 	 	Place/Date	 	 	 	 
	

 	
 	

For and on behalf of

Sappi International S.A.	
 	

For and on behalf of

Bank Austria Creditanstalt AG
	 	 	 	 	 	 	 	 	 
	

 	
 	

by:	
 	

	
 	

by:	
 	

72

  

 
 

SCHEDULE 12:    MATERIAL SUBSIDIARIES    
    

30
March 2003    Sappi Papier Holding Group 

	Company Name
 
	 	***
	 	Country of

Incorporation
	 	Address
	 	Effective Holding

%
	 	Total Assets*

Sep.02
	 	EBIT**

12 months

to Sep.02
	 
	 
	 	 
	 	 
	 	 
	 	 
	 	(EURO millions)
 
	 
	Sappi Gratkorn GmbH	 	O	 	Austria	 	Brucker Strasse 21, A-8101 Gratkorn, Austria	 	100	 	46.4	 	3.2	 
	Sappi Austria Produktions GmbH & Co KG	 	O	 	Austria	 	Brucker Strasse 21, A-8101 Gratkorn, Austria	 	100	 	731.8	 	99.9	 
	Sappi Austria Vertriebs GmbH & Co KG	 	O	 	Austria	 	Brucker Strasse 21, A-8101 Gratkorn, Austria	 	100	 	3.9	 	0.7	 
	Sappi International SA	 	O	 	Belgium	 	154 Chaussee de la Hulpe, B-1170 Brussels, Belgium	 	42.8	****	1,255.9	 	5.4	 
	Sappi Lanaken NV	 	O	 	Belgium	 	Montaigneweg 2, B-3620, Lanaken, Belgium	 	100	 	425.6	 	17.7	 
	Sappi Lanaken Press Paper NV	 	O	 	Belgium	 	Montaigneweg 2, B-3620, Lanaken, Belgium	 	100	 	1,063.8	 	26.7	 
	Sappi Alfeld AG	 	O	 	Germany	 	Mühlenmasch 1, D-31061 Alfeld, Germany	 	99.9	 	413.8	 	15.9	 
	Sappi Ehingen AG	 	O	 	Germany	 	Biberacher Strasse 73, D089584, Ehingen, Germany	 	95.9	 	209.2	 	18.2	 
	Sappi Belgium Holding BV	 	H	 	Netherlands	 	Biesenweg 16, NL-6211 AA Maastricht,

The Netherlands	 	100	 	389.4	 	—	 
	Sappi Maastricht BV	 	O	 	Netherlands	 	Biesenweg 16, NL-6211 AA Maastricht,

The Netherlands	 	100	 	197.4	 	25.3	 
	Sappi Netherlands BV	 	H	 	Netherlands	 	Erasmusdomein 50, NL-6229 BL Maastricht, The Netherlands	 	100	 	222.3	 	—	 
	Sappi Nijmegen BV	 	O	 	Netherlands	 	Ambachtsweg 2, NL-6541 DB Nijmegen, The Netherlands	 	100	 	90.4	 	4.3	 
	Sappi Deutschland Holding GmbH	 	H	 	Germany	 	Mühlenmasch 1, D-31061 Alfeld, Germany	 	100	 	326.7	 	(0.1	)
	S D Warren Company	 	O	 	USA	 	225 Franklin Street, Boston, Massachusetts, 02110, USA	 	100	 	1,755.3	 	0.5	 
	 	 	 	 	 	 	 	 	 	 	
	 	
	 
	TOTAL	 	 	 	 	 	 	 	 	 	7,131.9	 	217.7	 
	 	 	 	 	 	 	 	 	 	 	
	 	
	 

	*
	Total
assets = current assets + non-current assets

	**
	EBIT
= Trading income (excluding non-operating income)

	***
	O
= Operating Company    H = Holding Company

	****
	The
direct and indirect beneficial holding by Sappi amounts to 100% 

        USD/EURO rate period end: 1.0869 

73

  

 
 

TABLE OF CONTENTS    
    

	PREAMBLE	 	2
	
SECTION 1    INTERPRETATION	
 	

2
	

1.	
 	

Definitions and Interpretation	
 	

2
	
SECTION 2    THE FACILITY	
 	

10
	

2.	
 	

The Facility	
 	

10
	

3.	
 	

Purpose	
 	

10
	

4.	
 	

Conditions of Drawdown	
 	

10
	
SECTION 3    DRAWDOWN	
 	

11
	

5.	
 	

Drawdown	
 	

11
	

6.	
 	

Splitting of Loan	
 	

11
	

7.	
 	

(intentionally omitted)	
 	

11
	
SECTION 4    REPAYMENT, PREPAYMENT AND CANCELLATION	
 	

12
	

8.	
 	

Repayment	
 	

12
	

9.	
 	

(intentionally omitted)	
 	

12
	

10.	
 	

Prepayment and cancellation	
 	

12
	
SECTION 5    COSTS OF DRAWING	
 	

15
	

11.	
 	

Interest	
 	

15
	

12.	
 	

Interest period	
 	

16
	

13.	
 	

Break Costs	
 	

16
	

14.	
 	

Fees	
 	

16
	
SECTION 6    ADDITIONAL PAYMENT OBLIGATIONS	
 	

18
	

15.	
 	

Tax gross up and indemnities	
 	

18
	

16.	
 	

Increased costs	
 	

20
	

17.	
 	

Other indemnities	
 	

21
	

18.	
 	

Mitigation by the lender	
 	

22
	

19.	
 	

Costs and expenses	
 	

23
	
SECTION 7    REPRESENTATION, UNDERTAKINGS AND EVENTS OF DEFAULT	
 	

24
	

20.	
 	

Representations	
 	

24
	

21.	
 	

Positive undertakings	
 	

25
	

22.	
 	

Negative undertakings	
 	

28
	

23.	
 	

Financial covenants	
 	

31
	

24.	
 	

Events of Default	
 	

33
	 	 	 	 	 

74

 

	
SECTION 8    CHANGE TO PARTIES	
 	

37
	

25.	
 	

Change to the Lenders	
 	

37
	

26.	
 	

Changes to the Obligors	
 	

39
	
SECTION 9    THE FINANCING PARTIES	
 	

40
	

27.	
 	

Role of the Agent and the Mandated Lead Arranger	
 	

40
	

28.	
 	

(intentionally omitted)	
 	

44
	

29.	
 	

Conduct of business by the Financing Parties	
 	

44
	

30.	
 	

Sharing among the Lenders	
 	

44
	
SECTION 10    ADMINISTRATION	
 	

46
	

31.	
 	

Payment mechanics	
 	

46
	

32.	
 	

Set-off	
 	

48
	

33.	
 	

Notice	
 	

48
	

34.	
 	

Calculation and Certificates	
 	

50
	

35.	
 	

Partial invalidity	
 	

50
	

36.	
 	

Remedies and waivers	
 	

50
	

37.	
 	

Amendments and waivers	
 	

50
	

38.	
 	

Counterparts	
 	

51
	

39.	
 	

(intentionally omitted)	
 	

51
	
SECTION 11    GOVERNING LAW AND ENFORCEMENT	
 	

52
	

40.	
 	

Governing law	
 	

52
	

41.	
 	

Enforcement	
 	

52
	
SCHEDULE 1:    THE ORIGINAL LENDERS	
 	

55
	
SCHEDULE 2:    CONDITIONS PRECEDENT	
 	

56
	
SCHEDULE 3:    REQUESTS	
 	

58
	
SCHEDULE 4:    MANDATORY COST FORMULA	
 	

59
	
SCHEDULE 5:    FORM OF TRANSFER CERTIFICATE	
 	

61
	
SCHEDULE 6:    FORM OF COMPLIANCE CERTIFICATE	
 	

63
	
SCHEDULE 7:    EXISTING SECURITY	
 	

65
	
SCHEDULE 8:    FORM OF POWER OF ATTORNEY	
 	

66
	
SCHEDULE 9:    FORM OF CONFIDENTIALITY UNDERTAKING	
 	

67
	
SCHEDULE 10:    APPLICABLE FACILITY FEE	
 	

69
	
SCHEDULE 11:    FORM OF GUARANTEE	
 	

70
	
SCHEDULE 12:    MATERIAL SUBSIDIARIES	
 	

73

75

QuickLinks

Exhibit 4.10

SECTION 1 INTERPRETATION

SECTION 2 THE FACILITY

SECTION 3 DRAWDOWN

SECTION 4 REPAYMENT, PREPAYMENT AND CANCELLATION

SECTION 5 COSTS OF DRAWING

SECTION 6 ADDITIONAL PAYMENT OBLIGATIONS

SECTION 7 REPRESENTATION, UNDERTAKINGS AND EVENTS OF DEFAULT

SECTION 8 CHANGE TO PARTIES

SECTION 9 THE FINANCING PARTIES

SECTION 10 ADMINISTRATION

SECTION 11 GOVERNING LAW AND ENFORCEMENT

SCHEDULE 1: THE ORIGINAL LENDERS

SCHEDULE 2: CONDITIONS PRECEDENT

SCHEDULE 3: REQUESTS

SCHEDULE 4: MANDATORY COST FORMULA

SCHEDULE 5: FORM OF TRANSFER CERTIFICATE

THE SCHEDULE

SCHEDULE 6: FORM OF COMPLIANCE CERTIFICATE

SCHEDULE 7: EXISTING SECURITY

SCHEDULE 8: FORM OF POWER OF ATTORNEY

POWER OF ATTORNEY

SCHEDULE 9: FORM OF CONFIDENTIALITY UNDERTAKING

SCHEDULE 10: APPLICABLE FACILITY FEE

SCHEDULE 11: FORM OF GUARANTEE

SCHEDULE 12: MATERIAL SUBSIDIARIES

TABLE OF CONTENTS

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