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  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

	(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 

2

 

(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. 

"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). 

3

 

"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. 

"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 

4

 

	(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). 

"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. 

5

 

"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). 

"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. 

6

 

"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. 

"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. 

7

 

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

"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. 

8

 

 
 

  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. 

9

 

 
 

  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)  

10

 

 
 

  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.  

	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. 

11

 

	(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

	(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. 

12

 

	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. 

13

 

 
 

  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.

	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. 

14

 

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.  

	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. 

15

 

 
 

  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.

	(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. 

16

 

	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.  

	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. 

17

 
	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.  

	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). 

18

 

	(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.

	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 

19

 

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. 

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. 

20

 

 
 

  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.  

	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. 

21

 
	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. 

	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. 

22

 

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. 

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). 

23

 

	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.  

	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. 

24

 
	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;

	(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 

25

 

 

	(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;

	(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 

26

 

	(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);

	(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; 

27

 

	(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;

	(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

	(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 

28

 

	(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. 

	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. 

29

 

	(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.

	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. 

30

 
	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.  

	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. 

31

 

 
 

  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. 

	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; 

32

 

	(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");

	(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. 

33

 

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. 

34

 

 
 

  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. 

35

 

	(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.

	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 

36

 

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.

	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). 

37

 

	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". 

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 

38

 

	(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.

	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. 

39

 

 
 

  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.

	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; 

40

 

	(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. 

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 

41

 

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

	(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. 

42

 

	(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.

	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. 

43

 

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.

	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)  

44

 

 
 

  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. 

45

 

 

			
	 
	 	 

	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:	 	 

46

 

			
	 
	 	 

	

  	
 	

 
	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:	 	 

47

 

 
 

  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	 

48

 

 
 

  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. 

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. 

49

 

	(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. 

50

 

 
 

  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

	 	 

51

 

 
 

  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.

	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. 

52

 

 
 

  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 [    ]. 

53

 
 
 

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:

54

 

 
 

  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. 

55

 
	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. 

56

 

 
 

  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

57

 

 
 

  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.

58

 

 
 

  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).

	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. 

59

 

	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] 

60

 

 
 

  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–". 

61

 

 
 

  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.  

	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. 

62

 
	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.  

	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. 

63

 

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:	
 	

  

64

 

 
 

  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 

65

 

 
 

  TABLE OF CONTENTS    
    

							
	 PREAMBLE	 	 	2	 
	
SECTION 1    INTERPRETATION	
 	
 	
2	
 
	

1.	
 	
Definitions and Interpretation	
 	
 	
2	
 
	
 SECTION 2    THE FACILITY	
 	
 	
9	
 
	

2.	
 	
The Facility	
 	
 	
9	
 
	
3.	
 	
Purpose	
 	
 	
9	
 
	
4.	
 	
Conditions of Drawdown	
 	
 	
9	
 
	
 SECTION 3    DRAWDOWN	
 	
 	
10	
 
	

5.	
 	
Drawdown	
 	
 	
10	
 
	
6.	
 	
Splitting of Loan	
 	
 	
10	
 
	
7.	
 	
(intentionally omitted)	
 	
 	
10	
 
	
 SECTION 4    REPAYMENT, PREPAYMENT AND CANCELLATION	
 	
 	
11	
 
	

8.	
 	
Repayment	
 	
 	
11	
 
	
9.	
 	
(intentionally omitted)	
 	
 	
11	
 
	
10.	
 	
Prepayment and cancellation	
 	
 	
11	
 
	
 SECTION 5    COSTS OF DRAWING	
 	
 	
14	
 
	

11.	
 	
Interest	
 	
 	
14	
 
	
12.	
 	
Interest period	
 	
 	
15	
 
	
13.	
 	
Break Costs	
 	
 	
15	
 
	
14.	
 	
Fees	
 	
 	
15	
 
	
 SECTION 6    ADDITIONAL PAYMENT OBLIGATIONS	
 	
 	
16	
 
	

15.	
 	
Tax gross up and indemnities	
 	
 	
16	
 
	
16.	
 	
Increased costs	
 	
 	
18	
 
	
17.	
 	
Other indemnities	
 	
 	
19	
 
	
18.	
 	
Mitigation by the lender	
 	
 	
19	
 
	
19.	
 	
Costs and expenses	
 	
 	
20	
 
	
 SECTION 7    REPRESENTATION, UNDERTAKINGS AND EVENTS OF DEFAULT	
 	
 	
21	
 
	

20.	
 	
Representations	
 	
 	
21	
 
	
21.	
 	
Positive undertakings	
 	
 	
22	
 
	
22.	
 	
Negative undertakings	
 	
 	
25	
 
	
23.	
 	
Financial covenants	
 	
 	
27	
 
	
24.	
 	
Events of Default	
 	
 	
29	
 

66

 

							
	 SECTION 8    CHANGE TO PARTIES	 	 	32	 
	

25.	
 	
Change to the Lenders	
 	
 	
32	
 
	
26.	
 	
Changes to the Obligors	
 	
 	
34	
 
	
 SECTION 9    THE FINANCING PARTIES	
 	
 	
35	
 
	

27.	
 	
Role of the Agent and the Mandated Lead Arranger	
 	
 	
35	
 
	
28.	
 	
(intentionally omitted)	
 	
 	
38	
 
	
29.	
 	
Conduct of business by the Financing Parties	
 	
 	
38	
 
	
30.	
 	
Sharing among the Lenders	
 	
 	
38	
 
	
 SECTION 10    ADMINISTRATION	
 	
 	
40	
 
	

31.	
 	
Payment mechanics	
 	
 	
40	
 
	
32.	
 	
Set-off	
 	
 	
41	
 
	
33.	
 	
Notice	
 	
 	
41	
 
	
34.	
 	
Calculation and Certificates	
 	
 	
43	
 
	
35.	
 	
Partial invalidity	
 	
 	
43	
 
	
36.	
 	
Remedies and waivers	
 	
 	
44	
 
	
37.	
 	
Amendments and waivers	
 	
 	
44	
 
	
38.	
 	
Counterparts	
 	
 	
44	
 
	
39.	
 	
(intentionally omitted)	
 	
 	
44	
 
	
 SECTION 11    GOVERNING LAW AND ENFORCEMENT	
 	
 	
45	
 
	

40.	
 	
Governing law	
 	
 	
45	
 
	
41.	
 	
Enforcement	
 	
 	
45	
 
	
 SCHEDULE 1:    THE ORIGINAL LENDERS	
 	
 	
48	
 
	
 SCHEDULE 2:    CONDITIONS PRECEDENT	
 	
 	
49	
 
	
 SCHEDULE 3:    REQUESTS	
 	
 	
51	
 
	
 SCHEDULE 4:    MANDATORY COST FORMULA	
 	
 	
52	
 
	
 SCHEDULE 5:    FORM OF TRANSFER CERTIFICATE	
 	
 	
53	
 
	
 SCHEDULE 6:    FORM OF COMPLIANCE CERTIFICATE	
 	
 	
55	
 
	
 SCHEDULE 7:    EXISTING SECURITY	
 	
 	
57	
 
	
 SCHEDULE 8:    FORM OF POWER OF ATTORNEY	
 	
 	
58	
 
	
 SCHEDULE 9:    FORM OF CONFIDENTIALITY UNDERTAKING	
 	
 	
59	
 
	
 SCHEDULE 10:    APPLICABLE FACILITY FEE	
 	
 	
61	
 
	
 SCHEDULE 11:    FORM OF GUARANTEE	
 	
 	
62	
 
	
 SCHEDULE 12:    MATERIAL SUBSIDIARIES	
 	
 	
65	
 

67

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 CONTENTSEXHIBIT 4.15

 

 

DATED 29 SEPTEMBER, 2008

 

 

 

M-REAL
CORPORATION AND OTHERS

 

and

 

SAPPI LIMITED
AND OTHERS

 

 

 

 

MASTER BUSINESS
AND SHARE SALE AND PURCHASE AGREEMENT

 

relating to the
sale and purchase of the
  M-real Graphic Paper Business

 

 

 

Slaughter and May

One Bunhill Row

London EC1Y 8YY

(ACC/JRYC)

 

 

CA081780036

 

 

CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  1.

  	
  INTERPRETATION

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  SALE AND PURCHASE OF THE BUSINESS ASSETS

  	
  2

  
	
   

  	
   

  	
   

  
	
  3.

  	
  SALE AND PURCHASE OF THE SHARES AND RECEIVABLES

  	
  3

  
	
   

  	
   

  	
   

  
	
  4.

  	
  CONDITIONS

  	
  4

  
	
   

  	
   

  	
   

  
	
  5.

  	
  TERMINATION RIGHTS

  	
  6

  
	
   

  	
   

  	
   

  
	
  6.

  	
  CONDUCT OF BUSINESS BEFORE COMPLETION

  	
  7

  
	
   

  	
   

  	
   

  
	
  7.

  	
  CONSIDERATION

  	
  11

  
	
   

  	
   

  	
   

  
	
  8.

  	
  COMPLETION STATEMENTS AND ADJUSTMENTS

  	
  13

  
	
   

  	
   

  	
   

  
	
  9.

  	
  TRANSFER OF RISK

  	
  15

  
	
   

  	
   

  	
   

  
	
  10.

  	
  COMPLETION

  	
  15

  
	
   

  	
   

  	
   

  
	
  11.

  	
  VAT

  	
  16

  
	
   

  	
   

  	
   

  
	
  12.

  	
  ACTION AFTER COMPLETION

  	
  17

  
	
   

  	
   

  	
   

  
	
  13.

  	
  THIRD PARTY CONSENTS FOR THE SALE OF BUSINESS ASSETS

  	
  18

  
	
   

  	
   

  	
   

  
	
  14.

  	
  TRANSFER OF BUSINESS CONTRACTS AND LICENCES

  	
  18

  
	
   

  	
   

  	
   

  
	
  15.

  	
  ASSUMED LIABILITIES AND ASSURANCES

  	
  21

  
	
   

  	
   

  	
   

  
	
  16.

  	
  BUSINESS RECEIVABLES

  	
  22

  
	
   

  	
   

  	
   

  
	
  17.

  	
  SELLERS’ WARRANTIES AND PURCHASERS’ REMEDIES

  	
  24

  
	
   

  	
   

  	
   

  
	
  18.

  	
  PURCHASERS’ WARRANTIES

  	
  26

  
	
   

  	
   

  	
   

  
	
  19.

  	
  SELLERS’ UNDERTAKINGS

  	
  27

  
	
   

  	
   

  	
   

  
	
  20.

  	
  PURCHASERS’ UNDERTAKINGS

  	
  30

  
	
   

  	
   

  	
   

  
	
  21.

  	
  RESTRICTIONS ON SELLERS’ BUSINESS ACTIVITIES

  	
  32

  
	
   

  	
   

  	
   

  
	
  22.

  	
  NON-SOLICITATION

  	
  33

  

 

 

	
  23.

  	
  EMPLOYEES

  	
  34

  
	
   

  	
   

  	
   

  
	
  24.

  	
  FURTHER UNDERTAKINGS

  	
  36

  
	
   

  	
   

  	
   

  
	
  25.

  	
  SELLERS’ MARKS

  	
  37

  
	
   

  	
   

  	
   

  
	
  26.

  	
  INTELLECTUAL PROPERTY

  	
  37

  
	
   

  	
   

  	
   

  
	
  27.

  	
  INSURANCE

  	
  39

  
	
   

  	
   

  	
   

  
	
  28.

  	
  BOOKS AND RECORDS

  	
  39

  
	
   

  	
   

  	
   

  
	
  29.

  	
  SET-OFF

  	
  40

  
	
   

  	
   

  	
   

  
	
  30.

  	
  EFFECT OF COMPLETION

  	
  40

  
	
   

  	
   

  	
   

  
	
  31.

  	
  REMEDIES AND WAIVERS

  	
  40

  
	
   

  	
   

  	
   

  
	
  32.

  	
  ASSIGNMENT

  	
  40

  
	
   

  	
   

  	
   

  
	
  33.

  	
  FURTHER ASSURANCE

  	
  40

  
	
   

  	
   

  	
   

  
	
  34.

  	
  ENTIRE AGREEMENT

  	
  41

  
	
   

  	
   

  	
   

  
	
  35.

  	
  RIGHTS OF THIRD PARTIES

  	
  41

  
	
   

  	
   

  	
   

  
	
  36.

  	
  NOTICES

  	
  41

  
	
   

  	
   

  	
   

  
	
  37.

  	
  ANNOUNCEMENTS

  	
  43

  
	
   

  	
   

  	
   

  
	
  38.

  	
  CONFIDENTIALITY

  	
  43

  
	
   

  	
   

  	
   

  
	
  39.

  	
  COSTS AND EXPENSES

  	
  44

  
	
   

  	
   

  	
   

  
	
  40.

  	
  INDUCEMENT FEE

  	
  45

  
	
   

  	
   

  	
   

  
	
  41.

  	
  COUNTERPARTS

  	
  45

  
	
   

  	
   

  	
   

  
	
  42.

  	
  INVALIDITY

  	
  45

  
	
   

  	
   

  	
   

  
	
  43.

  	
  HUSUM PM8 COATER CALL OPTION

  	
  45

  
	
   

  	
   

  	
   

  
	
  44.

  	
  SOUTH AFRICA OPTION

  	
  46

  
	
   

  	
   

  	
   

  
	
  45.

  	
  KANGAS PROPERTY OPTION

  	
  47

  
	
   

  	
   

  	
   

  
	
  46.

  	
  GUARANTEE

  	
  49

  
	
   

  	
   

  	
   

  
	
  47.

  	
  INDEMNITIES ON AN AFTER TAX-BASIS

  	
  51

  

 

 

	
  48.

  	
  LANGUAGE

  	
  51

  
	
   

  	
   

  	
   

  
	
  49.

  	
  GOVERNING LAW

  	
  51

  
	
   

  	
   

  	
   

  
	
  50.

  	
  JURISDICTION

  	
  52

  
	
   

  	
   

  	
   

  
	
  51.

  	
  AGENTS FOR SERVICE

  	
  52

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1 (INTERPRETATION)

  	
  54

  
	
   

  	
   

  
	
  SCHEDULE 2 (CONDITIONS TO COMPLETION)

  	
  76

  
	
   

  	
   

  
	
  SCHEDULE 3 (COMPLETION ARRANGEMENTS)

  	
  78

  
	
   

  	
   

  
	
  SCHEDULE 4 (THE WARRANTIES)

  	
  85

  
	
   

  	
   

  
	
  SCHEDULE 5 (LIMITATIONS ON LIABILITY)

  	
  101

  
	
   

  	
   

  
	
  SCHEDULE 6 (COMPLETION STATEMENTS)

  	
  107

  
	
   

  	
   

  
	
  SCHEDULE 7 (THE GROUP)

  	
  120

  
	
   

  	
   

  
	
  SCHEDULE 8 (SHARES)

  	
  124

  
	
   

  	
   

  
	
  SCHEDULE 9 (THE PROPERTIES)

  	
  125

  
	
   

  	
   

  
	
  SCHEDULE 10 (MILL BUSINESS FIXED ASSET REGISTER))

  	
  143

  
	
   

  	
   

  
	
  SCHEDULE 11 (INTELLECTUAL PROPERTY)

  	
  144

  
	
   

  	
   

  
	
  SCHEDULE 12 (EMPLOYEES)

  	
  161

  
	
   

  	
   

  
	
  SCHEDULE 13 (RELEVANT SELLERS AND RELEVANT PURCHASERS)

  	
  162

  
	
   

  	
   

  
	
  SCHEDULE 14 (TAX INDEMNITY)

  	
  164

  
	
   

  	
   

  
	
  SCHEDULE 15 (ENVIRONMENTAL INDEMNITY))

  	
  179

  
	
   

  	
   

  
	
  SCHEDULE 16 (ANTI DILUTION PROVISIONS)

  	
  186

  

 

Attachments

 

	
  Attachment 1

  	
  Accounts

  	
   

  

 

 

	
  Attachment 2

  	
  Accounting Principles and Policies of M-real

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 3

  	
  Carve-Out Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 4

  	
  Press Announcement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 5

  	
  Format of Completion Statements

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 6

  	
  Data Room List

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 7

  	
  Disclosure Letter

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 8

  	
  Business Employees at the close of business on 26 September, 2008

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 9

  	
  Business Intellectual Property Assignments

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 10

  	
  INTENTIONALLY LEFT BLANK

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 11

  	
  Transitional Services Term Sheet

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 12

  	
  Lock-Up Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 13

  	
  Long-term Wood Supply Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 14

  	
  Long-term Pulp Supply Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 15

  	
  Husum Mill PM8 Exclusive Marketing Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 16

  	
  Äänekoski PM2 Exclusive Marketing Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 17

  	
  Long-term Energy Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 18

  	
  Business Properties Transfer Deed

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 19

  	
  Kangas PM2 Property lease

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 20

  	
  Kangas Asset Transfer Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 21

  	
  Kirkniemi Asset Transfer Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 22

  	
  German Share Transfer Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 23

  	
  Hallein Coater Asset Sale and Transfer Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 24

  	
  Vendor Loans

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 25

  	
  M-real Vendor Loan Note

  	
   

  

 

 

	
  Attachment 26

  	
  Commercial Arrangements Term Sheet

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 27

  	
  Diverse Energy Issues Term Sheet

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 28

  	
  Thosca-Holz Option Letter

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 29

  	
  Standby Underwriting Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 30

  	
  Allocation of Obligations Table

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 31

  	
  Mill Business Fixed Asset Register

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 32

  	
  Mill Business Vehicles

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 33

  	
  CHP Outstanding Lease Payments Schedule

  	
   

  

 

 

THIS MASTER BUSINESS AND SHARE
SALE AND PURCHASE AGREEMENT

is made this 29th DAY OF SEPTEMBER, 2008

 

BETWEEN:

 

1.                                   M-REAL CORPORATION,
a company incorporated in Finland whose registered office is at Revontulentie
6, 02100 Espoo, Finland (P.O. Box 20, FIN-02020 Metsä, Finland) (registered in Finland with No. 0635366-7)
(“M-real”);

 

AND

 

2.                                  EACH OF THE SHARE SELLERS AND
BUSINESS SELLERS
whose names are set out in Schedule 13 (together with M-real, the “Relevant Sellers” or “Sellers”);

 

AND

 

3.                                   SAPPI LIMITED,
a company incorporated in the Republic of South Africa whose registered office
is at Sappi House, 48 Ameshoff Street, Braamfontein, Johannesburg, South Africa
(“Sappi” or “the Purchaser”);

 

AND

 

4.                                   EACH OF THE SHARE PURCHASERS AND BUSINESS PURCHASERS whose names are set out in Schedule
13 (together with Sappi, the “Relevant Purchasers”
or “Purchasers”).

 

WHEREAS:

 

(A)                            The
Relevant Sellers (each
as to the Shares or any of the Business Assets, as the case may be, set out
against its name in Schedule 13) have
agreed to sell the Graphic Paper Business and to assume the obligations imposed
on the Relevant Sellers under this Agreement.

 

(B)                            The
Relevant Purchasers (each
as to the Shares or any of the Business Assets, as the case may be, set out
against its name in Schedule 13) have
agreed to purchase the Graphic Paper Business and to assume the obligations
imposed on the Relevant Purchasers under this Agreement.

 

(C)                            Certain
Relevant Sellers and certain Relevant Purchasers have agreed to enter into
certain of the Transaction Documents as set out in the Attachments to this
Agreement.

 

(D)                            M-real
and Sappi have a definitive plan to sell the Coaters.

 

WHEREBY IT IS
AGREED as follows:-

 

1.                                  INTERPRETATION

 

(A)                            Certain words
and expressions used in this Agreement are defined in Schedule 1.

 

(B)                            The Schedules
and Attachments form part of this Agreement and shall have the same force and
effect as if set out in the body of this Agreement and any reference to this
Agreement shall include the Schedules and Attachments.

 

1

 

2.                                  SALE AND PURCHASE OF BUSINESS ASSETS

 

2.1                           On the terms
of, and subject to the conditions, set out in this Agreement, the Relevant
Sellers shall sell and the Relevant Purchasers shall purchase the Business
comprising the assets listed below as a going concern as at, and with effect
from, the Completion Date:

 

(i)                                  the
Business Goodwill;

 

(ii)                               the
Business Plant and Machinery;

 

(iii)                            the
Business Stocks;

 

(iv)                             the
Business Receivables;

 

(v)                                the
benefit (subject to the burden) of the Business Contracts;

 

(vi)                             subject
to clause 2.5, the Business Intellectual Property;

 

(vii)                          the
Business Properties;

 

(viii)                      without
prejudice to clause 28 , the Business Information and Books and Records;

 

(ix)                           the
benefit (so far as the same can lawfully be assigned or transferred to the
Relevant Purchasers) of the Claims (less any costs incurred by the Relevant
Seller in effecting such assignment or transfer (including, without limitation,
any increases in premiums or the loss of any benefit in relation to any
insurance arrangement of any member of the Sellers’ Group)); and

 

(x)                              any
monetary amounts received by the Relevant Sellers (so far as the same can
lawfully be assigned or transferred to the Relevant Purchasers) of any claim
under an insurance policy (less any costs incurred by the Relevant Seller in
effecting such assignment or transfer (including, without limitation, any
increases in premiums or the loss of any benefit in relation to any insurance
arrangement of any member of the Sellers’ Group))  to the extent such claim relates to any
Business Asset or Assumed Liability, but not to the extent that any such claim
relates to any Losses which have been made good prior to Completion or are
recoverable under an indemnity by the Relevant Sellers to the Relevant
Purchasers under this Agreement,

 

(together the “Business Assets”), but excluding
the following assets (the “Excluded Assets”):

 

(a)                               the Kangas PM2;

 

(b)                               any element of the Business Assets set
out in this clause 2.1 (i), (iii), (iv), (v), (vi),
(viii), (ix) and (x) in each case that relates
to the Relevant Sellers’ business and operation in South Africa;

 

(c)                               cash in hand or cash at the bank used
in the Business, including all cash pooling arrangements as shown in the cash
book of M-real or any other member of the Sellers’ Group, prepared in
accordance with normal cut-off procedures as at the close of business on the
Completion Date;

 

2

 

(d)                               amounts recoverable in respect of
Taxation (including, for the avoidance of doubt, all sums due or recoverable
(whether by way of credit, deduction, refund or otherwise) as relate to Finnish
VAT in connection with the supply of goods and services or the purchase of raw
materials and other goods and services of the Mill Business) attributable to
periods of time ending on or before Completion, or in respect of any acts, events or
transactions occurring on or before Completion;

 

(e)                               the benefit of any insurance policy of
the Seller or any other member of the Sellers’ Group relating to any member of
the Group, the Business or any of the Business Assets or Business Employees;

 

(f)                                   the Sellers’ Marks; and

 

(g)                               without prejudice to the Thosca Holz
Option Letter, any shares owned by any member of the Sellers’ Group.

 

2.2                           As at, and with effect from, the
Completion Date, the Relevant Purchasers will assume the Assumed Liabilities.

 

2.3                           M-real has the right to transfer, or
the right to procure that the Relevant Sellers transfer the legal and
beneficial title to the Business Assets and, except as provided for in Schedule
9, sell or procure the sale of the Business Assets free from Encumbrances
(excluding the Business Intellectual Property which M-real sells or procures
the sale of free from all options, charges and liens) and all other rights
exercisable by or claims of third parties.

 

2.4                           Notwithstanding
any other provisions of this Agreement, each member of the Sellers’ Group shall
retain its rights, title and interest in and to, and no member of the Purchaser’s
Group shall pursuant to this Agreement obtain any rights, title or interest in
or to, the Excluded Assets.

 

2.5                           Clause 2.1 shall operate as an assignment of such
of the Business Intellectual Property as is not the subject of a registration
or an application for registration (including, for the avoidance of doubt, the
unregistered marks “MEGA”, “EUROBULK”, “GALERIE BRITE”,
“GALERIE LITE”, “ALLEGRO”
and “FURIOSO”) with effect from
Completion.  All Business Intellectual Property
which is registered or which is the subject of an application for registration
shall be assigned to the Relevant Purchasers pursuant to the Business
Intellectual Property Assignments.

 

2.6                           The Law of Property (Miscellaneous
Provisions) Act 1994 shall not apply for the purposes of clause 2.1.

 

3.                                  SALE AND PURCHASE OF THE SHARES AND
RECEIVABLES

 

3.1                           On the terms
of, and subject to the conditions set out in, this Agreement (including, for
the avoidance of doubt, clause 4.6), Deutsche Holding shall sell or
procure the sale and the Relevant Purchaser shall purchase or procure the
purchase of, the legal and beneficial interest in the German Shares as at and
with effect from Completion, together with all rights attached or accruing to
them at Completion.

 

3.2                           On the terms
of, and subject to the conditions set out in, this Agreement, NL Holding shall
sell or procure the sale and the Relevant Purchaser shall purchase or procure
the purchase of, the legal

 

3

 

and beneficial
interest in the Biberist Shares as at and with effect from Completion, together
with all rights attached or accruing to them at Completion.

 

3.3                           The Shares
shall be sold free from all Encumbrances and all other rights exercisable by or
claims of third parties.

 

3.4                           The Relevant Sellers shall procure that on or prior to Completion
any and all rights of pre-emption over the Shares are waived irrevocably by the
persons entitled thereto.

 

3.5                             Against payment of an amount equal to
the Estimated Inter-Group Debt at the Completion Time, and subject to any
relevant adjustments in accordance with clause 8 only, each Relevant
Seller shall sell and assign, and M-real shall procure that any relevant member
of the Sellers’ Group who is not a Relevant Seller shall sell and assign, the legal and
beneficial interest in
the receivables which comprise Inter-Group Debt to the Relevant Purchasers who
shall purchase or procure the purchase of such receivables.

 

3.6                             The Law of Property (Miscellaneous
Provisions) Act 1994 shall not apply for the purposes of this clause 3.

 

4.                                    CONDITIONS

 

4.1                             The obligations
of each party under this Agreement (other than those contained in this clause
4, clause 6, clauses 20.7 to 20.8, clauses 34
to 42 and clauses  46 to 51 which are unconditional)
are conditional in all respects upon the conditions set out in Schedule 2  being satisfied or waived in accordance
with this Agreement.

 

4.2                             Without
prejudice to the generality of clause 4.3, Sappi undertakes and agrees
with the Relevant Sellers that:

 

(i)                                   it will post a circular to the
shareholders of Sappi (the “Sappi Circular”)
as soon as reasonably practicable and in any event within 14 days of the date
of this Agreement; and

 

(ii)                                the Sappi Circular will contain:

 

(a)                              a notice duly convening a general
meeting of Sappi referred to in paragraph 1 of Schedule 2, such
notice to include the resolution(s) substantially in the form referred to
in paragraph 1 of Schedule 2;

 

(b)                              (subject
to the fiduciary duties of the directors of Sappi) a recommendation from the
directors of Sappi to its members to vote in favour the resolution(s) substantially in the form referred
to in paragraph 1 of Schedule 2; and

 

(c)                              to
the extent it has obtained and can lawfully disclose the same, details of the
undertakings or other commitments of the major shareholders of Sappi who have
committed to subscribe for Sappi Shares in, or otherwise support, the Rights
Issue.

 

4

 

4.3                             Each of the
Relevant Sellers and the Relevant Purchasers will use all reasonable endeavours
to fulfil or procure the fulfilment of the conditions set out in Schedule 2  as soon as possible and in any event by
the Termination Date. M-real (acting on behalf of the Sellers) and Sappi
(acting on behalf of the Purchasers) shall, on becoming aware, immediately give
written notice to the other of:

 

(i)                                   the
fulfilment of each and any of the conditions set out in Schedule 2 of
this Agreement; and

 

(ii)                                any
circumstances which could reasonably be expected to prevent any of the
conditions set out in Schedule 2 from being satisfied or which could
reasonably be expected to delay the fulfilment of such conditions.

 

4.4                             For the purpose of satisfying the
conditions set out in paragraphs 2 and 3 of Schedule 2,
the reasonable endeavours referred to in clause 4.3  shall include the making of the
requisite filings as soon as is practicable to the European Commission and
Relevant Competition Authorities in the United States and Turkey and in this
respect shall include the co-operation between M-real, on behalf of the Sellers’
Group, and Sappi, on behalf of the Purchaser’s Group, in any process involving
the European
Commission or any relevant Competition Authority in the United States or Turkey, such co-operation shall include,
without limitation (subject to appropriate protection in respect of
confidential information), the provision of information, the communication of
documents and the submission of arguments in good time.

 

4.5                             Without
prejudice to the generality of the foregoing each of M-real, on behalf of the Sellers’ Group, and
Sappi, on behalf of the Purchaser’s Group, shall in connection
with the preparation and submission of Submissions to the European Commission
or any relevant Competition Authority in the United States or Turkey:

 

(i)                                   consult with each other as to
the form and content of any Submissions;

 

(ii)                                procure that relevant drafts or
re-drafts of any Submissions are provided as soon as practicable and in sufficient
time to allow the other party and its advisers to review and provide comments
on such drafts and re-drafts;

 

(iii)                             take account of the reasonable
comments of the other party and its advisers on such drafts and re-drafts;

 

(iv)                              disclose promptly to the other
party copies of all correspondence from and details of any discussions with the
European Commission or any relevant Competition Authority which has been
provided to the Sellers’ Group or the Purchaser’s Group and/or their respective
advisers;

 

(v)                                 procure that the other party
and/or its advisers are given a reasonable opportunity to attend all meetings
or hearings and to participate in all significant discussions with the European
Commission or any relevant Competition Authority;

 

(vi)                              regularly review with each other
the progress of any notifications or filings; and

 

5

 

(vii)                           keep the other party informed
promptly of any developments which are material or potentially material to the obtaining of the approvals, referred to
in paragraphs 2 and 3 of Schedule 2,

 

PROVIDED
THAT where a Submission includes information which is reasonably considered by
a party to be competitively sensitive that party may at its option provide such
information only to the other party’s legal advisers on an external counsel
basis.

 

4.6                             After M-real has received notice of the
fulfilment or waiver of each of the conditions set out in Schedule 2,
M-real shall cause Deutsche Holding to take all reasonably necessary steps to
ensure that the fiscal year of Stockstadt GmbH is shortened, if the Completion
Date falls prior to or after 31 December, 2008, such that it ends on the
Completion Date. M-real shall further procure and take all necessary steps to
ensure that the existing Profit and Loss Pooling Agreement existing between
Deutsche Holding and Stockstadt GmbH is terminated with legal effect as of the
end of the Completion Date, provided, however, that (i) Deutsche Holding
shall be entitled to receive the profit, if any, under the Profit and Loss
Pooling Agreement for the period from 1 January, 2008 until the end of the
Completion Date and the respective liability, if any, of Stockstadt GmbH shall
be treated as a debt owed by it to Deutsche Holding (such debt being, for the
avoidance of doubt, within the definition of Inter-Group Debt) and (ii) Stockstadt
GmbH shall be entitled to any claim for compensation of loss, if any, under the
Profit and Loss Pooling Agreement for the period from 1 January, 2008 until the
end of the Completion Date and the respective claim, if any, of Stockstadt GmbH
shall be treated as a debt owed to it by Deutsche Holding (such debt being, for
the avoidance of doubt, within the definition of Inter-Group Receivables), it
being understood that the liability or claim of Stockstadt GmbH, as the case
may be, shall be determined in accordance with the Stockstadt Statutory
Accounts and included in the Completion Statements with such amount.

 

4.7                             The conditions set out in paragraph
1, 4, 5, 7 and 8 of Schedule 2 shall not
be capable of waiver by any party.

 

4.8                             The conditions set out in paragraph
6 of Schedule 2 shall be capable of waiver in whole or in part by
Sappi only.

 

5.                                    TERMINATION RIGHTS

 

5.1                             Sappi shall be entitled to terminate
this Agreement by written notice to M-real if there shall have occurred or be
reasonably likely to occur a “Significant Adverse Change”
in the period between the date of this Agreement and Completion which is not
capable of remedy pursuant to arrangements satisfactory to Sappi (acting reasonably)
EXCLUDING in any such case any change, event or circumstance resulting from:

 

(i)                                     changes
in international or national financial, monetary, economic, political or
financial markets conditions (including without limitation interest rates,
exchange rates or commodity prices) however arising;

 

(ii)                                  any
national emergency, act of terrorism, war, conflict, outbreak of hostilities or
riot or other civil disturbance;

 

(iii)                               changes
in conditions affecting the paper industry generally;

 

6

 

(iv)                                changes
in laws, regulations and accounting practices;

 

(v)                                   matters
fairly disclosed in the Disclosure Letter;

 

(vi)                                the
negotiation, execution, announcement or performance of this Agreement or any
other Transaction Document, or any arrangements contemplated by those
agreements (including, without limitation, any prospective or actual change of
control arising from the transaction documents); or

 

(vii)                             actions
contemplated or required to be taken or omitted to be taken pursuant to this
Agreement or any other Transaction Document or with Sappi’s consent.

 

5.2                             If the
conditions set out in paragraph 2 of Schedule 2 are not fulfilled
or waived on or before 11 January, 2009,
M-real and Sappi will enter into a good faith negotiation for a period ending
on 31 January, 2009 regarding the fulfilment of the conditions in paragraph
2 of Schedule 2. If, by the end of the above mentioned negotiation
period, M-real and Sappi do not reach a mutually acceptable agreement, either
party shall be entitled, at its sole and absolute discretion, to terminate this
Agreement forthwith, at any time, by written notice to the other parties. Any
such termination shall not affect M-real’s rights under clause 40.

 

5.3                             If any fact which will prevent the conditions
set out in paragraphs 2, and 3 of Schedule 2 from being
satisfied on or before the Termination Date comes to the knowledge of a party,
then the relevant party shall inform the other parties and thereafter each
party shall be entitled to terminate this Agreement by written notice to the
other parties.

 

5.4                             Without
prejudice to clause 5.2, if the conditions set out in Schedule 2
are not fulfilled or waived on or before the Termination Date, this Agreement
shall automatically terminate.

 

5.5                             If the Agreement is terminated or
terminates in accordance with this clause 5 the obligations of each
party under this Agreement shall automatically terminate PROVIDED THAT the
rights and liabilities of the parties which have accrued prior to termination
shall subsist.

 

6.                                    CONDUCT OF BUSINESS BEFORE COMPLETION

 

6.1                             Subject to clause
6.2, the Relevant Sellers shall procure that the Graphic Paper Business
will be carried on in the ordinary and usual course and that no member of the
Sellers’ Group shall, between the date of this Agreement and Completion,
undertake any act or course of conduct which is outside the ordinary course of
the Graphic Paper Business. The Relevant Sellers shall procure that no member
of the Sellers’ Group shall undertake any of the acts or matters specified in clause
6.3 without the prior written consent of the Relevant Purchasers, (such
consent not to be unreasonably withheld or delayed).

 

6.2                             Clause 6.1 shall not
operate so as to restrict or prevent, in each case in relation to the Graphic
Paper Business:

 

(i)                                   the disposal of all or of any part of
the Kangas PM2;

 

(ii)                                the undertaking in good faith of any
matter reasonably necessary in an emergency or disaster situation with the
intention of minimising any adverse effect on the Graphic Paper Business
thereof (and of which the Relevant Purchasers will be promptly notified);

 

7

 

(iii)                             the completion or performance of any
obligations undertaken pursuant to any contract or arrangement entered into by
any member of the Sellers’ Group prior to the date of this Agreement or after
the date of this Agreement but in accordance with the provisions of clause
6.1;

 

(iv)                              any matter undertaken at the written
request of the Relevant Purchasers, provided that the Relevant Purchasers shall
only be entitled to give instructions where following such instructions would
be lawful (in particular under competition law aspects);

 

(v)                                 any matter reasonably required to be
undertaken in connection with the completion of the Pre-sale Reorganisation;

 

(vi)                              any
Sellers’ Group cash pooling arrangements or hedging (in relation to energy
agreements);

 

(vii)                           any matter contemplated by this
Agreement or any action taken by the Relevant Sellers or any member of the
Sellers’ Group pursuant to this Agreement;

 

(viii)                        any action or omission which the
Relevant Sellers or any member of the Sellers’ Group is required to take or
omit to take by any applicable law or regulation, Tax Authority or other
authority;

 

(ix)                            the
management of the working capital of the Graphic Paper Business with a view to
achieving the Target Net Working Capital amount and then maintaining it at or
around that amount;

 

(x)                               any
disposal of stocks, obsolete assets or redundant assets, or any payment of cash
in each case consistent with ordinary course business practice in the running
of the Graphic Paper Business;

 

(xi)                            the
release or discharge of any charge or Encumbrance over any of the Business
Properties; and

 

(xii)                         entering
into arrangements for the purposes of settling or agreeing merchant rebates
providing that the Relevant Sellers shall consult with the Relevant Purchasers
in settling or agreeing the same if they may lawfully do so.

 

6.3                             The acts and
matters referred to in clause 6.1 as outside the ordinary course are the
following and in each case in relation to the Graphic Paper Business:

 

(i)                                   any disposal (not being a disposal in
the ordinary course of business) of any interest in any part of the Graphic
Paper Business;

 

(ii)                                the
acquisition or disposal of any interest in Immovable Property;

 

(iii)                             any
offer by a member of the Sellers’ Group to engage any new Senior Employee at
any annual salary or fee per employee (on the basis of full time employment) in
excess of €150,000
per annum, provided such a
total shall not exceed €600,000 in aggregate, in each case exclusive of any
amount in respect of VAT;

 

8

 

(iv)                              save
than in emergency, enter into any agreement or incur any commitment involving
any capital expenditure in excess of €1,000,000 per item and €10,000,000 in
aggregate, in each case exclusive of any amount in respect of VAT;

 

(v)                                 any
dismissal of any Senior Employee, other than for cause or unless not to do so
would, in the reasonable opinion of M-real, materially damage the Graphic Paper
Business;

 

(vi)                              acquire
or agree to acquire any material share, shares or other interest in any
company, partnership or other venture;

 

(vii)                           incur
any additional external borrowings or incur any other external indebtedness;

 

(viii)                        any
material amendment to the terms and conditions of employment (including,
without limitation, remuneration, pension entitlements and other benefits) of
any Senior Employee;

 

(ix)                            other
than the payment of any bonuses in connection with the transaction contemplated
by this Agreement, provide or agree to provide any gratuitous payment or
benefit to any Employee or any of his dependants;

 

(x)                               discontinue or amend any employee benefit scheme or
arrangement to any material extent or commence to wind them up or terminate
them or cause them to cease to admit new members;

 

(xi)                            communicate to any Employee any material plan,
proposal or intention to discontinue, amend, wind up, terminate or exercise any
discretion in relation to any employee benefit scheme or arrangement;

 

(xii)                         pay any benefits under any employee benefit scheme
or arrangements otherwise than in accordance with the terms of the documents
governing such scheme or arrangements (and not under any discretionary power
otherwise than in the ordinary course);

 

(xiii)                      save
than in the ordinary course and in respect of the transactions contemplated by
this Agreement (including in respect of agreements or commitments in respect of
the Coaters), the entry into any agreement or commitment (whether formal or
informal) with any employee representative body (howsoever described, and
whether legally binding or otherwise);

 

(xiv)                       save
for the Mill Business Efficiency Programme, any increase or decrease (other
than as a result of natural attrition or pursuant to a programme disclosed to
Sappi) in the total number of Employees at each location of the Graphic Paper
Business outside a margin of +/-2% of the total number of Employees at each
such location;

 

(xv)                          any
material changes to pension arrangements for which the Graphic Paper Business
is liable or termination of funds or announcements to staff of the same;

 

(xvi)                       any
amendment, including any increase in emoluments (including, without limitation,
pension contributions, bonuses, commissions, holiday pay and benefits in kind),
to the terms of employment of any category of Employees which would result in
an increase in cost after the date of this Agreement of the Graphic Paper
Business in excess of 

 

9

 

€500,000
(exclusive of any
amount in respect of VAT) save for
increases in emoluments made in accordance with the normal practice of the
Sellers’ Group or in accordance with standard industry increases or collective
bargaining agreements;

 

(xvii)                    any
grant of any guarantee or indemnity for the obligations of any person in
relation to the Graphic Paper Business;

 

(xviii)                 any
creation, allotment or issue or any grant of any option over or other right to
subscribe or purchase, or any redemption or purchase of, any share or loan
capital or securities of any member of the Group or securities convertible into
any of the foregoing and any debt for equity swaps in relation to the Graphic
Paper Business to ensure no negative consideration is paid under this
Agreement;

 

(xix)                     the
entering into of any transaction by any member of the Group with any member of
the Sellers’ Group other than on terms that are currently in force or on arm’s
length terms and in the ordinary course of business;

 

(xx)                        the creation or grant of any option,
right to acquire, mortgage, charge, pledge, lien (other than a lien arising by
operation of law or in the ordinary course of business), guarantee, indemnity
or other form of security or Encumbrance or equity on, over or affecting any of
the Business Assets or the whole or any part of the undertaking or assets of
any member of the Group other than rights arising under retention of title
clauses (or equivalent provisions the effect of which is that property does not
pass until payment is made);

 

(xxi)                     the
making of any loan or lease to any person (other than to any other member of
the Group or to any member of the Sellers’ Group, including the participation
or contribution to any cash-pooling arrangements of the Sellers’ Group);

 

(xxii)                  the
repaying, redemption or repurchasing of any of the share capital of any Group
Company;

 

(xxiii)               the
entering into, or exercising of an option in relation to, or amendment of any
agreement or incurring any commitment which is not capable of being terminated
without compensation at any time within twelve months’ notice or less or which
is not in the ordinary and usual course of business or which involved or may
involve total annual expenditure in excess of €500,000, exclusive of any amount
in respect of VAT;

 

(xxiv)                save
for any payments or distributions due pursuant to the Profit and Loss Pooling
Agreement between Deutsche Holding and Stockstadt GmbH and, if the applicable
withholding tax exemption has been obtained, the distribution of retained
earnings by Biberist, the declaration, or payment of any dividend or other
distribution to shareholders;

 

(xxv)                   the
amendment of, to any material extent, any of the terms on which goods,
facilities or services are supplied, such supplies being material in the
context of the Graphic Paper Business;

 

(xxvi)                in
respect of an event arising after the date of this Agreement, the settlement of
any insurance claim by the Relevant Seller or any member of the Relevant Seller’s
Group in excess of €2,000,000
materially below the amount claimed;

 

10

 

(xxvii)             the
making of any change to its accounting practices or policies or amending its
constitutional documents;

 

(xxviii)          in
relation to any Properties:

 

(a)                                the carrying out of any material
structural alteration or addition to, or materially effecting any change of use
of, such Properties;

 

(b)                                the termination or service of any
notice to terminate, surrender or accept any surrender of or waive the terms of
any lease, tenancy or licence which is material in the context of the Graphic
Paper Business taken as a whole;

 

(c)                                the agreement of any new rent or fee
payable under any lease, tenancy or licence which is material in the context of
the Graphic Paper Business taken as a whole;

 

(d)                                the entering into or variation of any
agreement, lease, tenancy, licence or other commitment which is material in the
context of the Graphic Paper Business taken as a whole;

 

(e)                                the selling, conveyance, transfer,
assignment or charging of any of the Properties or granting of any rights or
easements over any of the Properties or the entering into of any covenants or
other Encumbrances affecting any of the Properties or agreement to do any of
the foregoing; and

 

(xxix)              the
entering into of any agreement (conditional or otherwise) to do any of the
foregoing.

 

6.4                             If the Completion Date is likely to
fall after 31 December, 2008, M-real and Sappi agree that they shall enter into
a good faith negotiation from 15 December, 2008 to agree any amendments to this
clause 6 to reflect likely changes to the Graphic Paper Business from 1
January, 2009.

 

7.                                    CONSIDERATION

 

7.1                             The Initial
Consideration for the sale of the Business Assets and the Shares is based on
the Enterprise Value less the Estimated Net Debt and shall be paid by the
Relevant Purchasers to the Relevant Sellers at Completion.

 

7.2                             The Initial
Consideration shall be made up of the Consideration Shares which shall (for the
purpose of this clause 7 and the preparation of the Completion
Statements and the adjustments in clause 8) have a value of €50,000,000,
the Proceeds of the Rights Issue and the balance by the M-Real Vendor Loan
Note.

 

7.3                             The
Consideration Shares shall be listed on the JSE and endorsed “non-resident” or
the equivalent in respect of dematerialised shares.

 

7.4                             No later than two Business Days prior
to the Completion Date, M-real shall notify the Purchaser in writing to whom
the Consideration Shares (and in which proportion) should be issued. The
Consideration Shares shall be allotted, issued and delivered to M-real (or its
nominee(s)) and the M-real Vendor Loan Note shall be issued and delivered to
M-real on the Completion Date as provided in paragraphs 1(B) (iv) and
(vi) of Schedule 3.

 

11

 

7.5                             On the Completion Date, the Relevant Purchasers
shall issue to M-real the Vendor Loans which M-real agrees to immediately
transfer and assign to Sappi on Completion.

 

7.6                             In addition to the Initial
Consideration, the Relevant Purchasers shall in consideration for the transfer
of the receivables comprising the Inter-Group Debt (as set out clause 3.5),
pay to the Sellers’ Group at Completion an amount equal to the Estimated
Inter-Group Debt.

 

7.7                             The Initial Consideration and the
Estimated Inter-Group Debt shall be paid to the Relevant Sellers in accordance
with paragraph 1(B)(ii) of Schedule 3.

 

7.8                             The Consideration shall be allocated in
accordance with Schedule 6.

 

7.9                             Reduction of Consideration:

 

(i)                                     If
any payment is made by any Relevant Seller to any Relevant Purchaser in respect
of any claim for any breach of this Agreement or pursuant to an indemnity under
this Agreement, the payment shall be made by way of adjustment of the
Consideration paid by the Relevant Purchaser for the particular category of
Business Asset, Shares or receivables (if any) to which the payment and/or
claim relates under this Agreement and the Consideration shall be (and shall be
treated as having been) reduced by the amount of such payment;

 

(ii)                                  If:

 

(a)                                the payment and/or claim relates to
more than one category of Business Asset, Shares or receivables, it shall be
allocated in a manner which reflects the impact of the matter to which the
payment and/or claim relates, failing which it shall be allocated rateably to
the relevant Business Assets, Shares or receivables by reference to the
proportions in which the Consideration is allocated in accordance with Schedule
6; or

 

(b)                                the payment and/or claim relates to no
particular category of Business Asset, 
Shares or receivables, it shall be allocated rateably to all Business
Assets, Shares and receivables by reference to the proportions in which the
Consideration is allocated in accordance with Schedule 6,

 

and in each case the Consideration
shall be (and shall be treated as having been) reduced by the amount of such
payment.

 

7.10                      The Relevant Sellers acknowledge and
agree that the Consideration Shares have not been and will not be registered
under the Securities Act and the Consideration Shares issued pursuant to this
Agreement are “restricted securities” within the meaning of Rule 144 under
the Securities Act.  The Consideration
Shares purchased by M-real pursuant to this Agreement are being acquired for
investment only and not with a view to any public distribution thereof.  M-real shall not offer to sell or otherwise
dispose of the Consideration so acquired by it in violation of any of the
registration requirements of the Securities Act.

 

7.11                       The Relevant
Purchasers acknowledge that the M-real Vendor Loan Note is freely transferable
and may be sold, encumbered or otherwise disposed of by M-real on and subject
to the terms and conditions set out in the M-real Vendor Loan Note.

 

12

 

8.            COMPLETION
STATEMENTS AND ADJUSTMENTS

 

8.1         Each of the Relevant Sellers and the
Relevant Purchasers shall comply with their respective obligations in Schedule
6 in relation to the Completion Statements.

 

8.2         If the value of the Adjustment Payment
is a negative amount, the absolute value of the Adjustment Payment together
with an amount equivalent to interest thereon at the Agreed Rate (accrued
daily) for the period from the Completion Date to the date of payment, shall be
paid in total in cash to the Relevant Purchasers by the Relevant Sellers within
seven Business Days of agreement or determination of the value of the
Adjustment Payment; or

 

8.3         If the value of the Adjustment Payment
is a positive amount, the value of the Adjustment Payment together with an
amount equivalent to interest thereon at the Agreed Rate (accrued daily) for
the period from the Completion Date to the date of payment, shall be paid in
total to the Relevant Sellers by the Relevant Purchasers within seven Business
Days of agreement or determination of the value of Adjustment Payment.

 

8.4         Any
Adjustment Payment pursuant to clause 8.3 shall not take into account
any Net Working Capital Adjustment if such adjustment is in excess of
€50,000,000. The first €30,000,000 of any Net Working Capital Adjustment due
from the Relevant Purchasers shall be paid by the Relevant Purchasers in cash
to the Relevant Sellers. If the Net Working Capital Adjustment is greater than
€30,000,000, the Relevant Purchasers shall, subject to clause 8.5 below
and up to a face value limit of €20,000,000 (the “Kirkniemi
Trade Receivables Cap”), be entitled to make up the balance by the
transfer to the Relevant Sellers of Kirkniemi Trade Receivables with a total
face value equal to the balancing amount but may elect to pay all or any of
such (or where there are insufficient Kirkniemi Trade Receivables shall pay)
additional €20,000,000 or lesser amount (as applicable) in cash. Subject to the
Completion Statements being in agreed form and to clauses 8.2 and 8.3,
the Relevant Purchasers agree that any required transfer of Kirkniemi Trade
Receivables will begin on the fifth Business Day following Completion.

 

8.5         If
the Completion Date falls after 31 December, 2008 the Kirkniemi Trade
Receivables Cap shall be adjusted by the percentage amount relative to the
percentage increase or decrease of the price of finished goods in respect of
the Graphic Paper Business at the date of this Agreement when compared with the
price of such goods on the Completion Date. Any dispute as to the amount of
this percentage shall be determined in accordance with the provisions of Part 3
of Schedule 6.

 

8.6         If
the value of the Inter-Group Debt Adjustment Payment is a negative amount, the
absolute value of the Inter-Group Debt Adjustment Payment together with an
amount equivalent to interest thereon at the Agreed Rate (accrued daily) for
the period from the Completion Date to the date of payment, shall be paid to
the respective Relevant Purchaser by the respective Relevant Seller, and by
M-real on behalf of the relevant member of the Sellers’ Group who is not a
Relevant Seller, within seven Business Days of agreement or determination of
the value of the Inter-Group Debt Adjustment Payment.

 

8.7         If
the value of the Inter-Group Debt Adjustment Payment is a positive amount, the
value of the Inter-Group Debt Adjustment Payment together with an amount
equivalent to interest thereon at the Agreed Rate (accrued daily) for the
period from the Completion Date to the date of payment, shall be paid to the
respective Relevant Seller, and to M-real on behalf of the relevant member of
the Sellers’ Group who is not a Relevant Seller, by respective Relevant
Purchaser within seven 

 

13

 

Business Days of agreement or determination
of the value of the Inter-Group Debt Adjustment Payment, in each case against
the assignment of the respective receivable of the amount corresponding to the
Inter-Group Debt Adjustment Payment.

 

8.8         If the value of Inter-Group Receivables Adjustment
Payment is a negative amount, the value of Inter-Group Receivables Adjustment
Payment together with
an amount equivalent to interest thereon at the Agreed Rate (accrued daily) for
the period from the Completion Date to the date of payment, shall be paid to
the respective Relevant Seller, or to M-real
on behalf of the relevant member of the Sellers’ Group who is not a Relevant
Seller, by the respective
Group Company
within seven Business Days of agreement or determination of the value of the
Inter-Group Receivables Adjustment Payment.

 

8.9         If the value of Inter-Group Receivables Adjustment Payment is a positive
amount, the value of Inter-Group Receivables Adjustment Payment together with an amount equivalent to
interest thereon at the Agreed Rate (accrued daily) for the period from the
Completion Date to the date of payment, shall be paid to the relevant Group Company by the Relevant Seller or by M-real, on behalf of the relevant
member of the Sellers’ Group who is not a Relevant Seller, within seven Business
Days of agreement or determination of the value of the Inter-Group Receivables
Adjustment Payment.

 

8.10       The
Relevant Sellers and the Relevant Purchasers agree that, upon all payments
pursuant to clauses 8.6, 8.7, 8.8 and 8.9 having
been made, all liabilities relating to payment of Inter-Group Debt shall be
finally and conclusively settled as between the relevant member of Sellers’
Group and the respective Relevant Purchaser and that all Inter-Group
Receivables shall be finally and conclusively settled. Subject to such
payments, M-real shall procure that no member of Sellers’ Group will raise any
claims relating to Inter-Group Debt against any Group Company, and the Relevant
Purchasers shall procure that no Group Company and no member of the Purchaser’s
Group will raise any claims relating to Inter-Group Receivables against any
member of the Sellers’ Group.

 

8.11       The
Relevant Purchasers agree that they will pay to the Relevant Sellers the
Merchant Rebate Adjustment where such amount is a positive value, and the
Relevant Sellers agree they will pay to the Relevant Purchasers the Merchant
Rebate Adjustment where such amount is a negative value (in which event the
payment will be the absolute amount of such negative value), within seven
Business Days of agreement or determination of the same. The Merchant Rebate
Adjustment is the difference between the value of the Merchant Rebates at 30
June, 2008 as determined for the purpose of calculating the Completion
Statements and the actual value of those Merchant Rebates at the Completion
Time (which shall be determined by calculating a pro rata adjustment of the
value of the Merchant Rebates to the Completion Time). Any dispute as to the
basis on which the Merchant Rebate Adjustment has been calculated shall be determined
in accordance with Part 3 of Schedule 6 and references in
that Schedule to “Completion Statements” shall be to the “Merchant Rebate
Adjustment” and to “Completion” to the date on which the final actual payment
of Merchant Rebates is made (which shall be within a reasonable period
following the Completion Date).

 

8.12       For
the avoidance of doubt:

 

(i)           without
prejudice to the Relevant Sellers’ obligations, if any, in clause 8.11,
the Relevant Purchasers shall be responsible for the payment of the Merchant
Rebates as from the 

 

14

 

Completion Time and shall indemnify the
Relevant Sellers for any failure to make such payments; and

 

(ii)          subject
to Relevant Sellers indemnifying the Relevant Purchasers for any reasonable
amount and to the extent agreed by the Relevant Purchasers in advance of any
such merchant rebate payment in respect of period up to the Completion Date,
the Relevant Purchasers shall be responsible for the payment of all merchant
rebates in respect of the Coaters and the Know-How Business.

 

8.13       The
Relevant Sellers shall be entitled to the Supplier Rebates and the Relevant
Purchasers undertake that they will immediately transfer any such rebates
received by a member of the Purchaser’s Group to the Relevant Sellers.

 

8.14       All payments referred to in this clause
8 shall constitute an adjustment to the Initial Consideration or the
Estimated Inter-Group Debt and (save as permitted by clause 8.4) shall
be made in immediately available funds in Euros in each case without any
set-off, restriction or condition and without any deduction or withholding
(save only as required by law) by telegraphic transfer to the account or
accounts of the Relevant Purchasers or (as the case may be) the Relevant Sellers.

 

9.            TRANSFER OF RISK

 

            The Relevant Sellers and Relevant
Purchasers agree that risk in respect of the Business Assets and the Group
shall pass to the Relevant Purchasers on Completion.

 

10.         COMPLETION

 

10.1       Subject
to clause 10.2 below, or as otherwise stated in this Agreement,
Completion of the sale and purchase of the Business Assets shall take place at
10.00 a.m. on the Completion Date at the offices of the Sellers’
Solicitors at One Bunhill Row, London EC1Y 8YY (or on such other date or at
such other time or place as M-real and Sappi may agree).

 

10.2       Completion
of the sale and purchase of the Business Properties will occur at the offices
of Roschier, at Keskuskatu 7A, FI-00100 Helsinki, Finland.

 

10.3       In
case the Completion Date does not fall on a Business Day, Completion shall take
place on the last Business Day before the Completion Date provided that in such
case effectiveness of Completion shall, unless agreed otherwise by the Relevant
Sellers and Relevant Purchasers, occur on the Completion Date.

 

10.4       Completion of the sale and purchase of
the German Shares shall take place on the Completion Date at the offices of the
relevant notary public in Germany in accordance with paragraph 4(A) of Schedule
3.

 

10.5       Completion of the sale and purchase of
the Biberist Shares shall take place on the Completion Date at the offices of
Bäer & Karrer AG at Brandschenkestrasse 90, CH-8027 Zurich,
Switzerland in accordance with paragraph 4(B) of Schedule 3.

 

10.6       At Completion, each of the Sellers and
the Relevant Purchasers shall do or procure the doing of those things
respectively listed in respect of them in Schedule 3.

 

15

 

10.7       The Sellers and the Purchasers shall
not be obliged to complete the sale and purchase of any of the Shares or the
Business Assets unless the sale and purchase of all of them shall have been
completed in accordance with Schedule 3.

 

10.8       The cash element of the Initial
Consideration and the Estimated Inter-Group Debt shall be payable by or on behalf
of the Relevant Purchasers in immediately available funds in Euros at
Completion as referred to in paragraph 1(B)(ii) of Schedule 3.

 

10.9       The Consideration Shares shall be
issued to M-real (or its nominee(s)) at Completion as referred to in paragraph
1(B) (iv) of Schedule 3.

 

10.10     The
M-real Vendor Loan Note shall be issued to M-real at Completion as referred to
in paragraph 1(B)(vi) of Schedule 3.

 

10.11     Receipt of funds, Consideration Shares
and the M-real Vendor Loan Note in accordance with clauses 10.8, 10.9
and 10.10 shall constitute a good discharge of the Relevant Purchasers
in respect of the payment of the Initial Consideration and Estimated
Inter-Group Debt but not, for the avoidance of doubt, in respect of the
Relevant Purchasers’ other obligations under clause 8.

 

11.          VAT

 

11.1       All
sums payable for the sale of the Business Assets shall be deemed to be
exclusive of any VAT which may be chargeable on the supply or supplies for
which such sums (or any part thereof) are the whole or part of the consideration
for VAT purposes; and accordingly if any VAT is chargeable in respect of the
sale of the Business Assets, the Relevant Purchasers shall pay to the Relevant
Sellers (in addition to and at the same time as paying the Initial
Consideration) an amount equal to such VAT, against delivery of an appropriate
VAT invoice.

 

11.2       Without
prejudice to the generality of clause 11.1 above:

 

(i)           M-real
and the Relevant Purchaser acknowledge that the sale of the Business Assets
which constitute the Mill Business (the “Mill
Business Assets”) is intended to be treated as a transfer of a
business for the purpose of Article 19(a) of the Finnish Act on Value
Added Tax (30 December 1993/1501, as amended) (the “Finnish VAT Act”) and the Relevant
Purchaser hereby confirms that it will, following Completion, use the Mill
Business Assets for VAT deductible purposes. Both M-real and the Relevant
Purchaser agree that this statement is considered to be the Relevant Purchaser’s
statement as referred to in Section 209(f) of the Finnish VAT Act;

 

(ii)          M-real
and the Relevant Purchaser acknowledge that no VAT will be chargeable in
respect of the sale and purchase of the Business Properties listed in Part A
of Schedule 9;

 

(iii)         the
right and obligation to carry out VAT adjustments based on the investments in
the Business Properties, subject to Article 120 of the Finnish VAT Act,
shall transfer to the Relevant Purchaser at Completion in accordance with
subsection 4 of Article 19(a) of the Finnish VAT Act. M-real
undertakes to provide the Relevant Purchaser, on Completion, with the account
(the “Account”) as referred to in Section 1
of Article 209(g) and a copy referred to in Section 3 of Article 209(g) of
the Finnish VAT Act, to the extent M-real has received such accounts from previous
holders of the Business Properties. M-real

 

16

 

represents
and warrants that no other accounts have been given by any previous holder of
the Business Properties as referred to in Section 3 of Article 209(g) of
the Finnish VAT Act.  M-real represents
and warrants that the Account includes all matters provided in Article 209(h) of
the Finnish VAT Act and is also in all respects free from defects;

 

(iv)         M-real
shall indemnify the Relevant Purchaser against all liabilities, damages and
costs that the Relevant Purchaser suffers as a result of any defect or
inadequacy in the Account, including any such defect or inadequacy arising
after the date of the establishment of the Account  in respect of which M-real would be required,
in accordance with Section 2 of Article 209(g) of the Finnish
VAT Act, to render a supplementary account, regardless of whether M-real has in
fact rendered such a supplementary account. M-real shall not be required to
indemnify the Relevant Purchaser in respect of any liabilities, damages or
costs arising (directly or indirectly) as a result of any matter taking place
after Completion, or as a result of any failure of the Relevant Purchaser to
use the Business Properties for VAT deductible purposes. The Relevant Purchaser
shall compensate M-real for any benefit the Relevant Purchaser obtains (in the
form of additional deductions or refund of VAT) as a result of any defect or
inadequacy in the Account, provided that a supplementary account is rendered by
M-real in accordance with section 2 of Article 209(g) of the VAT Act;

 

(v)          the
Relevant Purchaser hereby confirms in accordance with Section 209(i) of
the Finnish VAT Act that it shall use the Business Properties for business
activities following Completion and that it shall, by Completion, be entered in
the Finnish VAT register; and

 

(vi)         if,
notwithstanding the provisions of this clause 11.2, the relevant Tax
Authority shall determine that VAT is chargeable in respect of the supply of
all or any part of the Mill Business Assets under this Agreement, the Relevant
Seller shall notify the Relevant Purchaser of that determination within 7 days
of its being so advised that Tax Authority and the Relevant Purchaser shall pay
to the Relevant Seller by way of additional consideration in accordance with clause
11.1, a sum equal to the amount of VAT determined by the Tax Authority to
be so chargeable, together with any related interest or penalties imposed by
the Tax Authority (if any), within 30 days of the Relevant Seller notifying the
Relevant Purchaser of that determination (against delivery by the Relevant
Seller of an appropriate VAT invoice).

 

12.         ACTION AFTER COMPLETION

 

12.1       If
so requested by the Relevant Purchasers, the Relevant Sellers shall, for a
period of three months or for so long thereafter as the Relevant Purchasers may
reasonably request following Completion, join with the Relevant Purchasers in
sending out notices (such notices to be agreed between the Relevant Sellers and
the Relevant Purchasers prior to being sent out) to all third party suppliers
and third party customers in relation to the Business and other business
contacts relating to the Business informing them of the transfer of the
Business.

 

12.2       The
Relevant Sellers shall procure that originals of all notices, correspondence,
information, orders or enquiries relating solely to the Business and copies of
the relevant parts of all notices, correspondence, information, orders or
enquiries relating partly to the Business and partly to one or more of the
remaining businesses of the Sellers’ Group which are received by any member of
the Sellers’ Group on or after Completion shall be passed as soon as
practicable to the Relevant Purchaser.

 

17

 

12.3       The
Relevant Purchaser shall procure that originals of all notices, correspondence,
information, orders or enquiries relating solely to one or more of the
remaining businesses of the Sellers’ Group and copies of the relevant parts of
all notices, correspondence, information, orders or enquiries relating partly
to one or more of the remaining businesses of the Sellers’ Group and partly to
the Business which are received by the Purchaser’s Group on or after Completion
shall be passed as soon as practicable to the relevant member of the Sellers’
Group.

 

12.4       Without
limiting clause 14.4(i), all moneys or other items belonging to the
Relevant Purchaser or to any other member of the Purchaser’s Group which are
received by the Relevant Sellers or any other member of the Sellers’ Group on
or after Completion and were comprised within or were represented by the
Business or any of the Business Assets sold at Completion pursuant to this
Agreement shall be promptly paid over or delivered to the Relevant Purchasers
or the relevant member of the Purchaser’s Group and, pending such payment,
shall be held on trust (or procured to be held in trust) by the Relevant
Sellers or such other member of the Sellers’ Group for the Relevant Purchasers
or the relevant member of the Purchaser’s Group.

 

12.5       All
moneys or other items belonging to the Relevant Sellers or to any other member
of the Sellers’ Group which are received by the Relevant Purchasers or any
other member of the Purchaser’s Group on or after Completion and were excluded
from the Business or any of the Business Assets sold at Completion pursuant to
this Agreement shall be promptly paid over or delivered to the Relevant Sellers
or the relevant member of the Sellers’ Group and, pending such payment, shall
be held on trust (or procured to be held in trust) by the Relevant Purchasers
for the Relevant Sellers (or such other relevant member of the Sellers’ Group,
as the case may be).

 

13.         THIRD PARTY CONSENTS FOR THE SALE OF BUSINESS
ASSETS

 

13.1       Where
any consent or agreement of any third party (other than a relevant regulatory
or anti-trust authority) is required for the transfer of any of the Business
Assets (other than in relation to the transfer of any Business Contract or the
performance of any Business Contract by the Relevant Purchasers) and such
consent or agreement has not been obtained at or before Completion, (subject to
any transfer by operation of law) the sale of the relevant Business Asset shall
not take effect, notwithstanding Completion, until that consent or agreement
has been obtained and each of the Relevant Sellers (or the relevant member of
the Sellers’ Group) and the Relevant Purchasers shall (at the expense of the
Relevant Purchasers) use their respective reasonable endeavours after
Completion to obtain it as soon as possible.

 

13.2       After
Completion, and until such time as any consent or agreement referred to in clause 13.1
is obtained the Relevant Seller (or the relevant member of the Sellers’ Group)
shall be deemed to hold the benefit of the relevant Business Asset referred to
in clause 13.1 on trust for the Relevant Purchasers, or where
holding on trust is not possible under local law the Relevant Sellers and the
Relevant Purchasers shall make such other arrangements between themselves to
provide to the Relevant Purchasers the benefits of the relevant Business
Assets.

 

14.          TRANSFER OF
BUSINESS CONTRACTS AND LICENCES

 

14.1       Subject
to clause 14.2, the Relevant Purchasers shall become entitled to the
benefits (subject to the burden) of the Business Contracts and this Agreement
shall constitute an assignment of the benefit of the Business Contracts to the
Relevant Purchasers with effect from Completion.

 

18

 

14.2       This
Agreement shall not constitute an assignment or attempted assignment of any
Business Contract if the assignment or attempted assignment is not possible or
would constitute a breach of the relevant Business Contract.

 

14.3       Where
a Third Party Consent is required to the assignment of the benefit of, or
novation of, a Business Contract or to some other arrangement required to be
put in place in respect of those Business Contracts which relate in part only
to the Business whereby the relevant part is severed and transferred, the
Relevant Sellers shall use all reasonable endeavours (without incurring any
costs or expenses) with the co-operation of the Relevant Purchasers (such
co-operation to include, without limitation, the provision by the Relevant
Purchasers of a guarantor or guarantors of the obligations under the relevant
Business Contract, if required) to obtain any Third Party Consent to assignment
or novation or to such severance arrangement of all relevant Business Contracts
both before and after Completion.

 

14.4       After Completion, and until any
necessary Third Party Consent is obtained, the following provisions shall
apply:

 

(i)           the
Relevant Sellers shall be deemed to hold the benefit of that Business Contract
(to the extent permitted under the relevant Business Contract) on trust for the
Relevant Purchasers (if to do so would not constitute a breach of such Business
Contract), or where holding on trust is not possible under local law the
Relevant Sellers and the Relevant Purchasers shall make such other arrangements
between themselves to provide to the Relevant Purchasers the benefits of the
relevant Business Contract (including wherever possible licences of
Intellectual Property), including the enforcement of all rights of the Relevant
Sellers against any other party thereto;

 

(ii)          if
it is permissible under the relevant Business Contract, the Relevant Purchasers
shall perform for or on behalf of the Relevant Sellers (but at the Relevant
Purchasers’ expense) the obligations of the Relevant Sellers under that
Business Contract failing to be performed on or after Completion; and

 

(iii)         to
the extent that the Relevant Purchasers are lawfully able to do so, and subject
to the Relevant Purchasers receiving the benefits of the Business Contract, the
Relevant Purchasers hereby undertake to pay the Relevant Sellers such amount as
is required to indemnify each member of the Sellers’ Group against any act or
omission of the Relevant Purchasers to perform or comply with any obligation of
M-real which falls to be performed or complied with after Completion, as
referred to in paragraph (ii) of this clause 14.4,

 

provided that this clause 14.4
will not apply to the Energy Plant Contracts.

 

14.5       Where
the performance and discharge by the Relevant Purchasers of the obligations and
liabilities arising under a Business Contract would constitute a breach by the
Relevant Sellers of the terms of such Business Contract, the Relevant Sellers
shall, until the Third Party Consent is obtained, continue so far as reasonably
practicable to perform and discharge the relevant Business Contract to the
extent necessary to avoid any such breach PROVIDED THAT:

 

(i)            the
Relevant Sellers shall exercise their rights in respect of such Business
Contract as the Relevant Purchasers may direct or approve (acting reasonably)
and not otherwise and shall account to the Relevant Purchasers for any sums
arising thereunder;

 

19

 

(ii)          the
Relevant Purchasers (at their own expense) shall provide the Relevant Sellers
with such documents, facilities and assistance and/or enter into such other
arrangements as the Relevant Sellers shall reasonably deem necessary or require
for the purpose of performing and discharging the Business Contract, in each
case in such manner that the Relevant Sellers are not in breach thereof;

 

(iii)         the
Relevant Sellers shall be deemed to hold the benefit of such Business Contract
(to the extent permitted under the relevant Business Contract) on trust for the
Relevant Purchasers (if to do so would not constitute a breach of such Business
Contract) and such benefit will be promptly paid over to the Relevant
Purchasers; and

 

(iv)          the
Relevant Purchasers shall reimburse the Relevant Sellers any costs and expenses
reasonably incurred by the Relevant Sellers, and shall on behalf of the
Relevant Sellers discharge any liabilities in each case arising as a result of
such performance and discharge by the Relevant Sellers and shall provide all
reasonable facilities and assistance to the Relevant Sellers free of charge for
such purpose (including, without limitation, providing the services of the
Business Employees, access to the Business Properties and the use of the
Business Assets) and shall pay to the Relevant Seller such amount as is
required to indemnify each member of the Sellers’ Group in respect of the same,

 

provided that this clause 14.5
shall not apply to the Energy Plant Contracts.

 

14.6       M-real
shall, on behalf of itself and the Sellers Group’, within 5 Business Days of
execution of this Agreement seek a Third Party Consent from Fortum in relation
to the transfer, assignment or novation of the Energy Plant Contracts to the
Relevant Purchasers.

 

14.7       If
the Third Party Consent of Fortum in relation to all of the Energy Plant
Contracts is granted then the Energy Plant Contracts shall be so transferred,
assigned or novated to the Relevant Purchasers.

 

14.8       If
the Third Party Consent of Fortum in relation to the Energy Plant Contracts is
not able to be obtained by the Relevant Sellers or relevant members of the
Sellers’ Group, then the Relevant Sellers or the relevant members of the
Sellers’ Group shall enter into energy plant contracts on equivalent terms, mutatis  mutandis, as
those in place between Fortum and the Relevant Sellers or the relevant members
of the Sellers’ Group in order to vest in the Relevant Purchasers all the
benefits thereof as if it were a party to such agreements itself.

 

14.9       For
the purposes of Schedule 6, M-real shall be deemed to have complied with
its obligations under this clause 14.9 if the provisions of:

 

(i)            clause
14.7 or 14.8 are complied
with; and

 

(ii)           the
Energy Plant Contracts (including, for the avoidance of doubt, the CHP Lease)
have been transferred to the Relevant Purchasers in accordance with the
provisions of clauses 2, and/or 14.7 or 14.8.

 

14.10     Without
prejudice to the provisions of Schedule 6, if M-real has not complied
with its obligations under clause 14.9 at Completion, Sappi shall pay
€20m to M-real within 7 Business Days of 

 

20

 

M-real complying with clause 14.9 providing
M-real complies with clause 14.9 within 30 Business Days of
Completion.

 

14.11     M-real
and Sappi shall use their best efforts to have the Stockstadt Lease between
Stockstadt GmbH and Molsindra Vermietungsgesellschaft mbH & Co. Objekt
Stockstadt KG (the “Lessor”)  amended to the effect that any links to
M-real shall cease and M-real shall be released of any obligations towards the
Lessor or Stockstadt GmbH arising from the Stockstadt Lease. In particular, the
termination right of the Lessor under section 11.3 of the Stockstadt Lease
relating to M-real’s group credit facility and the right of Lessor to request
M-real to assume the Stockstadt Lease under the lease assumption agreement
shall be cancelled. In return for such changes Sappi is prepared to give the
Lessor reasonable comfort with respect to the fulfilment of the Stockstadt
Lease by Stockstadt GmbH on a level which is comparable to the comfort given by
M-real so far. In the event the Lessor should be unwilling to renegotiate and
amend the Stockstadt Lease but the Stockstadt Lease is not terminated by the
Lessor, Sappi shall indemnify and hold harmless M-real from and against any
losses and damages in connection with the Stockstadt Lease to the extent such
losses and damages relate to the period after the Completion Date. Should
M-real have to assume the Stockstadt Lease pursuant to the lease assumption
agreement, M-real shall act at the instruction and for the account of the
Relevant Purchaser as if the Relevant Purchaser was a party to the Stockstadt
Lease and Sappi shall indemnify and hold harmless M-real from and against any
losses and damages in connection with the Stockstadt Lease to the extent such
losses and damages relate to the period after the Completion Date.

 

15.          ASSUMED
LIABILITIES AND ASSURANCES

 

15.1       The
Relevant Purchasers hereby agree with the Relevant Sellers that they will duly
and properly perform, assume and pay and discharge when due, and pay to the
Relevant Sellers such amount as is required to indemnify the Relevant Sellers
and each other relevant member of the Sellers’ Group against, all Assumed
Liabilities save to the extent any such Assumed Liability is recoverable under Schedules
14 and 15.

 

15.2       In
this Agreement “Assumed Liabilities”
means:

 

(i)           all
outstanding or unperformed obligations of the Relevant Sellers and each other
member of the Sellers’ Group under the Business Contracts (including, for the
avoidance of doubt, all trade payables) whether falling due for observance or
performance before, at or after Completion, excluding those obligations to the
extent arising from events occurring on or prior to Completion except to the
extent they are provided for in the Carve-Out Accounts or to the extent taken
account in the Net Working Capital Adjustment or in an Adjustment Payment or
otherwise in the Completion Statements;

 

(ii)          without
prejudice to clause 19.9 (ii), all obligations and liabilities
(including all business rents, rates and other periodic outgoings) in respect
of the Business Properties whether falling due for observance or performance
before, at or after Completion, excluding those obligations and liabilities to
the extent arising from events occurring on or prior to Completion except to
the extent they are provided for in the Carve-Out Accounts or to the extent
taken account in the Net Working Capital Adjustment or otherwise in an
Adjustment Payment or otherwise in the Completion Statements; and

 

(iii)         all
liabilities arising in connection with the condition of, or any defect in, any
Business Stocks, excluding those liabilities to the extent arising from events
occurring on or prior to 

 

21

 

Completion except to the extent they
are provided for in the Carve-Out Accounts or to the extent taken account in
the Net Working Capital Adjustment or otherwise in an Adjustment Payment or
otherwise in the Completion Statements.

 

15.3       The
Relevant Purchasers covenant that, at any time and from time to time on or
after Completion they will execute and deliver all such further instruments of
assumption and acknowledgements as any member of the Sellers’ Group may
reasonably request in order to effect the release and discharge in full of the
relevant member of the Sellers’ Group in respect of any Assumed Liability and
the Relevant Purchasers’ assumption of the Assumed Liabilities and the
substitution of the Relevant Purchasers as the primary obligors in respect of
the Assumed Liabilities in each case on a non-recourse basis to the Sellers’
Group.

 

15.4       The
Relevant Purchasers covenant that, at any time and from time to time on or
after Completion they will execute and deliver all such further instruments of
assumption and acknowledgements as any member of the Sellers’ Group may
reasonably request in order to effect the release and discharge in full of any
Assurance howsoever structured given at any time by any member of the Sellers’
Group to any person in respect of any obligation or liability of any member of
the Group and the Relevant Purchasers’ assumption of, and the substitution of
the Relevant Purchasers as the primary obligors in respect of, each such
Assurance, in each case on a non-recourse basis to members of the Sellers’
Group.

 

15.5       The
Relevant Purchasers hereby agree with each of the Relevant Sellers (on behalf
of themselves and each other member of the Sellers’ Group) that they will
assume and pay and discharge when due, and pay to the Relevant Sellers such
amount as is required to indemnify each member of the Sellers’ Group against
the Assurances referred to in clause 15.4 (other than to the extent that
they have been released and discharged in accordance with clause 15.4).

 

15.6       Each
of the Relevant Sellers covenant that, at any time and from time to time on or
after Completion, they will execute and deliver all such instruments of
assumption and acknowledgements or take such other action as the Relevant
Purchasers may reasonably request in order to effect the release and discharge
in full of any Assurance howsoever structured given by any member of the Group
or otherwise by the Business to any person in respect of any obligation or
liability of any member of the Sellers’ Group and shall procure the assumption
of, and the substitution of an appropriate member of the Sellers’ Group as the
primary obligor in respect of, each such Assurance on a non-recourse basis to
the Purchaser’s Group.  Pending such
release and discharge, the Relevant Sellers hereby agree with the Relevant
Purchasers (on behalf of themselves and each member of the Group) that they
will assume and pay and discharge when due, and pay to the Relevant Purchasers
such amount as is required to indemnify each member of the Group against, all
such Assurances.

 

16.          BUSINESS
RECEIVABLES

 

16.1       As
soon as practicable following Completion, the Relevant Sellers shall deliver to
the Relevant Purchasers details of the Business Receivables.

 

16.2       Notwithstanding
clause 16.1, as soon as practicable following the satisfaction of the
conditions in paragraphs 2 and 3 of Schedule 2 the
Relevant Sellers shall use reasonable endeavours to deliver details of the
Business Receivables to the Relevant Purchasers.

 

22

 

16.3                    Subject to clause 8.4, the
Relevant Sellers agree that the Relevant Purchasers alone shall be responsible
for the collection of any of the Business Receivables and that:

 

(i)                                   the
Relevant Purchasers shall be entitled to take such steps as it may think fit to
recover any outstanding Business Receivables;

 

(ii)                                the
Relevant Sellers shall not take, and shall procure that no other member of the
Sellers’ Group takes, any step to collect the Business Receivables, and shall
not do anything to hinder their collection by the Relevant Purchasers; and

 

(iii)                            if
the Relevant Sellers or any other member of the Sellers’ Group should receive
any communication or payment in respect of any Business Receivable, the
Relevant Sellers shall or shall procure that written details of any such
communication or payment are given to the Relevant Purchasers as soon as
reasonably practicable following receipt thereof.

 

16.4                    Where anything (including any service
or payment) is to be provided by a member of the Purchaser’s Group under any of
the Business Contracts after Completion, but any payment (whether by way of
deposit, prepayment, provision of a service or otherwise) in respect of the
price or cost of it has been received by a member of the Sellers’ Group before
Completion, the Relevant Sellers shall procure that the relevant member of the
Sellers’ Group pays a sum equal to the amount of that payment to the relevant
member of the Purchaser’s Group immediately following Completion, following
receipt of which the member of the Purchaser’s Group shall provide such thing
or service or payment and shall hold such sum on trust for that member of the
Purchaser’s Group until it is paid over.

 

16.5                    Where anything (including any service
or payment) is to be provided by a member of the Purchaser’s Group under any of
the Business Contracts after Completion, but any payment (whether by way of
deposit, prepayment provision of a service or otherwise) has been made by a
member of the Sellers’ Group in respect of the price or cost of it before Completion,
the Relevant Purchasers shall procure that that relevant member of the
Purchaser’s Group pays a sum equal to the amount of that payment to the
relevant member of the Sellers’ Group as soon as reasonably practicable
following the member of the Purchaser’s Group becoming aware of such thing or
service and shall hold such sum on trust for that member of the Sellers’ Group
until it is paid over.

 

16.6                    Any sums received by the Relevant
Purchasers or the Relevant Sellers (or any other member of the Sellers’ Group)
from a third party from whom monies are due both to the Relevant Sellers
(and/or another member of the Sellers’ Group) in respect of any other business
and to the Relevant Purchasers in respect of the Business which monies were
separately invoiced prior to Completion, where the monies are not clearly
identifiable or apportionable as relating in whole or in part to a debt in
respect of the Business or a debt of the Relevant Sellers (or another member of
the Sellers’ Group) in respect of any other business, shall be deemed first to
be in satisfaction of the liability which first arose.

 

16.7                    Any sum received by the Relevant
Purchasers from a third party from whom monies are due both to the Relevant
Sellers (and/or another member of the Sellers’ Group) and to the Relevant
Purchasers under a single invoice rendered to that third party which does not
constitute a payment of the whole amount due under such invoice but only in
part thereof shall be payable as follows:

 

23

 

(i)                                   if
the payment is accompanied by a statement (express or implied) by the third
party as to which goods it is made in respect of, then in accordance with such
statement; and

 

(ii)                                if
no such statement as to the aforesaid matters is made by the third party, then
to each of the parties entitled under the relevant invoice, the pro rata
proportion of the part payment made which corresponds to the proportion of the
entire amount invoiced due to that party,

 

ALWAYS PROVIDED THAT if, in circumstances
where a payment is apportioned in accordance with the provisions of sub-clause
(ii) above, it is subsequently ascertained which goods the part payment was
made in respect of, then the party or parties to whom such payment would have
been made, had it been known at the time that such monies were received to whom
such payment should have been made, shall be entitled to call for such amount
to be paid over by the party or parties who received such payment in the first
instance, who shall promptly pay over the same. The provisions of sub-clause
(ii) above shall apply, mutatis mutandis,
to any sum received by the Relevant Sellers (and/or any other member of the
Sellers’ Group) in respect of any such invoice and the Relevant Sellers shall
procure compliance with such provisions by any relevant member of the Sellers’
Group.

 

16.8                    The Relevant Sellers (or any other
member of Sellers’ Group) shall be under no liability to the Relevant
Purchasers if any of the Business Receivables are not paid save where such non-payment
was caused by the Relevant Sellers’ wilful default or negligence in the
performance of its obligations under this clause 16.

 

17.                           SELLERS’ WARRANTIES AND PURCHASERS’ REMEDIES

 

17.1                    Subject as provided
in this Agreement, M-real, on behalf of itself and the Relevant Sellers,
warrants to the Relevant Purchasers as at the date of this Agreement in the
terms of the Warranties set out in Schedule 4.

 

17.2                    The only Warranties
given:

 

(i)                                   in respect of the Properties are those
contained in paragraph 16 of Schedule 4 and each of the other
Warranties shall be deemed not to be given in relation to the Properties;

 

(ii)                                in respect of Environmental Matters are
those contained in paragraph 17 of Schedule 4 and each of the
other Warranties shall be deemed not to be given in relation to Environmental
Matters;

 

(iii)                             in respect of Intellectual Property
(including for the avoidance of doubt, any Intellectual Property subsisting in
any IT Systems), know-how and contracts, arrangements and engagements relating
thereto are those contained in paragraph 18 of Schedule 4 and
each of the other Warranties shall be deemed not to be given in relation to
Intellectual Property, know-how and contracts, arrangements and engagements
relating thereto;

 

(iv)                              in respect of IT Systems (or agreements
relating thereto) are those contained in paragraph 18 of Schedule 4
and each of the other Warranties shall be deemed not to be given in relation to
IT Systems (or agreements relating thereto);

 

24

 

(v)                                 in respect of Tax are those contained
in paragraph 22 of Schedule 4 and each of the other Warranties
shall be deemed not to be given in relation to Tax;

 

(vi)                              in respect of all employment and
pension matters are those contained in paragraphs 20 and 21
respectively of Schedule 4 and each of the other Warranties shall be
deemed not to be given in relation to employment and pension matters; and

 

(vii)                           in respect of the Accounts and the
Carve-Out Accounts are those contained in paragraph 9 of Schedule 4
and each of the other Warranties shall be deemed not to be given in relation to
Accounts and Management Accounts.

 

17.3                    The liability of the
Relevant Sellers under or in relation to the Warranties shall be limited as set
out in Schedule 5.

 

17.4                    Any payment made by
the Relevant Sellers in respect of any claim under the Warranties shall be
made, to the extent possible, by way of an adjustment to the Consideration.

 

17.5                    The Relevant
Purchasers acknowledge and agree that the Relevant Sellers make no representation
or warranty as to the accuracy of the forecasts, estimates, projections,
statements of intent or statements of honestly expressed opinion provided to
the Relevant Purchasers (howsoever provided) on or prior to the date of this
Agreement, including without limitation, in the Disclosure Letter, the Data Room or
in the documents provided to the Relevant Purchasers or their advisers in the
course of the Relevant Purchasers due diligence exercise.

 

17.6                    The Relevant
Purchasers acknowledge that they do not rely and have not been induced to enter
into this Agreement on the basis of any warranties, representations, covenants,
undertakings, indemnities or other statements whatsoever other than the
Warranties and acknowledge that neither the Relevant Sellers nor any member of
the Sellers’ Group or any of their respective agents, officers or employees or
any other person has given such warranties, representations, covenants,
undertakings, indemnities or other statements.

 

17.7                    The Relevant Purchasers acknowledge and
agree that they are not aware of any matter on or before the date of this
Agreement which would form the basis of a claim for breach of Warranty.

 

17.8                    Notwithstanding that
the Relevant Purchasers become aware at any time that there has been any breach
of any of the Warranties or any other term of this Agreement, the Relevant
Purchasers shall not be entitled to rescind this Agreement or treat it as
terminated but shall be entitled to claim damages or exercise any other right,
power or remedy under this Agreement or as otherwise provided by law. The
Relevant Purchasers waive all and any rights of rescission in respect of this
Agreement they may have (howsoever arising or deemed to arise) other than any
such rights in respect of fraud.

 

17.9                    Each of the Warranties
shall be construed as a separate and independent warranty and, except where
expressly provided to the contrary, shall not be limited or restricted by
reference to or inference from the terms of any other Warranty or any other
provision of this Agreement.

 

17.10             If after the signing of this Agreement
and before Completion (as appropriate):

 

25

 

(i)                                  any
Relevant Seller shall become aware that any of the Warranties set out in paragraphs
1, 2, 4 and 6(A) of Schedule 4 of this
Agreement was untrue or inaccurate as of the signing of this Agreement; or

 

(ii)                               any
event shall occur or matter shall arise of which any Relevant Seller becomes
aware which would result in any of the Warranties set out in paragraphs 1,
2, 4 and 6(A) of Schedule 4 of this Agreement
being untrue or inaccurate at Completion had the Warranties set out in paragraphs
1, 2, 4 and 6(A) of Schedule 4 of this
Agreement been repeated on Completion,

 

the Relevant Sellers shall notify
the Relevant Purchasers in writing as soon as practicable and in any event
prior to Completion setting out full details of the matter and the Relevant
Sellers shall make any investigation concerning the event or matter and take
such action, at their own cost, as the Relevant Purchasers may reasonably
require.

 

17.11              Any notification pursuant to clause
17.10 shall not operate as a disclosure pursuant to paragraph 10 of Schedule
5 and the Warranties set out in paragraphs 1, 2, 4 and
6(A) of Schedule 4 of this Agreement shall not be subject to
such notification.

 

17.12             The Relevant Sellers further warrant to
the Relevant Purchasers that the Warranties set out in paragraphs 1, 2,
4 and 6(A) of Schedule 4 of this Agreement will be
true and accurate at Completion as if they had been repeated at Completion.

 

17.13             For the avoidance of doubt, clauses
17.10 to 17.12 shall only apply to the Warranties specifically set
out in those clauses and not any other Warranty set out in Schedule 4 of
this Agreement.

 

18.                           PURCHASERS’ WARRANTIES

 

18.1                     The Purchaser, on behalf of itself and
the Relevant Purchasers, warrants to the Relevant Sellers as at the date of
this Agreement that:

 

(i)                                  each
of the Relevant Purchasers has the requisite power and authority to enter into
and perform this Agreement and any other documents (including, without
limitation, the M-real Vendor Loan Note and the Vendor Loans) which are to be
entered into pursuant to this Agreement to which they are a party (the “Purchasers’ Completion Documents”).

 

(ii)                               this
Agreement constitutes and the Purchasers’ Completion Documents will, when
executed by the Relevant Purchasers, constitute binding obligations of the
Relevant Purchasers in accordance with the respective terms of each such
document.

 

(iii)                            the
execution and delivery of, and the performance by each of the Relevant
Purchasers of their respective obligations under this Agreement and the
Purchasers’ Completion Documents to which each is respectively a party will
not:

 

(a)                                result in a breach of any provision of
the memorandum or articles of association or equivalent constitutional
documents of the Relevant Purchasers;

 

(b)                               result in a breach of, or constitute a
default under, any instrument to which the Relevant Purchasers are a party or
by which the Relevant Purchasers are 

 

26

 

bound and which is material in the
context of the transactions contemplated by this Agreement;

 

(c)                                so far as the Relevant Purchasers are
aware, result in a breach of any existing order, judgment or decree of any
court or governmental agency to which the Relevant Purchasers are a party or by
which the Relevant Purchasers are bound and which is material in the context of
the transactions contemplated by this Agreement; or

 

(d)                                save as contemplated by this Agreement,
require the Relevant Purchasers to obtain any consent or approval of, or give
any notice to or make any registration with, any governmental or other
authority which has not been obtained or made at the date of this Agreement and
is in full force and effect; and

 

(iv)                              save
as disclosed in a letter to M-real of even date herewith, no member of the
Purchaser’s Group is engaged in any legal or arbitration proceedings which may
have or have had during the preceding 12 months a significant effect on the
financial or trading position of the Purchaser’s Group and no such legal or
arbitration proceedings are threatened or pending nor to the best of the
knowledge, information and belief of the Purchaser (having made all reasonable
enquires), are there any circumstances which may give rise to any such legal or
arbitration proceedings.

 

18.2                    If after the signing of this Agreement
and before Completion (as appropriate):

 

(i)                                  any
Relevant Purchaser shall become aware that any of the warranties set out in clause
18.1 above was untrue or inaccurate as of the signing of this Agreement; or

 

(ii)                               any
event shall occur or matter shall arise of which any Relevant Purchaser becomes
aware which would result in any of the warranties set out in clause 18.1
above being untrue or inaccurate at Completion had the warranties set out in clause
18.1 above been repeated on Completion,

 

the Relevant
Purchasers shall notify the Relevant Sellers in writing as soon as practicable
and in any event prior to Completion setting out full details of the matter and
the Relevant Purchasers shall make any investigation concerning the event or
matter and take such action, at their own cost, as the Relevant Sellers may
reasonably require.

 

18.3                    Any notification pursuant to clause
18.2 above shall not operate as a disclosure pursuant to paragraph 10
of Schedule 5 and the warranties set out in clause 18.1 above
shall not be subject to such notification.

 

18.4                    The Relevant Purchasers further warrant
to the Relevant Sellers that the warranties set out in clauses 18.1(i) to
18.1(iii) (but not, for the avoidance of doubt, clause 18.1(iv))
above will be true and accurate at Completion as if they had been repeated at
Completion.

 

19.                           SELLERS’ UNDERTAKINGS

 

19.1                    The Relevant Sellers agree and
undertake to provide the Relevant Purchasers (and will use all reasonable
endeavours to procure that their auditors provide the Relevant Purchasers) with
all such assistance as the Relevant Purchasers reasonably require to produce
the Sappi Circular, 

 

27

 

including without limitation in respect
of financial information relating to the Business Assets to be included
therein.

 

19.2                    Subject to their reasonable external
costs being covered by the Relevant Purchasers, the Relevant Sellers agree and
undertake to provide the Relevant Purchasers with such assistance as the
Relevant Purchasers reasonably require to produce any offering circular or
prospectus relating to any Financing, including:

 

(i)                                  furnishing the Relevant Purchasers with all financial
statements and financial data relating to the Business Assets that would be
required to be included in the relevant offering circular or
prospectus:

 

(a)                                under applicable South African or US
rules and regulations (and, in the case of an offering of high-yield
notes, that are customarily included in offering memoranda for offerings
conducted in accordance with Rule 144A and Regulation S in the European
high-yield market); or

 

(b)                                in order to allow the granting by
auditors of negative assurance comfort under SAS 72 ‘look-a-like’;

 

(ii)                               using all reasonable endeavours to procure that their
auditors provide such accountants’ comfort letters (including a statement that
such auditors have conducted a SAS 100 or ISRE 2410 review, as applicable for
each relevant offering document, on any interim financial statements included
in such offering circular or prospectus) and consents as reasonably requested
by the Relevant Purchasers; and

 

(iii)                            providing such assistance to the Relevant Purchasers as
they may reasonably request in connection with any listing of securities issued
in any Financing on the JSE, the London Stock Exchange or an unregulated stock
exchange in the European Union, as applicable.

 

19.3                    The Relevant Sellers undertake that as
at Completion, the make-up of working capital as between the Kangas Mill, the
Kirkniemi Mill, the Stockstadt Mill and the Biberist Mill and as between each
different component of working capital shall in each case be in accordance with
the ordinary course operations of those mills and in each case consistent with
past practice.

 

19.4                    Save as required by law of any relevant
jurisdiction (including, for the avoidance of doubt, any disclosure to a Tax
Authority), the Relevant Sellers agree not to use or disclose the Business
Information to any person other than the Relevant Purchasers after Completion.

 

19.5                    The Relevant Sellers undertake to carry
out the Pre-Sale Reorganisation as soon as reasonably practicable following the
signing of this Agreement and in any event so as to be completed prior to
Completion in accordance with paragraph 6 of Schedule 2 of this
Agreement.

 

19.6                    Subject to the Relevant Purchasers
indemnifying the Relevant Sellers for any reasonable costs in respect of the
same (including, without limitation, any increases in any premiums or the loss
of any benefit in relation to any insurance agreement), the Relevant Sellers
undertake to use reasonable endeavours to pursue any insurance claim that the
Relevant Purchasers may reasonably request that the Relevant Sellers pursue in
order to vest the benefit of clause 2.1(x) in the Relevant
Purchasers so far as is reasonably practicable.

 

28

 

19.7                    M-real shall use reasonable endeavours
to procure that the Kangas PM2 is removed from the Kangas PM2 Property within 3
years of Completion Date and shall ensure that the Kangas PM2 Property is made
safe in accordance with normal standards upon the removal of the Kangas PM2. If
M-real has not been able to remove the Kangas PM2 and make the Kangas PM2
Property safe within 3 years of the Completion Date, M-real and Sappi agree to
enter into a good faith negotiation in order to determine how the Kangas PM2
should be removed from the Kangas PM2 Property, including if appropriate, a
discussion as to the extension of the Kangas PM2 Property Lease.

 

19.8                    M-real shall use reasonable endeavours
to procure that Biberist shall distribute prior to Completion all its retained
earnings as per the Biberist statutory accounts for the year ended 31 December,
2007, insofar as the same are freely distributable  and insofar as agreed by M-real and
Sappi (the “Biberist Retained Earnings”),
subject to the following terms and conditions:

 

(i)                                  that
Biberist has obtained an advance written tax ruling, reasonably
satisfactory to both M-real and Sappi, of the Swiss Federal Tax
Administration confirming that there is no Swiss dividend withholding treatment
of the Biberist Retained Earnings;

 

(ii)                               that
such tax ruling shall be obtained by the statutory auditor of Biberist (as set
out in Schedule 7 (B)) or any other independent person acceptable to
M-Real and Sappi and shall be binding upon M-Real and Sappi for the purpose of
this Agreement;

 

(iii)                            that
the statutory auditor of Biberist (as set out in Schedule 7 (B))
confirms (based on an interim balance sheet drawn up as per 30 September, 2008
(or, if the distribution is to be made after 31 December, 2008, based on a
balance sheet drawn up as per 31 December, 2008, if available) consistent with
the accounting practice of Biberist according to Swiss GAAP) in writing to
M-real (who shall provide a copy of such confirmation to Sappi) that the
dividend distribution complies with Swiss company law and with the Articles of
Association of Biberist; and

 

(iv)                             that
Biberist shall, at the latest, distribute the Biberist Retained Earnings three
Business Days prior to the Completion Date,

 

provided that M-real and Sappi shall
not procure and Biberist shall not be required to make a distribution to an
extent which would constitute a repayment of capital (Einlagerückgewähr) or a violation of its
legally protected reserves (gesetzlich
geschützte Reserven). If such tax ruling can only be obtained after
Completion (or if the only tax ruling which can be obtained after Completion is
not satisfactory to both M-real and Sappi), M-real shall discuss in good faith
what steps can reasonably be taken to ensure Sappi can reasonably procure that
the Biberist Retained Earnings are distributed to NL Holding, net of any costs
or expenses and net of any amount of Swiss withholding tax which may be
deductible in accordance with such ruling or such other steps in relation to
the Biberist Retained Earnings as are reasonable.

 

M-real and Sappi shall procure that the
costs (other than in relation to any tax ruling obtained and any costs in
relation to confirming the Swiss dividend withholding tax exemption) are borne
by Biberist.

 

19.9                    The Relevant Sellers shall be
responsible for, and shall indemnify the Relevant Purchasers in respect of any
liabilities incurred by the Relevant Purchasers in respect of:

 

29

 

(i)                                 the
Mill Business Efficiency Programme;

 

(ii)                              any
compensation which is required by a relevant Environment Authority to be paid
out in relation to waste water effluent discharges at the Business Property at
Kirkniemi in respect of the period on or before Completion (“Kirkniemi Discharge Compensation”);

 

(iii)                           any
cost ultimately borne by the Relevant Purchaser under clause 23.7(ii) as
a result of any relevant payable under clause 23.7 which was due and
payable on or before the Completion Date not having been borne by the Relevant
Sellers or the relevant member of the Seller’s Group in accordance with clause
23.7(i) except to the extent such cost is a Tax Liability for the
purposes of Schedule 14;

 

(iv)                            any
interest payments which are accrued but not paid in respect of the period on or
before Completion by Stockstadt GmbH before the date they are due;

 

(v)                               any
Pre-Sale Reorganisation Liabilities; and

 

(vi)                            any overdue payments which are due in
respect of the Graphic Paper Business at
Completion or current payments which are more than 60 days from invoice at
Completion which have not been paid to the Relevant Purchasers pursuant
to supply arrangements with Winkowski for a period of 6 months from the date of
Completion provided that the Relevant Purchasers have continued to do business
with Winkowski for so long as it is
reasonable and practicable for the Relevant Purchasers to do so. The
parties agree that in the event the Sellers’ Group is able to
procure credit insurance in respect of the payments the subject of this
indemnity prior to Completion this clause 19.9 (vi) shall
ceased to have effect. The Purchaser shall procure that forthwith on receipt of
any payment pursuant to this indemnity it shall assign or procure the
assignment by the relevant member of the Purchaser’s Group of the of the
receivable in respect of which the indemnity is paid.

 

19.10              Prior to Completion, M-real shall cause
Deutsche Holding to take all reasonably necessary steps to ensure that the
fiscal year of CN Papiervertriebs GmbH and of the German Subsidiary is
shortened such that the respective fiscal year ends on or after the Completion
Date. M-real shall further procure and take all necessary steps to ensure that
the existing domination and profit and loss pooling agreement between
Stockstadt GmbH and the German Subsidiary is terminated with legal effect as of
the end of the respective shortened fiscal year of the German Subsidiary.

 

20.                            PURCHASERS’ UNDERTAKINGS

 

20.1                     Sappi agrees and undertakes to the
Relevant Sellers that the Sappi Shares forming the Consideration Shares to be
issued shall:

 

(i)                                  be
fully paid or credited as fully paid, rank pari passu in
all respects with the Sappi Shares in issue on the Completion Date (including
the right to receive all dividends and other distributions declared, made or
paid on or after the Completion Date);

 

(ii)                               not
be issued subject to any pre-emptive right, option, right to acquire, mortgage,
charge, pledge, lien or other form of security or encumbrance and all other
rights exercisable by or claims by third parties other than at the creation of
the Relevant Sellers or any member of the Sellers’ Group; and

 

30

 

(iii)          be
issued in accordance with applicable law and the articles of association or
by-laws or equivalent constitutional documents of the Purchaser.

 

20.2                    Sappi
undertakes to the Relevant Sellers that it and its directors, as at the
Completion Date, shall have the power and authority to allot and issue the
Consideration Shares to be issued to the Relevant Sellers under this Agreement
in the manner contemplated by this Agreement without any sanction or consent by
the members of the Purchaser or any class of them and the allotment shall
comply with the South African Companies Act No 61 of 1973, the JSE Listings
Requirements and all other relevant laws and regulations of South Africa and
elsewhere.

 

20.3                    Sappi
agrees and undertakes that the Sappi Circular and any other public document
issued by it in relation to the transactions contemplated by this Agreement,
including for the avoidance of doubt any rights issue or other equity or debt
raising, will be issued in accordance with the rules of the JSE and all other
relevant laws and regulations of South Africa and elsewhere.

 

20.4                    The
Relevant Purchasers agree and undertake that (in the absence of fraud) they
have no rights against and shall not make any claim against any employee,
director, agent, officer or adviser of any member of the Seller’s Group or any
Employee on whom it may have relied before agreeing to any term or entering
into this Agreement or any other agreement or document entered into pursuant
hereto.

 

20.5                    Without
prejudice to clause 28.2, the Relevant Purchasers shall procure that,
for a period of six years after Completion, each of the Relevant Sellers and
their accountants shall as soon as reasonably practicable and in any event
within five Business Days of request for the same be given reasonable access to
any employees, officers, advisers or premises of any member of the Group and
any of their respective books and records which may reasonably be required by
the Sellers or any other member of the Sellers’ Group in connection with any
report, return, statement, audit, filing or other requirement under any
applicable law or regulation or otherwise required in respect of the Sellers’
Business.

 

20.6                    Without
prejudice to clause 19.7, the Relevant Purchaser of the Kangas Property
agrees to grant a right of access, in accordance with the Kangas PM2 Property
Lease and for the purpose of removing the Kangas PM2 from the Kangas PM2
Property, to M-real or a relevant third party with effect from Completion and
for a period of 3 years or such other period until the Kangas PM2 is sold and
removed from the Kangas PM2 Property. 
The Relevant Purchaser agrees that it will enter into the Kangas PM2
Property Lease in this respect and M-real undertakes that it shall not assign
or transfer the Kangas PM2 Property Lease to any third party.

 

20.7                    Sappi
will procure that the Rights Issue is formally launched as soon as reasonably
practicable after the conditions (other than the condition in paragraph 8
of Schedule 2) in Schedule 2 have been satisfied or waived in
full or as otherwise as agreed in writing between M-real and Sappi.

 

20.8                    Sappi
undertakes to M-real that it and the other members of the Purchaser’s Group
have no secured outstanding debt obligation (whether secured by mortgage,
charge, pledge, lien or any other security interest or any other agreement or
arrangement having the effect of giving security or preferential ranking to a
creditor) other than secured outstanding debt obligations which are permitted
under clauses 22.5 (negative pledge) and 22.7 (financial indebtedness) of the
€600,000,000 revolving credit facility agreement arranged for Sappi by BNP
Paribas, JP Morgan plc and SG Corporate and Investment Banking dated 29 June,
2005 (as amended from time to time) and that the M-real Vendor Loan Note to be issued
pursuant to the transactions 

 

31

 

contemplated by this Agreement shall
rank at least pari  passu
with the claims of all its other unsecured and unsubordinated creditors except
for obligations mandatorily preferred by law applying to companies generally.

 

21.                             RESTRICTIONS ON SELLERS’ BUSINESS ACTIVITIES

 

21.1                    The Relevant Sellers shall, and shall
procure that the Sellers’ Group shall cease to use any trade mark consisting of or comprising “Galerie Art by
Metsä-Serla” (“GAMS”) in any jurisdiction.

 

21.2                    The
Relevant Sellers shall not, and shall procure that none of the Sellers’ Group
shall:

 

(i)                                   make any further use of the “Zanders Mega” marks (“ZM”) in any jurisdiction; or

 

(ii)                                renew any of the ZM registrations; or

 

(iii)                             for a period of 3 years following Completion, use or
apply for registration of or register any trade marks including the word Mega
for any products or services, except as otherwise agreed in writing between the
parties;

 

(iv)                              for so long as the Relevant Purchaser continues to have a
significant commercial interest in the “MEGA” mark, use or apply for
registration of or register any trade marks that include the word MEGA in
relation to products or services that are the same as or similar to those in
relation to which the Relevant Purchaser has used or is using the MEGA mark
(whether alone or in combination with any other mark) in the 3 year period
following Completion, except as otherwise agreed in writing between the
parties;

 

(v)                                 use or seek registration of any trade marks including the
word Galerie (including Galerie Vision or Galerie Image) except as otherwise
agreed in writing by the parties.

 

21.3                    Subject
to clause 21.4, the Relevant Sellers undertake that they will not (and
to procure no member of the Sellers’ Group will) for a period of three years
from the Completion Date be directly or indirectly engaged or interested in
carrying on a Coated Graphic Paper Business anywhere in the world.

 

21.4                    Nothing
in this clause 21, shall prevent or restrict in any way the Relevant
Sellers or any other member of the Sellers’ Group from:

 

(i)                                   the
holding of shares in a listed company if the shares do not confer more than 10
per cent. of the votes which could normally be cast at a general meeting of the
company, provided that this sub-clause (i) shall not apply to the
holding of any shares in Sappi;

 

(ii)                                carrying
on anywhere in the world the Sellers’ Business (for the avoidance of doubt,
including, without limitation, paperboard, uncoated graphic paper production,
coated speciality paper, cast coated paper and one-sided coated paper);

 

(iii)                             acquiring
any entity or business which carries on a Coated Graphic Paper Business as it
is carried on at the date of Completion if the acquisition is not made with the
sole or main purpose of acquiring a Coated Graphic Paper Business and the
Coated Graphic Paper Business element of the entity or business to be acquired
does not comprise more than 

 

32

 

30 per cent. of turnover of such entity
or business taken as a whole and represent production of more than 200,000
tonnes per annum; and

 

(iv)                              carrying
on any business contemplated by this Agreement and obligations under agreements
contemplated by this Agreement, provided that the restrictions in the 3 year
period from Completion set out in this clause 21 shall apply to the
Äänekoski PM2 Exclusive Marketing Agreement in the event that agreement is
terminated prior to 3 years from the Completion Date.

 

21.5                    In
the event that a member of the Sellers’ Group acquires an entity or business
which carries on a Coated Graphic Paper Business in excess of the turnover and
production limits set out in clause 21.4(iii), M-real shall be required
to sell or procure the sale of such Coated Graphic Paper Business within six
months of the acquisition thereof and, in respect of such disposal, the
Purchaser shall be granted a right of first refusal to acquire such Coated
Graphic Paper Business provided that any acquisition by the Purchaser shall be
at the same price and on materially similar terms as any third party would be
prepared to agree to.

 

21.6                    The
restrictions in the three year period from Completion set out in this clause
21 shall not apply to restrict:

 

(i)                                   any
business whatsoever carried out by Zanders at its Gohrsmühle Mill or by Hallein
AG at its Hallein Mill in accordance with any of the Transaction Documents in
respect of any production at such mills which is not sold by the Relevant
Purchasers;

 

(ii)                                any
production at the Gohrsmühle Mill or the Hallein Mill in the 4 months following
Completion which is not sold by the Relevant Purchasers; and

 

(iii)                             any
business carried out by the Sellers’ Group which relates to the Excluded SA
Assets.

 

 

22.          NON-SOLICITATION

 

22.1       The
Relevant Sellers undertake to the Relevant Purchasers that they will not, and
shall procure that each member of the Sellers’ Group will not, within 12 months
after the Completion Date solicit or entice away from the employment of any
member of the Group, or engage or employ (directly or indirectly, in any
capacity whatsoever) any Senior Employee (save where such solicitation or
enticement is as a result of an advertisement or advertisements not
specifically targeted at such persons or as a result of an unsolicited approach
to M-real or any other member of the Sellers’ Group from such person).

 

22.2       The
Relevant Purchasers undertake to the Relevant Sellers that they will not, and
shall procure that each member of the Purchaser’s Group will not, within 12
months after the Completion Date solicit or entice away from the employment of
any member of the Sellers’ Group or engage or employ (directly or indirectly,
in any capacity whatsoever) any Senior Employee (save with the Seller’s prior
consent (not to be unreasonably withheld or delayed) or save where such
solicitation or enticement is as a result of an advertisement or advertisements
not specifically targeted at such persons or as a result of an unsolicited
approach to the Purchaser or any other member of the Purchaser’s Group from
such person).

 

33

 

23.                             EMPLOYEES

 

23.1                    The parties anticipate that
mandatory provisions of applicable legislation relating to the transfer of
undertakings will apply to the sale of the Mill Business and the contracts of
employment (and all rights and obligations thereunder including where relevant
pension obligations) of the Business Employees will upon Completion, to the
extent provided for in the said applicable legislation, transfer to the Relevant
Purchasers.

 

23.2                    Subject
to clauses 23.3 and 23.4, and notwithstanding mandatory
provisions of applicable legislation relating to the transfer of undertakings,
if the contract of employment of any Business Employee terminates or is found
or alleged not to have effect after Completion as if made with the Purchaser or
another member of the Purchaser’s Group as a consequence of the sale and
purchase of the Mill Business and other matters contemplated under this
Agreement, the Purchaser and the Relevant Sellers agree that:

 

(i)                                   the
Relevant Purchasers (on behalf of the relevant member of the Purchaser’s
Group), in consultation with the Relevant Sellers, may, within five Business
Days of being so requested by the Relevant Seller, make (or procure that another
member of the Relevant Purchaser’s Group makes) to such a Business Employee an
offer in writing to employ him under a new contract of employment; and

 

(ii)                                the
offer to be made will be such that it is consistent with the terms and
conditions the said Business Employee would have enjoyed had he or she
transferred as originally anticipated under the mandatory provisions of
applicable legislation.

 

23.3                    Without prejudice to clause
23.7, the Relevant Sellers shall indemnify the Relevant Purchasers against any
claim in respect of:

 

(i)                                   the employment of any Business
Employee during the period before the Completion Date;

 

(ii)                                any termination of the
employment of any Business Employee by any member of the Sellers’ Group before
the Completion Date;

 

(iii)                             any failure by any member of the
Sellers’ Group to comply with its obligations under applicable legislation to
provide information or to consult, in connection with the transfer and/or other
matters contemplated by this Agreement, in relation to the Business Employees.

 

23.4                    The
Relevant Purchasers shall indemnify the Relevant Sellers against any claim in
respect of:

 

(i)                                   the
employment of any Business Employee during the period after the Completion Date
including, without limitation, any changes to terms and conditions of
employment by the Relevant Purchaser;

 

(ii)                                subject
to paragraph 23.5, any termination of the employment of any Business
Employee by a Relevant Purchaser after the Completion Date; and

 

(iii)                             any
failure by a Relevant Purchaser to comply with its obligations under applicable
legislation to provide information with respect to the measures, in connection
with the 

 

34

 

transfer, which a Relevant Purchaser
will take, if any, in relation to any Business Employees who will become
employees of the Purchaser’s Group after Completion.

 

23.5                    If for any reason the contract
of employment of any person who is not an Employee is found or alleged to have
effect after the date of this Agreement as if made with a Relevant Purchaser or
another member of the Purchaser’s Group, as a consequence of the sale and
purchase of the Business Assets and other matters contemplated under this
Agreement, the Relevant Purchaser and Relevant Sellers agree that:

 

(i)                                   the
Relevant Sellers will, within 5 Business Days of being so requested by the
Relevant Purchaser, either make to that person an offer in writing to employ
him under a new contract of employment or notify the Relevant Purchaser that it
will not make such an offer; and

 

(ii)                                any
such offer made will be such that none of the terms and conditions of the new
contract will differ from the corresponding terms of that individual’s contract
of employment immediately before Completion.

 

23.6                    Once the offer referred to in clause
23.5 has been made or the Relevant Seller has confirmed that it will not
make any such offer (or after the expiry of five Business Days after it has
been requested), the Relevant Purchaser shall terminate (or procure the
relevant member of the Purchaser’s Group so terminates) the employment of the
person concerned and, so long as notification of that termination is made
within three months of the Relevant Purchaser becoming aware of the finding or
allegation referred to in clause 23.5, the Relevant Sellers will pay to
the Relevant Purchasers such amount as is required to indemnify the Relevant
Purchasers or the relevant member of the Purchaser’s Group against the cost of
that person’s employment, the termination of that employment and any
liabilities or costs relating to that person which transfer to the Relevant
Purchaser or a member of the Purchaser’s Group under applicable
legislation.   The Relevant Purchaser or
member of the Purchaser’s Group shall use all reasonable endeavours to minimise
the cost of terminating such person’s employment as are consistent with local
law.

 

23.7                    All
wages, salaries, incentive payments, holiday pay, and other periodic outgoings
(including any Employment Taxes for which the employer is required to account
in respect of such payments) in respect of the Business Employees to the extent
that they are due and payable (in accordance with the usual practice of the
Graphic Paper Business):

 

(i)                                   on
or before the Completion Date shall be borne by the Relevant Sellers or the
relevant member of the Sellers’ Group; and

 

(ii)                                after
the Completion Date shall be borne by the Relevant Purchasers or the relevant
member of the Purchaser’s Group,

 

provided
that any bonuses (including, for the avoidance of doubt, MIS Payments and
thirteenth cheques) which relate to a period:

 

(a)                               on
or before the Completion Date shall be borne by the Relevant Sellers or the
relevant member of the Sellers’ Group; and

 

(b)                               after
the Completion Date shall be borne by the Relevant Purchasers or the relevant
member of the Purchaser’s Group.

 

35

 

23.8                    For the avoidance of doubt, responsibility for any
Employment Taxes relating to wages, salaries, incentive payments, holiday pay,
other outgoings and bonuses mentioned in clause 23.7 shall be allocated
in accordance with the principles set out in paragraph 3.2 of the Tax
Indemnity.

 

24.                             FURTHER UNDERTAKINGS

 

24.1                    M-real
and Sappi have a definitive plan to sell and transfer the Coaters to Sappi,
subject to and in accordance with applicable legal and contractual requirements
in the relevant jurisdictions, including any applicable labour law requirements
or (in Germany) agreements with works’ council.

 

24.2                    Notwithstanding
clause 24.1, any transfer of the Coaters and the Know-How Business shall
be subject to the following principles:

 

(i)                                   the
Sellers shall (or shall procure that the relevant employing entity shall) take
all lawful steps necessary to ensure that no employee transfers to any member
of the Purchaser’s Group, pursuant to the terms of any legislation relating to
the transfer of undertakings and the acquisition (if any) of the Coaters and/or
the Know-How Business;

 

(ii)                                notwithstanding
clause 24.2(i), and for the avoidance of any doubt, clauses 23.5(i) and
(ii) and 23.6 of this Agreement shall apply to any employee
who transfers, or alleges that he/she transferred, to any member of the
Purchaser’s Group contrary to clause 24.2(i) above (and such
employee shall not be considered to be an “Employee” for the purposes of that
clause).

 

24.3                    With
effect as of the Completion Date, the relevant parties agree to use reasonable
endeavours to terminate any cash pooling arrangement in place prior to
Completion.

 

24.4                    The
parties anticipate that the sale and transfer of the Hallein Coater hereunder
to the Relevant Purchaser will not constitute a transfer of business in terms
of section 38 of the Austrian Company’s Act (Unternehmensgesetzbuch; “UGB”).  If the sale
and transfer of the Hallein Coater hereunder to the Relevant Purchaser should
be found to constitute a transfer of business in terms of section 38 UGB the
parties agree as follows:

 

(i)                                   the
Relevant Purchaser shall not assume any liabilities from Hallein AG under
section 38 UGB resulting from the transfer of the Hallein Coater to the
Relevant Purchaser;

 

(ii)                                the
Relevant Seller shall, to the extent legally permissible, register the
exclusion of liability set forth in sub-clause (i) immediately
after Completion with the competent commercial register or otherwise notify
creditors thereof in accordance with section 38 paragraph 4 UGB. The Relevant
Seller shall indemnify the Relevant Purchaser from any damages resulting out of
or in connection with a breach of the registration/publicity obligations set
forth in this clause 24.4(ii);

 

(iii)                             the
Relevant Seller agrees to pay the Relevant Purchaser an amount equal to the
amount of any liability of Hallein AG for which the Relevant Purchaser is or
becomes liable  by operation
of section 38 UGB.

 

36

 

25.                             SELLERS’ MARKS

 

25.1                    If
any materials are delivered or supplied to the Purchasers under this Agreement
bearing the Sellers’ Marks, the Purchasers are authorised by the Relevant
Sellers to sell or otherwise dispose of those materials or to use that material
for a period of 6 months immediately following Completion.  After the expiry of this period, the Relevant Purchasers shall
immediately destroy or remove or obliterate the Sellers’ Marks from the
materials (including, but without limitation, other materials
sales literature and stationery or buildings, signage or vehicles bearing any
of the Sellers’ Marks).

 

25.2                    Without
prejudice to the trade mark rights of the Sellers’ Group, the Relevant
Purchaser shall procure that for:

 

(i)                                   a
minimum period of three years following Completion; and

 

(ii)                                thereafter
for so long as any member of the Sellers’ Group continues to retain an interest
in the Sellers’ Marks,

 

no member of the Purchaser’s Group
shall use (including, without limitation, use as a domain name or part of a
domain name) any Sellers’ Marks or any confusingly similar name or mark in any
business which competes with the business of the Sellers’ Group.

 

25.3                    The
Relevant Purchasers acknowledge and agree that, subject to clause 26.1,
nothing in this Agreement shall transfer or licence, or shall operate as an
agreement to transfer or licence, any right, title or interest in or to the use
of Sellers’ Marks or any associated logo or device which any member of the
Sellers’ Group owns, or any confusingly similar name or mark.  Following Completion, the Relevant Purchasers
shall not, and shall procure that no member of the Purchaser’s Group shall,
hold itself out as being part of or in any way connected with any Relevant
Seller and/or the Sellers’ Group.

 

26.                             INTELLECTUAL PROPERTY

 

26.1                    If
any of the Group Companies owns after Completion any Intellectual Property or
rights in Business Information which in the year prior to Completion was used
exclusively in the business of the Sellers’ Group, the Relevant Purchasers
shall procure that such Intellectual Property and/or rights in Business
Information are transferred to a company nominated by the Relevant Sellers for
nominal consideration as soon as practicable after becoming aware of the
ownership of such rights.

 

26.2                    If
any of the Sellers’ Group own after Completion any Intellectual Property or
rights in Business Information which in the year prior to Completion was used
exclusively in the business of the Group or the Business (excluding the Sellers’
Marks), the Relevant Sellers shall procure that such Intellectual Property
and/or rights in Business Information are transferred to a company nominated by
the Relevant Purchasers for nominal consideration as soon as practicable after
becoming aware of the ownership of such rights.

 

26.3                    The
Relevant Purchasers hereby grant and shall procure the grant by each relevant
member of the Purchaser’s Group to the Relevant Sellers, with effect from
Completion, a non-exclusive, perpetual, worldwide, assignable (but with no right
to grant sub-licences), royalty-free licence of all Intellectual Property (as
acquired in this transaction, but excluding trade marks, trade names 

 

37

 

and logos except in accordance with clause
26.6) and rights in Business Information owned by the Relevant Purchasers
or a member of the Purchaser’s Group after Completion in so far as such licence
is reasonably necessary for the business of the Sellers’ Group.  For the avoidance of doubt, this excludes Intellectual
Property and rights in Business Information related to coated wood-free paper,
except in accordance with the Transaction Documents.

 

26.4                      The
Relevant Sellers hereby grant, and shall procure the grant by each relevant
member of the Sellers’ Group to the Relevant Purchaser, with effect from
Completion, a non-exclusive, perpetual, worldwide, assignable (but with no
right to grant sub-licences) royalty-free licence of all Intellectual Property
and rights in Business Information owned by the Relevant Sellers or a member of
the Sellers’ Group insofar as such licence is reasonably necessary for the
business of the Companies or the Business (excluding the Sellers’ Marks).

 

26.5                      Each
of the Relevant Purchasers and Relevant Sellers agree that, and the Relevant
Sellers shall procure that, (save for any licences intended to continue in
accordance with the terms of the Transitional Services Agreement) all licences
of any Intellectual Property or rights in Business Information:

 

(i)                                   owned
by any of the Group Companies or to be owned by the Relevant Purchasers or
their nominees pursuant to this Agreement (or any associated Transaction
Documents) and licensed to any member of the Sellers’ Group; or

 

(ii)                                owned
by the Sellers’ Group or to be owned by the Relevant Sellers or their nominees
pursuant to this Agreement (or any associated Transaction Documents) and
licensed to any member of the Purchaser’s Group,

 

(other than licences
granted pursuant to any Transaction Document) terminate at Completion.

 

26.6                      The
Relevant Purchasers agree to grant to each of the Relevant Sellers, with effect
from Completion, non-exclusive, royalty-free licences (with no right to grant
sub-licences) of the:

 

(i)                                   marks
GALERIE VISION and GALERIE
IMAGE for use on board products similar to those currently produced
on the Äänekoski Board Machine by the Seller’s Group for a period of 12 months
following Completion;

 

(ii)                                mark
GALERIE ART on and in relation to the
wood-free coated Äänekoski PM2 Goods produced at the Äänekoski Mill, as that
business was carried on (in terms of scale and scope) at Completion, such goods
to be distributed exclusively through the Relevant Purchasers during the life
of the Äänekoski Transitional Agreement and, post termination of that
agreement, the licence to include the right to offer for sale, distribute and
sell the Äänekoski PM2 Goods;

 

(iii)                             marks
ERA SILK and ERA GLOSS
on and in relation to coated paper products for a transition period, expiring
at such time as the Relevant Purchasers are able to transfer production of this
product to its own paper machines; and

 

(iv)                              mark
ERA on and in relation to uncoated
paper products as currently produced by the Seller’s Group,

 

such licences to be on reasonable
commercial terms and to be executed prior to Completion.

 

38

 

27.                             INSURANCE

 

The Relevant Purchasers acknowledge and
agree that upon Completion all insurance cover provided in relation to the
Business and the assets of the Group pursuant to the Sellers’ Group Insurance
Policies shall cease.

 

28.                             BOOKS AND RECORDS

 

28.1                      On
the Completion Date the Relevant Sellers shall deliver to, or hold to the order
of, the Relevant Purchasers originals of all the Books and Records which
constitute Business Assets excluding:

 

(i)                                   those
Books and Records which any member of the Sellers’ Group is required by law to
retain; and

 

(ii)                                all
Books and Records of the Relevant Sellers which contain legally privileged
information which is confidential to the Sellers,

 

all of which shall be retained by the
Sellers.

 

28.2                      The
Relevant Purchasers acknowledge that the Relevant Sellers will wish to inspect
and/or copy the Books and Records delivered to the Relevant Purchasers under
this Agreement, and the books and records and accounts of the Group Companies,
for the purpose of dealing with any report, return, statement audit, filing or
other requirement under any applicable law or regulation, its Tax affairs or
any third party claim or otherwise required in respect of the Sellers’ Business
and, accordingly, the Relevant Purchasers shall, upon having given reasonable
notice by the Relevant Sellers and subject to the Relevant Sellers giving such
undertaking as to confidentiality as the Relevant Purchasers shall reasonably
require, make such Books and Records, and such books and records and accounts
of the Group Companies, available to the Relevant Sellers (or their
professional advisers) for inspection (during Working Hours) and copying (at
the Relevant Sellers’ expense) in each case only to the extent necessary for
such purpose until the later of:

 

(i)                                   six
years from Completion; or

 

(ii)                                final
settlement with the Tax Authorities of any claims relating to Tax for which the
Sellers might be liable under this Agreement.

 

28.3                      In
respect of any Books and Records not delivered to the Relevant Purchasers or
any accounting or Tax records which contain information which relates in part
(but not exclusively) to the Business or which relate exclusively to the
Business but do not constitute Business Assets, the Relevant Sellers shall,
upon having been given reasonable notice by the Relevant Purchasers or their
agents, make that part of such Books and Records (including accounting or Tax
records which do relate to the Business) available to the Relevant Purchasers
or their agents for inspection (during Working Hours) and copying (at the
Relevant Purchasers expense) for a period of six years from Completion but
excluding any to the extent that they contain legally privileged information
which is confidential to the Relevant Sellers.

 

39

 

29.         SET-OFF

 

Any payment to be made by any party
under this Agreement shall be made in full without any set-off, restriction,
condition or deduction for or on account of any counterclaim.

 

30.         EFFECT OF
COMPLETION

 

Save as otherwise provided herein, any
provision of this Agreement or of any other document referred to herein which
is capable of being performed after but which has not been performed at or
before Completion and all Warranties contained in, or entered into pursuant to,
this Agreement shall remain in full force and effect notwithstanding
Completion.

 

31.         REMEDIES AND
WAIVERS

 

31.1                    Except as provided in Schedule 5,
no delay or omission on the part of either party to this Agreement in
exercising any right, power or remedy provided by law or under this Agreement
or any other documents referred to in it shall impair such right, power or
remedy or operate as a waiver thereof.

 

31.2                    Except as provided in Schedule 5,
the single or partial exercise of any right, power or remedy provided by law or
under this Agreement shall not preclude any other or further exercise thereof
or the exercise of any other right, power or remedy except where expressly
stated herein.

 

31.3                    Except as otherwise expressly provided
in this Agreement, the rights, powers and remedies provided in this Agreement
are cumulative and not exclusive of any rights, powers and remedies provided by
law.

 

32.         ASSIGNMENT

 

32.1                   Obligations under this Agreement shall
not be transferable.

 

32.2                   The benefits of this Agreement shall
not be assignable except that any party may, upon giving written notice to the
others, assign the benefit of this Agreement to a member of the Sellers’ Group
or the Purchaser’s Group, as the case may be, (a “Permitted
Assignee”) provided that such assignment shall be without cost
to, and shall not result in any increased liability, or any reduction in the
rights, of, any of the other parties and further provided that if such
Permitted Assignee shall subsequently cease to be a member of the Purchaser’s
Group or the Sellers’ Group, as the case may be, the original assigning party
shall procure that prior to the Permitted Assignee ceasing to be a member of
the Purchaser’s Group or the Sellers’ Group, as the case may be, it shall
assign so much of the benefit of this Agreement as has been assigned to it to
the party by whom such rights were originally assigned or (upon giving further
written notice to the other parties) to another member of the Purchaser’s Group
or the Sellers’ Group, as the case maybe. 
Any purported assignment in contravention of this clause shall be void.

 

33.         FURTHER
ASSURANCE

 

33.1                   Without prejudice to any restriction or
limitation on the extent of any party’s obligations under this Agreement, and
except in relation to the Business Intellectual Property, each of the parties
shall from time to time so far as each is reasonably able do or procure the
doing of all such acts and/or execute or procure the execution of all such
documents in a form reasonably satisfactory to the 

 

40

 

party concerned as they may reasonably
consider necessary to transfer the Shares and the Business Assets to the
Relevant Purchasers or otherwise to give the other party the full benefit of
this Agreement.

 

33.2                   The Relevant Sellers undertake after
Completion and at the request of the Relevant Purchasers to execute or procure
the execution of all such documents as may reasonably be necessary to secure
the vesting in the Relevant Purchasers (or a member of the Purchaser’s Group)
of the Business Intellectual Property, provided that the Relevant Purchasers
undertake to the Relevant Sellers that they will be responsible for preparing
all such documents and provided further that the Relevant Purchasers shall be
responsible for all costs and expenses in respect of such vesting.

 

34.         ENTIRE
AGREEMENT

 

34.1                   This Agreement and
any other documents entered into pursuant to this Agreement (including, for the
avoidance of doubt, any local transfer agreements) constitute the whole and
only agreement between the parties relating to the sale and purchase of the
Business Assets and the Shares and, save if and only to the extent expressly
repeated in this Agreement, supersedes and extinguishes any prior drafts,
agreements, undertakings, representations, warranties and arrangements of any
nature whatsoever, whether or not in writing, relating thereto.

 

34.2                   Each party
acknowledges that in entering into this Agreement and any other documents
entered into pursuant to this Agreement it is not relying on and has not been
induced to enter into this Agreement or any other such document on the basis of
any Assurance made or given by any other party or any other person, whether or
not in writing, prior to the date hereof, which is not expressly set out in
this Agreement or any other such document or, to the extent that it has been,
it has (in the absence of fraud) no rights or remedies in relation thereto.

 

34.3                   This Agreement may
only be varied by a document signed by each of the parties and expressed to be
a variation to this Agreement.

 

34.4                   To the extent that any provision of any
agreement entered into for the purposes of transferring Business Assets and
Shares located in a particular jurisdiction or country is inconsistent with any
provision of this Agreement, the provisions of this Agreement shall prevail.

 

35.         RIGHTS OF THIRD
PARTIES

 

35.1                   Save as contemplated
by clause 35.2 , the parties to this Agreement do not intend that any
term of this Agreement should be enforceable, by virtue of the Contracts
(Rights of Third Parties) Act 1999, by any person who is not a party to this
Agreement.

 

35.2                   The provisions of clauses
17.6 and 20.4 are intended to be enforceable by each such person by
virtue of the Contracts (Rights of Third Parties) Act 1999.

 

35.3                   This Agreement may be
amended or varied in any way and at any time by the parties to this Agreement
without the consent of any person referred to in clause 35.2.

 

36.         NOTICES

 

36.1                   Any notice or other
communication given or made under or in connection with the matters contemplated
by this Agreement shall be in writing. 
Telexes and faxes are not permitted.

 

41

 

36.2                   Any such notice or
other communication shall be addressed as provided in clause 36.3 and,
if so addressed, shall be deemed to have been duly given or made as follows:

 

(i)                                   if sent by personal delivery, upon
delivery at the address of the relevant party; or

 

(ii)                                if sent by courier, two Business Days
after the date of posting,

 

PROVIDED THAT
any notice or other communication given or made to M-real shall be deemed to be
given or made to each of the other Relevant Sellers and any notice or other
communication given or made to Sappi shall be deemed to be given or made to the
other Relevant Purchasers and
if, in accordance with the above provisions, any such notice or other
communication would otherwise be deemed to be given or made outside Working
Hours, such notice or other communication shall be deemed to be given or made
at the start of Working Hours on the next Business Day.

 

36.3                   The relevant addressee and address of
each party for the purposes of this Agreement, subject to clause 36.4,
are:

 

	
  Name of Party

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  
	
  M-real Corporation  

   

  For the attn. of: Matti Mörsky with a
  copy to Esa Kaikkonen

  	
   

  	
  Revontulentie 6 

  02100 Espoo, 

  Finland 

   

  P.O. Box 20, 

  FIN-02020 Metsä, 

  Finland

   

  
	
  Sappi Limited  

   

  For the attn of: Robert Hope with a
  copy to Ria Sanz

  	
   

  	
  Sappi House 

  48 Ameshoff Street 

  Braamfontein 

  Johannesburg 

  South Africa

  

 

36.4                   A party may notify
any other party to this Agreement of a change to its name, relevant addressee
or address for the purposes of clause 36.3 PROVIDED THAT such
notification shall only be effective on:

 

(i)                                 the date specified in the notification
as the date on which the change is to take place; or

 

(ii)                              if no date is specified or the date
specified is less than five  Business
Days after the date on which notice is given, the date falling five Business
Days after notice of any such change has been given.

 

36.5                   For the avoidance of
doubt, the parties agree that the provisions of this clause 36 shall not
apply in relation to the service of any written, summons, order, judgment or
other document relating to or in connection with any Proceedings.

 

42

 

37.         ANNOUNCEMENTS

 

37.1                   Subject to clause
37.2, no announcement concerning the sale or purchase of the Shares and the
Business Assets or any ancillary matter (other than the Sappi Circular and the
Press Announcements and the announcement by Sappi of the outcome of the
extraordinary general meeting to which the Sappi Circular relates) shall be
made by any party without the prior written approval of each other party, such
approval not to be unreasonably withheld or delayed.

 

37.2                   Any party may make an
announcement concerning the sale or purchase of the Shares and the Business
Assets or any ancillary matter if required by:

 

(i)                                the law of any relevant jurisdiction;

 

(ii)                             any securities exchange or regulatory
or governmental body to which any party is subject or submits, wherever
situated (including, without limitation, the Finnish Stock Exchange, the JSE,
the UK Listing Authority, the London Stock Exchange, the European Commission,
any Competition Authority and any Tax Authority), whether or not the
requirement has the force of law,

 

in which case the party concerned shall
take all such steps as may be reasonable and practicable in the circumstances
to agree the contents of such announcement with the other party before making
such announcement and PROVIDED THAT any such announcement shall be made only
after notice to each other party.

 

37.3                   The restrictions
contained in this clause 37 shall continue to apply after the
termination of this Agreement without limit in time.

 

38.         CONFIDENTIALITY

 

38.1                   Without prejudice to the
Confidentiality Agreement and subject to clause 38.2 and clause 37,
each party shall treat as strictly confidential all information received or
obtained as a result of entering into or performing this Agreement which
relates to:

 

(i)                                 the provisions or the subject matter of
this Agreement or any document referred to herein;

 

(ii)                              the negotiations relating to this
Agreement or any document referred to herein;

 

(iii)                          (in the case of the Relevant
Purchasers) the Sellers’ Group, (in the case of the Relevant Sellers only) the
Purchaser’s Group and the business carried on by each member of each of them
respectively.

 

38.2                   Any party may
disclose information which would otherwise be confidential if and to the
extent:

 

(i)                                 required by the law of any relevant
jurisdiction or for the purpose of any judicial proceedings;

 

(ii)                              required by any securities exchange or
regulatory or governmental body to which any party is subject or submits,
wherever situated, including (without limitation) the Finnish Stock Exchange,
the JSE, the UK Listing Authority, the London Stock Exchange, the 

 

43

 

European
Commission, any Competition Authority and any Tax Authority, whether or not the
requirement for information has the force of law;

 

(iii)                          that the information is disclosed on a
strictly confidential basis to the professional advisers, auditors and/or
bankers of that party;

 

(iv)                         that the information has come into the
public domain through no fault of that party;

 

(v)                            that the other party has given prior
written approval to the disclosure, such approval not to be unreasonably
withheld or delayed;

 

(vi)                          it does so to a member of the Sellers’
Group (in the case of the Relevant Sellers) or a member of the Purchaser’s
Group (in the case of the Relevant Purchasers) which accepts restrictions in
the terms of this clause; or

 

(vii)                      required to enable that party to
enforce its rights under this Agreement,

 

PROVIDED THAT any
such information disclosed pursuant to paragraphs (i) or (ii) shall
be disclosed only after notice to the other party.

 

38.3                   Confidential
information shall only be used for the purposes of the negotiations or
performance of obligations under this Agreement and not for any other purpose
whatsoever.

 

38.4                   Confidential
information which may reasonably be considered as competitively sensitive shall
only be exchanged subject to strict confidentiality rules so as to ensure
that such exchange is in full compliance of anti-trust laws including for the
avoidance of doubt Article 81 EC.  Without prejudice to the generality of the
foregoing, exchanges of competitively sensitive information may be restricted
where appropriate only to external advisors on an external counsel basis.

 

38.5                   The restrictions
contained in this clause shall continue to apply after the termination of this
Agreement without limit in time.

 

39.         COSTS AND
EXPENSES

 

39.1                   Save as otherwise
stated in this clause 39 and in any other provision of this Agreement,
M-real and Sappi shall pay their own costs and expenses in relation to the
negotiations leading up to the sale of the Shares and the Business Assets and
to the preparation, execution and carrying into effect of this Agreement and
all other documents entered into pursuant to it.

 

39.2                   Subject to a maximum payment of €1,000,000
by Sappi, Sappi agrees that it shall bear 50 per cent. of the costs of
PricewaterhouseCoopers in relation to the preparation of the Carve-Out
Accounts.

 

39.3                   Without prejudice to clause
39.1, and notwithstanding the provisions of Schedule 14, all merger
control authority costs, stamp, transfer (including property transfer taxes),
registration, and other similar taxes, duties and charges (including, for the
avoidance of doubt, stamp duty pursuant to the Austrian Stamp Duty Act (Gebührengesetz) as interpreted under the Stamp Duty
Guidelines of the Austrian Ministry of Finance (Gebührenrichtlinien)),
costs and all notarial fees payable in connection with the sale or purchase of
the Shares, and the Business Assets under this Agreement and all other documents
entered into pursuant to it (including, for the avoidance of 

 

44

 

doubt, any
issue or transfer of the Vendor Loans, the Consideration Shares or provision of
the M-real Vendor Loan Note in accordance with this Agreement) shall be paid by
the Relevant Purchasers (or the relevant Group Companies, as the case may be)
and shall not be recoverable from the Sellers under any provision of this
Agreement (including, without limitation, any provision of Schedule 14).

 

40.         INDUCEMENT FEE

 

If Completion does not occur only
because of a failure to satisfy the conditions set out in paragraph 2 of
Schedule 2, the Purchaser shall by way of compensation pay or procure
the payment to M-real of a sum of €2,000,000 (the “Inducement
Fee”).

 

41.         COUNTERPARTS

 

41.1                   This Agreement may be
executed in any number of counterparts, and by the parties on separate
counterparts, but shall not be effective until each party has executed at least
one counterpart.

 

41.2                   Each counterpart shall
constitute an original of this Agreement, but all the counterparts shall
together constitute but one and the same instrument.

 

42.         INVALIDITY

 

If at any time any
provision of this Agreement is or becomes illegal, invalid or unenforceable in
any respect under the law of any jurisdiction, that shall not affect or impair:

 

(i)                                the legality, validity or
enforceability in that jurisdiction of any other provision of this Agreement;
or

 

(ii)                             the legality, validity or
enforceability under the law of any other jurisdiction of that or any other
provision of this Agreement.

 

43.         HUSUM
PM8 COATER CALL OPTION

 

43.1                   Subject to clause 43.2, the
Relevant Purchasers shall have an option (the “Option”)
of purchasing the Husum PM8 Coater from the Relevant Seller for the amount in clause
43.2 below (together in each case with an amount equal to any VAT properly
chargeable in connection therewith, against delivery of an appropriate VAT
invoice) (the “Purchase Price”) on the terms and
subject to this clause 43.

 

43.2                   Without prejudice to clause 43.8,
the Purchase Price shall be adjusted in the following situations:

 

(i)                                 if
Sappi exercises the Option in the period following six months from the
Completion Date but before the end of the period ending 27 months after the
Completion Date, the Purchase Price shall be €20,000,000;

 

(ii)                              if
Sappi exercises the Option in the period after 27 months from the Completion
Date to 31 September, 2011 (inclusive) the Purchase Price shall be €49,000,000;

 

(iii)                          if
Sappi exercises the Option in the period from and including 1st October 2011 to and including 31 December 2011,
the Purchase Price shall be €48,000,000; and

 

45

 

(iv)                           if
Sappi exercises the Option after 31 December, 2011 the Purchase Price as
reduced  pursuant to paragraph (iii) above,
shall further be reduced by an amount of €325,000 per month (and pro rata for
any part thereof)starting with the month commencing 1 January, 2012.

 

43.3                   The duration of the Option will lapse
upon the expiry of five years following the Completion Date and is exercisable
in whole but not in part by notice in writing from the Relevant Purchaser to
the Relevant Seller given at any time during the period from and including the
date on which the Relevant Sellers notify the Relevant Purchasers of a proposed
sale, transfer or disposition of Husum Mill’s PM8 to a third party (the “Third Party”) (which notification shall be given promptly
upon indicative terms to sell Husum Mill’s PM8 having been discussed with the
Third Party) to and including the date falling thirty days thereafter.

 

43.4                   Upon exercise of the Option, the sale
and purchase of the Husum PM8 Coater shall be conditional upon the completion
of the sale of Husum Mill’s PM8 to the Third Party whereupon (subject to clause
43.6 below) the Relevant Seller shall, subject to obtaining any security it
reasonably requires in relation to any deferred consideration in respect of the
sale, sell, or procure the sale, and the Relevant Purchaser shall purchase, or
procure the purchase, of the Husum PM8 Coater.

 

43.5                   The consideration for the sale and
purchase of the Husum PM8 Coater shall be paid not later than 27 months
following Completion unless the provisions of clause 43.8 apply in which
event the consideration shall be paid on the completion of the sale referred to
in that clause if earlier. Upon the transfer of the Husum PM8 Coater the
Relevant Seller shall deliver to the Relevant Purchaser duly executed transfers
in respect of the Husum PM8 Coater, together with the relevant certificates or
other documents of title.

 

43.6                   Upon exercise of the Option the
Relevant Seller shall sell the Husum PM8 Coater with full title guarantee, free
from encumbrances and with all rights then or subsequently attaching to it and
the Relevant Seller shall execute and deliver other documents and take other
steps at the reasonable request and cost of the Relevant Purchaser following
completion where this is required to vest the Husum PM8 Coater in the Relevant
Purchaser and otherwise to give it the full benefit of this clause 43.
While the Option remains exercisable, then save as arising by operation of law
in the ordinary course of business, the Relevant Seller shall not encumber or
dispose of the Husum PM8 Coater or any interest in it except in accordance with
this clause 43.

 

43.7                   The Relevant Seller undertakes not to
agree to sell, transfer or otherwise dispose of all or any part of the Husum
Mill or the Husum Mill’s PM8 in the first six months following Completion.

 

43.8                   If Sappi sells the Husum PM8 Coater
within a year of completing the sale and purchase thereof, M-real shall be
entitled to 50 per cent. of the excess of the sale proceeds over and above the
Purchase Price (plus any costs associated with the sale and purchase) paid by
the Relevant Purchaser for the Husum PM8 Coater.

 

44.         SOUTH AFRICA
OPTION

 

44.1                   The Relevant Purchaser shall have an
option to purchase the Excluded SA Assets and the SA Customer Lists from the
Relevant Seller (the “SA Option”) and
the Relevant Sellers shall have the right to require that the Relevant
Purchasers purchase the Excluded SA Assets and the SA 

 

46

 

Customer Lists from the Relevant Seller
(the “SA Put”), in each case on the terms of
this clause 44.

 

44.2                   The SA Option or the SA Put may be
exercised by the relevant party at any time following the thirtieth Business
Day after Completion.

 

44.3                   Consideration payable by the Relevant
Purchaser to the Relevant Seller upon completion of the SA Option or the SA Put,
as the case may be, shall be €983,754 (together with an amount equal to any VAT
properly chargeable in connection therewith, against delivery of an appropriate
VAT invoice).

 

44.4                   The SA Option and the SA Put shall be
exercisable in whole but not in part by notice in writing from the Relevant
Purchaser to the Relevant Seller (in the case of the SA Option) or from the
Relevant Seller to the Relevant Purchaser (in the case of the SA Put) and once
exercised, completion of the SA Option or the SA Put, as the case may be, shall
be conditional only upon receipt of any necessary regulatory approvals and
clearances.

 

44.5                   Upon exercise of the SA Option or the
SA Put, as the case may be, the transfer of the Excluded SA Assets and the SA
Customer Lists shall take place mutatis mutandis
on the terms of this Agreement and the Relevant Seller shall execute and
deliver such documents and take such steps at the reasonable request and cost
of the Relevant Purchaser following Completion where this is required to vest
the Excluded SA Assets and the SA Customer Lists in the Relevant Purchaser and
otherwise to give it the full benefit of this clause 44.

 

44.6                   Other than in the ordinary course of
business, the Relevant Seller shall not encumber or dispose of the Excluded SA
Assets and the SA Customer Lists or any interest in any of them except in
accordance with this clause 44.

 

45.         KANGAS PROPERTY
OPTION

 

45.1                   In consideration of the payment by
M-real to Sappi of €1, Sappi grants to M-real the option to acquire the Kangas
Property in the event of a permanent cessation of manufacturing paper at the
Kangas Mill (a “Permanent Cessation”) for a
purchase price and subject to the terms and conditions of this clause 45
and subject to terms and conditions of any property transfer deed to be entered
into by the parties (the “Kangas Property Option”).

 

45.2                   Sappi shall serve notice on M-real
of the Permanent Cessation as soon as reasonably practicable after the
cessation, however not later than within three months after the Permanent Cessation.
At any time
thereafter, M-real may serve notice on Sappi indicating that M-real desires to
exercise the Kangas Property Option.

 

45.3                   Should M-real serve notice pursuant
to clause 45.2 to exercise the Kangas Property Option for the purpose of
acquiring the Kangas Property for further commercial or industrial use, the
purchase price to be paid by M-real for the Kangas Property shall be the
average of the three separate and independent valuations of the Kangas Property
as outlined below (together
with an amount equal to any VAT properly chargeable in connection therewith,
against delivery of an appropriate VAT invoice). M-real and Sappi agree that for the
purpose of ascertaining the purchase price to be paid for the Kangas Property
each party will carry out the following valuations (each of which shall be
addressed to M-real and Sappi in accordance with the details 

 

47

 

set out in clause 36) within
20 Business Days of the notice served by M-real pursuant to clause 45.2:

 

(i)                                 Sappi shall commission two separate and independent
valuations of the Kangas Property; and

 

(ii)                              M-real shall commission one independent valuation of
the Kangas Property,

 

provided that in each case the
valuation shall be carried out with reference to use of the Kangas Property for
commercial or industrial use.

 

45.4                   Once the purchase price is
determined pursuant to clause 45.3, the transfer of the Kangas Property
shall be completed within 30 Business Days of this determination.

 

45.5                   If the Kangas Property Option is
exercised and the transfer of the Kangas Property completed pursuant to clauses
45.3 and 45.4, M-real agrees that if it should redevelop the Kangas
Property or any part of it  for
residential purposes within five years from the date of acquiring it, Sappi
shall be entitled to receive an equal share of any redevelopment profits less,
for the avoidance of doubt, the sum paid by M-real to acquire the Kangas
Property (plus interest at the Agreed Rate thereon), payable within one month
of the redeveloped site being disposed of by way of sale, lease or licence as a
whole or in parts.

 

45.6      Should M-real exercise the Kangas
Property Option for the purpose of redeveloping the Kangas Property for
non-industrial use, Sappi shall be entitled to:

 

(i)                                receive
the book value of the Kangas Property (as at the Completion Date); and

 

(ii)                             upon
the redevelopment of the Kangas Property or any part of it by M-real for
non-industrial use, an equal share in any redevelopment profits less, for the
avoidance of doubt, the sum paid by M-real to acquire the Kangas Property (plus
interest at the Agreed Rate thereon), payable within one month of the
redeveloped site being disposed of by way of sale, lease or licence as a whole
or in parts,

 

and
the transfer of the Kangas Property shall be completed within 30 Business Days
of the notice served pursuant to clause 45.2. M-real and Sappi agree
that they shall in good faith discuss how best to enforce the transfer of the
Kangas Property.

 

45.7                   M-real and Sappi shall discuss in good
faith what constitutes redevelopment profits for the purposes of clauses
45.5 or 45.6(ii) in the event of any such residential
redevelopment and shall if necessary employ the services of an independent
expert to help them determine the same.

 

45.8                   Sappi acknowledges that M-real is
entering into this Agreement in reliance on the Kangas Property Option in the
event a Permanent Cessation occurs. Notwithstanding Schedule 5 of this
Agreement, M-real and Sappi acknowledge and agree that in the event Sappi would
be in breach of its obligation to transfer the Kangas Property to M-real as set
out in this clause 45, Sappi shall indemnify and hold M-real harmless
against all damage, loss, liability or expense (including, without limitation,
reasonable expenses of investigation and attorneys’ fees) suffered by M-real as
a result of the breach of the Kangas Property Option. Any such compensation shall also fully reflect the difference as at the
date set out in clause 45.2 between:

 

48

 

(i)            the value of M-real’s share
of the anticipated redevelopment profits taking into account any relevant
breach and considering such facts and circumstances as may have been relevant
to the determination of the value of the Kangas Property Option for M-real; and

 

(ii)           the book value of the Kangas Property.

 

45.9       Any amounts due under clause 45.8
shall be payable by Sappi to M-real within one month following M-real’s demand
and shall be placed in immediately available funds at a bank account nominated
by M-real.

 

46.          GUARANTEE

 

46.1       M-real’s
Guarantee

 

(i)            M-real
unconditionally and irrevocably guarantees to the Relevant Purchasers (to the
extent they are a beneficiary of an obligation of a Relevant Seller) the due
and punctual performance and observance by each of the Relevant Sellers of all
their obligations, commitments, undertakings, Warranties and indemnities under
or pursuant to this Agreement and the Transaction Documents (the “Sellers’ Guaranteed Obligations”) , to the extent of any
limit on the liability of M-real and the Relevant Sellers under this Agreement.

 

(ii)           If
and whenever any of the Relevant Sellers defaults for any reason whatsoever in
the performance of any of the Sellers’ Guaranteed Obligations, M-real shall
forthwith upon demand unconditionally perform (or procure performance of) and
satisfy (or procure the satisfaction of) the Sellers’ Guaranteed Obligations in
regard to which such default has been made in the manner prescribed by this
Agreement and under any Transaction Document and so that the same benefits
shall be conferred on the Relevant Purchasers as they would have received if
the Sellers’ Guaranteed Obligations had been duly performed and satisfied by
the Relevant Sellers.

 

(iii)          This
guarantee is to be a continuing guarantee and accordingly is to remain in force
until all Sellers’ Guaranteed Obligations shall have been performed or
satisfied. This guarantee is in addition to and without prejudice to and not in
substitution for any rights or security which the Relevant Purchasers may now
or hereafter have or hold for the performance and observance of the Sellers’
Guaranteed Obligations.

 

(iv)           As
a separate and independent obligation, M-real agrees that any of the Sellers’
Guaranteed Obligations (including, without limitation, any moneys payable)
which may not be enforceable against or recoverable from any of the Relevant
Sellers by reason of any legal limitation, disability or incapacity on or of
any of the Relevant Sellers or any other fact or circumstances (other than any
limitation imposed by this Agreement or under any Transaction Document) shall
nevertheless be enforceable against and recoverable from M-real as though the
same had been incurred by M-real and M-real was the sole or principal obligor
in respect thereof and shall be performed or paid by M-real on demand.

 

(v)            The
liability of M-real under this clause 46.1:

 

49

 

(a)           shall not be released or diminished by
any variation of the Sellers’ Guaranteed Obligations or any forbearance,
neglect or delay in seeking performance of the Sellers’ Guaranteed Obligations
or any granting of time for such performance; and

 

(b)           shall not be affected or impaired by
reason of any other fact or event which in the absence of this provision would
or might constitute or afford a legal or equitable discharge or release or a
defence to a guarantor.

 

46.2       The
Sappi’s Guarantee

 

(i)            Sappi
unconditionally and irrevocably guarantees to the Relevant Sellers the due and
punctual performance and observance by each of the Relevant Purchasers of all
their obligations, commitments, undertakings, warranties and indemnities under
or pursuant to this Agreement and any Transaction Document (the “Purchasers’ Guaranteed Obligations”) to the extent of any
limit on the liability of Sappi and the Relevant Purchasers under this
Agreement or any Transaction Document.

 

(ii)           If
and whenever any of the Relevant Purchasers defaults for any reason whatsoever
in the performance of any of the Purchasers’ Guaranteed Obligations, the Sappi
shall forthwith upon demand unconditionally perform (or procure performance of)
and satisfy (or procure the satisfaction of) the Purchasers’ Guaranteed
Obligations in regard to which such default has been made in the manner
prescribed by this Agreement or any Transaction Document and so that the same
benefits shall be conferred on the Relevant Sellers as they would have received
if the Purchasers’ Guaranteed Obligations had been duly performed and satisfied
by the Relevant Purchaser.

 

(iii)          This
guarantee is to be a continuing guarantee and accordingly is to remain in force
until all the Purchasers’ Guaranteed Obligations shall have been performed or
satisfied. This guarantee is in addition to and without prejudice to and not in
substitution for any rights or security which the Relevant Sellers may now or
hereafter have or hold for the performance and observance of the Purchasers’
Guaranteed Obligations.

 

(iv)           As
a separate and independent obligation the Sappi agrees that any of the
Purchasers’ Guaranteed Obligations (including, without limitation, any moneys
payable) which may not be enforceable against or recoverable from any of the
Relevant Purchasers by reason of any legal limitation, disability or incapacity
on or of any of the Relevant Purchasers or any other fact or circumstances
(other than any limitation imposed by this Agreement or any Transaction
Document) shall nevertheless be enforceable against and recoverable from Sappi
as though the same had been incurred by Sappi and Sappi were the sole or
principal obligor in respect thereof and shall be performed or paid by Sappi on
demand.

 

(v)            The
liability of Sappi under this clause 46.2:

 

(a)           shall not be released or diminished by
any variation of the Purchasers’ Guaranteed Obligations or any forbearance,
neglect or delay in seeking performance of the Purchasers’ Guaranteed
Obligations or any granting of time for such performance; and

 

50

 

(b)           shall not be affected or impaired by
reason of any other fact or event which in the absence of this provision would
or might constitute or afford a legal or equitable discharge or release or a
defence to a guarantor.

 

47.          INDEMNITIES ON AN AFTER-TAX BASIS

 

47.1       All
references in this agreement to “indemnify” and “indemnifying” shall be
construed as references to “indemnify” and “indemnifying” on an after-Tax
basis.

 

47.2       For
the purposes of clause 47.1, “after-Tax basis” means that to the extent
that the amount payable pursuant to such indemnity (the “Payment”)
is subject to a deduction or withholding required by law in respect of Tax or
is chargeable to any Tax in the hands of the recipient it shall be increased so
as to ensure that, after taking into account:

 

(i)            the Tax chargeable on such amount
(including on the increased amount); and

 

(ii)           any Tax credit, repayment or other Tax
benefit which is available to the indemnified party or the recipient of the
Payment solely as a result of the matter giving rise to the Payment Obligation
or as a result of receiving the Payment (which amount of Tax and Tax credit,
repayment or other Tax benefit is to be determined by the auditors of the
recipient at the shared expense of both parties and is to be certified as such
to the party making the Payment),

 

the recipient of the Payment is in the
same position as it would have been in if the matter giving rise to the
obligation to make the Payment had not occurred.

 

47.3       If
any party to this Agreement assigns the benefit in whole or in part of this
Agreement, the liability of any other party to make an increased payment in
accordance with clause 47.2 shall be limited to that (if any) which it
would have been liable to make if no such assignment had taken place.

 

48.          LANGUAGE

 

48.1       Each
notice, demand, request, statement, instrument, certificate, or other
communication under or in connection with this Agreement shall be:

 

(i)            in
English; or

 

(ii)           if
not in English, accompanied by an English translation made by a translator, and
certified by an officer of the party giving the notice to be accurate.

 

48.2       The
receiving party shall be entitled to assume the accuracy of and rely upon any
English translation of any document provided pursuant to clause 48.1(ii).

 

49.          GOVERNING LAW

 

This Agreement
shall be governed by and construed in accordance with English law.

 

51

 

50.          JURISDICTION

 

50.1       Each of the parties to this Agreement
irrevocably agrees that the courts of England are to have exclusive
jurisdiction to settle any disputes which may arise out of or in connection
with this Agreement and that accordingly any Proceedings may only be brought in
such courts.

 

50.2       Each party irrevocably waives (and
irrevocably agrees not to raise) any objection which it may have now or
hereafter to the laying of the venue of any proceedings in any such court as is
referred to in clause 50.1 and any claim of forum non
conveniens and further irrevocably agrees that a judgment in any
Proceedings brought in any court referred to in this clause shall (provided that
there is no appeal pending or open) be conclusive and binding upon such party.

 

51.          AGENTS FOR SERVICE

 

51.1       The Relevant Purchasers irrevocably
agree that any notice or document may be sufficiently and effectively served on
them in connection with Proceedings in England and Wales by service on Sappi
(UK) Limited, Blackburn Mill, Feniscowles, Blackburn, Lancashire BB2 5HX, if no
replacement agent has been appointed and notified to the Relevant Sellers
pursuant to clause 51.2 below, or on the replacement agent if one has
been so appointed and notified to the Relevant Sellers. Any notice or document
served pursuant to this clause 51.1 shall be marked for the attention
of:

 

(i)            Mr Willy Heckers or such other address within England or
Wales as may be notified to the Relevant Sellers by the Relevant Purchasers; or

 

(ii)           such
other person as is appointed as agent for service pursuant to clause 51.2
below at the address notified pursuant to clause 51.2 below.

 

51.2       If the agent referred to in clause
51.1 above (or any replacement agent appointed pursuant to this clause) at
any time ceases for any reason to act as such, the Relevant Purchasers shall
appoint a replacement agent to accept service having an address for service in
England or Wales and shall notify the Relevant Sellers of the name and address
of the replacement agent; failing such appointment and notification, the
Relevant Sellers shall be entitled by notice to the Relevant Purchaser to
appoint such a replacement agent to act on the Relevant Purchasers behalf
PROVIDED THAT in cases where service is effected upon a replacement agent
appointed by the Relevant Sellers in accordance with this clause 51.2 a
copy of the relevant notice or document shall at the same time be forwarded to
the last known business address of the Relevant Purchasers.

 

51.3       Each of the Relevant Sellers
irrevocably agree that any notice or document may be sufficiently and
effectively served on them in connection with Proceedings in England and Wales
by service on the Company Secretary of M-real UK Services Limited,
Sittingbourne, Kent, ME10 3ET, if no replacement agent has been appointed and
notified to the Purchase pursuant to clause 51.4 below, or on the
replacement agent if one has been so appointed and notified to the Purchaser.
Any notice or document served pursuant to this clause 51.3 shall be
marked for the attention of:

 

(i)            Mr David Scudder or such other address within England or
Wales as may be notified to the Relevant Purchasers by the Relevant Sellers; or

 

52

 

(ii)           such other person as is appointed as agent for service
pursuant to clause 51.4 below at the address notified pursuant to clause
51.4 below.

 

51.4       If the agent referred to in clause
51.3 above (or any replacement agent appointed pursuant to this clause) at
any time ceases for any reason to act as such, the Relevant Sellers shall
appoint a replacement agent to accept service having an address for service in
England or Wales and shall notify the Relevant Purchasers of the name and
address of the replacement agent; failing such appointment and notification,
the Relevant Purchasers shall be entitled by notice to the Relevant Sellers to
appoint such a replacement agent to act on the Relevant Sellers behalf PROVIDED
THAT in cases where service is effected upon a replacement agent appointed by
the Relevant Purchasers in accordance with this clause 51.4 a copy of
the relevant notice or document shall at the same time be forwarded to the last
known business address of the Relevant Sellers.

 

51.5       The
agent for the receipt of service of process of a party referred to in this clause
51 as that party’s “Process Agent”.

 

51.6       Any Service Document shall be deemed to
have been duly served on a party if marked for the attention of that party’s
Process Agent at the addresses specified in clauses 51.1 and 51.3
or in accordance with clauses 51.2 and 51.4 and:

 

(i)            left at the specified or last known business address (as the
case may be); or

 

(ii)           sent
to the specified or last known business address (as the case may be) by first
class post or air mail.

 

In the case of (i), the Service
Document shall be deemed to have been duly served when it is left. In the case
of (ii), the Service Document shall be deemed to have been served two clear
Business Days after the date of posting.

 

53

 

SCHEDULE 1

 

(INTERPRETATION)

 

1.    In this Agreement and the Schedules to it:

 

	
  “Äänekoski Board Machine”

  	
   

  	
  Means
  the paper machine referred to as the Äänekoski board machine located at M-real’s Äänekoski Mill in Finland;

  
	
   

  	
   

  	
   

  
	
  “Äänekoski Mill”

  	
   

  	
  means
  the paper mill operated by M-real at 44101 Äänekoski, Finland;

  
	
   

  	
   

  	
   

  
	
  “Äänekoski
  Mill’s PM2”

  	
   

  	
  means
  the paper machine referred to as “PM2” located at M-real’s Äänekoski
  Mill in Finland;

  
	
   

  	
   

  	
   

  
	
  “Äänekoski
  PM2 Goods”

  	
   

  	
  Means
  the coated graphics paper products produced on Äänekoski
  Mill’s PM2 as at the date of Completion;

  
	
   

  	
   

  	
   

  
	
  “Äänekoski PM2 Exclusive Marketing Agreement”

  	
   

  	
  means
  the agreement in the Agreed Form listed as Attachment 16 to this
  Agreement to be entered into between M-real and Sappi Europe SA on
  Completion;

  
	
   

  	
   

  	
   

  
	
  “Äänekoski Transitional Agreement”

  	
   

  	
  means
  the transitional agreement between Sappi Europe S.A. and M-Real Corporation
  relating to the Äänekoski Mill;

  
	
   

  	
   

  	
   

  
	
  “Accounting Principles and Policies”

  	
   

  	
  means
  the accounting practices of M-real as consistently applied and M-real’s IFRS
  based accounting policies, principles, bases and methodologies;

  
	
   

  	
   

  	
   

  
	
  “Account”

  	
   

  	
  has
  the meaning given to it in clause 11.2(iii);

  
	
   

  	
   

  	
   

  
	
  “Accounts”

  	
   

  	
  means
  in respect of each member of the Group, the audited statutory accounts of
  that member of the Group for the accounting period ended on the Statutory
  Accounts Date and drawn up in accordance with generally accepted accounting
  principles applicable to that member of the Group;

  
	
   

  	
   

  	
   

  
	
  “Accounts Date”

  	
   

  	
  means 30 June, 2008;

  
	
   

  	
   

  	
   

  
	
  “Adjustment Payment”

  	
   

  	
  has the meaning given to it Schedule
  6;

  
	
   

  	
   

  	
   

  
	
  “Agreed Form”

  	
   

  	
  in relation to any document means
  such document in the form initialled for the purposes of identification only
  by and on behalf of the Relevant Purchasers and the Relevant Sellers;

  
	
   

  	
   

  	
   

  
	
  “Agreed Rate”

  	
   

  	
  means 1.5 per cent. above the base
  rate from time to time of the European Central Bank;

  
	
   

  	
   

  	
   

  
	
  “Assumed Liabilities”

  	
   

  	
  has the meaning given to it in clause
  15.2;

  
	
   

  	
   

  	
   

  
	
  “Assurance”

  	
   

  	
  means any warranty,
  representation, statement, assurance, covenant, agreement, undertaking,
  indemnity, guarantee or commitment of any nature whatsoever;

  
	
   

  	
   

  	
   

  
	
  “Biberist”

  	
   

  	
  means M-real Biberist, a company
  incorporated in Switzerland with registered number CH-251.3.000.460-7 and
  whose registered office is at Fabrikstrasse 4, CH 4562, Biberist, 

  

 

54

 

	
   

  	
   

  	
  Switzerland;

  
	
   

  	
   

  	
   

  
	
  “Biberist Mill”

  	
   

  	
  means the paper mill operated by
  Biberist at Fabrikstrasse 4, CH-4562 Biberist, Switzerland;

  
	
   

  	
   

  	
   

  
	
  “Biberist Retained Earnings”

  	
   

  	
  has the meaning given to it in clause
  19.8;

  
	
   

  	
   

  	
   

  
	
  “Biberist Shares”

  	
   

  	
  means the shares of CHF 1,000 each
  representing the entire issued share
  capital of Biberist details of which are set out in Schedule 8;

  
	
   

  	
   

  	
   

  
	
  “Books and Records”

  	
   

  	
  means all books and records
  containing Business Information to the extent relating to the Mill Business,
  the Coaters and the Know-How Business or on which any Business Information
  relating to the Mill Business, the Coaters and the Know-How Business is
  recorded, including, without limitation, all documents and other material
  (including all forms of computer or machine readable material);

  
	
   

  	
   

  	
   

  
	
  “Business”

  	
   

  	
  means the business comprising the
  Business Assets;

  
	
   

  	
   

  	
   

  
	
  “Business Assets”

  	
   

  	
  means those assets set out in clause
  2.1(i) – (x) of this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Business Contracts”

  	
   

  	
  means:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)            all the contracts, arrangements,
  undertakings, agreements and engagements entered into on or prior to
  Completion by or on behalf of any of the Relevant Sellers relating
  exclusively or predominantly to the Mill Business (including the Energy Plant
  Contracts to the extent they are transferred pursuant to clause 14.9
  of this Agreement) or relating in part to the Mill Business, (but then only
  to the extent that the same do so relate) to which M-real or another member
  of the Sellers’ Group is (itself or through an agent) a party or the benefit
  of which is held in trust for or has been assigned to M-real or the relevant
  member of the Sellers’ Group as at Completion; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)           the order books relating exclusively
  to the Coaters and the Know-How Business,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  but excluding:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a)          any employment contract of any
  Business Employee; and  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (b)          any contract the benefit of which
  is to be used by any member of the Sellers’ Group

  

 

55

 

	
   

  	
   

  	
  to provide services under the
  Transaction Documents;

  
	
   

  	
   

  	
   

  
	
  “Business Days”

  	
   

  	
  means a day (other than a Saturday
  or a Sunday) on which banks are open for business in Frankfurt am Main,
  Helsinki, Johannesburg, London and Zurich (other than solely trading or
  settlement in Euros);

  
	
   

  	
   

  	
   

  
	
  “Business Employees”

  	
   

  	
  means the employees that are
  predominantly engaged in the Mill Business as set out in Attachment 8
  to this Agreement, subject to changes in the ordinary course among such individual
  employees listed but at all times subject to the provisions of this
  Agreement;

  
	
   

  	
   

  	
   

  
	
  “Business Goodwill”

  	
   

  	
  means all the goodwill:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)            in
  relation to the Mill Business and the Know-How Business; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)           in
  relation to the Coaters,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and
  in each case to the extent it relates to the Business Assets other than the
  Business Goodwill;

  
	
   

  	
   

  	
   

  
	
  “Business Information”

  	
   

  	
  means all written information and know -how relating
  exclusively to the Mill Business, the Coaters and the Know-How Business
  (including but not limited to all test results, reports, particulars of
  suppliers, recipes, market forecasts and particulars of customers to the
  extent relating to the Mill Business, Coaters and Know-How Business which is
  proprietary to M-real or another member of the Sellers’ Group;

  
	
   

  	
   

  	
   

  
	
  “Business Intellectual Property”

  	
   

  	
  means:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)            the trade mark registrations and
  applications for trade mark registration listed in Part A of Schedule
  11 and including, for the avoidance of doubt, the GALERIE Marks;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)           the patents and patent
  applications listed in Part B of Schedule 11;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)          the registered design listed in Part D
  of Schedule 11;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  save for the Sellers’ Marks, all
  other Intellectual Property owned by members of the Sellers’ Group which at
  or immediately before Completion is/are used exclusively or predominantly in
  the Mill Business; the Coaters and/or the Know-How Business;

  
	
   

  	
   

  	
   

  
	
  “Business Intellectual Property

  	
   

  	
  means the assignments of the
  registered Business Intellectual Property in the Agreed Form listed as Attachment
  9 to this

  

 

56

 

	
  Assignments”

  	
   

  	
  Agreement to be entered into at
  Completion pursuant to paragraph 1A (iv) of Schedule 3, as
  referred to in clause 2.5;

  
	
   

  	
   

  	
   

  
	
  “Business Merchant Rebates”

  	
   

  	
  means
  sums owed in respect of the Mill Business by the Relevant Sellers’ to their
  customers as a result of specified annual purchase targets having been met
  for the relevant year ended 31 December;

  
	
   

  	
   

  	
   

  
	
  “Business Plant and Machinery”

  	
   

  	
  means:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)            in relation to the Mill Business
  all the plant and machinery and equipment, loose tools, fittings, furniture,
  partitioning used or to be used exclusively or predominantly in relation to
  the Mill Business at
  Completion;

   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)           the Mill Business Vehicles; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)          the Coaters, fittings and spare parts used or to be used exclusively in
  relation to the Coaters at
  Completion;

  
	
   

  	
   

  	
   

  
	
  “Business Properties”

  	
   

  	
  means the Kangas Property and the
  Kirkniemi Property, details of which are set out in Part A of Schedule
  9;

  
	
   

  	
   

  	
   

  
	
  “Business Properties Transfer Deed”

  	
   

  	
  means the agreement in the Agreed Form listed as Attachment 18
  to this Agreement to be entered into between M-real and Sappi Finland I Oy;

  
	
   

  	
   

  	
   

  
	
  “Business Purchaser”

  	
   

  	
  means, in relation to each of the
  Business Assets referred to in column (2) of Part 2 of Schedule
  13 the company whose name or corporate form is set out opposite that
  Business Asset in column (3);

  
	
   

  	
   

  	
   

  
	
  “Business Receivables”

  	
   

  	
  means all debts or outstanding
  payments due from any third party receivable or owed to any of the Business
  Sellers (excluding outstanding payments due from any members of the Seller’s
  Group) relating exclusively to the Mill Business or relating to part of the
  Mill Business (but then only to the extent the same do relate) as at or at
  any time prior to Completion whether or not yet due or payable (including,
  without limitation, trade debts, accrued income, prepayments, retrospective
  rebates and overpayments) but excluding (in each case) any amounts in respect
  of Finnish VAT falling within clause 2.1(d) (“Excluded Assets”) and also excluding (in each case) any
  amount due pursuant to Supplier Rebates to the extent they relate to the Mill
  Business and “Business Receivable”
  shall be construed accordingly;

  
	
   

  	
   

  	
   

  
	
  “Business Seller”

  	
   

  	
  means,
  in relation to each of the Business Assets referred to in column (2) of
  Part 2 of Schedule 13, the company whose name is set out opposite
  that Business Asset in column (1);

  
	
   

  	
   

  	
   

  
	
  “Business Stocks”

  	
   

  	
  means all stocks of raw materials,
  work-in-progress, finished goods, and other stock-in-trade, packaging, spares
  and other

  

 

57

 

	
   

  	
   

  	
  goods to the extent related to the
  Mill Business at Completion;

  
	
   

  	
   

  	
   

  
	
  “Carve-Out Accounts”

  	
   

  	
  means the consolidated reviewed
  accounts of the Group Companies and the Mill Business in the Agreed
  Form for the three and a half year period ended on the Accounts Date;

  
	
   

  	
   

  	
   

  
	
  “Chemische Werke Zell-Wildshausen GmbH”

  	
   

  	
  means Chemische Werke Zell-Wildshausen
  GmbH, a company incorporated in Germany at the local court of Aschaffenburg,
  with registered number 10207 and whose registered office is at Obernburger
  Strasse 1-9, D-63811 Stockstadt, Germany;

  
	
   

  	
   

  	
   

  
	
  “CHP Lease”

  	
   

  	
  means
  the lease agreement in respect of the CHP Plant entered into between M-real
  and Fortum pursuant to the Energy Plant Contracts which expires on 31
  October, 2012;

  
	
   

  	
   

  	
   

  
	
  “CHP Outstanding Lease Payments”

  	
   

  	
  means
  the monthly instalments pursuant to the CHP Lease payable by M-real (excluding
  any interest but including the CHP Plant redemption value of €5,015,057)
  which are outstanding up and until 31 October, 2012 and as accounted for in
  the Carve-Out Accounts and set out in Attachment 33;

  
	
   

  	
   

  	
   

  
	
  “CHP Plant”

  	
   

  	
  means
  the natural gas fuelled power plant situated at the Kirkniemi Mill,
  consisting of the following main components: steam boiler, gas
  turbine, flue gas heat recovery boiler, steam turbine with
  associated auxiliaries and buildings housing main components;

  
	
   

  	
   

  	
   

  
	
  “CN Papiervertriebs GmbH”

  	
   

  	
  means CN Papiervertriebs GmbH, a company
  incorporated in Germany with registered number HRB 11184, Amtsgericht Bonn
  and whose registered office is at Metternicher Str. 20, 53919 Weilerswist,
  Germany;

  
	
   

  	
   

  	
   

  
	
  “CN Shares”

  	
   

  	
  means the entire issued share
  capital of CN
  Papiervertriebs GmbH, details of which are set out
  in Schedule 8;

  
	
   

  	
   

  	
   

  
	
  “Claims”

  	
   

  	
  save
  as the term is used in Schedule 14 means all rights and claims of any
  of the Business Sellers arising at any time whether before or after
  Completion in relation to any of the Business Assets or any Assumed Liability
  (but excluding any rights or claims under insurance policies) and “Claim” means any one of them;

  
	
   

  	
   

  	
   

  
	
  “Coated Graphic Paper Business”

  	
   

  	
  means
  a business that engages in the production or sale of coated wood-free paper
  or coated wood-containing paper other than coated speciality paper,
  paperboard and paper that is cast coated or coated only on one side;

  
	
   

  	
   

  	
   

  
	
  “Coater Number 2”

  	
   

  	
  means the coater number two owned by
  Zanders at its Gohrsmühle Mill in Germany;

  
	
   

  	
   

  	
   

  
	
  “Coater Number 3”

  	
   

  	
  means the coater number three owned
  by Zanders at its
  Gohrsmühle Mill in Germany;

  
	
   

  	
   

  	
   

  
	
  “Coaters”

  	
   

  	
  means the Gohrsmühle Coaters and the
  Hallein Coater;

  
	
   

  	
   

  	
   

  
	
  “Commercial Arrangements
  Term

  	
   

  	
  means the term sheet dated the same
  day as this Agreement detailing certain commercial terms agreed between M-real
  and

  

 

58

 

	
  Sheet”

  	
   

  	
  Sappi listed as Attachment 26
  to this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Companies”

  	
   

  	
  means the German Companies and the
  Swiss Company;

  
	
   

  	
   

  	
   

  
	
  “Companies Act 2006”

  	
   

  	
  the Companies Act 2006, as amended
  or re-enacted;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Company CO2 Obligation”

  	
   

  	
  has
  the meaning given to it in Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Company Employees”

  	
   

  	
  means the employees of each of the
  Group Companies at Completion;

  
	
   

  	
   

  	
   

  
	
  “Company Merchant Rebates”

  	
   

  	
  means
  sums owed by the Companies or any one of them to their customers as a result
  of specified annual purchase targets having been met for the relevant year
  ended 31 December;

  
	
   

  	
   

  	
   

  
	
  “Company Properties”

  	
   

  	
  means the Immovable Properties
  specified in Part B of Schedule 9;

  
	
   

  	
   

  	
   

  
	
  “Competition Authority”

  	
   

  	
  means any supra-national,
  national, state, municipal or local government (including any subdivision,
  court, administrative agency or commission or other authority thereof) or any
  governmental, quasi-governmental, statutory, regulatory or investigative body
  or court, or private body exercising any regulatory authority or other
  governmental or quasi- governmental authority, including the European Union
  and the European Commission and any other entity in any jurisdiction
  responsible or having powers for the enforcement of competition laws and for
  investigating, approving or objecting to, mergers;

  
	
   

  	
   

  	
   

  
	
  “Completion”

  	
   

  	
  means the completion of the sale
  and purchase of the Business Assets and the Shares under this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Completion Date”

  	
   

  	
  means the first day that:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)            falls on the end of a month; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)           follows the fifth Business
  Day after M-real and Sappi have informed each other of the fulfilment of all
  conditions to Completion pursuant to Schedule 2; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)          coincides with or follows the end of the business year
  of Stockstadt GmbH that has been shortened in accordance with clause 4.6
  of this Agreement, as the case may be;

  
	
   

  	
   

  	
   

  	
   

  
	
  “Completion Statements”

  	
   

  	
  means the completion
  statements to be drawn up in accordance with Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Completion Time”

  	
   

  	
  has the meaning given to it
  in Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Completion Time Net Working Capital”

  	
   

  	
  has
  the meaning given to it in Schedule 6;

  

 

59

 

	
  “Confidentially Agreement”

  	
   

  	
  means
  the confidentiality agreement entered into between M-real and Sappi dated 15
  May, 2008 as amended from time to time;

  
	
   

  	
   

  	
   

  
	
  “Consideration”

  	
   

  	
  means
  the Initial Consideration and the Estimated Inter-Group Debt paid by the
  Relevant Purchasers to the Relevant Sellers in accordance with clause 7
  and as adjusted, if applicable, in accordance with clause 8;

  
	
   

  	
   

  	
   

  
	
  “Consideration Shares”

  	
   

  	
  means 6,982,105  Sappi Shares to be issued as fully paid to M-real (or
  to M-real’s nominee(s)) pursuant to this Agreement at the Consideration Share
  Price;

  
	
   

  	
   

  	
   

  
	
  “Consideration Share Price”

  	
   

  	
  means €7.161 per Sappi Share as adjusted
  pursuant to Schedule 16;

  
	
   

  	
   

  	
   

  
	
  “Current Market Price”

  	
   

  	
  means, for the purposes of Schedule 16, in
  respect of a Sappi Share at a particular date, the volume weighted average
  share price of Sappi Shares as published by, or derived from the relevant
  quotations published by, the Johannesburg Stock Exchange for the five
  consecutive dealing days ending on the dealing day immediately preceding such
  date; provided that if at any time during the said five day period the Sappi
  Shares shall have been quoted ex dividend and during some other part of that
  period the Sappi Shares shall have been quoted cum then:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)            if the Sappi Shares to be issued do not rank for the
  dividend in question, the prices on the dates on which the Sappi Shares shall
  have been quoted cum-dividend shall for the purpose of this definition be
  deemed to be the amount thereof reduced by an amount equal to the amount of
  that dividend per Sappi Share; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)           if the Sappi Shares to be issued do rank for the
  dividend in question, the prices on the dates on which the Sappi Shares shall
  have been quoted ex-dividend shall for the purpose of this definition be
  deemed to be the amount thereof increased by such similar amount;

  
	
   

  	
   

  	
   

  
	
  “Data Room”

  	
   

  	
  means
  data room containing those documents listed in the Data Room List;

  
	
   

  	
   

  	
   

  
	
  “Data Room List”

  	
   

  	
  means
  the index of the documents that were in the Data Room forming Attachment
  6 of this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Deutsche Holding”

  	
   

  	
  means M-real Deutsche Holding
  GmbH, a company
  incorporated in Germany and registered in Germany at the local court with
  number 1960 and whose registered office is at An der Gohrsmühle 51465
  Bergisch Gladbach, Germany;

  

 

60

 

	
  “Disclosure Letter”

  	
   

  	
  means
  the letter dated with the same date as this Agreement written by M-real to
  the Relevant Purchasers for the purposes of paragraph 10 of Schedule
  5;

  
	
   

  	
   

  	
   

  
	
  “Diverse Energy Issues Term Sheet”

  	
   

  	
  means
  the term sheet listed as Attachment 27 to this Agreement dated the
  same day as this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Employees”

  	
   

  	
  means the
  individuals who are:

   

  (i)         Company
  Employees; or

   

  (ii)         Business Employees,

   

  in
  each case as at Completion, save that in the Warranties, “Employees”
  shall mean only those individuals who are so employed at the date of this
  Agreement;

  
	
   

  	
   

  	
   

  
	
  “Employment Taxes”

  	
   

  	
  has the meaning given to it in Schedule
  14 (Tax Indemnity);

  
	
   

  	
   

  	
   

  
	
  “Encumbrance”

  	
   

  	
  means any claim, charge, mortgage, lien, option, equity,
  power of sale, hypothecation, usufruct, retention of title, right of
  pre-emption, right of first refusal or other third party rights or security
  interest of any kind or an agreement, arrangement or obligation to create any
  of the foregoing;

  
	
   

  	
   

  	
   

  
	
  “Energy Plant Contracts”

  	
   

  	
  means all contracts and arrangements
  between M-real and Fortum in relation to Kirkniemi Mill’s energy supply and
  ownership of energy production assets;

  
	
   

  	
   

  	
   

  
	
  “Enterprise Value”

  	
   

  	
  has the meaning given to it in Schedule
  6;

  
	
   

  	
   

  	
   

  
	
  “Environment”

  	
   

  	
  has the meaning given to it in paragraph
  17 of Schedule 4;

  
	
   

  	
   

  	
   

  
	
  “Environment Authority”

  	
   

  	
  has the meaning given to it in paragraph
  17 of Schedule 4;

  
	
   

  	
   

  	
   

  
	
  “Environmental Claim”

  	
   

  	
  has the meaning given to it in paragraph
  1 of Schedule 15;

  
	
   

  	
   

  	
   

  
	
  “Environmental Indemnity”

  	
   

  	
  means the indemnity at paragraph 2
  of Schedule 15;

  
	
   

  	
   

  	
   

  
	
  “Environmental Laws”

  	
   

  	
  has the meaning given to it in paragraph
  17 of Schedule 4;

  
	
   

  	
   

  	
   

  
	
  “Environmental Matters”

  	
   

  	
  has the meaning given to it in paragraph
  17 of Schedule 4;

  
	
   

  	
   

  	
   

  
	
  “Environmental Permits”

  	
   

  	
  has the meaning given to it in paragraph
  17 of Schedule 4;

  
	
   

  	
   

  	
   

  
	
  “Environmental Warranties”

  	
   

  	
  means warranties
  set out at paragraph 17 of Schedule 4;

  
	
   

  	
   

  	
   

  
	
  “Estimated Business Net
  Debt”

  	
   

  	
  has the meaning given to it in Schedule
  6;

  
	
   

  	
   

  	
   

  
	
  “Estimated Inter-Group Debt”

  	
   

  	
  has the meaning given to it in Schedule
  6;

  
	
   

  	
   

  	
   

  
	
  “Estimated Inter-Group
  Receivables”

  	
   

  	
  has the meaning given to it in Schedule
  6;

  
	
   

  	
   

  	
   

  
	
  “Estimated Net Debt”

  	
   

  	
  has the meaning given to it in Schedule
  6;

  
	
   

  	
   

  	
   

  
	
  “Exchange Rate”

  	
   

  	
  means, with respect to any amount in
  any particular local currency required to be converted into Euros at such
  rate as 

  

 

61

 

	
   

  	
   

  	
  set out in paragraph 2(xiii)
  of Schedule 1, the spot rate of exchange (the closing mid point)
  for that currency into Euros on such date as quoted by the European Central
  Bank daily on its website (www.ecb.int) after 2.15 pm European Central Bank
  time or at the closest previous Business Day;

  
	
   

  	
   

  	
   

  
	
  “Excluded Assets”

  	
   

  	
  means those assets set out in clause
  2.1(a) – (g) of this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Excluded SA Assets”

  	
   

  	
  means those assets described in clause
  2.1(b) of this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Final Consideration”

  	
   

  	
  has the
  meaning given to it in Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Financing”

  	
   

  	
  means
  any offering of debt or equity securities by Sappi or any of its affiliates
  (including the Rights Issue), the proceeds of which are used, in whole or in
  part, to pay amounts outstanding or payable under this Agreement or under any
  loan or other agreement entered into pursuant to or in connection with this
  Agreement;

  
	
   

  	
   

  	
   

  
	
  “Finnish Stock Exchange”

  	
   

  	
  means
  the OMX Nordic Exchange Helsinki Ltd;

  
	
   

  	
   

  	
   

  
	
  “Finnish VAT Act”

  	
   

  	
  has the
  meaning given to it in clause 11.2(i);

  
	
   

  	
   

  	
   

  
	
  “Fortum”

  	
   

  	
  means
  Fortum Oy, a company incorporated in
  Finland whose registered office is at PL 1, 0048 Fortum, Finland (registered in Finland with
  No. 1463611-4), and references in this Agreement to Fortum shall
  include, where necessary, its subsidiaries and holding
  companies from time to time, as appropriate;

  
	
   

  	
   

  	
   

  
	
  “GALERIE Marks”

  	
   

  	
  means, subject
  to Completion, the Intellectual Property identified in Part C of Schedule
  11 and any registrations of the “GALERIE
  Art” trade mark that the Relevant Purchasers acquire in accordance
  with their undertaking in the Trade Mark Licences;

  
	
   

  	
   

  	
   

  
	
  “German Companies”

  	
   

  	
  means CN Papiervertriebs GmbH and Stockstadt
  GmbH;

  
	
   

  	
   

  	
   

  
	
  “German Pension Liabilities”

  	
   

  	
  has the meaning given to it in Schedule
  6;

  
	
   

  	
   

  	
   

  
	
  “German Shares”

  	
   

  	
  means
  the CN Shares,
  and the Stockstadt Shares;

  
	
   

  	
   

  	
   

  
	
  “German Share Transfer Agreement”

  	
   

  	
  means
  the agreement in the Agreed Form listed as Attachment 22 to this
  Agreement to be entered into between Deutsche Holding and Sappi Deutschland
  Holding GmbH on Completion;

  
	
   

  	
   

  	
   

  
	
  “German Subsidiary”

  	
   

  	
  means Chemische Werke
  Zell-Wildshausen GmbH;

  
	
   

  	
   

  	
   

  
	
  “Gohrsmühle Coaters”

  	
   

  	
  means
  Coater Number 2 and Coater Number 3;

  
	
   

  	
   

  	
   

  
	
  “Gohrsmühle Mill”

  	
   

  	
  means
  the paper mill operated by Zanders at Postfach 200960, An der Gohrsmühle,
  D-51439 Bergisch Gladbach, Germany;

  

 

62

 

	
  “Graphic Paper Business”

  	
   

  	
  means the
  Business and the business of the Group, taken as a whole;

  
	
   

  	
   

  	
   

  
	
  “Group” or “Group Companies”

  	
   

  	
  means
  the Companies and the German Subsidiary and “Group Company” means any of them as the context so
  requires;

  
	
   

  	
   

  	
   

  
	
  “Hallein AG”

  	
   

  	
  means M-real Hallein A.G., a company incorporated in Austria
  with registered number FN 18407m and whose registered office is at
  Salzachtalstrasse 88, A-5400 Hallein, Austria;

  
	
   

  	
   

  	
   

  
	
  “Hallein Coater”

  	
   

  	
  means
  the coater owned by Hallein AG
  at its Hallein Mill in Austria;

  
	
   

  	
   

  	
   

  
	
  “Hallein Coater Asset Sale and Transfer
  Agreement”

  	
   

  	
  means
  the agreement in substantially the form listed as Attachment 23 to
  this Agreement to be entered into between Hallein AG and Sappi Netherlands BV
  on Completion;

  
	
   

  	
   

  	
   

  
	
  “Hallein Mill”

  	
   

  	
  means
  the paper mill operated by Hallein AG at Salzachtalstr. 88, A-5400 Hallein,
  Austria;

  
	
   

  	
   

  	
   

  
	
  “Husum Mill”

  	
   

  	
  means
  the paper mill operated by M-real Sverige AB at SE-89035 Husum, Sweden;

  
	
   

  	
   

  	
   

  
	
  “Husum Mill’s PM8”

  	
   

  	
  means
  the paper machine referred to as “PM8” located at M-real’s Husum Mill in
  Sweden;

  
	
   

  	
   

  	
   

  
	
  “Husum PM8 Coater”

  	
   

  	
  means
  the off-line coater and the off-line multi nip calendar but excluding the
  winder serving the Husum Mill’s PM8;

  
	
   

  	
   

  	
   

  
	
  “Husum Mill PM8 Exclusive Marketing Agreement”

  	
   

  	
  means
  the agreement in the Agreed Form listed as Attachment 15 to this
  Agreement to be entered into between M-real Sverige AB and Sappi Europe SA on
  Completion;

  
	
   

  	
   

  	
   

  
	
  “IFRS”

  	
   

  	
  international
  accounting standards within the meaning of Regulation (EC) No 1606/2002 of 19
  July, 2002 on the application of international accounting standards to the
  extent applicable to the relevant financial statements;

  
	
   

  	
   

  	
   

  
	
  “Immovable Property”

  	
   

  	
  means
  freehold and leasehold land and buildings or other immovable property in any
  part of the world;

  
	
   

  	
   

  	
   

  
	
  “Inducement Fee”

  	
   

  	
  has the
  meaning given to it in clause 40;

  
	
   

  	
   

  	
   

  
	
  “Initial Consideration”

  	
   

  	
  has the
  meaning given to it in Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Intellectual Property”

  	
   

  	
  means
  patents, inventions, trade marks, service marks, trade names, brands, get-up,
  logos, rights in designs, copyrights, and database rights (whether or not any
  of these is registered and including applications for registration of any
  such thing) and all rights or forms of protection of a similar nature or
  having equivalent or similar effect to any of these which may subsist
  anywhere in the world;

  
	
   

  	
   

  	
   

  
	
  “Inter-Group Debt”

  	
   

  	
  has the
  meaning given to it in Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Inter-Group Debt Adjustment Payment”

  	
   

  	
  has the
  meaning given to it in Schedule 6;

  

 

63

 

	
  “Inter-Group Net Debt”

  	
   

  	
  has the
  meaning given to it in Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Inter-Group Receivables”

  	
   

  	
  has the
  meaning given to it in Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Inter-Group Receivables Adjustment Payment”

  	
   

  	
  has the
  meaning given to it in Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “IT Systems”

  	
   

  	
  means
  software, hardware, data networks and voice networks but excluding networks
  or telecommunications systems generally available to the public;

  
	
   

  	
   

  	
   

  
	
  “Johannesburg Stock Exchange” or “JSE”

  	
   

  	
  means
  the JSE Limited, a company incorporated in South Africa and licensed as an
  exchange under the Securities Services Act, 2004 (as amended);

  
	
   

  	
   

  	
   

  
	
  “Kangas Asset Transfer Agreement”

  	
   

  	
  means
  the agreement in the Agreed Form listed as Attachment 20 to this
  Agreement to entered into between M-real and Sappi Finland I Oy on
  Completion;

  
	
   

  	
   

  	
   

  
	
  “Kangas Mill”

  	
   

  	
  means
  the paper mill operated by M-real at Kympinkatu 3, FI-40351 Jyväskylä,
  Finland;

  
	
   

  	
   

  	
   

  
	
  “Kangas PM2”

  	
   

  	
  means
  the paper machine referred to as “PM2” located at M-real’s Kangas Mill in
  Finland;

  
	
   

  	
   

  	
   

  
	
  “Kangas PM2 Property”

  	
   

  	
  means
  the Immovable Property housing the Kangas PM2;

  
	
   

  	
   

  	
   

  
	
  “Kangas PM2 Property Lease”

  	
   

  	
  means
  the agreement in the Agreed Form listed as Attachment 19 to this
  Agreement to be entered into between M-real and Sappi Finland I Oy on
  Completion;

  
	
   

  	
   

  	
   

  
	
  “Kangas Property”

  	
   

  	
  means
  the Immovable Property of the Kangas Mill, details of which are set out in Part A
  of Schedule 9;

  
	
   

  	
   

  	
   

  
	
  “Kangas Property Option”

  	
   

  	
  has the
  meaning given to it in clause 45.1;

  
	
   

  	
   

  	
   

  
	
  “Kirkniemi Asset Transfer Agreement”

  	
   

  	
  means
  the agreement in the Agreed Form listed as Attachment 21 to this
  Agreement to be entered into between M-real and Sappi Finland I Oy on
  Completion;

  
	
   

  	
   

  	
   

  
	
  “Kirkniemi Discharge Compensation”

  	
   

  	
  has the
  meaning given to it in clause 19.9(ii);

  
	
   

  	
   

  	
   

  
	
  “Kirkniemi Mill”

  	
   

  	
  means
  the paper mill operated by M-real at FI-08800, Lohja, Finland;

  
	
   

  	
   

  	
   

  
	
  “Kirkniemi Property”

  	
   

  	
  means
  the Immovable Property of the Kirkniemi Mill, details of which are set out in
  Part A of Schedule 9;

  
	
   

  	
   

  	
   

  
	
  “Kirkniemi Trade Receivables”

  	
   

  	
  means all outstanding payments due
  from any third party customer receivable in relation to the graphic paper
  business carried out from the Kirkniemi Mill in Finland and in each case
  including such part of such amounts as relate to VAT and “Kirkniemi
  Trade Receivable” shall be construed accordingly;

  

 

64

 

	
  “Kirkniemi Trade Receivables Cap”

  	
   

  	
  has the
  meaning given to it in clause 8.4;

  
	
   

  	
   

  	
   

  
	
  “Know-How Business”

  	
   

  	
  means:

   

  (i)            Husum
  Mill’s PM8 in Sweden; and

   

  (ii)           Äänekoski Mill’s
  PM2 in Finland;

  
	
   

  	
   

  	
   

  
	
  “Lock-Up Agreement”

  	
   

  	
  means
  the agreement in the Agreed Form to be entered into by M-real and Sappi
  on the Completion Date which sets out certain restrictions on the disposal of
  the Consideration Shares and listed as Attachment 12 to this
  Agreement;

  
	
   

  	
   

  	
   

  
	
  “London Stock Exchange”

  	
   

  	
  means
  London Stock Exchange plc;

  
	
   

  	
   

  	
   

  
	
  “Long-term Energy Agreements”

  	
   

  	
  means the agreements in the Agreed Form listed as Attachment 17
  to this Agreement to be entered into between M-real and Sappi Europe SA on
  Completion;

  
	
   

  	
   

  	
   

  
	
  “Long-term Pulp Supply
  Agreements”

  	
   

  	
  means
  the agreements in the Agreed Form listed as Attachment 14 to this
  Agreement to be entered into:

   

  (i)            between M-real, M-real Sverige AB and Sappi Europe SA;
  and

   

  (ii)           between
  Oy Metsä-Botnia AB and Sappi Europe SA,  on Completion;

  
	
   

  	
   

  	
   

  
	
  “Long-term Wood Supply Agreement”

  	
   

  	
  means
  the agreement in the Agreed Form listed as Attachment 13 to this
  Agreement to be entered into between Metsäliitto Co-operative and Sappi
  Europe SA on Completion;

  
	
   

  	
   

  	
   

  
	
  “Losses”

  	
   

  	
  means
  all losses, liabilities, costs (including without limitation legal costs and
  experts’ and consultants’ fees), charges, expenses, actions, proceedings,
  claims and demands;

  
	
   

  	
   

  	
   

  
	
  “M-real Sverige
  AB”

  	
   

  	
  means
  M-real Sverige AB, a company incorporated in Sweden with registered
  number 556585-8866 and whose registered office is at Örnsköldsvik, S-890 35
  Husum, Sweden;

  
	
   

  	
   

  	
   

  
	
  “M-real Vendor
  Loan Note”

  	
   

  	
  means
  the €250,000,000 loan note to be issued by Sappi Papier Holding GmbH
  (Austria) to M-real on the Completion Date;

  
	
   

  	
   

  	
   

  
	
  “Material Contract”

  	
   

  	
  means any Business Contract
  and any contract entered into by any member of the Group:

   

  (i)            calling for payments by any party
  thereto in excess of €2,000,000 in any one year;

   

  (ii)           that is a material agreement relating to Intellectual
  Property;

  

 

65

 

	
   

  	
   

  	
  (iii)          which restricts M-real or the
  relevant member of the Sellers’ Group in any material respect from carrying
  on its respective part of the Graphic Paper Business anywhere in the world;

   

  (iv)           which is a joint venture agreement or
  arrangement under which M-real or the relevant member of the Sellers’ Group
  is to participate with any other person in any business;

   

  (v)            which
  has an unexpired term of two or more years or cannot be terminated on less
  than two years’ notice; or

   

  (vi)           that
  is a material contract and, so far as the Sellers are aware, which can be
  terminated by any other party in the event of a change of control of the
  relevant member of the Group,

   

  other than (in either case):

   

  (a)           any contract with any Employee;

   

  (b)           purchase or sale orders for stock placed in accordance
  with the normal practice of the Graphic Paper Business (including purchase
  and sale orders in respect of which the counterparty is a member of the
  Sellers’ Group); and

   

  (c)           any leases or tenancy arrangements under which Property
  is occupied;

  
	
   

  	
   

  	
   

  
	
  “Merchant Rebates”

  	
   

  	
  means
  the Business Merchant Rebates and the Company Merchant Rebates;

  
	
   

  	
   

  	
   

  
	
  “Merchant Rebate Adjustment”

  	
   

  	
  has the
  meaning given to it in clause 8.11;

  
	
   

  	
   

  	
   

  
	
  “Merger Regulation”

  	
   

  	
  means
  Council Regulation (EC) 139/2004;

  
	
   

  	
   

  	
   

  
	
  “Metsäliitto
  Co-operative”

  	
   

  	
  means
  Metsäliitto Co-operative, a co-operative society incorporated in Finland with
  registered number 0116300-4 and whose registered office is at Revontulentie
  6, FI-02100 Espoo, Finland;

  
	
   

  	
   

  	
   

  
	
  “Mill Business”

  	
   

  	
  means the graphic paper business of M-real carried out
  from:  

  

 

66

 

	
   

  	
   

  	
  (i)         the
  Kangas Mill in Finland; and

   

  (ii)         the
  Kirkniemi Mill in Finland;

  
	
   

  	
   

  	
   

  
	
  “Mill Business Assets”

  	
   

  	
  has the meaning given to it in clause 11.2(i);

  
	
   

  	
   

  	
   

  
	
  “Mill Business Efficiency Programme”

  	
   

  	
  means the redundancy programme of M-real covering the whole
  Mill Business at its Kirkniemi Mill concerning a reduction in headcount
  of 57 (announced on 14 February, 2007) and at its Kangas Mill concerning the
  closure of the Kangas PM2 and a reduction in headcount of 82 (announced on 13
  November, 2007);

  
	
   

  	
   

  	
   

  
	
  “Mill Business Vehicles”

  	
   

  	
  means
  those vehicles listed in Attachment 32 used exclusively in relation to
  the Mill Business;

  
	
   

  	
   

  	
   

  
	
  “MIS Payments”

  	
   

  	
  means
  payments due to certain M-real employees pursuant to M-real’s management
  incentive scheme;

  
	
   

  	
   

  	
   

  
	
  “Net Working Capital Adjustment”

  	
   

  	
  has the meaning given to it in Schedule
  6;

  
	
   

  	
   

  	
   

  
	
  “NL Holding”

  	
   

  	
  means M-real NL Holding B.V., a company incorporated in the
  Netherlands with registered number 02334705 and whose registered office is at
  Van Boshuizenstraat 12, NL-1083 BA Amsterdam, P.O. Box 75652, N.L.-1070
  AR Amsterdam, the Netherlands;

  
	
   

  	
   

  	
   

  
	
  “Option”

  	
   

  	
  has the meaning given to it in clause
  43.1;

  
	
   

  	
   

  	
   

  
	
  “Other Stockstadt”

  	
   

  	
  has the meaning given to it in Schedule
  6;

  
	
   

  	
   

  	
   

  
	
  “Oy
  Metsä-Botnia AB”

  	
   

  	
  means Oy
  Metsä-Botnia AB,  a
  company incorporated in Finland with registered number 0791416-3 and whose
  registered office is Revontulentie 6, FI-02100
  Espoo, Finland;

  
	
   

  	
   

  	
   

  
	
  “Permanent Cessation”

  	
   

  	
  has the meaning given to it in clause
  45.1;

  
	
   

  	
   

  	
   

  
	
  “Permitted Assignee”

  	
   

  	
  has the meaning given to it in clause
  32.2;

  
	
   

  	
   

  	
   

  
	
  “Permitted Encumbrances”

  	
   

  	
  means
  security interests arising in the ordinary course of business or by operation
  of law, security interests arising under sales contracts with title retention
  provisions, equipment leases with third parties entered into in the ordinary
  course of business, security interests for Taxes and other governmental
  charges which are not due and payable or which may thereafter be paid without
  penalty and mortgages, charges, pledges, liens or other forms of security or
  encumbrance or equity which secure debt and other imperfections in title and
  encumbrances, if any, which do not in any case individually or in aggregate
  materially impair the continued use and operation of the assets to which they
  relate in the context of the Graphic Paper Business;

  
	
   

  	
   

  	
   

  
	
  “Pre-sale Reorganisation”

  	
   

  	
  means:

   

  (i)            the transfer of Hallein AG by Stockstadt GmbH to
  another entity in the Sellers’ Group

  

 

67

 

	
   

  	
   

  	
  prior to the Completion Date; and

   

  (ii)           the transfer of the SA Customer Lists by the Companies to another
  entity in the Sellers’ Group prior to the Completion Date;

  
	
   

  	
   

  	
   

  
	
  “Pre-sale Reorganisation Liabilities”

  	
   

  	
  means
  any liabilities of Stockstadt GmbH in respect of the transfer of Hallein AG
  to another entity in the Sellers’ Group prior to the Completion Date;

  
	
   

  	
   

  	
   

  
	
  “Proceedings”

  	
   

  	
  means
  any proceeding, suit or action arising out of or in connection with this
  Agreement;

  
	
   

  	
   

  	
   

  
	
  “Proceeds of Rights Issue”

  	
   

  	
  means
  the aggregate proceeds raised by Sappi in the Rights Issue being €400,000,000
  after the deduction of the fees, expenses and costs of the Rights Issue;

  
	
   

  	
   

  	
   

  
	
  “Process Agent”

  	
   

  	
  has the
  meaning given to it in clause 51.5;

  
	
   

  	
   

  	
   

  
	
  “Profit and Loss Pooling Agreement”

  	
   

  	
  means the agreement on the transfer of profit and loss (Gewinnabführungs- und Verlustübernahmevertrag)
  of 11 May, 2001 (as amended on 23 December, 2002) between Deutsche Holding
  and Stockstadt GmbH;

  
	
   

  	
   

  	
   

  
	
  “Properties”

  	
   

  	
  means
  the Business Properties and the Company Properties;

  
	
   

  	
   

  	
   

  
	
  “Property Owner”

  	
   

  	
  means,
  in respect of a Property, the entity listed as its owner in Schedule 9;

  
	
   

  	
   

  	
   

  
	
  “Purchase Price”

  	
   

  	
  has the
  meaning given to it in clause 43.1;

  
	
   

  	
   

  	
   

  
	
  “Purchasers’ Completion Documents”

  	
   

  	
  has the
  meaning given to it in clause 18.1(i);

  
	
   

  	
   

  	
   

  
	
  “Purchasers’ Guaranteed Obligations”

  	
   

  	
  has the
  meaning given to it in clause 46.2(i);

  
	
   

  	
   

  	
   

  
	
  “Purchaser’s Group”

  	
   

  	
  means
  Sappi and its subsidiaries and holding companies from time to time, as
  appropriate (including, for the avoidance of doubt, following Completion,
  each member of the Group);

  
	
   

  	
   

  	
   

  
	
  “Rand” or “ZAR”

  	
   

  	
  means
  the lawful currency for the time being of South Africa;

  
	
   

  	
   

  	
   

  
	
  “Relief”

  	
   

  	
  means
  any relief, loss, allowance, exemption, set-off, or credit in respect of Tax,
  or deduction in computing profits for Tax purposes;

  
	
   

  	
   

  	
   

  
	
  “Resigning Board Member”

  	
   

  	
  means the members of any supervisory board or
  advisory board or similar corporate body of each of the Group Companies who
  will resign on Completion and as indicated against their respective names in Schedule 7,
  notification of which will be delivered to the Relevant Purchasers at
  Completion;

  
	
   

  	
   

  	
   

  
	
  “Resigning Director”

  	
   

  	
  means
  the directors of each of the Group Companies who will resign on Completion
  and as indicated against their respective names in Schedule 7,
  notification of which will be delivered to 

  

 

68

 

	
   

  	
   

  	
  the Relevant Purchasers at Completion;

  
	
   

  	
   

  	
   

  
	
  “Rights
  Issue”

  	
   

  	
  means the rights issue contemplated by the Standby
  Underwriting Agreement;

  
	
   

  	
   

  	
   

  
	
  “SA
  Customer Lists”

  	
   

  	
  means any customer lists held by the Companies or
  any one of them to the extent that they relate to customers of the Companies
  in South Africa;

  
	
   

  	
   

  	
   

  
	
  “SA
  Option”

  	
   

  	
  has the meaning given to it in clause 44.1;

  
	
   

  	
   

  	
   

  
	
  “SA Put”

  	
   

  	
  has the meaning given to it in clause 44.1;

  
	
   

  	
   

  	
   

  
	
  “Sappi
  Circular”

  	
   

  	
  has the meaning given to it in clause 4.2;

  
	
   

  	
   

  	
   

  
	
  “Sappi
  Deutschland Holding GmbH”

  	
   

  	
  means Sappi Deutschland Holding GmbH, a company
  incorporated in Germany and registered in Germany at the local court with
  number HRB 110
  140, and whose registered office
  at Mühlenmasch
  1, 31061 Alfeld, Germany;

  
	
   

  	
   

  	
   

  
	
  “Sappi
  Europe SA”

  	
   

  	
  means Sappi Europe SA, a company incorporated in
  Belgium with registered number  BE
  0449.654.386 and whose registered office is at Chaussée de la Hulpe, B-
  1170 Brussels, Belgium;

  
	
   

  	
   

  	
   

  
	
  “Sappi
  Finland I Oy”

  	
   

  	
  means Sappi Finland I Oy,  a
  company incorporated in Finland with registered number 2219145-0 and whose
  registered office is at c/o Hannes Snellman, Eteläranta 8, 00130, Helsinki,
  Finland;

  
	
   

  	
   

  	
   

  
	
  “Sappi
  Netherlands BV”

  	
   

  	
  means Sappi Netherlands BV,  a
  company incorporated in the Netherlands with registered number 14631721 and
  whose registered office is at Biesenweg 16, 6211 AA Maastricht, the
  Netherlands;

  
	
   

  	
   

  	
   

  
	
  “Sappi Papier
  Holding GmbH (Austria)”

  	
   

  	
  means Sappi Papier Holding
  GmbH (Austria),  a
  company incorporated in Austria with registered number FN 167931 h, and
  whose registered office is at  Brucker Strasse 21, 8101 Gratkorn Austria;

  
	
   

  	
   

  	
   

  
	
  “Sappi
  Shares”

  	
   

  	
  means the ordinary shares of one Rand each in the
  share capital of Sappi;

  
	
   

  	
   

  	
   

  
	
  “Securities
  Act”

  	
   

  	
  means the US Securities Act of 1933, as amended;

  
	
   

  	
   

  	
   

  
	
  “Sellers’
  Business”

  	
   

  	
  means the business of the Sellers’ Group, but
  excluding a Coated Graphic Paper Business, as at Completion;

  
	
   

  	
   

  	
   

  
	
  “Sellers’
  Completion Documents”

  	
   

  	
  has the meaning given to it in paragraph 1(A) of
  Schedule 4;

  
	
   

  	
   

  	
   

  
	
  “Sellers’
  Guaranteed Obligations”

  	
   

  	
  has the meaning given to it in clause 46.1 (i);

  
	
   

  	
   

  	
   

  
	
  “Sellers’
  Group”

  	
   

  	
  means the Sellers and their respective
  subsidiaries and holding companies (and, for the avoidance of doubt, with
  effect from the Completion Date excluding the Group);

  
	
   

  	
   

  	
   

  
	
  “Sellers’ Group Insurance
  Policies”

  	
   

  	
  means insurance policies taken out by members of
  the Sellers’ Group and “Sellers’ Group
  Insurance Policy”  shall be

  

 

69

 

	
   

  	
   

  	
  construed accordingly;

  
	
   

  	
   

  	
   

  
	
  “Sellers’
  Marks”

  	
   

  	
  means “M-REAL”, “METSÄ-SERLA”
  and all related logos and trade marks owned or used by the Sellers’ Group
  used in connection with those marks;

  
	
   

  	
   

  	
   

  
	
  “Sellers’
  Solicitors”

  	
   

  	
  means Slaughter and May of One Bunhill Row,
  London, EC1Y 8YY;

  
	
   

  	
   

  	
   

  
	
  “Senior
  Employees”

  	
   

  	
  has the meaning given to it in paragraph 20(A) of
  Schedule 4 and “Senior Employee”
  shall be construed accordingly;

  
	
   

  	
   

  	
   

  
	
  “Service
  Document”

  	
   

  	
  means a claim form, summons, order, judgement or
  other document issued in connection with any Proceedings;

  
	
   

  	
   

  	
   

  
	
  “Share
  Purchaser”

  	
   

  	
  means, in relation to each of the
  Companies referred to in column (2) of Part A of Schedule
  13 the company whose name is set out opposite that Company in column (4);

  
	
   

  	
   

  	
   

  
	
  “Share
  Sellers”

  	
   

  	
  means Deutsche Holding and NL Holding;

  
	
   

  	
   

  	
   

  
	
  “Shares”

  	
   

  	
  means the
  CN Shares, the Stockstadt Shares and the Biberist Shares;

  
	
   

  	
   

  	
   

  
	
  “Significant
  Adverse Change”

  	
   

  	
  means a change, event or circumstance which or up to 3 separate changes,
  events and circumstances which, in aggregate:

   

  (i)            cause or would be reasonably likely to cause production volumes of
  graphic paper in respect of the Biberist Mill, Kangas Mill, Kirkniemi Mill,
  and Stockstadt Mill to cease or be reduced by 200,000 tonnes (in aggregate)
  over a period of 12 months from the date of such change, event or circumstance;
  or

   

  (ii)           lead or would be reasonably likely to lead to a liability in respect
  of the Graphic Paper Business as a whole, which would have to be settled in
  cash, having a net present value in excess of €110,000,000 from the date of
  such change, event or circumstance;

  
	
   

  	
   

  	
   

  
	
  “South
  Africa”

  	
   

  	
  means the
  Republic of South Africa;

  
	
   

  	
   

  	
   

  
	
  “Standby
  Underwriting Agreement”

  	
   

  	
  means the agreement dated the same
  day as this Agreement between Sappi and Citigroup Global Markets Limited and
  J.P. Morgan Securities Ltd listed as Attachment 29 to this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Statutory
  Accounts Date”

  	
   

  	
  means 31
  December, 2007;

  
	
   

  	
   

  	
   

  
	
  “Stockstadt
  GmbH”

  	
   

  	
  means M-real Stockstadt GmbH, a company
  incorporated in Germany with registered number HRB 8118 and whose 

  

 

70

 

	
   

  	
   

  	
  registered office is at Obernburger Strasse 1-9,
  D-63811 Stockstadt, Germany;

  
	
   

  	
   

  	
   

  
	
  “Stockstadt
  Lease”

  	
   

  	
  means the lease agreement between
  Stockstadt GmbH and Molsindra Vermietungsgesellschaft mbH & Co.
  Objekt Stockstadt KG, dated 28 December, 2001, relating to Stockstadt
  GmbH’s coater;

  
	
   

  	
   

  	
   

  
	
  “Stockstadt
  Loans”

  	
   

  	
  means the shareholder loan agreements pursuant to
  which Deutsche Holding extended (i) a long term loan and (ii) 13
  short term loans which shall be valued at the Completion Time for the
  purposes of Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Stockstadt
  Mill”

  	
   

  	
  means the paper mill operated by Stockstadt GmbH
  at Obernburger Strasse 1-9, D-63811 Stockstadt, Germany;

  
	
   

  	
   

  	
   

  
	
  “Stockstadt
  Shares”

  	
   

  	
  means the entire issued share capital of
  Stockstadt GmbH details of which are set out in Schedule 8;

  
	
   

  	
   

  	
   

  
	
  “Submission”

  	
   

  	
  means any submission, filing, notification,
  briefing paper, proposal, letter, response to a request for information or
  other written communication to the European Commission or any Competition
  Authority (including, for the avoidance of doubt, the Form CO);

  
	
   

  	
   

  	
   

  
	
  “Supplier
  Rebates”

  	
   

  	
  means sums owed to the Mill Business, the Coaters,
  Stockstadt GmbH and Biberist by their suppliers as a result of specified annual
  delivery targets having been met in respect of the period up to the
  Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Swiss
  Company”

  	
   

  	
  means Biberist;

  
	
   

  	
   

  	
   

  
	
  “Take or
  Pay Obligation”

  	
   

  	
  has the meaning given to it Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Target
  Net Working Capital”

  	
   

  	
  has the meaning given to it in Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Tax” or
  “Taxation”

  	
   

  	
  has the meaning given to it in the Tax
  Indemnity;

  
	
   

  	
   

  	
   

  
	
  “Tax
  Authority”

  	
   

  	
  means any taxing, revenue or other authority of
  any jurisdiction competent to impose or collect any Tax liability;

  
	
   

  	
   

  	
   

  
	
  “Tax
  Claim”

  	
   

  	
  means a Tax Warranty Claim or a Tax Indemnity
  Claim;

  
	
   

  	
   

  	
   

  
	
  “Tax
  Indemnity”

  	
   

  	
  means the indemnity in respect of Tax as set out
  in Schedule 14;

  
	
   

  	
   

  	
   

  
	
  “Tax
  Indemnity Claim”

  	
   

  	
  means a claim by the Relevant Purchasers or any of
  them under the Tax Indemnity;

  
	
   

  	
   

  	
   

  
	
  “Tax Warranties”

  	
   

  	
  means the warranties set out at paragraph
  22 of Schedule 4;

  
	
   

  	
   

  	
   

  
	
  “Tax
  Warranty Claim”

  	
   

  	
  means a claim for breach of any of
  the Tax Warranties;

  
	
   

  	
   

  	
   

  
	
  “Termination
  Date”

  	
   

  	
  means:

   

  (i)            28 February, 2009 if the announcement of the full
  terms of the Rights Issues has not

  

 

71

 

	
   

  	
   

  	
  been made by midnight on
  that date; or

   

  (ii)           if the announcement in paragraph (i) above
  has been made on or before, 28 February, 2009, 30 April, 2009 if the Rights
  Issue has not closed and settled by that date;

  
	
   

  	
   

  	
   

  
	
  “Third
  Party Consents”

  	
   

  	
  means all consents, approvals, authorisations or
  waivers required from third parties (other than those required by the
  relevant regulatory or anti-trust authority) for the transfer, assignment or novation
  of any Business Contract in favour of a Relevant Purchaser (or member of the
  Purchaser’s Group) and “Third Party
  Consent” shall be construed accordingly;

  
	
   

  	
   

  	
   

  
	
  “Thosca Holz Option Letter”

  	
   

  	
  means the letter from Metsäliitto Co-operative to
  Sappi set out at Attachment 28 dated the same day as this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Trade
  Mark Licences”

  	
   

  	
  means licences of certain GALERIE Marks to be
  entered into on Completion pursuant to clause 26.6;

  
	
   

  	
   

  	
   

  
	
  “Transaction
  Documents”

  	
   

  	
  means this Agreement together with the Agreed
  Form documents listed as Attachments 1 to 33 to this
  Agreement;

  
	
   

  	
   

  	
   

  
	
  “Transitional
  Services Agreement”

  	
   

  	
  means the transitional services agreement between
  the certain Relevant Sellers and certain Relevant Purchasers to be entered
  into on Completion;

  
	
   

  	
   

  	
   

  
	
  “Transitional
  Services Term Sheet”

  	
   

  	
  means the list of terms on which M-real and Sappi
  intend to base the Transitional Services Agreement, as set out in Attachment
  11 and dated the same day as this Agreement;

  
	
   

  	
   

  	
   

  
	
  “UGB”

  	
   

  	
  has the meaning given to it in clause 24.4;

  
	
   

  	
   

  	
   

  
	
  “UK
  Listing Authority”

  	
   

  	
  means the Financial Services Authority, acting in
  its capacity as the competent authority for the purposes of Part VI of
  the Financial Services and Markets Act 2000 including;

  
	
   

  	
   

  	
   

  
	
  “United
  States” or “US”

  	
   

  	
  means the United States of America and its
  territories and dependencies;

  
	
   

  	
   

  	
   

  
	
  “VAT”

  	
   

  	
  means value added tax as implemented in the
  European Union pursuant to Council Directive 2006/112/EC on the common system
  of value added tax and legislation supplemental thereto or any similar tax in
  any jurisdiction outside the European Union;

  
	
   

  	
   

  	
   

  
	
  “Vendor
  Loans”

  	
   

  	
  means the Euro denominated loan notes to be issued
  by the Relevant Purchasers to M-real in accordance with the allocation of
  Enterprise Value set out in Part 2 of Schedule 6;

  
	
   

  	
   

  	
   

  
	
  “Warranties”

  	
   

  	
  means the warranties set out in Schedule 4
  and “Warranty” shall be
  construed accordingly;

  
	
   

  	
   

  	
   

  
	
  “Working
  hours”

  	
   

  	
  means 9.00 a.m. to 5.00 p.m. on a
  Business Day; and

  
	
   

  	
   

  	
   

  
	
  “Zanders”

  	
   

  	
  means
  M-real Zanders GmbH, company incorporated in Germany
  and registered in Germany at the local court with

  

 

72

 

	
   

  	
   

  	
  number
  HRB 51420 and whose registered office is at An der Gohrsmühle 51465 Bergisch
  Gladbach, Germany.

  

 

2.            In
this Agreement, and the Schedules to it, unless otherwise specified: -

 

(i)            references to clauses, Schedules and
Attachments are to clauses of, and Schedules and Attachments to, this
Agreement;

 

(ii)           a reference to a paragraph is to a
paragraph of the clause or Schedule (as the case may be) in which such
reference appears and to a sub-paragraph is to a sub-paragraph of the paragraph
in which such reference appears;

 

(iii)          a reference to any statute or statutory
provision shall be construed as a reference to the same as it may have been, or
may from time to time be, amended, modified or re-enacted except to the extent
that any amendment or modification made after the date of this Agreement would
increase or alter the liability of any party under this Agreement;

 

(iv)           references to a “company” shall be
construed so as to include any company, corporation or other body corporate,
wherever and however incorporated or established;

 

(v)            references to a “person” shall be
construed so as to include any individual, firm, company, government, state or
agency of a state or any joint venture, association or partnership (whether or
not having separate legal personality);

 

(vi)           expressions “holding company”, “subsidiary”
and “wholly-owned subsidiary” shall have the meaning given in the Companies Act
2006;

 

(vii)          references to writing shall include any
modes of reproducing words in a legible and non-transitory form but shall
exclude electronic mail;

 

(viii)         references to times of the day are to
London time;

 

(ix)          headings are for convenience only and do
not affect the interpretation of this Agreement;

 

(x)           references to any English legal term for
any action, remedy, method of judicial proceeding, legal document, legal
status, court, official, or any legal concept or thing shall in respect of any
jurisdiction other than England be deemed to include what most nearly
approximates in that jurisdiction to the English legal term;

 

(xi)          references in any Warranty or in this Schedule
1 to any monetary sum expressed in Euros shall, where such sum is referable
in whole or in part to a particular jurisdiction, be deemed to be a reference
to an equivalent amount in the local currency of that jurisdiction translated
at the prevailing exchange rate applicable to that amount of Euros by reference
to middle market rates quoted by National Westminster Bank plc immediately
before close of business in London on the date of this Agreement or, if such
day is not a Business Day, on the Business Day immediately preceding such day;

 

73

 

(xii)                           (a)           Without prejudice to (b),
(c), (d) and (e) below, references in any clause of this Agreement or
Warranty to the Sellers’ awareness or any other similar phrase shall be deemed
to be a reference to following persons: Matti Mörsky, Esa Kaikkonen and Miika
Arola;

 

(b)           References to the Sellers’
awareness or any other similar phrase shall be deemed to be a reference to
Seppo Parvi in the following Warranties only:

 

·      Arrangements with the
Sellers’ Group, the Business and the members of the Group; Solvency, Accounts
and Carve-Out Accounts, Events Since the Accounts Date, Financial Obligations,
Intellectual Property and IT and Insurance set out in paragraphs 3, 5,
9, 10, 11, 18 and 19 respectively of Schedule 4;

 

(c)           References to the Sellers’
awareness or any other similar phrase shall be deemed to be a reference to Mika
Paljakka in the following Warranties only:

 

·      Employment and Pensions
set out in paragraphs 20 and 21 respectively of Schedule 4;

 

(d)           References to the Sellers’
awareness or any other similar phrase shall be deemed to be a reference to
Soili Hietanen in the following Warranties only:

 

·      Ownership of Assets,
Sufficiency of Assets, Books and Records and Licences set out in paragraphs
6, 7, 8, and 13 respectively of Schedule 4;

 

(e)           References to the Sellers’
awareness or any other similar phrase shall be deemed to be a reference to
Jarmo Salonen in the following Warranties only:

 

·      Arrangements with the
Sellers’ Group, the Business and the members of the Group and Licences set out
in paragraphs 3, and 13 respectively of Schedule 4;

 

(xiii)                        where any amount in any local currency is
required to be converted into Euros for the purposes of calculating any of the “Adjustment Payment”, “Business Merchant
Rebates”, “Business Merchant Rebates as at 30 June, 2008”, “Business Net Debt”,
“Company CO2 Obligations”, “Company Merchant Rebates”, “Company Merchant
Rebates as at 30 June, 2008”, “Completion Time Business Net Debt”, “Completion Time Inter-Group Debt”, “Completion
Time Inter-Group Receivables”, “Completion Time Net Debt”,
“Completion Time Net Working Capital”, “Enterprise Value”, “Estimated Business Net
Debt”,  “Estimated Inter-Group
Debt”, “Estimated Inter-Group
Receivables”, “Estimated Net Debt”,
“Final Consideration”, “Final Payment”, “German Pension
Liabilities”,  “Initial Consideration”,
“Inter-Group Debt”, “Inter-Group Net Debt”, “Inter-Group Debt  Adjustment Payment”, “Inter-Group Receivables”, “Inter-Group
Receivables Adjustment Payment”, “Merchant Rebates”, “Net Debt”, “Net Working Capital”, “Net Working Capital
Adjustment”, “Other Net Debt”, “Other Stockstadt”, “Specific Business Net Debt
Items”, “Take or Pay Obligation” and “Target Net
Working Capital” expressed in Euros, such amount shall be translated
into Euros at the Exchange Rate for that local currency on the date which is
two Business Days prior to the Completion Date, save that any amount

 

74

 

required to be translated
into Euros for the purpose of calculating any estimated figure shall be
translated into Euros for that local currency on the date which is two Business
Days prior to the date that the estimate is provided;

 

(xiv)        where it is necessary to determine whether
a monetary limit or threshold set out in Schedule 5 has been
reached or exceeded (as the case may be) and the value of the relevant claim or
any of the relevant claims or any part of the relevant threshold is expressed
in a currency other than Euros, the value of each such claim or the relevant
threshold, as the case may be, shall be translated into Euros at the prevailing
exchange rate applicable to that amount of that non-Euro currency by reference
to middle-market rates quoted by National Westminster Bank plc immediately
before close of business in London on the date of receipt by the Sellers of
written notification from the Relevant Purchasers in accordance with paragraph 2
of Schedule 5 of the existence of such claim or, if such day is not
a Business Day, on the Business Day immediately preceding such day;

 

(xv)         References to “Euros”,
or “€” are to the lawful currency of the
member states of the European Union that have adopted the single currency in
accordance with the Treaty Establishing the European Community, as amended by
the Treaty on European Union.

 

75

 

SCHEDULE 2

 

(CONDITIONS TO COMPLETION)

 

1.            The passing of the
following resolutions at a general meeting of the members of Sappi and the
registration of the resolution referred to in (iii) below:

 

(i)            an
ordinary resolution approving the acquisition of, and the payment for, the
Business Assets and the Shares as specified in this Agreement;

 

(ii)           an
ordinary resolution approving the allotment and issue of the Consideration
Shares, as a specific authority, in accordance with this Agreement, and an
ordinary resolution placing the authorised but issued share capital of Sappi,
after the increase to be effected by the resolution referred to in paragraph
1 (iii) below, under the control of the directors with authority to
allot and issue all or part thereof for the purpose of the Rights Issue;

 

(iii)          a
special resolution approving the increase in Sappi’s share capital (plus the
registration of that resolution) to the level required for the (i) allotment
and issue of the Consideration Shares and (ii) the Rights Issue.

 

2.            The European
Commission having:

 

(i)            issued
a decision under Article 6(1)(b) or Article 6(2) of the
Merger Regulation, or being deemed to have done so under Article 10(6) of
the Merger Regulation, declaring the purchase of the Shares and the Business
Assets pursuant to this Agreement compatible with the common market without imposing any conditions or
obligations that are not on terms reasonably satisfactory to the Purchaser;
or

 

(ii)           if
the European Commission initiates proceedings under Article 6(1)(c) of
the Merger Regulation, then, the European Commission having issued a decision
under Article 8(1) or Article 8(2) of the Merger
Regulation, or being deemed to have done so under Article 10(6) of
the Merger Regulation, declaring the purchase of the Shares and the Business
Assets pursuant to this Agreement compatible with the common market without imposing any conditions or
obligations that are not on terms reasonably satisfactory to the Purchaser;

 

If any aspect of the
transactions contemplated by this Agreement is referred to a competent
authority of a Member State or more than one such competent authority under Article 9
of the Merger Regulation, then confirmation having been received from each such
competent authority that the contemplated transactions may proceed in
accordance with this Agreement without imposing any conditions or obligations that
are not on terms reasonably satisfactory to the Purchaser or the relevant
waiting period having expired.

 

3.                                    In so far as the purchase of the Shares and the Business Assets
pursuant to this Agreement require clearance under mandatory merger control
laws in the United States and Turkey, filings having been made in respect of
the transactions contemplated by this Agreement and all approvals necessary in
respect of the transactions contemplated by this Agreement having been obtained
from the relevant Competition Authorities in the above-mentioned jurisdictions  without imposing any conditions
or obligations that are not on terms reasonably satisfactory to the

 

76

 

Purchaser whether by lapse of time or by express
confirmation of the relevant Competition Authorities.

 

4.            The Treasury, as
regulating authority in terms of the Exchange Control Regulations 1961 (South Africa)
(“Regulations”) will have
granted, unconditionally, all necessary consents required under the Regulations
for the entering into and implementation of the Transaction Documents and the
Rights Issue in accordance with their terms, including, without limitation:

 

(i)            the
acquisition of, and payment for, the Business Assets and the Shares by Sappi
and the Relevant Purchasers on the terms and conditions of the Transaction
Documents (including, without being limited to, the issue of, and performance
of obligations under, the Vendor Loans and the M-real Vendor Loan Note);

 

(ii)           the
non-resident endorsement of all Consideration Shares or the equivalent or if
the Consideration Shares are in dematerialised form;

 

(iii)          payment
of the Inducement Fee;

 

(iv)           the
guarantee being given by Sappi under this Agreement;

 

(v)            the
entering into and implementation by Sappi and the Relevant Purchasers of all
their respective obligations under this Agreement and other Transaction
Documents requiring Treasury’s consent;

 

(vi)           the
Rights Issue and the entering into and implementation of all arrangements and
agreements to be entered into in connection with the Rights Issue, including
all underwriting agreements;

 

(vii)          apply
€400,000,000 of the funds raised pursuant to the Rights Issue in payment of a
portion of the Consideration and up to Euro €50,000,000 of such funds in
payment of underwriting fees and other costs of the transaction including, to
the extent shares are issued to South African residents, taking any funds
raised in South Africa from the issue of shares in terms of the Rights Issue
offshore for the purpose of making those payments.

 

5.            The fulfilment of
any obligation to provide information to, or consult with, or negotiate with,
or request advice from, or any decision of, any works council, trade union or
other body representing employees or the Employees themselves under German law
which obligations are described in Schedule 12 in which a failure to
fulfil such obligation would render this Agreement in its current form void or
inoperable.

 

6.            The
Pre-sale Reorganisation having been completed.

 

7.            The
approval of the JSE for the listing of the Consideration Shares on the JSE.

 

8.            The Rights Issue having closed and settled in accordance
with its terms.

 

77

 

SCHEDULE 3

 

(COMPLETION ARRANGEMENTS)

 

1.            General

 

(A)          Sellers’ obligations

 

At Completion M-real or each Relevant
Seller, as the case may be, shall:

 

(i)            where
required by law, deliver to the Relevant Purchasers a copy of the minutes of a
duly held meeting of the directors of each Relevant Seller (or a duly
constituted committee thereof) authorising the execution by each Relevant
Seller of this Agreement and of the Sellers’ Completion Documents to which it
is a party and, in the case where such execution is authorised by a committee
of the board of directors of a Relevant Seller, a copy of the minutes of a duly
held meeting of the directors constituting such committee or the relevant
extract thereof (in each case such copy minutes being certified as correct by
the secretaries of the Relevant Sellers);

 

(ii)           where
required by the relevant articles of association or other corporate documents,
deliver to the Relevant Purchasers a copy of minutes of a duly held meeting of
the supervisory board or advisory board of each of Relevant Seller, authorising
the execution by each Relevant Seller of this Agreement and of the Sellers’
Completion Documents to which it is a party and any agreements entered into in
connection with this Agreement (in each case such copy minutes being certified
as correct by the secretaries of the Relevant Sellers);

 

(iii)          procure
that all land or title certificates, title deeds or other documents relating to
the Company Properties are either delivered to the Relevant Purchaser or held
to the order of the Relevant Purchaser at the offices of the relevant member of
the Group Companies or their solicitors;

 

(iv)           deliver
to the Relevant Purchasers the Business Intellectual Property Assignments duly
executed on behalf of the relevant members of the Sellers’ Group;

 

(v)            deliver
its statutory books to the Relevant Purchaser;

 

(vi)           immediately
upon fulfilment of the Relevant Purchaser’s obligations in paragraph 1(B)(iii) of
this Schedule 3, assign and transfer the Vendor Loans to Sappi
Limited;

 

(vii)          pay
to the respective Group Company, if any, an amount as is equal to such part of
the Inter-Group Receivables which is owed to such Group Company from the
Relevant Seller, in each case based on the Estimated Inter-Group Receivables
and provided that M-real shall pay the respective part of the Inter-Group
Receivables which is owed to any Group Company from any other member of the
Sellers’ Group who is not a Relevant Seller;

 

(viii)         if
M-real has complied with the provisions of clause 14.9 provide evidence
that M-real has so complied; and

 

78

 

(ix)          procure
that legal opinion (s)  in respect of the Transaction Documents
in a form and from firms reasonably required by Sappi and all board minutes,
constitutions, other authorisations in respect of the same which Sappi
reasonably requires are delivered to Sappi . Sappi acknowledges that
as regards the legal opinion(s) it may have to obtain the necessary
comfort from its own counsel where M-real’s counsel is unwilling
to give such comfort.

 

(B)          Relevant Purchasers obligations

 

At Completion the Purchaser and/or the
Relevant Purchasers, as the case may be, shall:

 

(i)            deliver
to the Relevant Sellers or the Sellers’ Solicitors:

 

(a)           a copy of the minutes of a duly held
meeting of the directors of each Relevant Purchaser (or duly constituted
committees thereof) authorising or otherwise approving the execution and
implementation by each Relevant Purchaser of this Agreement and the Purchasers’
Completion Documents to which it is a party;

 

(b)           a copy of the minutes of a duly held
meeting of the directors of the Purchaser (or duly constituted committees
thereof) authorising or otherwise approving the allotment and issue to M-real
of the Consideration Shares and entry of the name of the M-real (or its
nominee) in the register of members of the Purchaser as the holder of the
Consideration Shares and, in the case where such execution is authorised or
otherwise approved by a committee of the board of directors of the Purchaser, a
copy of the minutes of a duly held meeting of the directors constituting such
committee or the relevant extract thereof, in each case such copy of the
minutes being certified as correct by the Chairman of the meeting recoded in
such minutes;

 

(c)           such waivers or consents as M-real may
require to enable M-real or its nominee(s) to be registered as the holder(s) of
the Consideration Shares;

 

(d)           the Trade Mark Licences duly executed
on behalf of the Relevant Purchasers;

 

(ii)           pay
or procure the payment of the applicable cash amount in Euro of the Initial
Consideration and Estimated Inter-Group Debt, if any, as relate to:

 

(a)           the Group Companies, the business of
the Kirkniemi Mill, the business of the Kangas Mill, the Kirkniemi Property,
the Kangas Property, the Know-How Business and the Hallein Coater in total by
wire transfer in immediately available funds for the same day value to M-real
at:

 

Bank: Nordea Pankki Suomi Oyj

Account Number: 233318-3669

IBAN: FI74 2333 1800 0036 69

BIC: NDEAFIHHXXX

 

(b)           the Gohrsmühle Coaters in total by wire
transfer in immediately available funds for the same day value to Zanders at:

 

79

 

Bank: Citibank
Frankfurt

Account Number: 211696001

IBAN: DE41 5021 0900 0211 6960 01

BIC: CITIDEFFXXX

 

provided that an agreement is entered
into in respect to the sale and transfer of the Gohrsmühle Coaters.

 

(iii)          issue
the Vendor Loans to M-real;

 

(iv)          allot
and issue or procure the allotment and issue of the Consideration Shares to
M-real (or its nominee(s));

 

(v)           subject
to M-real having provided Sappi with written notice (not less than two Business
Days prior to the Completion Date) of the details of the person in whose name
the Consideration Shares should be registered as dematerialised Sappi Shares,
procure that M-real (or its nominee(s)) are entered in the Purchaser’s register
of members as the holder of the Consideration Shares;

 

(vi)           deliver
to M-real the M-real Vendor Loan Note;

 

(vii)          procure,
within 20 Business Days, all required resolutions to:

 

(a)          change
the corporate names of the Companies to alternative names which do not include
the Sellers’ Marks or any confusingly similar name;

 

(b)          procure
the prompt registration of the new names with the appropriate courts or
registries; and

 

(c)          provide
written proof to the Sellers that such changes of name have been effected; and

 

(d)          procure
that legal opinion (s)  in respect of the Transaction Documents in
a form and from firms reasonably required by M -real and all board
minutes, constitutions, other authorisations in respect of the same which
M-real reasonably requires are delivered to M-real . M-real
acknowledges that as regards the legal opinion(s) it may have to obtain
the necessary comfort from its own counsel where Sappi’s counsel
is unwilling to give such comfort.

 

2.            General provisions in relation to the
Business Assets

 

At Completion (or as soon as reasonably
practicable thereafter) the Relevant Sellers shall deliver to the Relevant
Purchasers all those Business Assets which are capable of transfer by delivery
(other than Books and Records which shall be delivered to the Relevant
Purchasers in accordance with clause 28).

 

80

 

3.            Specific provisions in relation to the
Business Assets

 

(A)          Austria

 

On the Completion Date Hallein AG and
Sappi Netherlands BV shall execute the Hallein Coater Asset Sale and Transfer
Agreement in substantially the same form as listed in Attachment 23.

 

(B)          Finland

 

(i)            On
the Completion Date M-real and Sappi Finland I Oy shall execute the following
agreements:

 

(a)           the Kangas Asset Transfer Agreement
(attached hereto as Attachment 20);

 

(b)           the Kirkniemi Asset Transfer Agreement
(attached hereto as Attachment 21);

 

(c)           the Business Properties Transfer Deed
(attached hereto as Attachment 18); and

 

(d)           the Kangas PM2 Property Lease (attached
hereto as Attachment 19);

 

(ii)           M-real
and Sappi Finland I Oy shall execute and have duly notarised the Business
Properties Transfer Deed before a Finnish notary public to transfer the
Business Properties to Sappi Finland I Oy providing that the effectiveness of
such property transfer shall occur on the Completion Date at 10:00 a.m. UK
time.

 

(iii)          M-real
shall deliver to Sappi written confirmation that all the internal lease
arrangements in relation to the Business Properties between M-real and either
the Kangas Mill or the Kirkniemi Mill will have been terminated, confirming no
liabilities, obligations, claims or rights remain for either party under the
said arrangements and providing that the effectiveness of such termination
shall occur on the Completion Date at 10:00 a.m. UK time.

 

(iv)           M-real
shall deliver to Sappi, free and clear of any pledges, encumbrances and
liabilities, all the original mortgage certificates (Fin: panttikiirja)
evidencing the mortgages registered in the Business Properties, as well as a
certificate dated per the Completion Date confirming that no floating charges
encumber the Business Assets of the Mill Business located in Finland and that
no applications for such charges to be registered in relation to the said
Business Assets have been made.

 

(C)          Germany

 

Zanders and the Relevant Purchaser
shall, provided an agreement is entered into, execute an agreement in respect
of the sale and transfer of the relevant Business Assets located in Germany.

 

81

 

4.            Specific provisions in relation to the
Companies and the Shares

 

(A)          German Shares

 

(i)            Deutsche
Holding and Sappi Deutschland Holding GmbH shall execute and have duly
notarised the German Share Transfer Agreement attached hereto as Attachment
22 before a German notary public to transfer the German Shares to Sappi
Deutschland Holding GmbH providing that the effectiveness of such share
transfer shall occur on the Completion Date at 24:00 German time.

 

(ii)           Each
of the German Companies shall deliver to Sappi Deutschland Holding GmbH at
Completion the resignations of each relevant Resigning Director and Resigning
Board Member, such resignations to take effect from Completion, including a
confirmation by the respective Resigning Director or Resigning Board Member
that such individual does not have any outstanding claims against any Group
Company, provided that Sappi Deutschland Holding GmbH hereby undertakes to
resolve on the discharge (Entlastung) of
the respective individual for the current business year in connection with the
approval of the annual accounts for the business including a period during
which these individuals held office.

 

(B)          Biberist Shares

 

(i)            NL
Holding and Sappi Netherlands BV shall execute the transfer of the Biberist
Shares to Sappi Netherlands BV by delivering to Sappi Netherlands BV at
Completion the Biberist share certificates representing all the Biberist
Shares. Such share certificates shall be either (i) duly endorsed in
favour of Sappi Netherlands BV and in the case of previous endorsements contain
a complete chain of endorsements beginning with the first holder of the share
certificates and ending with Sappi Netherlands BV or (ii) issued to NL
Holding as the first holder of the share certificates and be duly endorsed in
favour of t Sappi Netherlands BV.

 

(ii)           Biberist
shall deliver to Sappi Netherlands BV at Completion:

 

(a)           the resignations of each relevant
Resigning Director, such resignations to take effect from Completion and to
include a statement that the Resigning Director has no claims against Biberist
as a result of his/her function as director;

 

(b)           a copy of the board resolution
authorising: (i) the sale of the Biberist Shares and (ii) the entry
of Sappi Netherlands BV as the holder of the entire issued share capital of
Biberist with voting rights in the share register of Biberist;

 

(c)           a copy of the minutes of an
extraordinary shareholders’ meeting: (i) taking note of the resignation of
the Resigning Director, (ii) granting discharge to the Resigning Director
and (iii) electing any new board member nominated by Sappi Netherlands BV
no later than two Business Days prior to Completion; and

 

(d)           a copy of the updated share register of
Biberist showing Sappi Netherlands BV as the holder of the entire issued share
capital of Biberist with voting rights in the share register of Biberist;

 

82

 

(iii)          Completion of the sale and purchase of the Biberist Shares
shall take place on the Completion Date at the offices of Bäer &
Karrer AG at Brandschenkestrasse 90, CH-8027 Zurich, Switzerland.

 

5.            Specific provisions in relation to the
Inter-Group Debt

 

At the Completion Time each of the
Relevant Sellers and Relevant Purchasers shall enter into, and M-real shall
procure that any relevant member of the Sellers’ Group who is not a Relevant
Seller shall enter into, agreements (with effect from the end of the Completion
Date) for the assignment of the receivables which comprise the Inter-Group Debt
(including interest accrued until Completion) in a form to be agreed between
the parties acting reasonably. The aforementioned assignment shall include the
Stockstadt Loans and the Relevant Seller shall deliver on the Completion Date
the consent by Stockstadt GmbH to such assignment.

 

6.            Execution of other Transaction
Documents

 

The Relevant Sellers and the Relevant
Purchasers shall execute the following documents to which it is a party on or
prior to Completion:

 

	
  (i)

  	
  Transitional Services Agreement;

  
	
   

  	
   

  
	
  (ii)

  	
  Lock-Up Agreement;

  
	
   

  	
   

  
	
  (iii)

  	
  Long-term Wood Supply Agreement;

  
	
   

  	
   

  
	
  (iv)

  	
  Long-term Pulp Supply Agreements;

  
	
   

  	
   

  
	
  (v)

  	
  Husum Mill PM8 Exclusive Marketing Agreement;

  
	
   

  	
   

  
	
  (vi)

  	
  Äänekoski PM2 Exclusive Marketing Agreement;

  
	
   

  	
   

  
	
  (vii)

  	
  Long-term Energy Agreements;

  
	
   

  	
   

  
	
  (viii)

  	
  Business Properties Transfer Deed;

  
	
   

  	
   

  
	
  (ix)

  	
  Kangas Asset Transfer Agreement;

  
	
   

  	
   

  
	
  (x)

  	
  Kirkniemi Asset Transfer Agreement;

  
	
   

  	
   

  
	
  (xi)

  	
  Kangas PM2 Property Lease;

  
	
   

  	
   

  
	
  (xii)

  	
  German Share Transfer Agreement;

  
	
   

  	
   

  
	
  (xiii)

  	
  Hallein Coater Asset Sale and Transfer Agreement;

  
	
   

  	
   

  
	
  (xiv)

  	
  Vendor Loans;

  
	
   

  	
   

  
	
  (xv)

  	
  M-real Vendor Loan Note;

  
	
   

  	
   

  
	
  (xvi)

  	
  Business Intellectual Property Assignments; and

  

 

83

 

(xvii)       Trade
Mark Licences.

 

 

84

 

SCHEDULE 4

 

(THE WARRANTIES)

 

1.            Capacity of the Sellers

 

(A)          Each
of the Relevant Sellers has the requisite power and authority to enter into and
perform this Agreement and any other documents which are to be entered into
pursuant to this Agreement to which it is a party (the “Sellers’
Completion Documents”).

 

(B)          This
Agreement constitutes and the Sellers’ Completion Documents will, when executed
by the relevant Seller, constitute binding obligations of the relevant Seller
in accordance with the respective terms of each such document.

 

(C)          The
execution and delivery of, and the performance by each of the Relevant Sellers
of their respective obligations under this Agreement and the Sellers’
Completion Documents to which each is respectively a party will not:

 

(i)            result
in a breach of any provision of the memorandum or articles of association or
equivalent constitutional documents of the Relevant Sellers;

 

(ii)           result
in a breach of, or constitute a default under, any instrument to which the
relevant Seller is a party or by which the relevant Seller is bound and which
is material in the context of the transactions contemplated by this Agreement;
or

 

(iii)          so
far as the Relevant Sellers are aware, result in a breach of any existing
order, judgment or decree of any court or governmental agency to which the
Relevant Seller are a party or by which the Relevant Sellers are bound and
which is material in the context of the transactions contemplated by this
Agreement.

 

2.            Ownership of the Shares

 

(A)          Each
Share Seller is the sole legal and beneficial owner of those shares set
opposite its name in Schedule 8.

 

(B)          There
is no option, right to acquire, mortgage, charge, pledge, lien or other form of
security or Encumbrance or equity on, over or affecting the Shares or any of
them and there is no agreement or commitment entered into by any member of the
Sellers’ Group to give or create any of the foregoing.

 

(C)          The
Sellers are entitled to transfer or procure the transfer of the legal and
beneficial ownership in the Shares to the Relevant Purchasers on the terms set
out in this Agreement.

 

3.            Arrangements with the Sellers’ Group,
the Business and the members of the Group

 

No contract (other than purchase or
sale orders for stock placed in accordance with the normal practice of the
Business) exists between:

 

(i)            any
member of the Group and a Relevant Seller; and

 

85

 

(ii)           any
member of the Sellers’ Group and any person who is a director of any member of
the Sellers’ Group,

 

which is not on arm’s length terms.

 

4.            Corporate Details

 

(A)          The
Shares comprise the whole of the issued and allotted share capital of each of
the Group Companies and all of them are fully paid up and free from any
additional payment obligations.

 

(B)          There
is no agreement or commitment outstanding entered into by any member of the
Sellers’ Group which calls for the allotment, issue or transfer of, or accords
to any person the right to call for the allotment or issue of, any shares
(including the Shares) or debentures in or securities of any member of the
Group.

 

(C)          The
information given in Schedule 7 is true and accurate.

 

(D)          Each
member of the Group is validly existing under the laws of the jurisdiction in
which it is incorporated.

 

(E)          No
member of the Group has any interest in the share capital of any company other
than the companies in the Group.

 

(F)           No
member of the Group acts or carries on business in partnership with any other
person (other than another member of the Group) nor is any of them a member
(otherwise than through the holding of share capital) of any corporate or
unincorporated body, undertaking or association (other than a trade
association) nor does any of them hold nor is any of them liable on any share
or security which is not fully paid up or which carries any liability.

 

5.            Solvency

 

(A)          Neither
M-real nor any member of the Group is insolvent under the laws of its
jurisdiction of incorporation, or unable to pay its debts.

 

(B)          No
order has been made and no resolution has been passed for the winding up of
M-real or any member of the Group and no petition has been presented for the
purpose of winding up M-real or any member of the Group.

 

(C)          No
administration order has been made and no petition or application for such an
order has been made or presented and no administrator has been appointed and no
procedure has been commenced with a view to the appointment of an administrator
in respect of any member of the Group.

 

(D)          No
receiver (which expression shall include an administrative receiver) has been
appointed in respect of M-real or any member of the Group or all or any of its
assets.

 

(E)          No
event analogous to those specified in sub-paragraphs (A) to (D) of
this paragraph 5 has occurred in relation to M-real or any member
of the Group in the respective jurisdiction of incorporation of such member.

 

86

 

6.            Ownership of Assets

 

(A)          Each
of the Business Assets (other than the Business Intellectual Property and any
Business Stocks acquired in the ordinary course of business on terms that the
property does not pass until payment is made) is owned both legally and
beneficially by the Business Sellers (or another member of the Sellers’ Group)
and each of those assets capable of possession is in the possession of the
Business Sellers or another member of the Sellers’ Group and the Business
Sellers are able to transfer title of all of the Business Assets to the
Business Purchasers.

 

(B)          Each
of the assets of any member of the Group included in the Accounts or which has
been acquired by any member of the Group since the Accounts Date (other than
current assets sold, realised or applied in the normal course of business) is
owned both legally and beneficially by the relevant member of the Group and each
of those assets capable of possession is in the possession of the relevant
member of the Group or a member of the Sellers’ Group.

 

(C)          No
option, right to acquire, mortgage, charge, pledge, lien (other than a lien
arising by operation of law in the ordinary course of business) or other form
of security or encumbrance or equity on, over or affecting the whole or any
part of the Business Assets or the assets of any member of the Group is
outstanding, except as disclosed in Schedule 9 (other than any asset
acquired in the ordinary course of business on terms that the property does not
pass until payment is made) and there is no agreement or commitment entered
into by M-real (or other member of the Sellers’ Group) or any member of the
Group to give or create any and no claim has been made against M-real (or any
other member of the Sellers’ Group) or any member of the Group by any person to
be entitled to any.

 

7.            Sufficiency of Assets

 

(A)          So
far as the Relevant Sellers are aware, the rights and assets owned and used by
each member of the Group, together with the Mill Business Assets and the rights
to be conferred upon or acquired by the Relevant Purchasers under or pursuant
to the Transaction Documents, comprise in all material respects all the
properties, assets and rights which are used in carrying on the Mill Business
and the businesses of the Group as at the Completion Date save that no
representation or warranty is made in respect of the adequacy of the net
working capital of the Graphic Paper Business.

 

(B)          Where
any Business Asset is defined in this Agreement as being used exclusively in
relation to the Graphic Paper Business, no such Business Asset is used
predominantly in relation to the Graphic Paper Business.

 

8.            Books and Records

 

(A)          The
statutory books (including all registers and minute books) of each member of
the Group required to be kept under the law of its respective jurisdiction of
incorporation have been properly kept and contain a record of the matters which
should be dealt with in those books and no notice or written allegation that
any of them is incorrect or should be rectified has been received by any member
of the Group.

 

(B)          All
statutory books (including all registers and minute books) referred to in paragraph
(A) above which is/are the property of each member of the Group or
ought to be in its possession are in the possession of the relevant member of
the Group.

 

87

 

(C)          The
copy of the memorandum and articles of association or other equivalent
constitutional documents of each member of the Group contained in the Data Room is
a complete and accurate copy.

 

(D)          All
returns and other documents relating to the Group required to be delivered to
any companies registry in any jurisdiction have been properly made and
delivered.

 

9.            Accounts and Carve-Out Accounts

 

(A)          The
Accounts of the German Companies were prepared in accordance with generally
accepted accounting principles and practices in Germany.

 

(B)          The
Accounts of Biberist were prepared in accordance with Swiss statutory
requirements.

 

(C)          The
Accounts:

 

(i)            were
properly prepared in a manner consistent in all material respects with that
adopted in the preparation of the Accounts in respect of the equivalent period
in the previous financial year; and

 

(ii)           show
a true and fair view of the assets and liabilities of the company to which they
relate at 31 December, 2007 and its profits (and losses) for the financial
period ended on that date.

 

(D)          The
audited Carve-Out Accounts for the year ended 31 December, 2007:

 

(i)            fairly
present, in all material respects, the financial position of the Graphic Paper
Business at that date and the results of the operations and cash flows of the
Graphic Paper Business for the year ended 31 December, 2007; and

 

(ii)           have
been prepared in accordance with IFRS.

 

(E)          The
unaudited Carve-Out Accounts for the years ended 31 December, 2005, 31
December, 2006 and for the six month period ended on 30 June, 2008, which were
prepared on a review basis by PricewaterhouseCoopers:

 

(i)            have
been prepared in accordance with relevant International Financial Reporting
Standards on a review basis only; and

 

(ii)           so
far as the Relevant Sellers are aware, on the basis that the Carve-Out Accounts
are prepared on a review basis only, 
there is nothing which causes them to believe that the historical
information in the Carve-Out accounts, is not fairly presented in all material
respects in accordance with relevant International Financial Reporting
Standards.

 

10.          Events
since the Accounts Date

 

Since the Accounts Date and other than
in relation to the Pre-sale Reorganisation:

 

(i)            there
has been no significant adverse change in the financial or trading position of
the Group and the Business;

 

88

 

(ii)           the
Graphic Paper Business has been carried on in the ordinary and usual course
without any interruption or alteration in its nature, scope or manner;

 

(iii)          no
resolution of any member of the Group in general meeting has been passed other than
resolutions relating to the routine business of annual general meetings;

 

(iv)           no
member of the Group has allotted or issued or agreed to issue or granted an
option or other right to acquire any share capital;

 

(v)            no
member of the Group has redeemed or purchased or offered or agreed to redeem or
purchase any of its share capital; and

 

(vi)           there
have been no changes in accounting policies, principles, methods in respect of
the Graphic Paper Business.

 

11.          Financial
Obligations

 

(A)          Guarantees
etc

 

Other than in the ordinary and usual
course of business, there is no outstanding guarantee, indemnity, suretyship or
security (whether or not legally binding) given by any member of the Group (in
relation to the Graphic Paper Business).

 

(B)          Borrowing
Limits

 

The amounts borrowed by each member of
the Group under overdraft facilities do not exceed applicable overdraft limits
and such amounts borrowed by each member of the Group do not exceed any
limitation on its borrowings contained in its constitutional documents or in
any agreement or instrument binding upon it.

 

(C)          Off-Balance
Sheet Financing

 

No member of the Group has outstanding
any loan capital, nor has it factored, discounted or securitised any of its
receivables, nor has it engaged in any financing of a type which would not be
required to be shown or reflected in the Accounts.

 

12.          Contracts
and Commitments

 

(A)          The
Data Room contains a copy (or a summary of all material terms of) of each
outstanding contract or arrangement entered into by any member of the Group and
of each Business Contract which is a Material Contract;

 

(B)          No
member of the Group nor (in relation to the Graphic Paper Business) M-real (or
any other member of the Sellers’ Group) is in breach of any Material Contract
and, so far as the Sellers are aware, no other party to any Material Contract
is in breach of any such Material Contract which breach in any such case would
entitle the non-defaulting party to terminate such Material Contract.

 

89

 

13.          Licences

 

(A)          All
governmental and quasi-governmental licences, consents, permissions and
approvals required for carrying on the Graphic Paper Business substantially in
the manner in which it is carried on as at the date hereof and was carried on
in the six months prior to the date hereof (the absence of which would have a
material adverse effect on the relevant part of the Graphic Paper Business to
which it relates) (other than Environmental Permits and licences in relation to
the Properties) have been obtained and no written notice has been received by
either of the Sellers or any member of the Group and, so far as the Sellers are
aware, there are no circumstances which indicate that any such licence,
consent, permission or approval is likely to be revoked or which may confer a
right of revocation.

 

(B)          None
of the licences or other matters referred to in paragraph (A) has
been breached.

 

14.          Litigation

 

(A)          No
member of the Group nor (in relation to the Business) M-real is engaged in any
litigation or arbitration, mediation, enquiry, investigation, enforcement,
administrative or criminal proceedings which is material to the Graphic Paper
Business taken as a whole, whether as claimant, defendant or otherwise other
than in respect of the collection of debts in the ordinary course of business.

 

(B)          So
far as the Relevant Sellers are aware, no such litigation or arbitration,
mediation, enquiry, investigation, enforcement, 
administrative or criminal proceedings as are referred to in sub-paragraph (A) are
pending or threatened in writing in the past two years.

 

(C)          So
far as the Relevant Sellers are aware, there are no investigations,
disciplinary proceedings likely to lead to any such litigation or arbitration,
mediation, enquiry, investigation, enforcement, administrative or criminal
proceedings as are referred to in sub-paragraph (A).

 

15.          Delinquent
and wrongful acts

 

(A)          So
far as the Sellers’ are aware, no member of the Group nor (in relation to the
Business) M-real has committed any criminal or illegal act in respect of the
Graphic Paper Business in the past two years.

 

(B)          No
member of the Group nor (in relation to the Business) M-real has received
notification that any investigation or inquiry is being or has been conducted
by any supranational, national or local authority or governmental agency in
respect of its respective business in this past two years.

 

16.          Properties

 

(A)          The
Company Properties referred to in paragraph B of Schedule 9 are
the only land and buildings owned, used or occupied by any member of the Group
or in respect of which any member of the Group has any estate, interest or
right.

 

(B)          The
Business Properties referred to in paragraph A of Schedule 9 are
the only Properties used or occupied for the purposes of the Business.

 

(C)          The
information set out in Schedule 9 is complete and accurate in all
material respects.

 

90

 

(D)          In
relation to each of the Properties referred to in Schedule 9:

 

(i)            the
Property Owner is solely, legally and beneficially entitled to the Property,
except with respect to real estate Biberist nr. 776 which is owned by a simple
partnership (einfacheGesellschaft) including
inter alia, the Swiss Company;

 

(ii)           the
Property Owner has in its possession or under its control all of the title
deeds and documents necessary to prove its title;

 

(iii)          the
Property Owner holds the Property subject to the leases, underleases, tenancies
or licences particulars of which are set out in the Disclosure Letter.

 

(E)          Except
for Permitted Encumbrances and as disclosed in Part B of Schedule
9 (including the respective land register) by the title deeds and
documents, there are no mortgages or charges, legal or equitable, fixed or
floating, or other Encumbrances affecting the Properties.

 

(F)           There
are no agreements for sale, estate contracts, options or rights of pre-emption
affecting the Properties other than as:

 

(i)            disclosed
in the respective land register and supporting documents (Belege); or

 

(ii)           arising
under mandatory provisions of Swiss law.

 

(G)          The
Property Owners are not aware of any agreement, obligation or matter affecting
the Properties which, although not registered, is capable of registration as a
local land charge (or its equivalent in the relevant jurisdiction).

 

(H)          The
Property Owners have not received any written notice alleging breach of any
covenants, restrictions and other Encumbrances affecting any Property which
remains to be complied with.

 

(I)            The
current use of each of the Properties in relation to the Graphic Paper Business
is a permitted or lawful use under planning or zoning  legislation and there are no outstanding
enforcement notices, stop notices, breach of condition or similar notices.

 

(J)           The
Property Owners have received no compulsory purchase order, notice to treat or
notice of entry in respect of the Properties and so far as the Property Owners
are aware no proposals have been published for the compulsory acquisition of
the Properties.

 

(K)          In
relation to each of the Properties referred to in Schedule 9 which is
leasehold:

 

(i)            the
Property is held under the terms of the lease (the “Lease”)
briefly referred to in Schedule 9 and no collateral assurances,
undertakings or concessions have been made or given;

 

(ii)           there
are no rent reviews outstanding;

 

(iii)          the
Property Owner has received no notice alleging a breach of any covenant
contained in the Lease which remains outstanding; and

 

91

 

(iv)          the Property Owner has
paid all rent and other outgoings due and payable under the terms of the Lease.

 

(L)         Each of the Properties
benefits from the rights and easements necessary for its use and enjoyment for
its present purposes and there are no covenants or restrictions preventing the
use of the Properties for their present purposes in each case in relation to
the Graphic Paper Business.

 

(M)        There are no current
material legal proceedings concerning the Properties.

 

17.          Environment

 

In this paragraph 17:

 

	
  “Allowances”

  	
   

  	
  has the meaning given to it in Directive
  2003/87/EC of the European Parliament and of the Council of 13 October, 2003
  establishing a schedule for greenhouse gas emissions allowance trading and
  amending Council Directive 96/6/EC;

  
	
   

  	
   

  	
   

  
	
  “Compensations”

  	
   

  	
  means all payments to be made to the Swiss
  Company under the Carbon Dioxide Reduction Agreement (Reduktionsvertrag uber
  den Erweb von CO2 Emissionsreduktionen in
  Brennstoffbereich) among Stiftnung Klimarappen, Zurich, Switxerland, and the
  Swiss Company dated 14 May 2007

  
	
   

  	
   

  	
   

  
	
  “Environment”

  	
   

  	
  means all or any of the following, alone or
  in combination, any part of the air (including, without limitation, the air
  within buildings and the air within other natural or man-made structures
  above or below ground or above or below water), water (including water under
  or within land or in pipes, tanks, ditches or sewerage systems), soil and
  land and any ecological systems and living organisms supported by these
  media, including man;

  
	
   

  	
   

  	
   

  
	
  “Environmental
  Authority”

  	
   

  	
  means any legal person or body of persons
  (including any government or regional department or government or regional
  agency or court or tribunal) having jurisdiction to determine any matter
  arising under Environmental Law and/or relating to the Environment;

  
	
   

  	
   

  	
   

  
	
  “Environmental
  Laws”

  	
   

  	
  means all applicable statutes and other laws
  (including without limitation all codes of law, statutory instruments,
  treaties, regulations, directives, decisions, circulars, codes, guidance and
  by-laws) of any relevant jurisdiction which relate to or provide remedies in
  respect of Environmental Matters and are in force and legally binding in the
  relevant jurisdiction at or prior to Completion;

  
	
   

  	
   

  	
   

  
	
  “Environmental
  Matters”

  	
   

  	
  means:

  

 

92

 

	
   

  	
   

  	
   

  	
  (i)            the release, spillage, deposit, escape, discharge, leak, emission,
  leaching, migration, disposal or otherwise the presence of Hazardous Material
  at the Properties or in the Environment; or 
  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)           the creation of noise, vibration, radiation, common law or statutory
  nuisance or other impact on the Environment; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)          human health and safety including industrial disease; or 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iv)          other matters relating to the pollution, contamination or protection
  of the Environment including those in relation to the manufacturing,
  production, generation, storage, processing, treatment, keeping, handling,
  use (including as a building material), possession, supply, receipt, sale,
  distribution, purchase, import, export, disposal or transportation of
  Hazardous Material;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Environmental
  Permits”

  	
   

  	
  means any permit, licence, consent,
  certificate, approval, registration, notification or authorisation required
  by Environmental Laws in relation to the operation of the business of any
  member of the Group or the occupation or use of any Property;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Hazardous
  Material”

  	
   

  	
  means any substance (whether solid, liquid or
  gas) which alone or in combination with any other substance is capable of
  causing harm to man or to the Environment or any other organism supported by
  the Environment; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Relevant
  Period”

  	
   

  	
  means the period commencing four years before
  the relevant Closing and ending at the relevant Closing.

  
	
   

  	
   

  	
   

  	
   

  
	
  (A)

  	
  All
  material Environmental Permits have been obtained and are in full force and
  effect and, have been complied with in all material respects by each relevant
  member of the Group.

  
	
   

  	
   

  
	
  (B)

  	
  The
  Seller’s Group has operated the Graphic Paper Business throughout the
  Relevant Period in compliance in all material respects with Environmental
  Laws.

  
	
   

  	
   

  
	
  (C)

  	
  Except
  as disclosed in the Data Room, no member of the Group has received any
  written notice from the relevant Environmental Authority or other third party
  of any material claims, investigations, enforcement actions or other
  proceedings which are outstanding as at the date of this Agreement against or
  involving the Group under the Environmental Laws in respect of 

  

 

93

 

Environmental
Matters and so far as the Sellers are aware, no such claims, investigations,
enforcement actions or proceedings are pending or have been threatened in
writing during the Relevant Period.

 

(D)          No member of the Group or Business Seller
has received written notice during the Relevant Period that either:

 

(i)            Environmental Authority is intending to
revoke, suspend, or materially vary or limit any Environmental Permits; or

 

(ii)           any amendment to any Environmental Permit
is required to enable the continued operation of the business of the Group.

 

(E)          No member of the Seller’s Group has sold,
given as security, pledged or mortgaged any rights to or over or interest in
Allowances or Compensations allocated or to be allocated in respect of
operating assets within the Graphic Paper Business in respect of compliance
year 2008 onwards.

 

(F)          So far as the Sellers are aware, no member
of the Sellers’ Group has disposed of, dumped, deposited, or buried any
Hazardous Materials at, on or under the Business Properties in breach of
Environmental Laws or permitted the continued presence of Hazardous Materials
at, on or under the Business Properties which action may reasonably be expected
to give rise to material liability under Environmental Laws.

 

(G)          So far as the Sellers are aware, no member of
the Group has received within the Relevant Period or is reasonably likely to
receive written notice alleging any material liability under Environmental Law
in respect of contamination at or emanating from any property formerly owned,
leased or occupied by a member of the Group.

 

(H)          So far as the Sellers are aware, copies of all material environmental
audits, reports, investigations or assessments externally prepared during the
Relevant Period that relate to the presence of Hazardous Materials at, on or
under the Properties and are within the ownership or control of the Sellers
Group have been provided in the Data Room.

 

18.          Intellectual
Property and IT Systems

 

(A)          All:

 

(i)            registered Business Intellectual Property,
and applications for registration therefor; and

 

(ii)           registered Intellectual Property, and
applications for registration therefor, owned by the Group Companies,

 

is legally and
beneficially owned by the Sellers’ Group or the Group Companies (as
applicable), and details of such registered Intellectual Property are referenced
in the Disclosure Letter or contained in the Data Room.

 

(B)          So far as the Relevant Sellers are aware,
no third party is infringing:

 

(i)            any Intellectual Property owned by any
Group Company; or

 

94

 

(ii)           any Business Intellectual Property,

 

which
is material to the business of the Group Companies or the Business.

 

(C)          No Relevant Seller has received in the
last three years any written notice of any challenge or opposition to any of
the rights referred to in paragraph 18(A) of this Schedule.

 

(D)          The rights referred to in paragraph 18(A) are
not subject to any options, charges, material licences (other than the licences
referred to in paragraph 18(F) of this Schedule) or liens and so
far as the Relevant Sellers are aware, the rights referred to in paragraph
18(A) are not subject to any licences (other than those referred to in
paragraph 18(F) of this Schedule). 
So far as the Relevant Sellers are aware, the rights referred to in paragraph
18(B) are not subject to any options, charges, material licences
(other than the licences referred to in paragraph 18(F) of this
Schedule) or liens.

 

(E)          All renewal fees due as at the date of
this Agreement in respect of the rights referred to in paragraph 18(A) of
this Schedule have been paid and all administrative steps which are required
for the payment of all renewal fees due before or within 3 months following
Completion  have been taken.

 

(F)          Details of all material written licences
of Intellectual Property granted to, or by:

 

(i)            any Group Company; and

 

(ii)           the Relevant Sellers which are material to
the Business,

 

are
contained in the Data Room.

 

(G)          Neither the Relevant Sellers nor, so far
as the Relevant Sellers are aware, any Group Company has within the last two
years received written notice of any material breach or termination of any of
the licences referred to in paragraph 18(F) of this Schedule, no
material disputes have arisen in respect thereof and, so far as the Relevant
Sellers are aware, no party to any such licences is in breach in circumstances
which would entitle the non-defaulting party to terminate them.

 

(H)          So far as the Relevant Sellers are aware,
the activities of the Group Companies and the Business do not infringe the
Intellectual Property of any third party where such infringement would
adversely affect the business of the Group Companies or the Business and, so
far as the Relevant Sellers are aware, no written claims of any such
infringement of any such Intellectual Property have been received.

 

(I)            The Relevant Sellers have not received
written notice of any claims against any of the Group Companies or the Business
under any contract or under Section 40 of the Patents Act 1977 or any
equivalent provision of any foreign law providing for employee compensation or
ownership in respect of any patentable inventions made by employees of the
Group Companies or the Business and used in the business of the Group Companies
or the Business and so far as the Relevant Sellers are aware there is no factual
basis for any such claim by an employee and no employees have threatened to
make any such claims; so far as the Relevant Sellers are aware all patentable
inventions made by employees of the Group Companies or the Business and used in
the business of the Group Companies or the Business were made in the normal
course of the

 

95

 

duties
of the employees concerned; where applicable appropriate measures were taken in
order to claim and effect the transfer of full title to the respective Group
Company.

 

(J)           So far as the Relevant Sellers are aware,
the rights and licences disclosed pursuant to paragraphs 18(A), (B) and
(F) respectively comprise all the rights and interests in
Intellectual Property reasonably necessary for the carrying on of the business
of all of the Group Companies and the Business in and to the extent which it is
presently conducted.

 

(K)          There are no material agreements relating
to IT Systems used by the Companies or in relation to the Business (other than
any agreement the benefit of which is intended to be used to provide
transitional services pursuant to the Transitional Services Agreement).

 

(L)           No notice alleging non compliance with the
Data Protection Legislation (including any enforcement notice, information
notice or transfer prohibition notice) has been received by any of the
Companies or the Business from any Data Protection Authority. There has been no
disruption to the commercial or operational activities of the Group which has
adversely affected the business of the Group in the nine months prior to the
date of this Agreement which has been caused by any failure, error, security
breach or breakdown of any material IT Systems.

 

(M)         So far as the Relevant Sellers are aware,
and save as in the ordinary course of business or to its employees or as
otherwise required by applicable law, no Company or member of the Sellers’
Group has disclosed any material Business Information to any third party other
than under an obligation of confidentiality, where such disclosure had a
material adverse effect on the business of the Companies or the Business.

 

19.          Insurance

 

(A)          Details of the Sellers’ Group Insurance
Policies in respect of the Graphic Paper Business are set out in the Data Room and,
so far as the Sellers are aware, no individual or related claim in respect of
the Graphic Paper Business for the amounts in excess of €2,000,000 are
outstanding thereunder.

 

(B)          So far as the Sellers are aware, all
premiums and any related insurance premium taxes have been duly paid or are due
to be paid in respect of all such Sellers’ Group.

 

(C)          Details of all claims made in respect of
the Sellers’ Group Insurance Policies during the period 1 January, 2007 ending
1 January, 2008 are contained in the Data Room.

 

(D)          Summary details of the Sellers’ Group
Insurance Policies are set out in the Data Room.

 

20.          Employment

 

(A)          A list of the names, jobs and full details
of the terms of employment (including the emoluments) of each of the Employees
who is entitled to emoluments at a rate, or (in the case of fluctuating
amounts) an average annual rate over the last three financial years, in excess
of €200,000 per annum (or its equivalent in local currency at exchange rates
prevailing at the date of this Agreement), and of every director of a Group
Company (together “Senior Employees”),
are set out in the Disclosure Letter.

 

96

 

(B)          A list of the names, jobs, salaries and
copies of the pro forma terms of employment of Employees are contained in the
Data Room.

 

(C)          None of the Senior Employees has given
notice terminating his contract of employment nor is under notice of dismissal.
No litigation, arbitration or mediation, administration or criminal proceeding
has been commenced in connection with or arising from the employment of an
Employee and there is no obligation or amount due to or in respect of any of
the Employees in connection with or arising from his employment which is in
arrear or unsatisfied other than his normal salary for part of the month
current at the date of this Agreement.

 

(D)          Since the Accounts Date, no change has
been made in the emoluments or other terms of employment of any Senior Employee
except for increases in emoluments made in accordance with the Sellers’ Group
normal practice.

 

(E)          There is no dispute between any trade
union, works council or other representative body (whether such body is
formally recognised or not) existing, pending or (so far as the Sellers are
aware) threatened in writing which would be material to the Graphic Paper
Business.

 

(F)          Attachment 8  is an accurate list of
all the Business Employees as of the date of this Agreement and there is no
omission which makes it misleading.

 

(G)          There is no outstanding undischarged
liability to pay to any governmental or regulatory authority in any
jurisdiction any contribution, Taxation or other impost arising in connection
with the employment or engagement of personnel in the Graphic Paper Business.

 

(H)          The Data Room contains copies of all
material schemes, rules or policies providing for benefits to the
Employees, including in respect of pension or other retirement benefits, any
commission or sales-related bonus payments, and any share schemes.

 

(I)            Copies of any material collective
bargaining agreements or other material arrangements (whether binding or not)
with any employee representative body (whether such body is formally recognised
or not) in respect of the Employees (or any subset of them) are contained in
the Data Room.

 

(J)           The Business Employees are all
predominantly engaged in the Graphic Paper Business.

 

21.          Pensions

 

(A)          None of the
Business Employees enjoy any pension or other benefits in excess of those
provided by mandatory law, under the relevant collective bargaining agreement
or the Swiss pension fund regulations and accident agreements.

 

(B)          None of the
Companies has made any company pension commitment (other than any defined
contribution schemes) to any of its current or former employees, except for any
company pension commitments under the pension plans referred to in Disclosure
Letter. True and complete copies of all actuarial reports relating to such
pension commitments have been disclosed to the Relevant Purchasers prior to the
date hereof.

 

(C)          Except as
disclosed in Disclosure Letter the company pension commitments of the
Stockstadt GmbH and the German Subsidiary have at all times materially complied
and been duly managed and administered in accordance with all applicable laws,
regulations and requirements relevant to

 

97

 

each company pension commitment. So far as the Sellers’ are aware,  the Disclosure Letter contains a true and
complete list of all threatened or pending labour disputes against any of the
German Companies or the German Subsidiary in connection with current or former
Employees relating to any company pension commitment.

 

22.          Tax

 

(A)          The Accounts and Tax

 

(i)            No Group Company has any outstanding
liability in excess of €500,000 (whether actual or contingent) for:

 

(a)          Tax
in any part of the world assessable or payable by reference to profits, gains,
income or distributions earned, received or paid or arising or deemed to arise
in any period ending on or before the Statutory Accounts Date; or

 

(b)          purchase,
value added, sales or other similar Tax in any part of the world referable to
transactions effected on or before the Statutory Accounts Date,

 

that is
not provided for in full or disclosed in the Accounts.

 

(ii)           The amount of the provisions and
liabilities for Tax in respect of each Group Company contained in the Accounts
was, at the Statutory Accounts Date, adequate and completely in accordance with
accounting practices generally accepted in Germany or, in the case of the Swiss
Company, Switzerland, and (in each case) commonly adopted by companies carrying
on businesses similar to those carried on by that Group Company.

 

(B)          Distributions

 

                Since the Statutory
Accounts Date, no Group Company has declared, made or paid any distribution or
deemed distribution.

 

(C)          Degrouping charges

 

                The entry into or
becoming unconditional of this Agreement or Completion will not result in any
profit or gain being deemed to accrue to any Group Company for Taxation
purposes.

 

(D)          Payroll taxes and national insurance

 

                Each Group Company has
properly operated the applicable payroll taxes and national insurance
contributions systems by making such deductions as are required by law from all
payments made or deemed to be or treated as made by it or on its behalf, and by
duly accounting to the appropriate Tax Authority for all sums so deducted and
for all other amounts for which it is required to account under the applicable
payroll taxes and national insurance contributions systems.

 

(E)          Tax returns, disputes, records and claims,
etc.

 

(i)            Each Group Company has made or caused to
be made all proper returns and notices required to be made, and has supplied or
caused to be supplied all information required

 

98

 

to
be supplied, to any Tax Authority, and (a) all such returns, notices and
information were made or supplied on a proper basis and within the requisite
periods, and (b) none of them is currently the subject of any dispute with
or investigation by any Tax Authority, and (c) so far as any of the
Relevant Sellers are aware, none of them is likely to be the subject of any
material dispute with or non-routine investigation by any Tax Authority in the
future.

 

(ii)           There is no dispute or disagreement
outstanding nor is any contemplated at the date of this agreement with any Tax
Authority regarding liability or potential liability to any Tax (including in
each case penalties or interest) recoverable from any Group Company or
regarding the availability of any Relief from Tax to any Group Company and, so
far as M-real is aware, there are no circumstances which make it likely that
any such dispute or disagreement of a material nature will commence.

 

(iii)          Each Group Company has sufficient records
relating to past events, including any elections made, to calculate the Tax
liability or Relief which would arise on any disposal or on the realisation of
any asset owned at the Statutory Accounts Date by that Group Company or
acquired by that Group Company since that date but before Completion.

 

(iv)           There are set out in the Disclosure Letter
details of all consents, clearances, arrangements, agreements or elections
which have been obtained or made within the last 3 years in relation to the
Taxation affairs of any Group Company pursuant to which the relevant Group
Company is authorised not to comply with what would otherwise be its legal
obligations, and all material transactions have been carried out, to the extent
appropriate, in accordance with the terms of such consents, clearances,
agreements and/or elections.

 

(v)            Since the Statutory Accounts Date, so far
as the Relevant Sellers are aware, each Group Company has duly and punctually
paid all Tax which it has become liable to pay and in respect of which the due
date for payment has passed.

 

(vi)           No Group Company has been involved in any
scheme or arrangement a main purpose of which was the avoidance or reduction of
Tax and which: (a) in respect of the German Companies or the German
Subsidiary would be treated as involving the avoidance of Tax (Steuerhinterziehung) or a grossly negligent reduction of Tax
(leichtfertige Steuerverkürzung) for
German Tax purposes; or (b) in respect of the Swiss Company would be
treated as involving Tax avoidance (Steuerumgehung)
or Tax fraud (Steuerbetrug) within the meaning
given by Swiss Tax legislation and Swiss Federal Supreme Court decisions.

 

(F)          Tax Status

 

No Group
Company benefits from any preferential Tax regime, granted by law or by special
authorisation issued by any Tax Authority or by any other authority, which
could in whole or in part be affected by the signature of this Agreement or
Completion.

 

(G)          Stamp duty, registration tax and transfer
tax

 

All
documents which are required to be stamped or are subject to a registration or
transfer tax and which are in the possession of any Group Company or by virtue
of which any Group Company 

 

99

 

has any
right have been duly stamped or such registration or transfer tax has been paid
in respect of such documents.

 

(H)          Value added tax

 

(i)            Each Group Company has
complied with any obligations to register for the purpose of VAT,  has complied in all material respects with
its obligations under any Tax legislation or regulations  relating to VAT, and has complied with the
terms of any specific agreement reached by that Group Company with any Tax
Authority in relation to VAT.

 

(ii)           Complete, correct and
up-to-date records, invoices and other documents required for the purposes of
any Tax legislation relating to VAT have been made, given, obtained and kept.

 

(iii)          There are set out in the
Disclosure Letter full particulars of any land in which a Group Company has an
interest or which is comprised in the Business Assets and, in each case, in
relation to which an election has been made to waive exemption from VAT.

 

(iv)           Since 31 December 2001,
no Group Company has at any time been a member of a group for VAT purposes
(other than a group all the other members of which were Group Companies).

 

(I)            Deductions and withholdings

 

Each
Group Company has made all deductions in respect, or on account, of any Tax
from any payments made by it which it is obliged to make and has accounted in
full to the appropriate Tax Authority for all amounts so deducted.

 

(J)           Residence

 

The
country which is given in Schedule 7 as the tax residence of any Group
Company is the only country whose Tax Authorities seek to charge Tax on the
worldwide profits or gains of that Group Company.  No Group Company has ever paid or been liable
to pay Tax on income, profits or gains to any Tax Authority in any other
country except that mentioned in Schedule 7.

 

(K)          Tax on Business Assets

 

None of the Business
Assets is subject to any charge, power of sale, mortgage or other form of
security in favour of any Tax Authority nor, so far as M-real is aware, are
there any circumstances which are likely to give rise to the same.

 

(L)           Non-Arm’s Length transactions

 

No Group
Company has, within the last six years, entered into any material transactions
or arrangements (including any material equity funding transaction or
arrangement) which were not on arm’s length terms in all material respects.

 

100

 

SCHEDULE 5

 

(LIMITATIONS ON LIABILITY)

 

1.            Limitations
on quantum and general

 

(A)          Subject to paragraph
(B), neither the Relevant Sellers nor the Relevant Purchasers nor any
member of the Relevant Sellers or the Relevant Purchasers Group shall be
entitled in any event to damages or other payment in respect of any claim or
claims under any of the Warranties, other than a Tax Warranty Claim or an
Environmental Claim, (or the warranties set out in clause 18 of this
Agreement, as applicable) in respect of any individual claim:

 

(i)        for less than €1,000,000; or

 

(ii)       unless and until the aggregate amount of all such
claims (taking no account of those referred to in (i) above) exceeds
€12,000,000, in which event the Sellers shall be liable for the whole amount of
such claim over and above an excess amount of €6,000,000.

 

(B)          Neither the Relevant Purchasers nor any
member of the Purchaser’s Group shall be entitled in any event to damages or
other payment in respect of any Tax Claim in respect of any individual claim
unless and until the aggregate amount of all such claims exceeds €500,000, in
which event the Sellers shall be liable for the whole amount and not just the
excess of such claim above that amount.

 

(C)          Neither the Relevant
Purchasers nor any member of the Purchaser’s Group shall be entitled in any
event any payment in respect of any Environmental Claim in respect of any
individual claim:

 

(i)        for less than €50,000; or

 

(ii)       unless and until the aggregate amount of all such
claims exceeds €500,000, in which event the Relevant Sellers shall be liable
for the whole amount and not just the excess of such claim above that amount.

 

(D)          The total aggregate
liability of the Relevant Sellers or the Relevant Purchasers, as the case may
be, in any event to damages or other payment in respect of any claim or claims
under any of the Warranties (or the warranties set out in clause 18 of
this Agreement, as applicable) in respect of any individual claim shall not in
any event exceed €200,000,000.

 

(E)          Save for any liability incurred under the
Husum Mill PM8 Exclusive Marketing Agreement or the Äänekoski PM2 Exclusive
Marketing Agreement, the total aggregate liability of the Relevant Sellers or
the Relevant Purchasers, as the case may be, under the Transaction Documents
shall not in any event exceed €275,000,000.

 

(F)           The caps and limits referred to in paragraphs
1(A), (B) and (C) and 2(i), as appropriate,
shall not apply to any claim by the Relevant Purchasers for a breach of paragraphs
1, 2, 4 and 6(A) of Schedule 4.

 

(G)          Neither the Relevant Sellers nor the
Relevant Purchasers nor any member of the Sellers’ Group or the Purchaser’s
Group shall be entitled to claim for any indirect or consequential loss or loss
of profit (save that the Relevant Sellers shall be able to claim for loss of
profit in respect of the 

 

101

 

Kangas
Property Option) in respect of this Agreement but not, for the avoidance of
doubt, the other Transaction Documents which shall be governed by their own
terms.

 

(H)          The Relevant Sellers and the Relevant
Purchasers shall only be liable in respect of any claim if and to the extent
that such claim is admitted by the Relevant Seller or Relevant Purchaser, as
the case may be, or proven in a court of competent jurisdiction.

 

(I)            Nothing in this Agreement shall or shall
be deemed to relieve or abrogate the Relevant Purchaser or Relevant Seller (or
any member of the Purchaser’s or Sellers’ Group) of any common law or other duty
to mitigate any loss or damage including, without limitation, enforcing against
any person (other than the Relevant Sellers or Relevant Purchasers) any rights
any member of the Purchaser’s Group or Sellers’ Group has or may have in
respect of the fact, matter or circumstance giving rise to the claim.

 

(J)           The Relevant Purchaser (or the relevant
member of the Purchaser’s Group) shall give to the Relevant Sellers access to
all such information and documentation within the possession or control of the
Purchaser’s Group as the Relevant Seller may reasonably require to enable it to
satisfy itself as to whether any breach of the Warranties notified pursuant to paragraph
2 below shall have occurred.

 

(K)          As regards any Environmental Claim or Tax
Indemnity Claim the provisions of this Schedule 5 shall operate to limit
the liability of the Relevant Seller insofar as any provision of this Schedule
5 is expressed to be applicable to an Environmental Claim or Tax Indemnity
Claim respectively and the provisions of Schedules 14 and 15
shall further operate to limit the liabilities of the Relevant Sellers in
respect of an Environmental Claim or Tax Indemnity Claim respectively.

 

(L)           Each provision of this Schedule shall be
read and construed without prejudice to each of the other provisions of this
Schedule.

 

2.            Time
limits for bringing claims

 

No claim
shall be brought against the Relevant Sellers or the Relevant Purchasers in
respect of any of the Warranties (or the warranties set out in clause 18
of this Agreement, as the case may be) or under the Tax Indemnity or an
Environmental Claim unless the Relevant Purchasers or Relevant Sellers shall
have given to the Relevant Sellers or Relevant Purchasers, as the case may be,
written notice of such claim:

 

(i)        subject to sub-paragraph (ii) and (iii) below,
on or before the date falling 18 months after the Completion Date; or

 

(ii)       in respect of any Tax Claim, on or before the date
falling three months after the final tax audit (or if the relevant Tax
Authority issues an adjusted tax notice or other relevant final decision after
the tax audit, three months after issuance of such notice or other final
decision) for any of the Companies with respect to periods relevant for the
purposes of Tax which commence prior to Completion and for which the Sellers
might be liable has been completed (being the point when the tax audit can no
longer be re-opened by the relevant authorities) or, if the relevant Group
Company is not subject to a final tax audit, on or before the seventh anniversary
of the Completion Date; or

 

102

 

(iii)      in respect of any Environmental Claim or claims under
the Environmental Warranties on or before the fifth anniversary of the
Completion Date,

 

PROVIDED THAT the liability of the Relevant Sellers or the Relevant
Purchasers, as the case may be, in respect of such claim shall absolutely
determine (if such claim has not been previously satisfied, settled or
withdrawn) if legal proceedings in respect of such claim shall not have been
commenced within six months of the service of such notice and for this purpose
proceedings shall not be deemed to have been commenced unless they shall have
been properly issued and validly served upon the Relevant Sellers or Relevant Purchasers,
as the case may be.

 

3.            Conduct
of Litigation

 

(A)          Upon the Relevant
Purchaser or any member of the Purchaser’s Group becoming aware of any claim,
action or demand against it or any other matter likely to give rise to any
claim in respect of any of the Warranties (other than a Tax Warranty Claim as
to which the procedure set out in paragraph 6 of the Tax Indemnity
shall apply) or otherwise under the Transaction Documents, the Relevant
Purchaser shall:

 

(i)              as soon as practicable notify the Relevant Sellers
thereof in writing;

 

(ii)             subject to the Relevant Sellers indemnifying the
Relevant Purchasers in a form reasonably satisfactory to the Relevant
Purchasers against any liabilities, loss, damages, payments, costs and expenses
which may reasonably be incurred thereby (but without implying any admission of
liability thereby), take such action and give such information and access to
personnel, premises, chattels, documents and records to the Relevant Sellers,
and their professional advisers as the Relevant Sellers may reasonably request
and the Relevant Sellers shall be entitled to require any member of the
Purchasers Group, to take such action and give such information and assistance
in order to avoid, dispute, resist, mitigate, settle, compromise, defend or appeal
any claim in respect thereof or adjudication with respect thereto;

 

(iii)            at the request of the Relevant Sellers, allow the
Relevant Sellers (or the relevant one of them) to take the sole conduct of such
actions as the Relevant Sellers may deem appropriate in connection with any
such assessment or claim in the name of the Relevant Purchaser or any relevant
member of the Purchasers Group and in that connection the Relevant Purchaser
shall give or cause to be given to the Relevant Sellers all such assistance as
they may reasonably require in avoiding, disputing, resisting, settling,
compromising, defending or appealing any such claim and shall instruct such
solicitors or other professional advisers as the Relevant Sellers may nominate
to act on behalf of the Relevant Purchasers or any member of the
Purchasers  Group, as appropriate, but to
act in accordance with the Relevant Sellers instructions; and

 

(iv)            make no admission of liability, agreement, settlement
or compromise with any third party in relation to any such claim or
adjudication without the prior written consent of the Relevant Sellers.

 

(B)          The Relevant Sellers
shall be entitled at any stage and at their absolute discretion to settle any
such third party assessment or claim other than a third party assessment or
claim relating to Tax.

 

103

 

4.            No
liability if loss is otherwise compensated for

 

(A)          No liability shall attach
to the Relevant Sellers or any member of the Sellers’ Group by reason of an Environmental
Claim or any breach of any of the Warranties or by reason of a Tax Indemnity
Claim to the extent that the same loss has been recovered by the Relevant
Purchaser or any other member of the Purchaser’s Group under any other Warranty
or term of this Agreement (including, without limitation, the Tax Indemnity and
Environmental Indemnity) or any other document entered into pursuant hereto and
accordingly the Relevant Purchasers and each other member of the Purchaser’s
Group may only recover once in respect of the same loss.

 

(B)          The Relevant Sellers and
each member of the Sellers’ Group shall not be liable for an Environmental
Claim or breach of any of the Warranties (other than the Tax Warranties which
shall be limited in accordance with the relevant provisions of the Tax
Indemnity) to the extent that the subject of the claim has been or is made good
or is otherwise compensated for.

 

(C)          In calculating the liability of the
Relevant Sellers or any member of the Sellers’ Group there shall be taken into
account the amount by which any Taxation for which any member of the Group or
the Relevant Purchaser is now or in the future accountable or liable to be
assessed is reduced or extinguished as a result of the matter giving rise to
such liability.

 

5.            Recovery
from Insurers and other Third Parties

 

(A)          If, in respect of any matter which would
give rise to a claim under the Warranties, the Tax Indemnity or an
Environmental Claim, any member of the Purchaser’s Group is entitled to claim
under any policy of insurance, then no such matter shall be the subject of a
claim under any such Warranties, the Tax Indemnity or an Environmental Claim
unless and until the appropriate member of the Purchaser’s Group shall have
made a claim against its insurers and used all reasonable endeavours to pursue
such claim and any such insurance claim shall then reduce by the amount which
may be recovered any such claims under any such Warranties, the Tax Indemnity
or an Environmental Claim.

 

(B)          Where the Relevant
Purchaser or any member of the Purchaser’s Group is at any time entitled to
recover from some other person any sum in respect of any matter giving rise to
a claim under the Warranties or an Environmental Claim (other than the Tax
Warranties as to which the procedure set out in paragraph 12 of the Tax
Indemnity shall apply), the Relevant Purchaser shall, and shall procure
that each member of the Purchaser’s Group concerned shall, take all reasonable
steps to enforce such recovery prior to taking action against the Relevant Sellers
(other than to notify the Relevant Sellers of such claim) or any other member
of the Sellers’ Group and, in the event that the Relevant Purchaser or any
member of the Purchaser’s Group shall recover any amount from such other
person, the amount of the claim against the Relevant Sellers or any other
member of the Sellers’ Group shall be reduced by the amount so recovered.

 

(C)          If the Relevant Sellers
or any other member of the Sellers’ Group pay at any time to the Relevant
Purchasers or any member of the Purchaser’s Group an amount pursuant to a claim
(other than a Tax Claim as to which the provisions of paragraph 12 of
the Tax Indemnity shall apply) in respect of the Warranties or an
Environmental Claim or under any provision of this Agreement and the Relevant
Purchasers or member of the Purchaser’s Group subsequently recovers from some
other person any sum in respect of any matter giving rise to such claim, the
Relevant Purchasers shall, and shall procure that the relevant member of the
Purchaser’s Group shall, repay to the Relevant Sellers the lesser of (i) the
amount paid by the Relevant Sellers (or the relevant one of

 

104

 

them) to
the Relevant Purchasers or other member of the Purchaser’s Group and (ii) the
sum (including interest (if any)) recovered from such other person.

 

6.            Acts
of Purchaser

 

(A)          No claim shall lie against the Relevant
Sellers under or in relation to the Warranties (other than the Tax Warranties
as to which the relevant limitations in the Tax Indemnity shall apply) to the
extent that such claim is attributable to:

 

(i)            any voluntary act,
omission, transaction, or arrangement carried out by the Relevant Purchasers or
by a member of the Purchaser’s Group on or after Completion; or

 

(ii)           any admission of
liability after the date hereof by the Relevant Purchasers or on its behalf or
by persons deriving title from the Relevant Purchasers or by a member of the
Purchaser’s Group on or after Completion.

 

(B)          The Relevant Sellers
shall not be liable for any breach of any Warranty or an Environmental Claim
(other than the Tax Warranties as to which the relevant limitations in the Tax
Indemnity shall apply) which would not have arisen but for any reorganisation
or change in ownership of any member of the Purchaser’s Group after Completion
or change in any accounting basis on which any member of the Purchaser’s Group
values its assets or any accounting basis, method, policy or practice of any
member of the Purchaser’s Group which is different from that adopted or used in
the preparation of the Completion Statements.

 

7.            The
Accounts, Carve-Out Accounts and the Completion Statements

 

No
matter shall be the subject of a claim under the Warranties (other than the Tax
Warranties as to which the relevant limitations in the Tax Indemnity shall
apply) to the extent that allowance, provision or reserve in respect of such
matter shall have been made in the Accounts, the Carve-Out Accounts, the Net
Working Capital Adjustment, Adjustment Payment or the Completion Statements and
no matter shall be the subject of an Environmental Claim to the extent that
such allowance, provision or reserve in respect of such matter shall have been
made in the Accounts, Carve-Out Accounts, the Net Working Capital Adjustment,
Adjustment Payment or the Completion Statements.

 

8.            Retrospective
legislation

 

No
liability shall arise in respect of any breach of any of the Warranties (other
than the Tax Warranties as to which the relevant limitations in the Tax
Indemnity shall apply) or the warranties set out in clause 17 of this
Agreement  to the extent that liability
for such breach or such claim occurs or is increased directly or indirectly as
a result of any legislation not in force on or prior to the date of this
Agreement or as a result of the withdrawal of any agreement or arrangement
currently granted by or made with any governmental authority or as a result of
any change after the date of this Agreement of any generally accepted
interpretation or application of any legislation or the enforcement policy or
practice of the relevant authorities.

 

9.            Purchaser’s
knowledge

 

The
Relevant Sellers shall not be liable under the Warranties in relation to any
matter forming the basis of a claim of which the Relevant Purchasers were aware
on or before the date of this

 

105

 

Agreement
including any such matter referred to in Data Room or in any due diligence
report prepared for the Relevant Purchasers if any Relevant Purchaser knew that
such matter would form the basis of a claim for breach of Warranty.

 

10.         Disclosure

 

The
Relevant Purchasers (or any member of the Purchaser’s Group) shall not be entitled
to claim that any fact, matter or circumstance causes any of the Warranties to
be breached to the extent that such fact, matter or circumstance is fairly
disclosed in the Disclosure Letter or in any document fairly disclosed in the
Data Room.

 

11.         Environment

 

No claim
shall lie against any Relevant Seller or any other member of the Sellers’ Group
under or in relation to the Environmental Warranties to the extent that such
claim is attributable to any remedial works or other corrective action which exceeds
the minimum necessary to comply with the requirements of the relevant
Environmental Authority under Environmental Laws.

 

12.         Claim to be a reduction of the Consideration

 

Any
payment made by any Relevant Seller or any other person in respect of any claim
under the Warranties, the Tax Indemnity or an Environmental Claim shall, so far
as permitted by law, be deemed to be a reduction of the Consideration.

 

106

 

SCHEDULE 6

 

(COMPLETION STATEMENTS)

 

PART 1             Definitions

 

	
  In this Schedule 6:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Adjustment Payment”

  	
   

  	
  means the Final Consideration less the Initial Consideration;

  
	
   

  	
   

  	
   

  
	
  “Business CO2 Obligation”

  	
   

  	
  means any obligation of the Mill Business to acquire CO2 allowances in respect of the period up to the
  Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Business Merchant Rebates”

  	
   

  	
  has the meaning given to it in Schedule 1;

  
	
   

  	
   

  	
   

  
	
  “Business Merchant Rebates at 30 June, 2008”

  	
   

  	
  means the Business Merchant Rebates in such amount as is provided for
  in the Carve Out Accounts at 30 June, 2008;

  
	
   

  	
   

  	
   

  
	
  “Business Net Debt”

  	
   

  	
  means the Business Merchant Rebates at 30 June, 2008 and the Specific
  Business Net Debt Items;

  
	
   

  	
   

  	
   

  
	
  “Company CO2 Obligation”

  	
   

  	
  means any obligation of Stockstadt GmbH or Biberist to acquire CO2 allowances in respect of the period up to the
  Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Company Merchant Rebates”

  	
   

  	
  has the meaning given to it in Schedule 1;

  
	
   

  	
   

  	
   

  
	
  “Company Merchant Rebates at 30 June, 2008”

  	
   

  	
  means the Company Merchant Rebates in such amount as is provided for
  in the Carve Out Accounts at 30 June, 2008;

  
	
   

  	
   

  	
   

  
	
  “Completion Time”

  	
   

  	
  means 23:59.59 on the
  Completion Date;

  
	
   

  	
   

  	
   

  
	
  “Completion Time Business Net Debt”

  	
   

  	
  at means the Business Net Debt as at the Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Completion Time Inter-Group Debt”

  	
   

  	
  means the Inter-Group Debt as at the Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Completion Time Inter-Group Receivables”

  	
   

  	
  means the Inter-Group Receivables as at the Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Completion Time Net Debt”

  	
   

  	
  means the Net Debt as at the Completion Time;

  

 

107

 

	
  “Completion Time Net Working Capital”

  	
   

  	
  means the Net Working Capital as at the Completion Time to be
  reported on the fourth Business Day after Completion;

  
	
   

  	
   

  	
   

  
	
  “Enterprise Value”

  	
   

  	
  means €749,016,246;

  
	
   

  	
   

  	
   

  
	
  “Estimated Inter-Group Debt”

  	
   

  	
  means the amount notified by M-real to the Purchaser 5 Business Days
  before the Completion Date as its good faith estimate of Inter-Group Debt on
  the Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Estimated Inter-Group Receivables”

  	
   

  	
  means the amount notified by M-real to the Relevant Purchasers 5
  Business Days before the Completion Date as its good faith estimate of the
  Inter-Group Receivables as at the Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Estimated Business Net Debt”

  	
   

  	
  means the amount notified by M-real to the Relevant Purchasers 5
  Business Days before the Completion Date as its good faith estimate of
  Business Net Debt as at the Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Estimated Net Debt”

  	
   

  	
  means the amount notified by M-real to the Relevant Purchasers 5
  Business Days before the Completion Date as its good faith estimate of Net
  Debt as at the Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Final Consideration”

  	
   

  	
  shall be the Euro amount of the sum of Z +  Z2 +  Z3+ Z4 + Z5 + G+  H + I + J+  K + L

   

  Where

   

  Z1  =        A – X1+ W1, 

   

  A being €100,000,000 (the enterprise value of Biberist), X1 the Completion Time Net Debt in
  respect of Biberist and W1 the Net Working Capital Adjustment in
  respect  of Biberist;

   

  Z2  =       B – X2+ W2, 

   

  B being €135,000,000 (the enterprise value of Stockstadt GmbH and the
  German Subsidiary), X2 the Completion Time Net Debt in respect of
  Stockstadt GmbH and the German Subsidiary and W2 the Net Working Capital Adjustment in respect of
  Stockstadt GmbH and the German Subsidiary; 

   

  Z3  =       C – X3+ W3, 

   

  C being €2,000,000 (the enterprise value of CN

  

 

108

 

	
   

  	
   

  	
  Papiervertriebs GmbH), X3 being the Completion Time Net Debt
  in respect of CN Papiervertriebs GmbH and W3 the Net Working Capital Adjustment in respect of CN
  Papiervertriebs GmbH;

   

  Z4  =        E - X4+ W4, 

   

  E being €50,000,000 (the enterprise value of the Mill Business at
  Kangas), X4 being the Completion Time Business Net Debt
  in respect of the Mill Business at Kangas and W4 the Net Working Capital Adjustment in respect of
  the Mill Business at Kangas;

   

  Z5  =        F- X5 + W5 

   

  F being €450,000,000 (the enterprise value of the Mill Business at
  Kirkniemi) and X5 being the Completion Time Business Net Debt in
  respect of the Mill Business at Kirkniemi W5 the Net Working Capital Adjustment in respect of
  the Mill Business at Kirkniemi; 

   

  G  =       €1,500,000 (the enterprise value
  of the Kangas Property); 

   

  H  =        €2,100,000 (the enterprise value
  of the Kirkniemi Property); 

   

  I  =          €2,000,000 (the enterprise value
  of the Gohrsmühle Coaters); 

   

  J  =         €2,000,000 (the enterprise value of
  the Hallein Coater); 

   

  K  =        €4,416,246 (the enterprise value
  of the Know- How Business); 

   

  L  =        €20,000,000 unless M-real has
  failed to comply with its obligations in clause 14.9, at the time of
  the determination of the Completion Statements in which case L = €0, 

   

  and where W1, W2, W3 , W4 and W5 are determined on the basis that W1= 17%, W2= 21%, W3= 0%, W4 = 15% and W5 =47%, respectively of the Net
  Working Capital Adjustment;

  

 

109

 

	
  “German Pension Liabilities”

  	
   

  	
  means the IAS value of the pension and post retirement benefits of
  the German Companies and the German Subsidiary at the Completion Time in each
  case on the basis of the actuarial assumptions and judgements used in the
  actuarial valuation for the year ended 31 December, 2007 to determine the
  German Pension Liabilities in the Carve-Out Accounts (set out in Attachment
  3), provided that for the purpose of the determination of the Initial
  Consideration the German Pension Liabilities shall be equal to €38,268,000;

  
	
   

  	
   

  	
   

  
	
  “Initial Consideration”

  	
   

  	
  means the Euro amount equal to the sum of Y+ Y2 + Y3 + Y4+ Y5+ G + H + I + J + K + L 

   

  Where: 

   

  Y1  =        A – X1, 

   

  A being €100,000,000 (the enterprise value of Biberist) and X1 the Estimated Net Debt in respect of Biberist on
  the Completion Date; 

   

  Y2  =      B – X2, 

   

  B being €135,000,000 (the enterprise value of Stockstadt GmbH and the
  German Subsidiary) and X2 the Estimated Net Debt in respect of Stockstadt
  GmbH and the German Subsidiary on the Completion Date; 

   

  Y3  =      C – X3, 

   

  C being €2,000,000 (the enterprise value of CN Papiervertriebs GmbH)
  and X3 the Estimated Net Debt in respect of CN
  Papiervertriebs GmbH on the Completion Date; 

   

  Y4  =      E – X4, 

   

  E being €50,000,000 (the enterprise value of the Mill Business at
  Kangas) and X4 being the Estimated Business Net Debt in respect if
  the Mill Business at Kangas; 

   

  Y5  =      F – X5, 

   

  F being €450,000,000 (the enterprise value of the Mill Business at
  Kirkniemi) and X5 being the Estimated Business Net Debt in respect if
  the Mill 

  

 

110

 

	
   

  	
   

  	
  Business at Kirkniemi; 

   

  G =         €1,500,000 (the enterprise value
  of the Kangas Property); 

   

  H =         €2,100,000 (the enterprise value
  of the Kirkniemi Property); 

   

  I =           €2,000,000 (the enterprise value
  of the Gohrsmühle Coaters); 

   

  J=           €2,000,000 (the enterprise value
  of the Hallein Coater); 

   

  K =         €4,416,246 (the enterprise value
  of the Know-How Business); and 

   

  L =          € 20,000,000, unless M-real would
  reasonably have been likely to fail to comply with its obligations in clause
  14.9 on the Completion Date, in which case, L = €0;

  
	
   

  	
   

  	
   

  
	
  “Hyperion Account Numbers”

  	
   

  	
  means account numbers in the Sellers’ Group Hyperion Enterprise
  consolidation and reporting system, which is used for consolidating unaudited
  monthly reporting packages for the purposes of management accounting;

  
	
   

  	
   

  	
   

  
	
  “Inter-Group Debt”

  	
   

  	
  means all interest bearing liabilities, including any negative cash
  pooling balances (only if cash pooling arrangements have not been terminated
  before the Completion Time in accordance with clause 24.3) payable by
  any member of the Group to any member of the Sellers’ Group (excluding the
  Group), including for the avoidance of doubt, the Stockstadt Loans;

  
	
   

  	
   

  	
   

  
	
  “Inter-Group Debt Adjustment Payment”

  	
   

  	
  means Completion Time Inter-Group Debt (payable by any Group Company
  to a member of the Sellers’ Group (excluding the Group)) less Estimated
  Inter-Group Debt (payable by the relevant Group Company to the relevant
  member of the Sellers’ Group (excluding the Group));

  
	
   

  	
   

  	
   

  
	
  “Inter-Group Net Debt”

  	
   

  	
  means the Inter-Group Debt less the Inter-Group Receivables;

  
	
   

  	
   

  	
   

  
	
  “Inter-Group Receivables”

  	
   

  	
  means all interest bearing receivables and any claim for loss
  compensation under the Profit and 

  

 

111

 

	
   

  	
   

  	
  Loss Pooling Agreement for the period from 1 January, 2008 until the
  Completion Time owed to any Group Company by any member of the Sellers’ Group
  (excluding the Group) and, if such receivables have been satisfied pursuant
  to paragraph 1A(vii) of Schedule 3, the respective cash
  received by the Group Company;

  
	
   

  	
   

  	
   

  
	
  “Inter-Group Receivables Adjustment Payment”

  	
   

  	
  means Completion Time Inter-Group Receivables (of any Group Company
  against the relevant member of the Sellers’ Group) less Estimated Inter-Group
  Receivables (of the relevant Group Company against the relevant member of the
  Sellers’ Group);

  
	
   

  	
   

  	
   

  
	
  “Merchant Rebates at 30 June, 2008”

  	
   

  	
  means the Business Merchant Rebates at 30 June, 2008 and the Company
  Merchant Rebates at 30 June, 2008;

  
	
   

  	
   

  	
   

  
	
  “Net Debt”

  	
   

  	
  means the Inter-Group Net Debt plus the Other Net Debt;

  
	
   

  	
   

  	
   

  
	
  “Net Working Capital”

  	
   

  	
  means: 

   

  (i)            all inventories (24900), consisting of: 

   

  (a)           materials and supplies (24000); 

   

  (b)           work in progress (24100); 

   

  (c)           finished goods and goods for
  resale (24200); 

   

  (d)           other inventories (24300); 

   

  (e)           advance payments (24400); 

   

  Plus 

   

  (ii)           trade receivables, consisting of: 

   

  (a)           accounts receivable, short term
  (26000); 

  

 

112

 

	
   

  	
   

  	
  (b)           receivables from affiliated
  companies, non-interest-bearing, short term (excluding, for the avoidance of
  doubt, any claim for loss compensation under the Profit and Loss Pooling
  Agreement for the period 1 January, 2008 until the Completion Time) (26150); 

   

  (c)           receivables from associated
  companies, non-interest-bearing, short term (26250); 

   

  Less 

   

  (iii)          trade payables, consisting of: 

   

  (a)           accounts payable, short term
  (38300); 

   

  (b)           liabilities to affiliated
  companies, non-interest-bearing (excluding for the avoidance of doubt, any
  negative cash pooling balances only if the cash pooling arrangements have not
  been terminated before the Completion Time in accordance with clause 24.3)
  (38450); 

   

  (c)           liabilities to associated
  companies, non-interest-bearing (38550); 

   

  But 

   

  (iv)           excluding, for the avoidance of doubt, all cash in
  hand, cash at the bank and all positive cash pooling balances, only if the
  cash pooling arrangements have not been terminated before the 

  

 

113

 

	
   

  	
   

  	
  Completion Time in accordance with clause
  24.3), the Merchant Rebates and any amounts otherwise included in Net
  Debt or Business Net Debt; 

   

  The same accounting principles shall be consistently applied in the
  calculation of Target Net Working Capital and Completion Time Net Working
  Capital. Any adjustment to the Completion Time Net Working Capital arising
  from reclassification of items in the balance sheet shall lead to a
  retroactive adjustment of Target Net Working Capital accordingly; 

   

  The above account numbers refer to the Hyperion Account Numbers;

  
	
   

  	
   

  	
   

  
	
  “Net Working Capital Adjustment”

  	
   

  	
  means the Completion Time Net Working Capital less the Target Net
  Working Capital;

  
	
   

  	
   

  	
   

  
	
  “Other Net Debt”

  	
   

  	
  means in respect of the period up to and including the Completion
  Time, all interest bearing liabilities, the Company Merchant Rebates at 30
  June, 2008 and the Specific Net Debt Items, in each case payable by any
  member of the Group other than Inter-Group Debt less all cash in hand, cash
  at the bank, positive cash pooling balances only if the cash pooling
  arrangements have not been terminated before the Completion Time in
  accordance with clause 24.3 and interest bearing receivables other
  than Inter-Group Receivables excluding, for the avoidance of doubt, all cash
  included in the definition of Inter-Group Receivables;

  
	
   

  	
   

  	
   

  
	
  “Other Stockstadt”

  	
   

  	
  means if and only if Sappi can satisfy M-real, in M-real’s
  discretion, that items presented as “Other Stockstadt - €1,032,000” in the
  Sappi paper headed “Allocation of Obligations” set out in Attachment 30
  should be treated as debt at the Completion Time;

  
	
   

  	
   

  	
   

  
	
  “Purchaser’s Accountants”

  	
   

  	
  means Deloitte & Touche LLP;

  
	
   

  	
   

  	
   

  
	
  “Sellers’ Accountant’s”

  	
   

  	
  means PricewaterhouseCoopers;

  
	
   

  	
   

  	
   

  
	
  “Specific Business Net Debt Items”

  	
   

  	
  means the CHP Outstanding Lease Payments, the Take or Pay Obligation
  and the Business CO2 Obligation;

  

 

114

 

	
  “Specific Net Debt Items”

  	
   

  	
  means the Stockstadt Lease, Other Stockstadt, German Pension
  Liabilities and the Company CO2 Obligation;

  
	
   

  	
   

  	
   

  
	
  “Stockstadt Lease”

  	
   

  	
  has the meaning given to it in Schedule 1;

  
	
   

  	
   

  	
   

  
	
  “Take or Pay Obligation”

  	
   

  	
  means the obligations of M-real in respect of the period after the
  Completion Time in relation to the share of fixed charges attributable to the
  ceased operation of the Kangas PM2 at the Kangas Mill specified in the energy
  supply contract “HEAT-2987” between M-real Corporation and Fortum dated 1
  November 2004 and any amendment thereof; and

  
	
   

  	
   

  	
   

  
	
  “Target Net Working Capital”

  	
   

  	
  means €235,000,000.

  

 

PART 2                                                  Allocation of Enterprise
Value

 

The proportion of the Enterprise Value
attributable to each of the Business Assets and the Shares shall be as follows:

 

	
  (i)

  	
  Business Assets

  	
   

  	
  Amount (€)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The business of the Kirkniemi Mill
  (excluding the Kirkniemi Property)

  	
   

  	
  450,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The business of the Kangas Mill (excluding
  the Kangas Property)

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Kirkniemi Property

  	
   

  	
  2,100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Kangas Property

  	
   

  	
  1,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Know-How Business

  	
   

  	
  4,416,246

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Gohrsmühle Coaters

  	
   

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Hallein Coater

  	
   

  	
  2,000,000

  	
   

  

 

115

 

	
  (ii)

  	
  Companies

  	
   

  	
  Amount (€)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Biberist

  	
   

  	
  100,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stockstadt GmbH (and the German Subsidiary)

  	
   

  	
  135,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CN Papiervertriebs GmbH

  	
   

  	
  2,000,000

  	
   

  

 

PART 3               Preparation and
determination of Completion Statements

 

(A)         Sappi shall (with such assistance
from M-real as Sappi reasonably requires) procure the preparation by the
appropriate Employees of a completion statement specifying:

 

(i)                                the Completion Time Net Working
Capital;

 

(ii)                              the Completion Time Net Debt
(including the Completion Time Inter-Group Debt) specifying the Inter-Group
Debt and the Inter-Group Receivables for each Group Company towards and from
each member of the Sellers’ Group as well as the Inter-Group Debt Adjustment
Payment and the Inter-Group Receivables Adjustment Payment;

 

(iii)                          the Completion Time Business Net
Debt; and

 

(iv)                         the Net Working Capital Adjustment,

 

(the “Draft Completion
Statements”).  The Draft
Completion Statements shall be delivered to M-real by Sappi in accordance with clause
36 as soon as reasonably practicable and in any event within (x) 25
Business Days following Completion and (y) 10 Business Days following the
delivery of the audited Stockstadt Statutory Accounts to M-real by Sappi
pursuant to paragraph (O) below, whichever is later.

 

(B)         The Completion Statements shall be
prepared in accordance with M-real’s accounting practices as consistently
applied and M-real’s IFRS based accounting policies, principles, bases and
methodologies.

 

(C)         M-real shall procure that the
Sellers’ Group and the Sellers’ Accountants provide without charge such
reasonable access to their personnel, Books and Records, calculations and
working papers as Sappi or the Purchaser’s Accountants and advisers may request
in connection with the preparation of the Completion Statements, subject to
providing such undertakings as the Sellers’ Accountants may reasonably request.

 

(D)         Save in accordance with the
provisions of paragraph (H), no amendment shall be made to the Draft
Completion Statements after their delivery to M-real in accordance with paragraph
(A).

 

(E)         M-real may dispute the Draft
Completion Statements by notice in writing (in this paragraph, the “Notice”) delivered to Sappi in accordance with clause 36
within 20 Business Days of receiving the Draft Completion Statements.

 

116

 

(F)         Sappi shall procure that the Group
and the Purchaser’s Accountants provide without charge such reasonable access
to their personnel, Books and Records, calculations and working papers and
other information as M-real or the Sellers’ Accountants and advisers may
request in connection with their review of the Completion Statements, subject
to providing such undertakings as the Purchaser’s Accountants may reasonably
request.

 

(G)         If M-real does not serve the Notice
under paragraph (E) above, the Draft Completion Statements shall
constitute the Completion Statements.

 

(H)         If M-real does serve the Notice
under paragraph (E) above, then Sappi and M-real shall use their
reasonable endeavours to resolve the items in the Notice and either:

 

(i)           if Sappi and M-real reach agreement on the items in
the Notice within 25 Business Days of the Notice being served (or such longer
period as Sappi and M-real may agree in writing), the Draft Completion Statements
shall be amended to reflect such agreement and shall then constitute the
Completion Statements; or

 

(ii)          if Sappi and M-real do not reach agreement in
accordance with paragraph (i) above, Sappi or M-real may refer the
dispute within 10 Business Days of expiry of the period described in paragraph
(i) above, to Ernst & Young, failing whom, to KPMG, failing
whom to such independent firm of chartered accountants of international repute
in London as the parties agree and failing such agreement as the President of
the Institute of Chartered Accountants in England and Wales may, on the
application of either M-real or Sappi, nominate (the “Expert”),
on the basis that the Expert is to make a decision on the dispute and notify
Sappi and M-real of its decision within 10 Business Days of receiving the
reference or such longer reasonable period as the Expert may determine.

 

(I)           Each party shall bear its own costs with respect to
the finalisation of the Completion Statements. 
The costs of the Expert shall be borne by the parties as set out in paragraph
(J)(iii) below.

 

(J)          In any reference to the Expert in accordance with paragraphs
(H) and (I) above:

 

(i)           the Expert shall act as an expert and not as an
arbitrator and shall be directed to determine any dispute by reference to
M-real’s accounting practices as consistently applied and M-real’s IFRS based
accounting policies, principles, bases and methodologies;

 

(ii)          the decision of the Expert shall, in the absence of
fraud or manifest error, be final and binding on Sappi and M-real and the
Completion Statements shall be the Draft Completion Statements amended as
necessary to reflect the decision of the Expert and, as amended, signed by the
Expert;

 

(iii)         the costs of the Expert shall be paid by M-real and
Sappi equally or as otherwise determined by the Expert; and

 

(iv)         each of M-real and Sappi shall respectively provide
or procure the provision to the Expert of all such information as the Expert
shall reasonably require including:

 

(a)           by their respective advisers;

 

117

 

(b)           in the case of Sappi, the Books and
Records and personnel of the Group; and

 

(c)           in the case of M-real, the books and
records and personnel of the Sellers’ Group.

 

(K)         Following determination of the Completion Statements,
the amount of the:

 

(i)           Completion Time Net Working Capital;

 

(ii)          the Completion Time Net Debt, including the
Completion Date Inter-Group Net Debt, specifying the Inter-Group Debt and the
Inter-Group Receivables for each Group Company towards and from each member of
the Sellers’ Group as well as the Inter-Group Debt Adjustment Payment and the
Inter-Group Receivables Adjustment Payment;

 

(iii)         the Completion Time Business Net Debt; and

 

(iv)         the Net Working Capital Adjustment Amount,

 

shall be determined by reference to the
Completion Statements.

 

(L)                            Sappi shall (with such assistance
from M-real as Sappi reasonably requires) procure that the appropriate
Employees prepare the Stockstadt Statutory Accounts and that the Stockstadt
Auditor shall issue the auditor’s certificate (Bestätigungsvermerk)
on the Stockstadt Statutory Accounts.

 

“Stockstadt Statutory
Accounts” means the statutory annual accounts of M-real Stockstadt
GmbH for the Stockstadt Current Fiscal Year.

 

“Stockstadt Current Fiscal
Year” means the fiscal year of M-real Stockstadt GmbH ending either
on 31 December, 2008, or at the end of the shortened fiscal year if the fiscal
year has been changed  in accordance with
clause 4.6 of this Agreement.

 

 “Stockstadt Auditor” means PricewaterhouseCoopers as
statutory auditors of M-real Stockstadt GmbH.

 

(M)        The Stockstadt Statutory Accounts shall be prepared
in accordance with accounting principles generally accepted in Germany, applied
consistently with past practice, in particular with the accounting and
consolidation policies, procedures and practices adopted in the statutory
accounts of M-real Stockstadt GmbH for the fiscal year ending 31 December,
2007, applied consistently with past practice.

 

(N)         M-real shall procure that the Sellers’
Group and the Sellers’ Accountants provide without charge such reasonable
access to their personnel, Books and Records, calculations and working papers
as Sappi or the Purchaser’s Accountants and advisers may request in connection
with the preparation of the Stockstadt Statutory Accounts, subject to providing
such undertakings as the Sellers’ Accountants may reasonably request.

 

(O)         As soon as reasonably practicable
after Completion and in any event within 5 Business Days following the delivery
of the auditor’s certificate to M-real Stockstadt GmbH by the Stockstadt
Auditor, the Stockstadt Statutory Accounts shall be delivered to M-real by
Sappi in accordance with clause 36.

 

118

 

(P)          Paragraphs (C) through (J) shall
apply by analogy for the preparation and final determination of the Stockstadt
Statutory Accounts. After final determination of the Completion Accounts and
the Stockstadt Statutory Accounts  the Relevant Purchaser in its capacity
as sole shareholder in M-real Stockstadt GmbH undertakes to pass a shareholders
resolution pursuant to which the audited Stockstadt Statutory Accounts are
finally drawn up and approved (aufgestellt und
festgestellt) as the final statutory annual accounts of M-real
Stockstadt GmbH. For the avoidance of doubt the parties agree that in case of
subsequent amendments of the Stockstadt Statutory Accounts, if any, clause
8.10 shall apply.

 

119

 

SCHEDULE 7

 

(THE GROUP)

 

A.           German Companies and German
Subsidiary

 

	
  Chemische
  Werke Zell-Wildshausen GmbH

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Registered number:

  	
   

  	
  10207

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Court of incorporation:

  	
   

  	
  Aschaffenburg

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Place of incorporation:

  	
   

  	
  Germany

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address of registered office:

  	
   

  	
  Obernburger
  Strasse 1-9

  D-63811 Stockstadt

  Germany

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Issued share capital:

  	
   

  	
  €563,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Managing Director:

  	
   

  	
   

  	
   

  

 

	
  Full name

  	
   

  	
  Nationality

  	
   

  	
  Resigning

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jürgen Bendt

  	
   

  	
  German

  	
   

  	
  No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting reference date:

  	
   

  	
  31 December

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors:

  	
   

  	
  PwC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tax residence:

  	
   

  	
  Germany

  	
   

  	
   

  	
   

  

 

120

 

	
  CN Papiervertriebs GmbH

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Registered number:

  	
   

  	
  HRB 11184

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Court of incorporation:

  	
   

  	
  Amtsgericht Bonn

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Place of incorporation:

  	
   

  	
  Germany

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address of registered office:

  	
   

  	
  Metternicher Str.
  20

  53919 Weilerswist

  Germany

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Issued share capital:

  	
   

  	
  €320,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Managing Directors:

  	
   

  	
   

  	
   

  

 

	
  Full name

  	
   

  	
  Nationality

  	
   

  	
  Resigning

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Martin Frank

  	
   

  	
  German

  	
   

  	
  No

  	
   

  

 

Board Members:

 

	
  Full name

  	
   

  	
  Nationality

  	
   

  	
  Resigning

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Henrik Damén

  	
   

  	
  Finnish

  	
   

  	
  Yes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nils Hinterthan

  	
   

  	
  German

  	
   

  	
  No

  	
   

  

 

	
  Accounting reference date:

  	
   

  	
  31 December

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors:

  	
   

  	
  PwC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tax residence:

  	
   

  	
  Germany

  	
   

  	
   

  	
   

  

 

121

 

	
  M-real Stockstadt GmbH

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Registered number:

  	
   

  	
  HRB 8118

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Court of incorporation:

  	
   

  	
  Aschaffenburg

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Place of incorporation:

  	
   

  	
  Germany

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address of registered office:

  	
   

  	
  Obernburger
  Strasse 1-9

  D-63811 Stockstadt

  Germany

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Issued share capital:

  	
   

  	
  EUR  40,100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Managing Directors:

  	
   

  	
   

  	
   

  

 

	
  Full name

  	
   

  	
  Nationality

  	
   

  	
  Resigning

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Seppo Parvi

  	
   

  	
  Finnish

  	
   

  	
  Yes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bernhard Jaggi

  	
   

  	
  Swiss

  	
   

  	
  No

  	
   

  

 

	
  Board Members:

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Full name

  	
   

  	
  Nationality

  	
   

  	
  Resigning

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dr. Soili Hietanen

  	
   

  	
  Finnish

  	
   

  	
  Yes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert Winkels

  	
   

  	
  German

  	
   

  	
  Yes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frank Sehr

  	
   

  	
  German

  	
   

  	
  No

  	
   

  

 

	
  Accounting reference date:

  	
   

  	
  31 December

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors:

  	
   

  	
  PwC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tax residence:

  	
   

  	
  Germany

  	
   

  	
   

  	
   

  

 

122

 

B.           Swiss Company

 

	
  M-real Biberist

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Registered number:

  	
   

  	
  CH-251.3.000.460-7

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date of incorporation:

  	
   

  	
  20 December, 1996

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Place of incorporation:

  	
   

  	
  Biberist,
  Switzerland

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address of registered office:

  	
   

  	
  Fabrikstrasse 4

  CH 4562 Biberist

  Switzerland

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Class of company:

  	
   

  	
  Corporation
  limited by shares  

  (Aktiengesellschaft)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Issued share capital:

  	
   

  	
  CHF 10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Directors:

  	
   

  	
   

  	
   

  

 

	
  Full name

  	
   

  	
  Nationality

  	
   

  	
  Resigning

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Soili Hietanen, chairman of the board

  	
   

  	
  Finnish

  	
   

  	
  Yes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert Karrer, member of the board

  	
   

  	
  Swiss

  	
   

  	
  Yes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Peter Kienast, member of the board

  	
   

  	
  Swiss

  	
   

  	
  Yes

  	
   

  

 

	
  Accounting reference date:

  	
   

  	
  31 December

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors:

  	
   

  	
  PricewaterhouseCoopers
  AG Bern

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tax residence:

  	
   

  	
  Switzerland

  	
   

  	
   

  	
   

  

 

123

 

SCHEDULE 8

 

(SHARES)

 

A.                                   Companies

 

	
  Company

  	
   

  	
  Shares

  	
   

  	
  Shareholder

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CN Papiervertriebs GmbH

  	
   

  	
  CN Shares

  	
   

  	
  Deutsche Holding

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stockstadt
  GmbH

  	
   

  	
  Stockstadt Shares

  	
   

  	
  Deutsche Holding

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Biberist

  	
   

  	
  Biberist Shares

   

  10,000 registered
  shares with a nominal value of CHF 1,000.

  	
   

  	
  NL Holding

  	
   

  

 

B.         German Subsidiary

 

	
  Company

  	
   

  	
  Shares

  	
   

  	
  Shareholder

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chemische Werke
  Zell-Wildshausen GmbH

  	
   

  	
  CWZ Shares

  	
   

  	
  Stockstadt GmbH

  	
   

  

 

124

 

SCHEDULE 9

 

(THE PROPERTIES)

 

A.                                   Business Properties

 

	
  Country

  	
   

  	
  Property Address

  	
   

  	
  Mill Business

  	
   

  	
  Registered Nos./Registered

  site of area

  	
   

  	
  Property Owner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Finland

  	
   

  	
  FI-08800, Lohja, Finland

  	
   

  	
  Kirkniemi

  	
   

  	
  (i) 444-408-1-230 

   

  (ii) 444-414-1-209; 

   

  (iii) 444-419-1-257; 

   

  (iv) 444-419-1-475; 

   

  (v) 444-419-1-479; 

   

  (vi) 444-419-1-513; 

   

  (vii) 444-419-1-514; 

   

  (viii) 444-435-1-132; 

   

  (ix) 444-435-1-171; 

   

  (x) 444-435-1-212;

   

  (xi) 444-435-1-103; 

   

  (xii) 444-435-1-106; 

   

  (xiii) 444-419-1-287; 

  	
   

  	
  M-real Corporation

  	
   

  

 

125

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (xiv) 444-435-1-208 ; 

   

  (xv) 444-435-1-207; 

   

  (xvi) 444-435-1-46; 

   

  (xvii) 444-435-1-43; 

   

  (xviii) 444-419-1-290; 

   

  (xix) 444-419-1-440; 

   

  (xx) 444-419-1-441; 

   

  (xxi) 444-419-1-331; 

   

  (xxii) 444-419-1-332; 

   

  (xxiii) 444-419-1-156; 

   

  (xxiv) 444-419-1-157; 

   

  (xxv) 444-419-1-158; 

   

  (xxvi) 444-419-1-207; 

   

  (xxvii) 444-419-1-480; 

   

  (xviii) 444-419-1-218; 

   

  (xxix) 444-419-1-483; 

  	
   

  	
   

  	
   

  

 

126

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (xxx) 444-419-1-213;

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Finland

  	
   

  	
  Kympinkatu
  3, FI-40351 Jyväskylä, Finland

  	
   

  	
  Kangas

  	
   

  	
  (i) 179-14-11-18; 

   

  (ii) 179-14-11-19; 

   

  (iii) 179-14-11-20

  	
   

  	
  M-real Corporation

  	
   

  

 

127

 

B.                                   Company Properties

 

German Companies

 

Land register folio 4738

 

	
  Register
  authority

  	
   

  	
  Local
  Court of

  Aschaffenburg

  	
   

  	
  Date
  of local authority

  search

  	
   

  	
  18.08.2008

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land
  Register

  (Grundbuch)

  	
   

  	
  Stockstadt

  	
   

  	
  Boundary
  (Gemarkung)

  	
   

  	
  Stockstadt

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Folio
  (Blatt)

  	
   

  	
  4738

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property List (Bestandsverzeichnis)

  

 

	
  Serial number

  (laufende

  Nummer) 

  	
   

  	
  District

  (Flur) 

  	
   

  	
  Plot 

  (Flurstück) 

  	
   

  	
  Use and location 

  	
   

  	
  Size (in m2) 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
   

  	
   

  	
  1833/1

  	
   

  	
  building/open
  space; Am Schadenbruch 2

  	
   

  	
  3,616

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
   

  	
   

  	
  1834

  	
   

  	
  building/open
  space; Am Schadenbruch 1

  	
   

  	
  3,921

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
   

  	
   

  	
  1957

  	
   

  	
  industrial area;
  Am Schleusenweg

  	
   

  	
  1,125

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
   

  	
   

  	
  1958

  	
   

  	
  industrial area;
  Am Schleusenweg

  	
   

  	
  550

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
   

  	
   

  	
  1964

  	
   

  	
  industrial area;
  Beim Schleusenweg

  	
   

  	
  462

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26 

  	
   

  	
   

  	
   

  	
  2253/3 

  	
   

  	
  railway area; An
  der Aschaffenburger Straße 

  	
   

  	
  1,500 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
   

  	
   

  	
  2253/4

  	
   

  	
  railway area; Bei
  der Aschaffenburger Straße

  	
   

  	
  1,736

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  133

  	
   

  	
   

  	
   

  	
  408/2

  	
   

  	
  railway area; An
  der Obernburger Straße

  	
   

  	
  110

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  138

  	
   

  	
   

  	
   

  	
  1560

  	
   

  	
  agriculture area; Unterer
  Gebruch

  	
   

  	
  710

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  140

  	
   

  	
   

  	
   

  	
  577/5

  	
   

  	
  building/open
  space; Nähe Hessenstraße

  	
   

  	
  371

  	
   

  

 

	
  Division I: Registered property owner

  
	
   

  
	
  M-real
  Stockstadt GmbH

  
	
   

  
	
  Division II: Encumbrances other than land charges and
  mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Encumbrances and restrictions

  
	
   

  	
   

  	
   

  
	
  577/5

  	
   

  	
  hereditary
  building right in favour of “Wohnungsfürsorge Franken”, as mentioned serial
  number 3, 4 of the property list of the hereditary building right register,
  folio 3598

  
	
   

  	
   

  	
   

  
	
  577/5 

  	
   

  	
  pre-emption right in
  favour of the respective owner of the hereditary building right 

  
	
   

  	
   

  	
   

  
	
  577/5

  	
   

  	
  pedestrian
  and vehicular right of way in favour of the respective owner of plot 609,
  folio 4738, serial number 15 of the property list

  
	
   

  	
   

  	
   

  
	
  577/5

  	
   

  	
  pedestrian
  and vehicular right of way in favour of the Free State of Bavaria

  
	
   

  	
   

  	
   

  
	
  577/5

  	
   

  	
  right
  to pass supply lines in favour of the respective owner of plot 577/30, folio
  4738, serial number 139 of the property list; plot 577/31, folio 8020, serial
  number 1 of the property list; plot 577/61, folio 8021, serial number 1 of
  the property list; plot 609, folio 4738, serial number 15 of the property
  list; plot 611, folio 8022, number 1 of the property list as well as of the
  respective owner of the hereditary building right of plot 

  

 

128

 

	
   

  	
   

  	
  577/30,
  folio 5627

  
	
   

  	
   

  	
   

  
	
  577/5

  	
   

  	
  right
  to pass supply lines in favour of the Free State of Bavaria

  
	
   

  	
   

  	
   

  
	
  2253/4

  	
   

  	
  right
  of way for power lines in favour of Bayernwerk AG in Munich

  
	
   

  	
   

  	
   

  
	
  408/2

  	
   

  	
  boundary
  development right in favour of the respective owner of plot 408, folio 7122,
  serial number 9 of the property list

  
	
   

  	
   

  	
   

  
	
  1560

  	
   

  	
  right
  of way for power lines in favour of Bayernwerk AG in Munich

  
	
   

  	
   

  	
   

  
	
  1957,
  1958

  	
   

  	
  right
  of way for water and cable lines and right to keep installations on property
  in favour of municipal utility authority Aschaffenburg

  
	
   

  	
   

  	
   

  
	
  Unclear

  	
   

  	
  right
  of way, access and use of/for power lines and right to demand omission of
  measures that could endanger the power lines in favour of Bayerwerk AG in
  Munich

  

 

	
  Division III: Land charges and mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Land charges and mortgages

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  none

  

 

129

 

Land
register folio 4737

 

	
  Register authority

  	
   

  	
  Local Court of

  Aschaffenburg

  	
   

  	
  Date of local
  authority

  search

  	
   

  	
  30.07.2008

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land Register

  (Grundbuch)

  	
   

  	
  Stockstadt

  	
   

  	
  Boundary (Gemarkung)

  	
   

  	
  Stockstadt

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Folio (Blatt)

  	
   

  	
  4737

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property
  List
  (Bestandsverzeichnis)

  	
   

  	
   

  	
   

  	
   

  

 

	
  Serial number

  (laufende

  Nummer)

  	
   

  	
  District

  (Flur)

  	
   

  	
  Plot

  (Flurstück)

  	
   

  	
  Use and location

  	
   

  	
  Size (in

  m2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
   

  	
   

  	
  1400/2

  	
   

  	
  storage
  area/fire station/administrative building/shop area/parking lots; Oberburger
  Straße 1,3,7,9

  	
   

  	
  16,786

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
   

  	
   

  	
  416/1

  	
   

  	
  railway area; An der Obernburger Straße

  	
   

  	
  1,017

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
   

  	
   

  	
  1405

  	
   

  	
  garden area; Beim alten Stadtweg

  	
   

  	
  190

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
   

  	
   

  	
  1833

  	
   

  	
  building/open
  area; Am Schadenbruch

  	
   

  	
  5,872

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
   

  	
   

  	
  1853

  	
   

  	
  agricultural
  area; Nähe Schleusenweg

  	
   

  	
  19,907

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
   

  	
   

  	
  1400/5

  	
   

  	
  storage/industrial
  area (partially on plot 1400/3 and 1400/4)/clarifier; Zu Obernburger Straße 5

  	
   

  	
  30,970

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
   

  	
   

  	
  2300/13

  	
   

  	
  building/open
  area; An der Aschaffenburger Straße

  	
   

  	
  39,972

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
   

  	
   

  	
  1400/1

  	
   

  	
  building/open
  area; Obernburger Straße 5

  	
   

  	
  51,683

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  56

  	
   

  	
   

  	
   

  	
  1400/3

  	
   

  	
  building/open
  area; Obernburger Straße 5

  	
   

  	
  76,627

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
   

  	
   

  	
  1400/4

  	
   

  	
  building/open
  area; Nähe Obernburger Straße

  	
   

  	
  22,930

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
   

  	
   

  	
  1187

  	
   

  	
  building/open
  area; Obernburger Straße 9a

  	
   

  	
  41,248

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
   

  	
   

  	
  1400/6

  	
   

  	
  building/open
  area; Obernburger Straße 5

  	
   

  	
  53,234

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  60

  	
   

  	
   

  	
   

  	
  1400/7

  	
   

  	
  building/open
  area; Nähe Wallstadter Straße

  	
   

  	
  32,381

  	
   

  

 

Division
I: Registered property owner

 

M-real Stockstadt
GmbH

 

Division
II: Encumbrances other than land charges and mortgages

 

	
  Encumbered Plot

  	
   

  	
  Encumbrances and restrictions

  
	
   

  	
   

  	
   

  
	
  1400/5,
  1400/1

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1853

  	
   

  	
  right of
  establishment and use of electricity lines in favour of the respective owner
  of plot 3641b Großwelzheim

  
	
   

  	
   

  	
   

  
	
  1405,
  1400/5, 1400/1

  	
   

  	
  right of
  way for power lines and right of establishment of pole in favour of
  Bayernwerk AG in Munich

  
	
   

  	
   

  	
   

  
	
  416/1

  	
   

  	
  boundary
  development right in favour of the respective owner of plot 408, folio 7122,
  serial number 9 of the property list

  
	
   

  	
   

  	
   

  
	
  2300/13

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  2300/13

  	
   

  	
  right of
  way for power lines in favour of Überlandwerk Unterfranken AG in Würzburg

  
	
   

  	
   

  	
   

  
	
  2300/13

  	
   

  	
  right of
  establishment of a transformer station of way for low tension lines in favour
  of

  

 

130

 

	
   

  	
   

  	
  municipality
  Stockstadt am Main

  
	
   

  	
   

  	
   

  
	
  2300/13,
  1400/7

  	
   

  	
  right of
  way for water pipeline in favour of municipality Stockstadt am Main

  
	
   

  	
   

  	
   

  
	
  1400/2

  	
   

  	
  right of
  establishment of gas supply stations in favour of Gasversorgung Main-Spessart
  GmbH

  
	
   

  	
   

  	
   

  
	
  1400/5

  	
   

  	
  right of
  way for water and cable lines in favour of municipal utility authority
  Aschaffenburg

  

 

	
  Division
  III: Land charges and mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Land charges and mortgages

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  none

  

 

131

 

Land register folio 7461

 

	
  Register authority

  	
   

  	
  Local Court of

  Aschaffenburg

  	
   

  	
  Date of local
  authority

  search

  	
   

  	
  18.08.2008

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land Register

  (Grundbuch)

  	
   

  	
  Stockstadt

  	
   

  	
  Boundary (Gemarkung)

  	
   

  	
  Stockstadt

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Folio (Blatt)

  	
   

  	
  7461

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property
  List
  (Bestandsverzeichnis)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Serial number

  (laufende

  Nummer)

  	
   

  	
  District

  (Flur)

  	
   

  	
  Plot

  (Flurstück)

  	
   

  	
  Use and location

  	
   

  	
  Size (in

  m2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
  1866/3

  	
   

  	
  building/open
  area; Aschaffenburger Straße 1

  	
   

  	
  20,401

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
   

  	
   

  	
  4706/3

  	
   

  	
  building/open
  area; Auf dem Grund 1 u. 3

  	
   

  	
  8,632

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
   

  	
   

  	
  416

  	
   

  	
  operational area; Nähe auf dem Grund

  	
   

  	
  1,832

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
   

  	
   

  	
  4706

  	
   

  	
  operational area; Nähe auf dem Grund

  	
   

  	
  2,300

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
   

  	
   

  	
  1872

  	
   

  	
  traffic
  area; Schleusenweg

  	
   

  	
  2,909

  	
   

  

 

	
  Division
  I: Registered property owner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  M-real Stockstadt
  GmbH

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Division
  II: Encumbrances other than land charges and mortgages

  	
   

  	
   

  

 

	
  Encumbered Plot

  	
   

  	
  Encumbrances and restrictions

  
	
   

  	
   

  	
   

  
	
  1866/3

  	
   

  	
  right of
  way, access and use of/for power lines and right to demand omission of
  measures that could endanger the power lines in favour of Preußische
  Elektrizitäts AG in Hannover

  
	
   

  	
   

  	
   

  
	
  1866/3

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1866/3

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1866/3

  	
   

  	
  right of
  way for water pipeline, cable right and right to maintain a facility in
  favour of municipal of Aschaffenburg

  
	
   

  	
   

  	
   

  
	
  416, 4706

  	
   

  	
  right of
  way for power lines and right to erect a pole (Masterrichtungsrecht)
  in favour of the Federal Republic of Germany (Bundeseisenbahnvermögen)

  
	
   

  	
   

  	
   

  
	
  4706/3,
  416, 4706

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  416, 4706

  	
   

  	
  right of
  way for cable lines (Fernmeldestreckenkabel-Leitungsrecht)
  in favour of Federal Republic of Germany (Bundeseisenbahnvermögen)

  
	
   

  	
   

  	
   

  
	
  1872

  	
   

  	
  right of
  way, access and use of/for power lines and right to demand omission of
  measures that could endanger the power lines in favour of Bayernwerk AG in
  Munich

  
	
   

  	
   

  	
   

  
	
  1872

  	
   

  	
  right of
  way for power lines in favour of the respective owner of plot 3641 of the
  boundary Großwelzheim

  
	
   

  	
   

  	
   

  
	
  1872

  	
   

  	
  right of
  way, access and use of/for power lines and right to demand omission of
  measures that could endanger the power lines in favour of Bayernwerk AG in
  Munich

  
	
   

  	
   

  	
   

  
	
  1872

  	
   

  	
  right of
  way, access and use of/for power lines and right to demand omission of
  measures that could endanger the power lines in favour of Bayernwerk AG in
  Munich

  
	
   

  	
   

  	
   

  
	
  1872

  	
   

  	
  right of
  way for power lines in favour of the respective owner of plot 3641 of the
  boundary Großwelzheim

  

 

132

 

	
  1872

  	
   

  	
  right of
  way for gas pipelines in favour of Maingas Aktiengesellschaft in Frankfurt

  
	
   

  	
   

  	
   

  
	
  1872

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1872

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1872

  	
   

  	
  right of
  way for water pipeline, cable right and right to maintain a facility in
  favour of municipal of Aschaffenburg

  

 

	
  Division
  III: Land charges and mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Land charges and mortgages

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  none

  

 

133

 

Land register folio 6858

 

	
  Register
  authority

  	
   

  	
  Local
  Court of

  Aschaffenburg

  	
   

  	
  Date of
  local authority

  search

  	
   

  	
  18.08.2008

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land
  Register

  (Grundbuch)

  	
   

  	
  Stockstadt

  	
   

  	
  Boundary
  (Gemarkung)

  	
   

  	
  Stockstadt

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Folio (Blatt)

  	
   

  	
  6858

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property List (Bestandsverzeichnis)

  

 

	
  Serial number

  (laufende

  Nummer)

  	
   

  	
  District

  (Flur)

  	
   

  	
  Plot

  (Flurstück)

  	
   

  	
  Use and location

  	
   

  	
  Size (in

  m2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
  1866

  	
   

  	
  industrial area; An der Aschaffenburger Straße

  	
   

  	
  117,982

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
   

  	
   

  	
  2300/16

  	
   

  	
  building/open
  area; Dr. Platt Straße 6

  	
   

  	
  3,604

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
   

  	
   

  	
  2300/14

  	
   

  	
  building/open
  area; An der Dr. Platt Straße

  	
   

  	
  2,231

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
   

  	
   

  	
  2300/15

  	
   

  	
  building/open
  area; Dr. Platt Straße 4

  	
   

  	
  2,523

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
   

  	
   

  	
  1874

  	
   

  	
  agricultural
  area; Nähe Schleusenweg

  	
   

  	
  647

  	
   

  

 

	
  Division I: Registered property owner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real
  Stockstadt GmbH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Division II: Encumbrances other than land charges and
  mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Encumbrances and restrictions

  
	
   

  	
   

  	
   

  
	
  1866

  	
   

  	
  right of
  way, access and use of/for power lines and right to demand omission of
  measures that could endanger the power lines in favour of Preußische
  Elektrizitäts AG in Hannover

  
	
   

  	
   

  	
   

  
	
  1874

  	
   

  	
  right of
  way for power lines in favour of the respective owner of plot 3641 of the
  boundary Großwelzheim

  
	
   

  	
   

  	
   

  
	
  1866

  	
   

  	
  right of
  way, access and use of/for power lines and right to demand omission of
  measures that could endanger the power lines in favour of Preußische
  Elektrizitäts AG in Hannover

  
	
   

  	
   

  	
   

  
	
  1866

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1866

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1874

  	
   

  	
  right of
  way for channels in favour of Zweckverband Abwasserbeseitigung Untermain in
  Kleinostheim

  
	
   

  	
   

  	
   

  
	
  2300/16

  	
   

  	
  right of
  way for power lines in favour of Überlandwerk Unterfranken AG in Würzburg

  
	
   

  	
   

  	
   

  
	
  2300/16

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1866,
  1874

  	
   

  	
  right of
  way for water pipeline, cable right and right to maintain a facility in
  favour of Stadtwerke Aschaffenburg

  

 

	
  Division III: Land charges and mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Land charges and mortgages

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  none

  

 

134

 

Land
register folio 8311

 

	
  Register
  authority

  	
   

  	
  Local
  Court of

  Aschaffenburg

  	
   

  	
  Date of
  local authority

  search

  	
   

  	
  18.08.2008

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land
  Register

  (Grundbuch)

  	
   

  	
  Stockstadt

  	
   

  	
  Boundary
  (Gemarkung)

  	
   

  	
  Stockstadt

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Folio (Blatt)

  	
   

  	
  8311

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property List (Bestandsverzeichnis)

  

 

	
  Serial number

  (laufende

  Nummer)

  	
   

  	
  District

  (Flur)

  	
   

  	
  Plot

  (Flurstück)

  	
   

  	
  Use and location

  	
   

  	
  Size (in 

  m2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
  1866/16

  	
   

  	
  building/open
  area; Nähe Aschaffenburger Straße

  	
   

  	
  16,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
  1866/17

  	
   

  	
  building/open
  area; Nähe Aschaffenburger Straße

  	
   

  	
  4,000

  	
   

  

 

	
  Division I: Registered property owner

  
	
   

  
	
  M-real
  Stockstadt GmbH

  
	
   

  
	
  Division II: Encumbrances other than land charges and
  mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Encumbrances and restrictions

  
	
   

  	
   

  	
   

  
	
  1866/16,
  1866/17

  	
   

  	
  right of
  way, access and use of/for power lines and right to demand omission of
  measures that could endanger the power lines in favour of Preußische
  Elektrizitäts AG in Hannover

  
	
   

  	
   

  	
   

  
	
  1866/16,
  1866/17

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1866/16,
  1866/17

  	
   

  	
  right of
  way for power lines in favour of RWE Energie AG in Essen

  
	
   

  	
   

  	
   

  
	
  1866/16,
  1866/17

  	
   

  	
  right of
  way for water pipeline, cable right and right to maintain a facility in
  favour of municipal of Aschaffenburg

  

 

	
  Division III: Land charges and mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Land charges and mortgages

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  none

  

 

135

 

Land register folio
6934

 

	
  Register
  authority

  	
   

  	
  Local Court of

  Aschaffenburg

  	
   

  	
  Date of
  local authority

  search

  	
   

  	
  18.08.2008

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land
  Register

  (Grundbuch)

  	
   

  	
  Stockstadt

  	
   

  	
  Boundary
  (Gemarkung)

  	
   

  	
  Stockstadt

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Folio (Blatt)

  	
   

  	
  6934

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property List (Bestandsverzeichnis)

  

 

	
  Serial number

  (laufende

  Nummer)

  	
   

  	
  District 

  (Flur)

  	
   

  	
  Plot

  (Flurstück)

  	
   

  	
  Use and location

  	
   

  	
  Size (in

  m2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
  1834/1

  	
   

  	
  building/open
  area/garden; Am Schadenbruch 3

  	
   

  	
  1,314

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
  1834/2

  	
   

  	
  garage/garden;
  Am Schadenbruch

  	
   

  	
  1,163

  	
   

  

 

	
  Division I: Registered property owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real
  Stockstadt GmbH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Division II: Encumbrances other than land charges and
  mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Encumbrances and restrictions

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  none

  

 

	
  Division III: Land charges and mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Land charges and mortgages

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  none

  

 

136

 

Hereditary building
right register folio 6465

 

	
  Register
  authority

  	
   

  	
  Local
  Court of Aschaffenburg

  	
   

  	
  Date of
  local authority

  search

  	
   

  	
  18.08.2008

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hereditary
  building right register

  (Erbbaugrundbuch)

  	
   

  	
  Stockstadt

  	
   

  	
  Boundary
  (Gemarkung)

  	
   

  	
  Stockstadt

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Folio (Blatt)

  	
   

  	
  6465

  	
   

  	
   

  	
   

  	
   

  

 

	
  Property List (Bestandsverzeichnis)

  

 

	
  Serial number 

  (laufende

  Nummer)

  	
   

  	
  District (Flur)

  	
   

  	
  Plot (Flurstück)

  	
   

  	
  Use and location

  	
   

  	
  Size (in m2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
  1866/5

  	
   

  	
  Lerchenrain,

  	
   

  	
  8,297

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Hutung

  	
   

  	
   

  	
   

  

 

	
  Division I: Registered holder of the hereditary building
  right

  
	
   

  
	
  M-real
  Stockstadt GmbH

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Division II: Encumbrances other than land charges and
  mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Encumbrances and restrictions

  
	
   

  	
   

  	
   

  
	
  1866/5

  	
   

  	
  ground
  rent of €8,696.49 per year on the hereditary building right in favour of the
  respective owner of plot 1866/5, folio 5602, serial number 3 of the property
  list

  
	
   

  	
   

  	
   

  
	
  1866/5

  	
   

  	
  right of
  way for power lines in favour of Bayernwerk AG in Munich

  
	
   

  	
   

  	
   

  
	
  1866/5

  	
   

  	
  ground
  rent of €8,569.22 on the hereditary building right in favour of the
  respective owner of plot 1866/5, folio 5602, serial number 3 of the property
  list

  
	
   

  	
   

  	
   

  
	
  1866/5

  	
   

  	
  real
  covenant, obligation of payment of €1,817.39 per year as a difference between
  the new ground rent on the hereditary building right and the ground rent
  registered under the serial number 5 in division II in favour of the
  respective owner of plot 1866/5; in case of judicial sale the main claim
  persists

  
	
   

  	
   

  	
   

  
	
  1866/5

  	
   

  	
  right of
  way for power lines in favour of Preußische Elektrizitäts-AG in Hannover

  

 

	
  Division III: Land charges and mortgages

  

 

	
  Encumbered Plot

  	
   

  	
  Land charges and mortgages

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  none

  

 

	
  Remarks

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property
  owner of encumbered property: Bayernhafen GmbH & Co. KG

  
	
   

  
	
  Initial
  term of hereditary building right expires on 31.03.2032. The assignment and
  encumbrances of the hereditary building right require consent of the property
  owner.

  

 

137

 

Hereditary building
right agreement

 

	
  Owner of the property /

  Beneficiary

  	
   

  	
  Property

  	
   

  	
  Type of use

  	
   

  	
  Date of signature (Owner of

  the property / Beneficiary)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Free State of Bavaria / Papierwerke “Waldhof-Aschaffenburg” AG (that
  is M-real Stockstadt GmbH today)

  	
   

  	
  Parcel 1866/5 of the boundary of Stockstadt

  	
   

  	
  Storage and handling of basic materials

  	
   

  	
  24 March 1972 / 24 March 1972

  

 

Lease agreements
with M-real Stockstadt GmbH as landlord

 

	
  Landlord / Tenant

  	
   

  	
  Property

  	
   

  	
  Type of use

  	
   

  	
  Date of signature (Landlord /

  Tenant)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real Stockstadt GmbH / H+B Holz- und
  Bodenrecycling GmbH & Co. KG

  	
   

  	
  63811 Stockstadt, Aschaffenburger Straße 1

  	
   

  	
  Storage

  	
   

  	
  7 December 2007 / 7 December 2007

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real Stockstadt GmbH / IBM Deutschland
  GmbH

  	
   

  	
  63811 Stockstadt, Oberburgerstraße 1-9

  	
   

  	
  Storage and office

  	
   

  	
  5 October 2007 / 8 October 2007

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCA FINE PAPER GmbH (that is M-real Stockstadt GmbH today) /
  Chemische Werke Zell-Wildshausen GmbH

  	
   

  	
  Unclear

  	
   

  	
  Preparation of special products (Aufbereitung von Lignin
  –Produkten)

  	
   

  	
  9 October 1997 / not dated

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real Stockstadt GmbH / Tiffany Long

  	
   

  	
  63811 Stockstadt, Am Schadenbruch 1

  	
   

  	
  Appartement

  	
   

  	
  24 January 2005 / 24 January 2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real Stockstadt GmbH / Renate Zang

  	
   

  	
  63811 Stockstadt, Am Schadenbruch 1 (first floor, right)

  	
   

  	
  Appartement

  	
   

  	
  15 November 2004 / 29 November 2004

  

 

138

 

Lease agreements
with CN Papiervertriebs GmbH, the German Subsidiary and M-real Stockstadt GmbH
as tenant

 

	
  Landlord / Tenant

  	
   

  	
  Property

  	
   

  	
  Type of use

  	
   

  	
  Date of signature (Landlord /

  Tenant)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Free State of Bavaria / PWA Grafische Papiere GmbH (that is M-real
  Stockstadt GmbH today)

  	
   

  	
  Part of parcel 1866/4 of the city of Stockstadt

  	
   

  	
  Storage

  	
   

  	
  Illegible / not dated

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Peter Notzon and Christa Notzon / CN Papiervertriebs GmbH

  	
   

  	
  Unclear

  	
   

  	
  Agency for trade with paper (Papierhandelsagentur)

  	
   

  	
  27 December 1995 / 27 December 1995

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PWA Waldhof GmbH / Chemische Werke
  Zell-Wildshausen GmbH

  	
   

  	
  Parts of the property located in 6800 Mannheim, Sandhofer Straße 176

  	
   

  	
  Factory regarding the production of
  caoutchouc materials (Betrieb zur Herstellung
  von Kautschuk-Verarbeitungsmitteln)

  	
   

  	
  2 June 1987 / 15 May 1987

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WeylChem GmbH / Chemische Werke
  Zell-Wildshausen GmbH

  	
   

  	
  68305 Mannheim, Sandhofer Straße 96

  	
   

  	
  Storage for special chemical material (Magnesiumligninsulfat))

  	
   

  	
  10 February 2006 / 7 February 2006

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rasching GmbH (sub-landlord) / Chemische
  Werke Zell-Wildshausen GmbH (sub-tenant)

  	
   

  	
  Mundenheimer Altrheinhafen

  	
   

  	
  Storage for special chemical material (Magnesiumligninsulfat)

  	
   

  	
  23 December 2004 / 21 December 2004

  

 

Licence agreement (Gestattungsvertrag)

 

	
  Parties

  	
   

  	
  Property

  	
   

  	
  Type of use

  	
   

  	
  Date of signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Free State of Bavaria / PWA Grafische Papiere AG (that is M-real
  Stockstadt GmbH today) as beneficiary

  	
   

  	
  Parcel 1866/1 of the boundary of Stockstadt

  	
   

  	
  Construction and operation of facilities according to building plans
  in particular a facility to extinguish oil (Öllöschanlage),
  a pump station and a oil line

  	
   

  	
  21 August 1978 / 22 December 1976 /

  

 

139

 

User agreement (Nutzungsvertrag)

 

	
  Parties

  	
   

  	
  Property

  	
   

  	
  Type of use

  	
   

  	
  Date of signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Federal Republic of Germany / SCA FINE PAPER GmbH (that is M-real
  Stockstadt GmbH today) as beneficiary

  	
   

  	
  Boundary Stockstadt, parcels 5802 and 1400/8

  	
   

  	
  Construction and operation of a special facility (Molchstation)
  and a loading platform with a pipeline to a pumping house (Pumphaus) regarding handling of calcium carbonate

  	
   

  	
  21 May 1999 / 5 January 1999

  

 

140

 

Swiss
Company

 

	
  Country

  	
   

  	
  Property

  Address

  	
   

  	
  Number

  	
   

  	
  Nature of title

  	
   

  	
  Use

  	
   

  	
  Property Owner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Laubsack,
  Derendingen

  	
   

  	
  Derendingen
  Nr. 86

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Grütacker,
  Derendingen

  	
   

  	
  Derendingen Nr. 87

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Chessleren,
  Derendingen

  	
   

  	
  Derendingen Nr. 1172

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Chessleren,
  Derendingen

  	
   

  	
  Derendingen Nr. 1179

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Dorf,
  Biberist

  	
   

  	
  Biberist Nr. 776

  	
   

  	
  Collective ownership

  	
   

  	
   

  	
   

  	
  Simple
  partnership: Emmenhof Immobilien AG, Scintilla AG, Hydroelectra (Emmenhof
  Immobilien AG, M-Real Biberist AG, Hydroelectra AG, ADEV Wasserkraftwerk AG)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Papierfabrik,
  Biberist

  	
   

  	
  Biberist Nr. 777

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Eichmatt,
  Biberist

  	
   

  	
  Biberist Nr. 887

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Grossmatt,
  Untergrütmatt, Biberist

  	
   

  	
  Biberist Nr. 944

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Grütschachen,
  Biberist

  	
   

  	
  Biberist Nr. 975

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Grütschachen,
  Biberist

  	
   

  	
  Biberist Nr. 1495

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  

 

141

 

	
  Country

  	
   

  	
  Property

  Address

  	
   

  	
  Number

  	
   

  	
  Nature of title

  	
   

  	
  Use

  	
   

  	
  Property Owner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Grütschachen,
  Biberist

  	
   

  	
  Biberist Nr. 1496

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Winkelmatt,
  Biberist

  	
   

  	
  Biberist Nr. 1989

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Eichmatt,

  Biberist

  	
   

  	
  Biberist Nr. 2838

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Winkelmatt,
  Biberist

  	
   

  	
  Biberist Nr. 3352

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Hochwald,
  Wiler

  b. Utzenstorf

  	
   

  	
  Wiler b. Utzenstorf Nr. 488

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Hochwald,
  Wiler

  b. Utzenstorf

  	
   

  	
  Wiler b. Utzenstorf Nr. 50

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Hochwald,
  Wiler

  b. Utzenstorf

  	
   

  	
  Wiler b. Utzenstorf Nr. 51

  	
   

  	
  Sole ownership

  	
   

  	
  Source right (Quellenrecht)

  	
   

  	
  M-Real Biberist AG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Grütschachen, Biberist

  	
   

  	
  Biberist Nr. 976

  	
   

  	
  Sole ownership

  	
   

  	
   

  	
   

  	
  M-Real Biberist AG

  	
   

  

 

The above list is supplemenetd by the information
contained in the public land register or in the supporting documents (Belege filed) filed with
the respective land register.

 

142

 

SCHEDULE 10

 

(MILL BUSINESS FIXED ASSET REGISTER)

 

(see Attachment 31)

 

143

 

SCHEDULE 11

 

(BUSINESS INTELLECTUAL
PROPERTY)

 

Part A: Business Intellectual Property (Trade Marks)

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Denmark

  	
   

  	
  1468-1968

  	
   

  	
  31/05/1998

  	
   

  	
  HALLEIN

  	
   

  	
  EUROART

  	
   

  	
  16

  	
   

  	
  31/05/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Norway

  	
   

  	
  74701

  	
   

  	
  12/07/1998

  	
   

  	
  HALLEIN

  	
   

  	
  EUROART

  	
   

  	
  16

  	
   

  	
  12/07/2008

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Austria

  	
   

  	
  130050

  	
   

  	
  14/03/1990

  	
   

  	
  HALLEIN

  	
   

  	
  EUROART

  	
   

  	
  16

  	
   

  	
  14/03/2010

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  554781

  	
   

  	
  17/05/1990

  	
   

  	
  HALLEIN

  	
   

  	
  EUROART

  	
   

  	
  16

  	
   

  	
  17/05/2010

  	
   

  	
  Bulgaria, Benelux, Switzerland, Algeria,
  Egypt, Spain, France, Hungary, Italy, Morocco, Montenegro, Portugal, Romania,
  Russian Federation, Serbia and Montenegro

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Denmark

  	
   

  	
  07437/1992

  	
   

  	
  07/08/1992

  	
   

  	
  M-REAL CORP

  	
   

  	
  TAURO

  	
   

  	
  16

  	
   

  	
  07/08/2012

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Kingdom

  	
   

  	
  2007440

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
  11/01/2015

  	
   

  	
   

  

 

144

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  818672

  	
   

  	
  24/09/2003

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
  24/09/2008

  	
   

  	
  Austria, Australia, Bulgaria, Benelux,
  Switzerland, China, Czech Republic, Germany, Denmark, Estonia, Spain, France,
  United Kingdom, Greece, Hungary, Ireland, Iceland, Italy, Lithuania, Latvia,
  Morocco, Norway, Poland, Portugal, Romania, Russian Federation, Sweden,
  Singapore, Slovenia, Slovakia, Turkey, Ukraine

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  818672

  	
   

  	
  24/09/2003

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Argentina

  	
   

  	
  2020588

  	
   

  	
  12/04/2005

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
  12/04/2015

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Brazil

  	
   

  	
  825840414

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canada

  	
   

  	
  1192034

  	
   

  	
  22/10/2003

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hong Kong

  	
   

  	
  300081468

  	
   

  	
  18/09/2003

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
  18/09/2013

  	
   

  	
   

  

 

145

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  South Africa

  	
   

  	
  2003/16391

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Malaysia

  	
   

  	
  03012988

  	
   

  	
  26/09/2003

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
  28/03/2013

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Indonesia

  	
   

  	
  D00200326760-26981

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U S A

  	
   

  	
  3348038

  	
   

  	
  04/12/2007

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
  04/12/2013

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Peru

  	
   

  	
  93953

  	
   

  	
  06/01/2004

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
  06/01/2014

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  342786B

  	
   

  	
  04/03/1968

  	
   

  	
  M-REAL CORP

  	
   

  	
  EUROART

  	
   

  	
  16

  	
   

  	
  04/03/2018

  	
   

  	
  Benelux, Czech Republic, Germany, France,
  United Kingdom, Croatia, Hungary, Italy, Liechtenstein, Morocco, Monaco,
  Montenegro, Macedonia, Portugal, Romania, Slovenia, Slovakia, Serbia and
  Montenegro

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ireland

  	
   

  	
  137285

  	
   

  	
  30/01/1990

  	
   

  	
  M-REAL CORP

  	
   

  	
  EUROART

  	
   

  	
  16

  	
   

  	
  30/01/2017

  	
   

  	
   

  

 

146

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Austria

  	
   

  	
  61406

  	
   

  	
  19/03/1998

  	
   

  	
  M-REAL CORP

  	
   

  	
  EUROART

  	
   

  	
  16, 26, 27

  	
   

  	
  19/03/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Austria

  	
   

  	
  61106

  	
   

  	
  30/01/1998

  	
   

  	
  M-REAL CORP

  	
   

  	
  EUROART

  	
   

  	
  16, 26, 27

  	
   

  	
  30/01/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  807106

  	
   

  	
  04/07/2003

  	
   

  	
  M-REAL CORP

  	
   

  	
  HEAD OF A BULL

  	
   

  	
  16

  	
   

  	
  04/07/2013

  	
   

  	
  Austria, Benelux, Switzerland, Denmark,
  Spain, France, United Kingdom, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  303184949

  	
   

  	
  23/06/2003

  	
   

  	
  M-REAL CORP

  	
   

  	
  HEAD OF A BULL

  	
   

  	
  16

  	
   

  	
  30/04/2013

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Finland

  	
   

  	
  239503

  	
   

  	
  31/05/2007

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
  31/05/2017

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  2008164*

  	
   

  	
  14/01/1992

  	
   

  	
  PWA

  	
   

  	
  TAURO

  	
   

  	
  16

  	
   

  	
  11/03/2011

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  582145*

  	
   

  	
  24/01/1992

  	
   

  	
  PWA

  	
   

  	
  TAURO

  	
   

  	
  16

  	
   

  	
  24/01/2012

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Kingdom

  	
   

  	
  1489054*

  	
   

  	
  30/07/1993

  	
   

  	
  SCA FINE

  	
   

  	
  TAURO

  	
   

  	
  16

  	
   

  	
  28/01/2009

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canada

  	
   

  	
  TMA453712*

  	
   

  	
  09/02/1996

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  PURITY GLOSS & MATTE &
  DESIGN

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  

 

147

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  582145*

  	
   

  	
  24/01/1992

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  TAURO

  	
   

  	
  16

  	
   

  	
  24/01/2012

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  2008164*

  	
   

  	
  14/01/1992

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  TAURO

  	
   

  	
  16

  	
   

  	
  28/03/2011

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  617884*

  	
   

  	
  25/03/1994

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  Design only

  	
   

  	
  16

  	
   

  	
  25/03/2014

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  617296*

  	
   

  	
  12/03/1994

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  DUOFLEX

  	
   

  	
  20

  	
   

  	
  12/03/2014

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  609192*

  	
   

  	
  12/10/1993

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  WEBIO

  	
   

  	
  16

  	
   

  	
  12/10/2013

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  

 

148

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  608989*

  	
   

  	
  30/09/1993

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  SABLANCA

  	
   

  	
  16

  	
   

  	
  30/09/2013

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  608988*

  	
   

  	
  30/09/1993

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  LAGLISSA

  	
   

  	
  16

  	
   

  	
  30/09/2013

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  608990*

  	
   

  	
  30/09/1993

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  YANGONA

  	
   

  	
  16

  	
   

  	
  30/09/2013

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  608987*

  	
   

  	
  30/09/1993

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  LADIFFE

  	
   

  	
  16

  	
   

  	
  30/09/2013

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  602266*

  	
   

  	
  12/05/1993

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  COBIO

  	
   

  	
  16

  	
   

  	
  12/05/2013

  	
   

  	
  Austria, Benelux, Switzerland, Spain,
  France, Italy, Portugal

  

 

149

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  595829*

  	
   

  	
  12/12/1992

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  Design only

  	
   

  	
  16

  	
   

  	
  12/12/2012

  	
   

  	
  Austria, Benelux, Switzerland, Spain, France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  591657*

  	
   

  	
  27/08/1992

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  AMBIONA

  	
   

  	
  16

  	
   

  	
  27/08/2012

  	
   

  	
  Austria, Benelux, Switzerland, Spain, France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  591658*

  	
   

  	
  27/08/1992

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  PROCOL

  	
   

  	
  16

  	
   

  	
  27/08/2012

  	
   

  	
  Austria, Benelux, Switzerland, Spain, France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  591659*

  	
   

  	
  27/08/1992

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  GOLDINA

  	
   

  	
  16

  	
   

  	
  27/08/2012

  	
   

  	
  Austria, Benelux, Switzerland, Spain, France, Italy, Portugal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  544055*

  	
   

  	
  20/09/1989

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  PWA GRAFISCHE PAPIERE

  	
   

  	
  16

  	
   

  	
  20/09/2009

  	
   

  	
  Austria, Benelux, Switzerland, Germany, Algeria, Egypt, Spain,
  France, Italy, Morocco, Portugal

  

 

150

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  R 414877*

  	
   

  	
  12/04/1975

  	
   

  	
  PWA GRAFISCHE PAPIERE GmbH

  	
   

  	
  PWA

  	
   

  	
  1, 16

  	
   

  	
  12/04/2015

  	
   

  	
  Austria, Benelux, Switzerland, Czech Republic, Germany, Spain,
  France, Croatia, Italy, Liechtenstein, Macedonia, Portugal, Slovenia,
  Slovakia, Yugoslavia, Serbia & Montenegro

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S.

  	
   

  	
  2814409*

  	
   

  	
  17/02/04

  	
   

  	
  SCA FINE PAPER GmbH

  	
   

  	
  EURO ART

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Kingdom

  	
   

  	
  1568931*

  	
   

  	
  28/04/1995

  	
   

  	
  SCA FINE PAPER GmbH

  	
   

  	
  DUOFLEX

  	
   

  	
  20

  	
   

  	
  15/03/2011

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Kingdom

  	
   

  	
  1547644*

  	
   

  	
  17/06/1994

  	
   

  	
  SCA FINE PAPER GmbH

  	
   

  	
  SABLANCA

  	
   

  	
  16

  	
   

  	
  03/04/2010

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Kingdom

  	
   

  	
  1489054*

  	
   

  	
  30/07/1993

  	
   

  	
  SCA FINE PAPER GmbH

  	
   

  	
  TAURO

  	
   

  	
  16

  	
   

  	
  28/01/2009

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  695222*

  	
   

  	
  28/05/1998

  	
   

  	
  SCA FINE PAPER GmbH

  	
   

  	
  EURO DIGITAL

  	
   

  	
  16

  	
   

  	
  28/05/2018

  	
   

  	
  Finland, Norway, Sweden

  

 

151

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Russian Federation

  	
   

  	
  209216

  	
   

  	
  28/02/2002

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  11/02/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hungary

  	
   

  	
  156609

  	
   

  	
  04/05/1999

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  18/03/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Czech Republic

  	
   

  	
  220250

  	
   

  	
  27/09/1999

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  20/03/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Slovakia

  	
   

  	
  189979

  	
   

  	
  20/03/2000

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  27/03/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Poland

  	
   

  	
  128980

  	
   

  	
  20/04/2001

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  19/03/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Register

  	
   

  	
  798366

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE IMAGE

  	
   

  	
  16

  	
   

  	
  14/02/2013

  	
   

  	
  AT, AU, BG, BX,
  CH, CN, CZ, DE, DK, EE, FR, GB, GR, HU, IE, IS, IT, LT, LV, NO, PL, PT, RO,
  RU, SE, SG, SI, SK, TR, UA 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S.A.

  	
   

  	
  2857938

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE IMAGE

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  

 

152

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S.A.

  	
   

  	
  2860140

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE VISION

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canada

  	
   

  	
  TMA617754

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE VISION

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Finland

  	
   

  	
  228137

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE IMAGE

  	
   

  	
  16

  	
   

  	
  29/08/2013

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Finland

  	
   

  	
  228136

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE VISION

  	
   

  	
  16

  	
   

  	
  29/08/2013

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   Canada

  	
   

  	
  TMA617961

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE IMAGE

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Register

  	
   

  	
  798364

  	
   

  	
  14/02/2003

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE VISION

  	
   

  	
  16

  	
   

  	
  14/02/2013

  	
   

  	
  AT, AU, BG, BX,
  CH, CN, CZ, DE, DK, EE, FR, GB, GR, HU, IE, IS, IT, LT, LV, NO, PL, PT, RO,
  RU, SE, SG, SI, SK, TR, UA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EU

  	
   

  	
  000516518

  	
   

  	
  25/05/1999

  	
   

  	
  M-REAL CORP

  	
   

  	
  era

  	
   

  	
  16

  	
   

  	
  21/04/2017

  	
   

  	
  Austria, Belgium, Cyprus, Czech Republic, Germany, Denmark, Estonia,
  Spain, Finland, France, United Kingdom, Greece, Hungary, Ireland, Italy,
  Lithuania, Luxemburg, Latvia, Malta, The Netherlands, Poland, Portugal,
  Sweden, Slovenia, Slovakia

  

 

153

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EU

  	
   

  	
  001503879

  	
   

  	
  14/06/2001

  	
   

  	
  M-REAL CORP

  	
   

  	
  era ENVIRONMENTALLY RESPONSIBLE APPROACH

  	
   

  	
  16

  	
   

  	
  09/02/2010

  	
   

  	
  Austria, Belgium, Cyprus, Czech Republic, Germany, Denmark, Estonia,
  Spain, Finland, France, United Kingdom, Greece, Hungary, Ireland, Italy,
  Lithuania, Luxemburg, Latvia, Malta, The Netherlands, Poland, Portugal,
  Sweden, Slovenia, Slovakia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Kingdom

  	
   

  	
  2047640

  	
   

  	
  20/03/1998

  	
   

  	
  M-REAL CORP

  	
   

  	
  ERA

  	
   

  	
  16

  	
   

  	
  06/12/2015

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Trade Mark

  	
   

  	
  342786A

  	
   

  	
  04/03/1988

  	
   

  	
  M-Real Hallein AG

  	
   

  	
  EUROART

  	
   

  	
  16

  	
   

  	
  17/05/2010

  	
   

  	
  Tunisia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Denmark

  	
   

  	
  VR004630 1994*

  	
   

  	
   

  	
   

  	
  PWA GRAFISCHE PAPIERE

  	
   

  	
  SYMBIO

  	
   

  	
  16

  	
   

  	
  15/07/2014

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  431432

  	
   

  	
   

  	
   

  	
  Papierfabrik

  	
   

  	
  BIBER Q

  	
   

  	
  16, 40

  	
   

  	
  10/08/2017

  	
   

  	
   

  

 

* Trade marks indicated with an asterisk are registered in the former
name of a Group Company and will be transferred to the Relevant Purchasers
under clause 3 of the Master Agreement

 

154

 

Part B: Business
Intellectual Property (Patents)

 

	
  Patent name

  	
   

  	
  Patent number

  	
   

  	
  Granted /
  Application

  	
   

  	
  Owner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Calandered paper product and a method for producing a calendered
  paper web

  	
   

  	
  FI111401

  	
   

  	
  Granted

  	
   

  	
  (M-real Corporation)

  	
   

  	
  Kangas

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Method of producing printed matter

  	
   

  	
  FI109415

  	
   

  	
  Granted

  	
   

  	
  (M-real Corporation)

  	
   

  	
  Kangas

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Process and coating composition for coating and paper web

  	
   

  	
  FI117875

  	
   

  	
  Granted

  	
   

  	
  (M-real Corporation)

  	
   

  	
  Kangas

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Methods for controlling print quality

  	
   

  	
  FI20065394

  	
   

  	
  Application

  	
   

  	
  M-real Corporation

  	
   

  	
  Kirkniemi/Kangas/Husum

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Menetelmä ja laitteisto mekaanista massaa sisältävän ohuen
  paperirainan kaksipuoliseksi päällystämiseksi

  	
   

  	
  FI924960

  	
   

  	
  Granted

  	
   

  	
  M-real Corporation / Valmet

  	
   

  	
  Kirkniemi

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Method and apparatus for producing mechanical fibers

  	
   

  	
  FI20022050

  	
   

  	
  Application

  	
   

  	
  M-real Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Filler for the manufacture of base paper and method for the
  manufacture of base paper

  	
   

  	
  FI20012328

  	
   

  	
  Granted

  	
   

  	
  M-real Corporation

  	
   

  	
  Kirkniemi/Kangas/Husum/Stockstadt

  

 

155

 

	
  Patent name

  	
   

  	
  Patent number

  	
   

  	
  Granted /
  Application

  	
   

  	
  Owner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Procedure for the manufacture of paper

  	
   

  	
  FI962701

  	
   

  	
  Granted

  	
   

  	
  M-real Corporation

  	
   

  	
  Kirkniemi/Kangas/Husum/Stockstadt/Hallein

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Process and coating colour for coating of paper and board

  	
   

  	
  FI970133

  	
   

  	
  Granted

  	
   

  	
  M-real Corporation

  	
   

  	
  Kirkniemi

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Method for producing a paper for coating

  	
   

  	
  FI971841

  	
   

  	
  Granted

  	
   

  	
  M-real Corporation

  	
   

  	
  Kirkniemi/Kangas

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Paper web and a method for the production thereof

  	
   

  	
  FI973704

  	
   

  	
  Granted

  	
   

  	
  M-real Corporation

  	
   

  	
  Kirkniemi/Husum

  

 

Utility models

 

	
  Name

  	
   

  	
  Number

  	
   

  	
  Owner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Marginaalipelti

  	
   

  	
  U20060471

  	
   

  	
  M-real Corporation

  	
   

  	
  Kirkniemi

  

 

156

 

Part C: GALERIE Marks

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Russian Federation

  	
   

  	
  209216

  	
   

  	
  28/02/2002

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  11/02/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hungary

  	
   

  	
  156609

  	
   

  	
  04/05/1999

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  18/03/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Czech Republic

  	
   

  	
  220250

  	
   

  	
  27/09/1999

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  20/03/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Slovakia

  	
   

  	
  189979

  	
   

  	
  20/03/2000

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  27/03/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Poland

  	
   

  	
  128980

  	
   

  	
  20/04/2001

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE ART

  	
   

  	
  16

  	
   

  	
  19/03/2018

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Kingdom

  	
   

  	
  2007440

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE

  	
   

  	
  16

  	
   

  	
  11/01/2015

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Register

  	
   

  	
  798366

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE IMAGE

  	
   

  	
  16

  	
   

  	
  14/02/2013

  	
   

  	
  AT, AU, BG, BX,
  CH, CN, CZ, DE, DK, EE, FR, GB, GR, HU, IE, IS, IT, LT, LV, NO, PL, PT, RO,
  RU, SE, SG, SI, SK, TR, UA 

  

 

157

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S.A.

  	
   

  	
  2857938

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE IMAGE

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S.A.

  	
   

  	
  2860140

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE VISION

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canada

  	
   

  	
  TMA617754

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE VISION

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Finland

  	
   

  	
  228137

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE IMAGE

  	
   

  	
  16

  	
   

  	
  29/08/2013

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Finland

  	
   

  	
  228136

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE VISION

  	
   

  	
  16

  	
   

  	
  29/08/2013

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canada

  	
   

  	
  TMA617961

  	
   

  	
   

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE IMAGE

  	
   

  	
  16

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Register

  	
   

  	
  798364

  	
   

  	
  14/02/2003

  	
   

  	
  M-REAL CORP

  	
   

  	
  GALERIE VISION

  	
   

  	
  16

  	
   

  	
  14/02/2013

  	
   

  	
  AT, AU, BG, BX,
  CH, CN, CZ, DE, DK, EE, FR, GB, GR, HU, IE, IS, IT, LT, LV, NO, PL, PT, RO,
  RU, SE, SG, SI, SK, TR, UA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EU

  	
   

  	
  000516518

  	
   

  	
  25/05/1999

  	
   

  	
  M-REAL CORP

  	
   

  	
  era

  	
   

  	
  16

  	
   

  	
  21/04/2017

  	
   

  	
  Austria, Belgium, Cyprus, Czech Republic, Germany, Denmark, Estonia,
  Spain, Finland, France, United Kingdom, Greece, 

  

 

158

 

	
  Country

  	
   

  	
  Appln/Reg nr

  	
   

  	
  Granted

  	
   

  	
  Applicant

  	
   

  	
  Mark

  	
   

  	
  Classes

  	
   

  	
  Renewal

  date

  	
   

  	
  Designated countries

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Hungary, Ireland, Italy, Lithuania, Luxemburg, Latvia, Malta, The
  Netherlands, Poland, Portugal, Sweden, Slovenia, Slovakia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EU

  	
   

  	
  001503879

  	
   

  	
  14/06/2001

  	
   

  	
  M-REAL CORP

  	
   

  	
  era ENVIRONMENTALLY RESPONSIBLE APPROACH

  	
   

  	
  16

  	
   

  	
  09/02/2010

  	
   

  	
  Austria, Belgium, Cyprus, Czech Republic, Germany, Denmark, Estonia,
  Spain, Finland, France, United Kingdom, Greece, Hungary, Ireland, Italy,
  Lithuania, Luxemburg, Latvia, Malta, The Netherlands, Poland, Portugal,
  Sweden, Slovenia, Slovakia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Kingdom

  	
   

  	
  2047640

  	
   

  	
  20/03/1998

  	
   

  	
  M-REAL CORP

  	
   

  	
  ERA

  	
   

  	
  16

  	
   

  	
  06/12/2015

  	
   

  	
   

  

 

159

 

Part D: Registered Design

 

	
  Country

  	
   

  	
  Application number

  	
   

  	
  Applicant

  	
   

  	
  Design

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  CH131884 (Design)

  	
   

  	
  M-REAL CORP

  	
   

  	
  Tragenheit

  	
   

  

 

160

 

SCHEDULE 12

 

(EMPLOYEES)

 

To the extent that in Germany a failure to
fulfil such obligations may render this Agreement in its current form void or
inoperable there is a legally binding obligation imposed on any member of the
Sellers’ Group which requires it to inform and consult with any recognised
works council or other appointed employee representatives in that country
before agreeing or implementing the terms of this Agreement, the Sellers and
the Relevant Purchasers agree that:

 

(a)           the entering
into of this Agreement is without prejudice to any legal requirement to comply
with such informing and consulting obligations before implementing the terms of
this Agreement;

 

(b)           they will
cooperate with each other in good faith in order to ensure compliance with such
informing and consulting obligations;

 

(c)           the Sellers
have not taken any binding decision concerning the implementation of the terms
of this Agreement, such binding decision being subject to the information and
consultation obligation; and

 

(d)           reasonable
changes to certain provisions of this Agreement may be necessary or desirable
as a result of any such informing and consulting.

 

161

 

SCHEDULE 13

 

(RELEVANT SELLERS AND RELEVANT PURCHASERS)

 

Part A: Details of the
Share Sellers and the Share Purchasers

 

	
  (1)

  	
   

  	
  (2)

  	
   

  	
   

  	
   

  	
  (4)

  
	
  Name

  of Share Seller

  	
   

  	
  Name of

  Company

  	
   

  	
  (3)

  Shares

  	
   

  	
  Name of Share

  Purchaser

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real Deutsche

  Holding GmbH

  	
   

  	
  CN Papiervertriebs GmbH

  	
   

  	
  CN Shares

  	
   

  	
  Sappi Deutschland

  Holding GmbH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real Deutsche

  Holding GmbH

  	
   

  	
  Stockstadt GmbH

  	
   

  	
  Stockstadt Shares

  	
   

  	
  Sappi Deutschland

  Holding GmbH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real NL Holding B.V.

  	
   

  	
  M-real Biberist

  	
   

  	
  Biberist Shares

  	
   

  	
  Sappi Netherlands BV

  

 

162

 

Part B: Details of the
Business Sellers and the Business Purchasers

 

	
  (1)

  	
   

  	
  (2)

  	
   

  	
   

  
	
  Name

  of Business Seller

  	
   

  	
  Brief Description of Business /

  Business Asset

  	
   

  	
  (3)

  Name of Business Purchaser

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real

  	
   

  	
  Mill Business

  	
   

  	
  Sappi Finland I Oy

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real Zanders

  	
   

  	
  Gohrsmühle Coaters

  	
   

  	
  Sappi Netherlands BV

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real Hallein AG

  	
   

  	
  Hallein Coater

  	
   

  	
  Sappi Netherlands BV

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M-real

  	
   

  	
  Know-How Business

  	
   

  	
  Sappi Papier Holding GmbH

  (Austria)

  

 

163

 

SCHEDULE 14

 

(TAX INDEMNITY)

 

1.            Interpretation

 

In this Schedule 14, the headings
shall not affect its interpretation and:

 

1.1          the following
expressions bear the following meanings:

 

“Employment Taxes” has the
meaning given in paragraph 3.2;

 

“Pre-Completion Accounting Periods”
has the meaning given to that term in paragraph 5.1;

 

“Purchaser’s
Relief” means any Relief which is not available on or before Completion,
but arises as a consequence of or by reference to a Transaction or Transactions
occurring after Completion and not as a consequence of or by reference to any
Transaction or Transactions occurring on or before Completion;

 

“Relevant Group Companies” in respect of
each Seller, means the Group Company or Group Companies the shares of which
that Seller is selling under this Agreement together with any subsidiary of any
of those Group Companies, and “Relevant Group Company”
means each of them;

 

“Relevant Purchaser” means, as
regards any Relevant Group Company, the Purchaser which is acquiring under this
Agreement either (a) the shares of that Relevant Group Company or (b) the
shares of a Relevant Group Company of which that Relevant Group Company is a
subsidiary;

 

“Relevant Seller” means, as
regards any Relevant Group Company, the Seller which is selling under this
Agreement either (a) the shares of that Relevant Group Company or (b) the
shares of a Relevant Group Company of which the Relevant Group Company is a
subsidiary;

 

“Straddle Period” means any
period relevant for Taxation purposes of each Group Company commencing before
Completion but ending after Completion;

 

“Tax” or “Taxation”
means:

 

(i)            all forms of taxation (other than deferred tax) and
statutory, governmental, state, provincial, local governmental or municipal
impositions, duties and levies in the nature of tax whether levied by reference
to income, profits, gains, asset values, turnover, added value or other
reference, in each case wherever and whenever imposed and whether chargeable
directly or primarily against or attributable directly or primarily to a Group Company
or any other person;

 

164

 

(ii)           all forms of social security contributions and employee
taxes, wherever and whenever imposed and whether chargeable directly or
primarily against or attributable directly or primarily to a Group Company or
any other person;

 

(iii)          all penalties and interest relating to any matter within
paragraphs (i) or (ii) above;

 

“Transaction” means any
transaction, circumstance, action, event or omission of whatever nature and
includes, without limitation, any change in the residence of any person for the
purposes of any Taxation, Completion and any change in accounting reference
date;

 

“Tax Audits” means any
audit or other investigation carried out by a Tax Authority;

 

1.2          (A)          references to
any “Tax Liability” of any Group Company
shall mean both:

 

(i)            liabilities of that Group Company to make actual payments of
Tax (or amounts in respect or on account of Tax); and

 

(ii)           the setting off against profits or against any Tax in
respect of which a successful claim could have been made under this Schedule,
of a Purchaser’s Relief; and

 

(B)          in any case
falling within paragraph 1.2(A)(ii) the amount that is to be treated for
the purposes of this Schedule as a Tax Liability of the Group Company (the “Deemed Tax Liability”) shall be determined as follows:

 

(i)            in a case where the Relief that was the subject of the
setting off mentioned was a deduction from or offset against Tax, the Deemed
Tax Liability shall be the amount of that Relief; and

 

(ii)           in a case where the Relief that was the subject of the
setting off mentioned was a deduction from or offset against profits, the
Deemed Tax Liability shall be the amount of Tax in respect of which a
successful claim could have been made under this Schedule but for such
deduction or setting off;

 

1.3          references to “profits” include income, profits or gains (including
chargeable or capital gains) of any description or from any source and
references to profits earned, accrued, received or otherwise recognised include
profits deemed to have been or treated as earned, accrued, received or
otherwise recognised for Taxation purposes; and

 

1.4          in the case of
any conflict between the provisions of the Agreement and this Schedule, this
Schedule shall prevail.

 

2.            Covenant

 

2.1          Subject to any
other provisions of this Schedule, the Relevant Seller agrees to pay to the
Relevant Purchaser on the due date for payment an amount equal to:

 

2.1.1      any Tax
Liability of any Relevant Group Company arising:

 

165

 

(i)            as a consequence of or by reference to any Transaction
occurring or deemed to have occurred on or before the date on which Completion
occurs; or

 

(ii)           in respect of or by reference to any profits earned,
accrued, received or otherwise recognised on or before the date on which
Completion occurs; and

 

2.1.2      all reasonable
external costs and expenses (including the costs and expenses of taking any
action under this Schedule) reasonably and properly incurred or payable by any
of the Purchasers and any of the Group Companies in connection with or in
consequence of any matter for which a successful claim is made by any of the
Purchasers under this Schedule.

 

2.2          If there is a
dispute between the parties about the time at which Taxation arose (in order to
determine whether the Taxation is: (i) in respect of or arising from a
transaction occurring or deemed to have occurred before, on or after
Completion; or (ii) referable to profits earned, accrued or received
before, on or after Completion), then the parties agree that, for the purposes
of resolving such dispute only, Completion shall be deemed to be an accounting
period end for Taxation purposes, and the matter shall be determined by
applying the accounting policies and practices adopted by the Group Company
concerned which have effect immediately prior to Completion to the Transaction
or profits in question.

 

2.3          Any payments
made by a Relevant Seller under paragraph 2.1 or 7 shall, so far
as permitted by law, be made by way of an adjustment to the consideration paid
by the Relevant Purchaser for the Shares under the terms of this Agreement.

 

3              Exclusions

 

3.1          The Sellers
shall not be liable under paragraph 2 above, paragraph 7 below or
(mutatis mutandis) under the Tax Warranties in respect of any liability:

 

3.1.1      to the extent
that, in accordance with the allocations of responsibility described in paragraph
3.2 below, such liability is a liability in respect of Employment Taxes for
which the Purchaser is responsible; or

 

3.1.2      to the extent
that such liability would not have arisen but for a voluntary act carried out
by a member of the Purchaser’s Group (at any time) or a Relevant Group Company
(after Completion) outside the ordinary course of business of the company
concerned (and for these purposes any distribution made after Completion shall
constitute such a voluntary act outside the ordinary course of business) as
carried on at Completion and which has been carried out otherwise than pursuant
to a legally binding obligation entered into by any Group Company on or before
Completion.  An act carried out at the
written request or with the written approval (expressly for the purposes of
this paragraph) of any Seller shall not be a voluntary act for these purposes;
or

 

3.1.3      to the extent
that such liability arises or is increased as a consequence of any change
(including, for the avoidance of doubt, any change with retrospective effect)
after Completion in any accounting policy or practice or bases or methods of
accounting adopted by any member of the Purchaser’s Group or a Group Company,
except where

 

166

 

such change was
necessary in order to comply with any applicable legal, regulatory, financial
reporting, accounting or other requirement in force before Completion by the
relevant authority; or

 

3.1.4      to the extent
that any Relief other than a Purchaser’s Relief arising as a consequence of or
by reference to any Transaction which occurred or was deemed to have occurred
on or before Completion or in respect of a period ending on or before
Completion is available to relieve or mitigate such liability; or

 

3.1.5      to the extent
that the liability arises or is increased as a consequence of any change
(including any retrospective change), after Completion, in the law (including
subordinate legislation) or in the generally published interpretation or
practice of any Tax Authority or in financial reporting or accounting standards
or practice coming into force after Completion or to the extent that the
liability arises or is increased by a change in any rate of Taxation after
Completion; or

 

3.1.6      to the extent
that the liability would not have arisen, but for an act carried out by any of
the Sellers or the Group Companies prior to Completion at the written request
of any member of the Purchaser’s Group; or

 

3.1.7      to the extent
that the liability arises by reason of a voluntary disclaimer by any Group
Company after Completion of the whole or part of any allowance to which any of
them is entitled or by reason of the revocation by any Group Company after
Completion of any claim for Relief made (whether provisionally or otherwise) by
any of them prior to Completion; or

 

3.1.8      to the extent
that the liability has been made good by insurers or otherwise compensated for
without cost to Sappi, any member of the Buyer’s Group and/or any of the Group
Companies; or

 

3.1.9      to the extent
that the liability would not have arisen or would have been reduced but for a
failure or omission on the part of any of the Purchasers and/or any of the
Group Companies to make any election or claim any Relief, the making or
claiming of which was taken into account in computing the provision or reserve
for Tax in the Accounts and it is reasonably clear from the Accounts that such
election or claim had been taken into account or is otherwise notified in
writing by any of the Sellers; or

 

3.1.10          to
the extent that the liability arises or is increased as a consequence of any
failure by any of the Purchasers and/or any of the Group Companies to comply
with any of their respective obligations under this Schedule or this Agreement;
or

 

3.1.11          to
the extent that the liability would not have arisen but for a cessation of, or
any change in the nature or conduct of, any trade carried on by any of the
Group Companies, being a cessation or change occurring on or after Completion;
or

 

3.1.12          to
the extent that the liability relates to any debt, liability or claim provided
for in clause 4.6 of this Agreement and such liability in respect of Tax
is taken into account in the Completion Statements; or

 

167

 

3.1.13          to
the extent that recovery has been made in respect of the same subject matter
under this Schedule or this Agreement; or

 

3.1.14          to
the extent that the liability is a liability to Swiss withholding Tax which
arises in consequence of or in connection with the making of the distribution
by Biberist to NL Holding prior to Completion as contemplated in clause 19.8
of this Agreement and such amount is deducted from the amount received by NL
Holding; or

 

3.1.15          to
the extent that the liability has been discharged prior to Completion; or

 

3.1.16          to
the extent that the liability is a liability falling within clause 39.3
of this Agreement; or

 

3.1.17          to
the extent that the liability is a liability in respect of VAT attributable to
a period of time since the Statutory Accounts Date; or

 

3.1.18          to
the extent that the liability is a liability in respect of German “Grundsteuer”
which falls due for payment after Completion, and for these purposes it shall
be assumed that, based on a calendar year, German Grundsteuer fall due for
payment on a quarterly basis; or

 

3.1.19          to
the extent that the liability is a liability in respect of any distribution
made by Biberist after Completion.

 

3.2          This paragraph
3.2 explains the manner in which responsibility for certain employment
related taxes is to be allocated for the purposes of this Schedule 14.  Such allocation of responsibility is without
prejudice to any other limitations on the liability of the Sellers under this
Schedule 14 or otherwise under the Agreement.

 

3.2.1      The
Sellers shall be responsible for all liabilities of any Group Company in
respect of payroll or employee/employer Taxes, including social security contributions (“Employment Taxes”), to the extent that they are properly due
and payable on or before Completion.

 

3.2.2      The Purchaser shall be responsible for all Employment Taxes
to the extent they are properly due and payable after Completion, except where
such Employment Taxes fall within (i) or (ii) below (in which case
the Sellers are responsible for them):

 

(i)            The Purchaser is not responsible for Employment Taxes which
are properly due and payable after Completion to the extent that they relate to
bonus payments attributable to periods of time on or before Completion.  If a bonus payment is attributable to periods
of time both before and after Completion, the Purchaser shall be responsible
for such part of the relevant Employment Taxes as is attributable (on a just
and reasonable basis) to the period of time after Completion and the Sellers
shall be responsible for such part of the relevant Employment Taxes as is
attributable, on the same basis, to periods of time on or before Completion;

 

(ii)           The Purchaser is not responsible for Employment Taxes which
are properly due and payable after Completion to the extent that they are
attributable (on a just and

 

168

 

reasonable basis) to a calendar month ended prior to the beginning of
the month in which Completion occurs.

 

4.            Due Date for Payment

 

4.1          The due date
for payment under paragraph 2.1 shall be the date falling ten (10) Business
Days after service by the Relevant Purchaser of a notice containing a written
demand in respect of the matter for which any of the Sellers are liable, or,
where later and if applicable:

 

4.1.1      where a
liability of the Relevant Sellers under paragraph 2.1 arises from a
liability of the Relevant Purchaser or a Group Company to make a payment of
Taxation which has not at the date of the notice under paragraph 6.1
become due to the relevant Tax Authority, the date falling five (5) Business
Days before the latest date on which that Taxation may be paid to the relevant
Tax Authority without a liability to interest or penalties accruing; or

 

4.1.2      in the case of
the setting off of a Purchaser’s Relief within paragraph 1.2(A)(ii), the
last date on which the relevant Tax liability would have been payable but for
the setting off of the relevant Purchaser’s Relief without a liability to
interest or penalties accruing.

 

4.2          Any payment
due to be made under this Schedule shall carry interest from the due date for
payment or, if the claim under this Schedule arises from a payment which has
been made before the date of the notice under paragraph 6.1, the date
such payment was made, until actual payment at the Agreed Rate provided that
interest shall not accrue for any period in respect of which interest due to
the relevant Tax Authority is included in the payment due to be made under this
Schedule before the application of this paragraph 4.2.

 

5.            Tax Administration etc.

 

Pre-Completion Accounting Periods

 

5.1          Subject to and
in accordance with the provisions of this paragraph 5, the Relevant
Sellers or their duly authorised agents shall, at the Relevant Sellers’ cost
(except internal costs of the relevant Group Company):

 

5.1.1      prepare,
submit and deal with (or procure the preparation and submission of and dealing
with) all computations and returns relating to Taxation; and

 

5.1.2      prepare,
submit and deal with (or procure the preparation and submission of and dealing
with) all claims, elections, surrenders, disclaimers, notices and consents for
Taxation purposes (together with the documents referred to in paragraph
5.1.1., “Tax Documents”); and

 

5.1.3      deal with all
other matters which relate to Taxation including, without limitation, any
correspondence, enquiry, dispute, negotiation or settlement involving any Tax
Authority,

 

in respect of all
periods relevant for Taxation purposes of each Group Company ending on or
before Completion (the “Pre-Completion Accounting
Periods”).

 

169

 

5.2          The Relevant
Sellers or their duly authorised agents shall deliver all Tax Documents
relevant to Pre-Completion Accounting Periods (“Pre-Completion
Tax Documents”) that are required to be authorised and signed by any
Group Company to Sappi for authorisation and signing prior to submission. If a
time limit applies in relation to the submission of any Pre-Completion Tax
Document, the Relevant Sellers shall ensure that Sappi receives the
Pre-Completion Tax Document no later than ten (10) Business Days before
the expiry of the time limit. Sappi shall:

 

5.2.1      subject to paragraph
5.2.2 below, procure that each Group Company shall cause any Pre-Completion
Tax Document delivered to it under this paragraph 5.2 to be so
authorised and signed as soon as reasonably practicable by and on behalf of the
relevant Group Company, and submitted to the appropriate Tax Authority as soon
as reasonably practicable (and in any event within any relevant time limit
provided that the Sellers have complied with this paragraph 5.2);

 

5.2.2      be under no
obligation to procure the authorisation, signing or submission to a Tax
Authority of any Pre-Completion Tax Document delivered to it under paragraph
5.2 which is false or misleading in a material respect, or which would
require fraudulent conduct, conduct involving dishonesty or the commission or
participation in any criminal offence on the part of Sappi or a Group Company,
but for the avoidance of doubt Sappi shall be under no obligation to make any
enquiry as to the completeness or accuracy thereof and shall be entitled to
rely entirely on any of the Sellers and of their agents.

 

5.3          The Relevant Sellers hereby agree to cancel any existing
authority held by any employee or agent of or adviser to the Relevant Sellers to sign Tax Documents on behalf of any
Group Company with effect from Completion.

 

5.4          The Relevant Sellers shall procure that:

 

5.4.1      Sappi is kept
fully informed of the progress of all material matters relating to the Taxation
affairs of the Group Companies in relation to the Pre-Completion Accounting
Periods;

 

5.4.2      Sappi receives
copies of, or extracts from, all written correspondence to, or from, any Tax
Authority insofar as it is relevant to the matters referred to in paragraph
5.1 above; and

 

5.4.3      Sappi receives
drafts of any Pre-Completion Tax Documents which are to be submitted. If a time
limit applies in relation to the submission of any Pre-Completion Tax Document,
the Relevant Sellers shall ensure that the Purchaser receives the draft
Pre-Completion Tax Document no later than twenty (20) Business Days before the
expiry of the time limit;

 

5.4.4      Sappi is
consulted fully in relation to the matters referred to paragraph 5.4.1
above and any reasonable written comments of Sappi are taken into account in
relation to such matters provided that Sappi’s comments are received no later
than ten (10) Business Days after the draft Pre-Completion Tax Document
has been received by Sappi pursuant to paragraph 5.4.3.

 

170

 

5.5        The Relevant Sellers agree to devote reasonable resources to
dealing with the Taxation affairs of the Group Companies in relation to
Pre-Completion Accounting Periods, and shall use reasonable endeavours to
ensure that they are finalised as soon as reasonably practicable. The Relevant
Sellers shall ensure that all Pre-Completion Tax Documents are true and
accurate in all respects and are not misleading. If the Relevant Sellers are in
material breach of their obligations under paragraphs 5.1 to 5.4
(inclusive) and the Relevant Sellers have not taken reasonable steps to correct
the breach within ten (10) Business Days of Sappi giving the Relevant
Sellers notice of such breach, Sappi may take control of the Taxation affairs
of the Group Companies in relation to Pre-Completion Accounting Periods and paragraphs
5.1 to 5.5 (inclusive) shall apply as if a reference to “Sappi” is a
reference to “Relevant Seller” and a reference to “Relevant Seller” is a
reference to “Sappi”.

 

Straddle Period

 

5.6          Subject to paragraph 6 and paragraph 7, and
subject to and in accordance with the provisions of this paragraph 5,
Sappi or its duly authorised agents shall, at Sappi’s cost:

 

5.6.1      prepare,
submit and deal with all Tax Documents in respect of the Straddle Period (“Straddle Period Tax Documents”); and

 

5.6.2      deal with all
other matters which relate to Taxation including, without limitation, any
correspondence, enquiry, dispute, negotiation or settlement involving any Tax
Authority in respect of the Straddle Period.

 

5.7          Sappi shall procure that, to the extent that the Relevant
Sellers’ liability to Taxation or liability under paragraph 2 of this Schedule
14 may be affected:

 

5.7.1      the Relevant
Sellers are kept fully informed of the progress of all material matters
relating to the Taxation affairs of the Group Companies in relation to the
Straddle Period;

 

5.7.2      the Relevant
Sellers receive copies of, or extracts from, all written correspondence to, or
from, any Tax Authority insofar as it is relevant to the matters referred to in
paragraph 5.6 above;

 

5.7.3      the Relevant
Sellers receive drafts of any Straddle Period Tax Documents which are to be
submitted. If a time limit applies in relation to the submission of any
Straddle Period Tax Document, Sappi shall ensure that the Relevant Sellers
receive the Straddle Period Tax Document no later than twenty (20) Business
Days before the expiry of the time limit.

 

5.7.4      the Relevant
Sellers are consulted fully in relation to the matters referred to in paragraph
5.7.1 above and any reasonable written comments of the Relevant Sellers are
incorporated (to the extent that their current liability to Tax or liability
under this Schedule may be affected) or are taken into account (in all other
cases) in relation to such matters provided the Relevant Sellers’ comments are
received no later than ten (10) Business Days after the draft Straddle
Period Tax Document has been received by the Relevant Seller pursuant to paragraph
5.7.3.

 

171

 

5.8          Sappi agrees to devote reasonable resources to dealing with
the Taxation affairs of the Group Companies in relation to the Straddle Period,
and shall use reasonable endeavours to ensure that they are finalised as soon
as reasonably practicable. Sappi shall ensure that all Straddle Period Tax
Documents are true and accurate in all respects and are not misleading.

 

Tax Audits

 

5.9          The party which is responsible for preparing, submitting and
dealing with the Tax Documents in respect of a particular period under this paragraph
5 shall also be responsible for dealing with any Tax Audits which a Tax
Authority may conduct in relation to that period. If a Tax Audit affects or may
affect the liability to Tax of the party which is not responsible for dealing
with it under this paragraph 5, or that other party’s liability under
this Schedule or the Agreement, the party dealing with the Tax Audit shall
ensure that:

 

5.9.1      the other
party is kept fully informed of the progress of all matters relating to the Tax
Audit;

 

5.9.2      the other party
receives copies of all written correspondence insofar as it is relevant to the
Tax Audit; and

 

5.9.3      the other
party is consulted fully in relation to the Tax Audit and the party which is
dealing with the Tax Audit shall act reasonably in incorporating (to the extent
that the current liability to Tax or liability under this Schedule of the other
party may be affected) or taking into account (in all other cases) all
reasonable written comments that the other party may provide.

 

Access

 

5.10        Sappi shall procure that the Relevant Sellers and their duly
authorised agents are (on reasonable notice in writing to Sappi) afforded such
reasonable access to the books, accounts, personnel, correspondence and
documentation of the Group Companies and such other reasonable assistance
(including from any personnel and officers of the Group Companies) as may be
reasonably required to enable the Relevant Sellers to discharge their
obligations under this paragraph 5.

 

5.11        This paragraph 5 shall operate without prejudice to
the provisions of paragraph 6.

 

6.         Claims

 

6.1          If any of the Purchasers or any Group Company becomes aware
after Completion of any matter which could give rise to a liability under this
Schedule or under the Tax Warranties (a “Tax Claim”), Sappi shall procure that
written notice of that matter (setting out reasonable particulars of the
potential liability, the due date for payment and the time limits for any
appeal) is given as soon as reasonably practicable to the Relevant Sellers and
as regards any such matter Sappi shall itself or shall procure that the Group
Company concerned shall at the request in writing of the Relevant Sellers take
such action as they may reasonably request to deal with the matter but subject
as set out in paragraph 6.3 and paragraph 6.4 and subject to
Sappi and the Group Company concerned 

 

172

 

being indemnified to their reasonable
satisfaction by the Relevant Sellers against all losses (including additional
Taxation), costs, damages and expenses which may be incurred as a result.

 

6.2          The actions which the Relevant Sellers may reasonably
request under paragraph 6.1 above shall include (without limitation) the Group
Company concerned applying to postpone (so far as legally possible) the payment
of any Tax and/or allowing the Relevant Sellers (subject to the conditions set
out in paragraph 6.5) to take on or take over at their own expense the
conduct of all or any proceedings of whatsoever nature arising in connection
with the Claim in question.

 

6.3          Sappi and each Group Company shall be at liberty to deal
with any Tax Claim if the Relevant Sellers delay unreasonably in giving any
such request as is mentioned in paragraph 6.1 above provided that Sappi or the
Group Company concerned has notified the Relevant Sellers in writing of its
intention to so deal with the matter and Relevant Sellers have not responded
within ten (10) days.

 

6.4          Sappi shall procure that the Relevant Sellers and their duly
authorised agents are (on reasonable notice in writing to Sappi) afforded such
reasonable access to the books, accounts, personnel, correspondence and
documentation of the Group Companies and such other reasonable assistance as
may be reasonably required to enable the Relevant Sellers to exercise their
rights under this paragraph 6 including, without limitation, such
information and assistance as the Relevant Sellers and/or their duly authorised
agents may reasonably require in connection with the preparation for and
conduct of those proceedings referred to in paragraph 6.3 above.

 

6.5          The conditions referred to in paragraph 6.2 are that
Sappi is kept fully informed of the conduct of the relevant proceedings and its
reasonable comments in respect thereof are taken into account by the Relevant
Sellers.

 

7.         Secondary Liabilities

 

7.1          The Sellers agree to pay to Sappi on the due date for
payment an amount equal to the amount of any Taxation for which any of the
following:

 

(i)            any Group Company;

 

(ii)           any member of the Purchaser’s Group; or

 

(iii)          any director or former director of any member of the
Purchaser’s Group or of any Group Company (other than a person who was a
director of any Group Company prior to Completion),

 

is or becomes liable by virtue of the failure
of the Sellers to pay, or procure that there is paid, when due, any Tax
properly assessed on them or on any member of the Sellers’ Group (excluding,
for the purposes of this paragraph 7.1, the Group Companies and
including for the avoidance of doubt Hallein AG) except to the extent that such
Taxation:

 

(a)           is either subject to a valid claim under this Schedule by
the Sellers which has not been satisfied or could be the subject of any such
valid claim; or

 

173

 

(b)           is recoverable by Sappi, any member of the Purchaser’s
Group, any Group Company or any such director or former director under any
relevant statutory provision (and Sappi shall procure that no such recovery is
sought to the extent that payment has been made under this paragraph 7.1)

 

together with all reasonable external costs
and expenses (including the costs and expenses of taking any action under this
Schedule) reasonably and properly incurred or payable by the Purchasers, any
member of the Purchaser’s Group, any Group Company or any such director or
former director thereof in connection with or as a consequence of any matter
for which a successful claim is made by Sappi under this paragraph 7.

 

7.2          Without prejudice to the generality of paragraph 7.1
above, the Sellers undertake to Sappi that they shall fully indemnify the
Relevant Purchaser with regard to any amount of Taxation that Stockstadt GmbH
and/or Chemisch Werke Zell-Wildhausen GmbH may be required to pay under sec. 73
of the Tax Code (Abgabenordnung).

 

8.         Counter-indemnity

 

8.1          Sappi agrees to pay to the Sellers on the due date for
payment an amount equal to the amount of any Taxation for which any of the
following:

 

(i)            the Sellers;

 

(ii)           any member of the Sellers’ Group (excluding the Group
Companies); or

 

(iii)          any director or former director of any of the Sellers or of
any member or Sellers’ Group (excluding the Group Companies),

 

is or becomes liable by virtue of the failure
of any of the Group Companies to pay, or procure that there is paid, when due,
any Tax properly assessed on them except to the extent that such Taxation:

 

(iv)           is either subject to a valid claim under this Schedule by
the Purchasers which has not been satisfied or could be the subject of any such
valid claim; or

 

(v)            is recoverable by the Sellers or any member of the Sellers’
Group or any such director or former director under any relevant statutory
provision (and the Seller shall procure that no such recovery is sought to the
extent that payment has been made under this paragraph 8.1)

 

together with all reasonable external costs
and expenses (including the costs and expenses of taking any action under this
Schedule) reasonably and properly incurred or payable by the Sellers, any
member of the Sellers’ Group or any such director or former director thereof in
connection with or in consequence of any matter for which a successful claim is
made by the Sellers under this paragraph 8.

 

8.2          To the extent that based on a fiscal unity (Organschaft) under German tax law any of the Sellers is
debtor vis-à-vis the Tax Authorities for Taxes caused by the business of any of
the Group 

 

174

 

Companies and allocable to Tax periods up to
the Completion Date, the Seller shall remain liable for such Taxes. However, if
amended assessments, e.g. as a consequence of tax audits or of amended tax
returns, regarding such Taxes result in a Tax benefit in periods after the
Completion Date (e.g. in cases of higher depreciations or a recognition of
accruals as deductible expenses only for periods after the Completion Date) the
Purchaser shall compensate the Seller or its parent company, as the case may
be, for any such Tax benefit (including in particular the reduction of taxable
income (steuerliches Minderergebnis) or an
increase of a tax loss for the period after the Completion Date) which any of
the Group Companies or any Relevant Purchaser or any of its affiliates will
derive therefrom during a Tax period commencing after Completion, provided,
however, that the compensation shall be limited to the net present value of the
Tax benefit which shall be calculated on a lump sum basis by multiplying the
reduction of taxable income with the Tax rates in effect at the time the
obligation of Purchaser under this paragraph becomes due and discounted at an
interest rate of five (5) per cent. per annum for a period not exceeding
five (5) years. The compensation payable by the Purchasers shall become
due twenty (20) Business Day after the assessment relating to the
aforementioned Taxes becomes formally binding (formell
bestandskräftig).

 

8.3          The provisions of paragraph 4 (Due Date for Payment) and
paragraph 6 (Claims) shall apply to this paragraph 8 mutatis mutandis.

 

9.         Savings

 

9.1          If the auditors for the time being of a Group Company
certify in writing to any of the Sellers and Sappi that Taxation which has
resulted in a payment by a Relevant Seller falling due pursuant to paragraph
2 gives rise to an actual saving (the “Saving”) of
Taxation for a Group Company or a Purchaser in a tax period ending prior to the
tenth anniversary of Completion then the amount of the Saving shall be set off
against any payment then due from the Sellers or any of them under paragraph
2.1 of this Schedule 14 and, to the extent there is an excess, a
refund shall be paid to the Sellers of any previous payment or payments made by
the Sellers under this Schedule and not previously refunded under this
paragraph up to the amount of excess, and (to the extent that it is not so set
off or refunded) shall be carried forward and set off against any future
payments which become due from the Sellers under this Schedule 14. Ten
(10) Business Days after the time at which pursuant to paragraph 2
of Schedule 5 (Limitations on Liability) no Tax Claim can be made any
amount not so set off shall be paid to the Seller.

 

9.2          If any Group Company or any of the Purchasers discovers that
there has been a Saving, Sappi shall, or shall procure that the Group Company
concerned shall, as soon as reasonably practicable give full details thereof to
the Sellers and Sappi shall, or shall procure that the Group Company concerned
shall, supply to the Sellers such information as they may reasonably require to
verify the amount of the Saving.

 

9.3          For the purposes of paragraph 9.1 a person obtains a
Saving if as a result of the Taxation which results in a claim by a Purchaser
under paragraph 2 or the Tax Warranties that person is relieved in whole
or in part of a liability to make some other payment of Taxation which it would
otherwise have been liable to make or obtains a right to repayment of Taxation
which would not otherwise have been available.

 

175

 

10.        Tax Refunds

 

10.1        If a Group Company (or a member of the Purchaser’s Group on
behalf of a Group Company) has received a refund of Taxation (including, for
the avoidance of doubt, the amount of any reduction or refund of corporate
income tax in the amount of a corporate income tax credit (Körperschaftsteuerguthaben)
within the meaning of Section 37 of the German Corporate Income Tax Act,
but excluding any refund (whether in cash or by way of credit or set off
against a liability to Tax) in respect of VAT which relates to periods since
the Statutory Accounts Date) in respect of a period ending on or before
Completion and whether in cash or by way of credit or set-off against a
liability to Tax (the “Tax Refund”)
(for reasons other than the availability of a Purchaser’s Relief) then the
amount of the Tax Refund (less any Taxation due on any interest element of the
Tax Refund (or less any Taxation that would have been due but for the
availability of any Purchaser’s Relief)) shall be set off against any payment
then due from the Sellers under paragraph 2.1 of this Schedule or (to the
extent that it is not so set off) shall be paid by the Purchaser to the Sellers
within ten (10) Business Days of the Tax Refund being obtained.

 

10.2        If any Group Company or Sappi discovers that it has obtained
or is entitled to a Tax Refund, Sappi shall, or shall procure that the Group
Company concerned shall, as soon as reasonably practicable give full details
thereof to the Sellers and Sappi shall, or shall procure that the Group Company
concerned shall, supply to the Sellers such information as they may reasonably
require to verify the amount of the Tax Refund.

 

10.3        A Group Company that discovers that it is entitled to a Tax
Refund shall (if so required by the Sellers and if indemnified to its
reasonable satisfaction by the Sellers against all losses (including additional
Taxation), costs and expenses (except internal costs and expenses of the
relevant Group Company) and damages which may be incurred as a result) take all
reasonable steps to obtain that Tax Refund.

 

11.        Effect of Waiver, Release etc.

 

Any liability under
this Schedule may in whole or in part be released, compounded or compromised or
time or indulgence given by the person to whom the liability is owed in its
absolute discretion as regards any of the persons under such liability without
in any way prejudicing or affecting its rights against any other or others of
those persons under the same or a like liability whether joint and several or
otherwise.

 

12.        Recovery from Third Parties

 

If the Sellers pay or procure payment of an
amount either in respect of Taxation under paragraph 2 or paragraph 7
or an amount in respect of any circumstances giving rise to a claim under the
Tax Warranties and the Relevant Purchaser or any Relevant Group Company is or
becomes entitled, before the sixth anniversary of such payment, to recover or
obtain from some other person (other than a Group Company) any sum in respect
of that Taxation or circumstance then the Relevant Purchaser shall:

 

(a)           as soon as
reasonably practicable notify the Sellers of such entitlement and shall, if so
requested by the Sellers and subject to the Purchaser and the Group Company
being indemnified to their reasonable satisfaction by the Sellers against all
losses (including additional Taxation), damages, costs and expenses which may
be reasonably incurred, take and procure that the Group 

 

176

 

Company takes all
reasonable steps to enforce that recovery (keeping the Sellers informed of the
progress of any action taken); and

 

(b)           account to the
Sellers within ten (10) Business Days of recovering any such amount for
the whole of any sum so recovered (including any interest or repayment
supplement paid to the Purchaser or a Group Company) less any costs and
expenses of recovery (including any Taxation which would not have been incurred
but for the recovery of that amount) up to an amount not exceeding the amount
of any such payment previously made by the Sellers in respect of such Taxation.

 

12.        Mitigation

 

The Purchasers shall, at the direction in
writing of the Sellers, procure that the Group Companies take all such
reasonable steps as the Seller may reasonably require to:-

 

(a)           use in the
manner hereinafter mentioned all such Reliefs arising as a consequence of or by
reference to any Transaction occurring (or deemed to occur) on or before
Completion or in respect of a period ended on or before Completion and not as a
consequence of or by reference to any Transaction occurring (or deemed to
occur) after Completion or in respect of a period commencing after Completion
as are available to any Group Company or Group Companies to reduce or eliminate
any liability to Tax in respect of which the Purchasers or any of them would
have been able to make a claim against the Sellers or any of them under this
Schedule (such Reliefs including, without limitation, Reliefs made available
for no consideration to a company by means of a surrender from another
company), the said use being to effect the reduction or elimination of any such
liability to Tax to the extent specified by the Seller and permitted by law,
and to provide to the Seller, at the Seller’s expense, a certificate from the
auditors (for the time being) of the Relevant Group Company or Relevant Group
Companies confirming that all such Reliefs have been so used;

 

(b)           make all such
claims and elections specified by the Sellers or any of them in respect of any
accounting period of any of the Group Companies commencing before Completion as
have the effect of reducing or eliminating any such liability to Tax as is
mentioned in paragraph (a) above, provided that no such claim or election
shall require the any of the Group Companies to use any Relief which arises
solely as a consequence of or by reference to any Transaction occurring (or
deemed to occur) after Completion or in respect of a period commencing after
Completion; and

 

(c)           allow the
Sellers to reduce or eliminate any liability to Tax by surrendering, or
procuring the surrender by any company other than the any of the Group
Companies of any Relief to the Relevant Group Company for no consideration to
the extent permitted by law but without any payment being made in consideration
for such surrender.

 

13         Payments
on an After-Tax basis

 

13.1        All
sums payable under this Schedule 14 (other than interest) shall be made
on an after-Tax basis.

 

13.2        For
the purposes of paragraph 13.1 above, “after-Tax basis” means that to
the extent that the sum payable (the “Payment”) is
subject to a deduction or withholding required by law in respect of Tax 

 

177

 

or is chargeable to any Tax in
the hands of the recipient it shall be increased so as to ensure that, after
taking into account:

 

(i)         the Tax chargeable on such amount
(including on the increased amount); and

 

(ii)         any Tax credit, repayment or other Tax
benefit which is available to the recipient of the Payment solely as a result
of the matter giving rise to the obligation to make the Payment or as a result
of receiving the Payment (which amount of Tax and Tax credit, repayment or
other Tax benefit is to be determined by the auditors of the recipient at the
shared expense of both parties and is to be certified as such to the party
making the Payment),

 

the recipient of the Payment is in the same
position as it would have been in if the matter giving rise to the obligation
to make the Payment had not occurred.

 

13.3        If
any party to this Agreement assigns the benefit in whole or in part of this
Agreement, the liability of any other party to make an increased payment in
accordance with paragraph 13.1 shall be limited to that (if any) which
it would have been liable to make if no such assignment had taken place.

 

178

 

SCHEDULE 15

 

(ENVIRONMENTAL INDEMNITY)

 

In this Schedule the
following expressions (which are additional to those defined in Schedule 1
(Interpretation) of this Agreement) shall have the meanings assigned to them
below:

 

1.                                     DEFINITIONS

 

“Contamination” means the
presence of Hazardous Materials in soil, or in groundwater or surface water
(including for the avoidance of doubt, rivers, lakes, ponds and other
watercourses) at the Indemnified Properties, or emanating from the Indemnified
Properties on or before Completion or emanating from the Indemnified Properties
after Completion provided such Hazardous Materials were so present at the
Indemnified Properties on or before Completion, but excluding for the avoidance
of doubt those Hazardous Materials which are contained in any operational
man-made structure, plant or machinery above or below ground at or prior to
Completion and have not entered soil or groundwater or surface water at or
prior to Completion;

 

“Environment” means all or
any of the following, alone or in combination, any part of the air (including,
without limitation, the air within buildings and the air within other natural
or man-made structures above or below ground or above or below water), water
(including water under or within land or in pipes, tanks, ditches or sewerage
systems), soil and land and any ecological systems and living organisms
supported by these media, including man;

 

“Environmental Authority” means any
legal person or body of persons (including any government or regional department
or government or regional agency or court or tribunal) having jurisdiction to
determine any matter arising under Indemnified Environmental Law and/or
relating to the Environment;

 

“Environmental Claim” means a claim
brought against a Relevant Seller by a Relevant Purchaser under paragraph 2
of this Schedule 15 for Environmental Losses;

 

“Indemnified Environmental Laws”
means all applicable statutes and other laws (including without limitation all
codes of law, statutory instruments, treaties, regulations, directives,
decisions, circulars, codes, guidance and by-laws) of any relevant jurisdiction
which relate to or provide remedies in respect of Contamination and are in
force and legally binding in the relevant jurisdiction at or prior to
Completion, and shall be deemed to include any national legislation
implementing the Environmental Liability Directive 2004/5/EC (to the extent
that it implements such directive) in due course;

 

“Environmental Losses” means any
losses, damages, fines, penalties, charges, and reasonable costs or expenses
suffered or incurred by the Purchasers or any member of the Purchaser’s Group
excluding indirect and consequential losses but including reasonable costs of
Remedial Action as a result of an Environmental Trigger Event;

 

“Environmental Permit” means any
permit, licence, consent, certificate, approval, registration, notification or
authorisation required by Indemnified Environmental Laws in relation to the
operation of the business of any member of the Group or the occupation or use
of any Property, and in Switzerland shall be deemed to include any agreement
reached with the relevant Environmental Authority where it is in the normal
course of business to enter into such agreement in place of any of the above;

 

179

 

“Environmental Proceeding” means any
civil or criminal proceeding or suit or any regulatory or administrative
enforcement proceeding or claim which forms the basis of an Environmental
Trigger Event;

 

“Environmental Trigger Event” means:

 

(A)                              the service on or the receipt by any
member of the Relevant Purchasers’ Group of written notification of the
commencement of (or an intention to commence) any civil or criminal proceedings
or suit or any formal regulatory or formal administrative enforcement
proceedings issued under Indemnified Environmental Law brought or taken by the
Environmental Authority or other third party against such member of the
Relevant Purchaser’s Group in respect of Contamination; or

 

(B)                              an emergency,
that is a state of affairs where immediate and very grave harm to the
Environment occurs or is imminent and requires Remedial Action;

 

(C)                              the
identification of Contamination at any Indemnified Property by any member of
the Relevant Purchaser’s Group acting reasonably in the ordinary course of
trading (as if it did not have the benefit of this indemnity), and seeking to
minimise its liabilities in relation to Contamination, which, if the relevant
Environmental Authority had the information held by such member of the Relevant
Purchaser’s Group, would cause such Environmental Authority to serve written
notice of an obligation to undertake Remedial Action in respect of such
Contamination;

 

“Hazardous Material” means any substance (whether solid,
liquid or gas) which alone or in combination with any other substance is
capable of causing harm to man or to the Environment or any other organism
supported by the Environment; and

 

“Indemnified Properties” means the
Properties;

 

“Investigative Works” means
intrusive investigation, sampling and monitoring works relating to
Contamination;

 

“Kirkniemi Discharge Compensation”
has the meaning given to it in clause 19.9(ii) of this Agreement;
and

 

“Remedial Action” means such
measures as are reasonably necessary to investigate, inspect, monitor, remove,
remedy, abate, contain, control, treat or ameliorate Contamination.

 

2.                                     INDEMNITY

 

2.1                             The Relevant Sellers hereby agree to
indemnify and keep indemnified the Relevant Purchasers (for themselves and in
trust for each member of the Relevant Purchaser’s Group) against any and all
Environmental Losses suffered or incurred by any Relevant Purchaser or any
member of the Relevant Purchaser’s Group after the Completion Date PROVIDED
THAT the Relevant Seller shall not be liable in respect of any Environmental
Losses under this paragraph 2 unless and until:

 

(A)                              an Environmental Trigger Event has
occurred in respect of the Environmental Losses which the Relevant Purchaser
seeks to claim; and

 

180

 

(B)                              the Relevant Seller has received a
written notice of claim in respect of the Environmental Losses (in accordance
with the provisions of clause 36 (Notice) of this Agreement) relating
thereto from the Relevant Purchaser setting out reasonable details of the
Environmental Trigger Event in respect of which the claim is made, including
details of the Contamination and an estimate of the amount of the claim in each
case to the extent reasonably practicable or then known (“Notice”).

 

3.                                     CAP

 

3.1                            Without prejudice to paragraph 1
of Schedule 5, in no event shall the aggregate liability of each member
of the Relevant Seller and each other member of the Relevant Seller’s Group
under this Schedule in relation to Contamination exceed €275,000,000.

 

4.                                     THRESHOLD
AND PERCENTAGE SHARE

 

4.1                            The Relevant Purchasers shall not be
entitled to bring an Environmental Claim unless and until:

 

(A)                              the aggregate of the Environmental
Losses incurred by the Relevant Purchasers under this Schedule 15 (but
for this paragraph 4) in respect of such an Environmental Claim exceeds
€50,000; and

 

(B)                              the aggregate of the Environmental
Losses incurred by the Relevant Purchasers in respect of all Environmental
Claims (but for this paragraph 4) exceeds €500,000, in which case the
liability of the Relevant Sellers shall be for the full amount and not only for
the excess.

 

4.2                            The liability of the Relevant
Sellers under this Schedule 15 in respect of Environmental Losses which
(after applying sub-paragraph 4.1) is finally determined to be payable
under this Schedule 15 shall be as follows:

 

(A)                              the Relevant Sellers shall be liable
for 80% of Environmental Losses up to and including €20,000,000;

 

(B)                              the Relevant Sellers shall be liable
for 90% of Environmental Losses in excess of €20,000,000 and up to and
including €50,000,000; and

 

(C)                              the Relevant Sellers shall be liable
for 100% of Environmental Losses in excess of €50,000,000.

 

4.3                            For the avoidance of doubt, the
apportionment of liability set out in paragraph 4.2 above shall apply to
the aggregate of all Environmental Losses subject to an Environmental Claim
under this Schedule 15 and shall not be reapplied in respect of each new
Environmental Claim.

 

5.                                     TIME
LIMIT

 

5.1                            The indemnity contained in paragraph
2 above will expire on the fifth anniversary of Completion (the “Expiry Date”) and no Environmental Claim may be brought
after the Expiry Date unless Notice is received by the Relevant Seller prior to
the Expiry Date.

 

181

 

6.                                     GENERAL
LIMITATIONS ON LIABILITY

 

6.1                             The Relevant Seller shall not be
liable in relation to any Environmental Claim to the extent that the
Environmental Loss in respect of which the Environmental Claim is made, or any
increase in such Environmental Loss, results from or would not have occurred
but for:

 

(i)                                    any act, omission or transaction of
the Relevant Purchasers or any member of the Relevant Purchaser’s Group after
Completion or by their respective directors, officers, employees after
Completion in each case which is unreasonable or negligent;

 

(ii)                                 the enactment of new laws in
relation to Environmental Matters or changes to Indemnified Environmental Laws
which come into force after the Completion Date;

 

(iii)                              the disclosure of information (or
the authorisation of such disclosure) by the Relevant Purchaser or any member of
the Relevant Purchaser’s Group or their respective officers, directors,
employees, partners, agents, contractors sub-contractors or consultants
concerning Contamination to any Environmental Authority or any third parties,
except where:

 

(a)                                the Relevant Sellers have given
their prior written consent provided that such consent shall not be withheld in
circumstances where a reasonable operator acting in the ordinary course of
business as if it did not have the benefit of this indemnity and seeking to minimise
its liabilities in relation to Contamination would disclose such information
(or authorise such disclosure) as a reasonable means to mitigate any
Environmental Loss or to limit or to avoid significant harm or a significant
risk of significant harm to the Environment, where in advance of such
disclosure there is reasonable objective evidence that a matter exists or is
likely to exist which would satisfy one of the Environmental Trigger Events;

 

(b)                                it is required by law or under or
for the purpose of obtaining any Environmental Permit or for the purpose of any
judicial or regulatory proceedings;

 

(c)                                it is requested in writing by any
Environmental Authority under Indemnified Environmental Laws (without prompting
or solicitation on the part of the Relevant Purchasers); or

 

(d)                                it is an emergency, that is a state
of affairs where immediate and very grave harm to the Environment occurs or is
imminent;

 

(iv)                               the
carrying out of Investigative Works by the Relevant Purchaser or any member of
the Relevant Purchaser’s Group or their respective officers, directors,
employees, partners, agents, contractors sub-contractors or consultants, except
where:

 

182

 

(a)                                the Relevant Sellers have given
their prior written consent provided that such consent shall not be withheld in
circumstances where a reasonable operator acting in the ordinary course of
business as if it did not have the benefit of this indemnity and seeking to
minimise its liabilities in relation to Contamination would carry out such
Investigative Works as a reasonable means to mitigate any Environmental Loss or
to limit or avoid significant harm or a significant risk of significant harm to
the Environment, where in advance of such Investigative Works there is reasonable
objective evidence that a matter exists or is likely to exist which would
satisfy one of the Environmental Trigger Events;

 

(b)                                it is required by law or under or
for the purpose of obtaining any Environmental Permit or for the purpose of any
judicial or regulatory proceedings;

 

(c)                                it is requested in writing by any
Environmental Authority under Indemnified Environmental Laws (without prompting
or solicitation on the part of the Relevant Purchasers);

 

(d)                                it is required in connection with
any Remedial Action; or

 

(e)                                it is an emergency, that is a state
of affairs where immediate and very grave harm to the Environment occurs or is
imminent;

 

(v)                                  any actual or proposed change in use
or development to an environmentally more sensitive use, or any actual or
proposed demolition or closure of all or a significant proportion of any
Indemnified Property after Completion; and

 

(vi)                               the cost of repair or replacement or
upgrade of any plant and or equipment or other structures where such works
would have been reasonably required to be carried out in the ordinary course of
business irrespective of the Contamination giving rise to the Environmental
Claim; and

 

(vii)                            the Remedial Action exceeds the
minimum that would be expressly required in writing by the Environmental
Authority under Indemnified Environmental Laws were it to be aware of such
Contamination, and assuming all reasonable efforts had been made as provided
for in paragraph 7 of this Schedule 15.

 

7.                                     CONDUCT
OF CLAIMS

 

7.1                             With effect from Completion, the
Relevant Purchasers shall have control and conduct of any Environmental
Proceeding and/or Remedial Action subject to paragraphs 7.2 and 7.3
below.

 

7.2                             Subject to paragraph 7.3
below, the Relevant Sellers have the right to take conduct and control of any Environmental
Proceeding which forms the subject of an Environmental Claim, including the
appointment of legal and other professional advisers and the making of any
settlement or compromise of the Environmental Proceeding, provided written
notice is given to the Relevant

 

183

 

Purchasers, in which case the Relevant Purchasers shall provide the
Relevant Sellers with any such assistance and access to information and to
facilities or the Indemnified Properties as the Relevant Sellers may reasonably
require in relation to such Environmental Proceeding.

 

7.3                             In relation to any Environmental
Proceeding which forms the subject of an Environmental Claim, the Relevant
Purchasers (in the event that paragraph 7.1 applies) or the Relevant
Sellers (in the event that paragraph 7.2 applies) as appropriate
(referred to in this paragraph as the “Conduct Party”)
shall ensure that (subject to appropriate arrangements to maintain
confidentiality and privilege):

 

(A)                              the party who is not the Conduct
Party (the “Other Party”) is provided with
regular updates as to the steps which are being taken in connection with any
Environmental Proceeding and any relevant Remedial Action;

 

(B)                              copies of all material documentation
and correspondence in relation to the Environmental Proceeding and any relevant
Remedial Action shall be provided at the Other Party’s cost including drafts
where they are material;

 

(C)                              reasonable requests of the Other
Party will be complied with at the Other Party’s cost where applicable;

 

(D)                              the Other Party (including their
legal and other professional advisors) is given a reasonable opportunity to
review and comment in advance on any proposed specifications for Remedial
Action and/or work programmes relating to that Environmental Claim, provided
that such comments are received within a period to be specified by the Conduct
Party at that time and the Conduct Party shall have reasonable regard to such
comments;

 

(E)                              the Other Party is allowed to attend
meetings with the Environmental Authority as an observer (to the extent
permitted to do so by the Environmental Authority) as an observer, provided
that such meetings shall not be rearranged if the Other Party is unable to
attend at the proposed time;

 

(F)                               the Other Party is allowed to attend
meetings with consultants and advisors when planning any Remedial Action as an
observer, provided that such meetings shall not be rearranged if the Other
Party is unable to attend at the proposed time;

 

(G)                             without prejudice to paragraph 9
(Mitigation) all reasonable efforts are made in the conduct of the claim to
minimise the amount of Environmental Losses;

 

(H)                              where the Relevant Purchasers are
the Conduct Party, such action is taken as the Relevant Sellers may reasonably
require (having regard to the operations and reputation of the Graphic Paper
Business and any of the other businesses within the Relevant Purchaser’s Group)
to resist, dispute, contest, avoid, appeal, compromise or defend the
Environmental Proceeding and progress the Remedial Action (including making all
available counter-claims and exercising all rights of set-off against third
parties);

 

184

 

(I)                                    material Remedial Action shall not
be carried out without prior written notice to the Relevant Sellers; and

 

(J)                                 where the Relevant Purchasers are
the Conduct Party, no admission of liability, agreement, settlement or
compromise in relation to the Environmental Proceeding is made without the
prior written consent of the Relevant Sellers which consent shall not be
unreasonably withheld.

 

8.                                     ONLY
RIGHT TO CLAIM

 

8.1                             This Schedule 15 contains the
Relevant Purchasers’ only right to claim against the Relevant Sellers under the
Agreement in relation to Contamination at the Indemnified Properties and the
Relevant Purchasers and any other member of the Relevant Purchasers’ Group
irrevocably waives, releases and discharges the Relevant Sellers and each
member of the Relevant Seller’s Group from any claims or causes of action,
known or unknown, whether based on statute, regulation or common law in
relation to Contamination except for claims under the Warranties set out in Schedule
4, paragraph 17 (Environment). 
For the avoidance of doubt, this paragraph 8 shall not be construed as
an admission of liability by any person.

 

8.2                             This indemnity, and for the
avoidance of doubt paragraph 8.1 of this Schedule 15 above, shall
not apply to the Kirkniemi Discharge Compensation.

 

9.                                     MITIGATION

 

9.1                             Subject to the other provisions of
this Schedule, the Relevant Purchasers shall (and shall procure that any member
of the Relevant Purchaser’s Group shall) procure that all reasonable steps are
taken and all reasonable assistance is given to avoid or mitigate any
Environmental Losses which in the absence of mitigation might give rise to an
Environmental Claim against the Relevant Sellers under this Schedule 15.

 

10.                              RELEVANT
PURCHASER TO INDEMNIFY RELEVANT SELLER

 

10.1                      The Relevant Purchasers undertake to
the Relevant Sellers (for themselves and as trustees for each other member of
the Relevant Seller’s Group) that it shall indemnify and keep indemnified the
Relevant Sellers (for themselves and as trustees for each other member of the
Relevant Seller’s Group) against any claims, damages, costs, expenses, losses
or liabilities incurred by the Relevant Sellers and/or any other member of the
Relevant Seller’s Group after the Expiry Date referred to in paragraph 5
above arising as a result of, or in relation to Contamination at the Kirkniemi
Property save to the extent that:

 

(A)                              Notice of any Environmental Claim
has been received by the Relevant Sellers prior to the Expiry Date; or

 

(B)                              the relevant damages, costs,
expenses, losses or liabilities are recoverable from the Relevant Sellers by
the Relevant Purchasers under clause 19.9(ii) of this Agreement.

 

185

 

SCHEDULE 16

 

(ANTI DILUTION PROVISIONS)

 

1.                                    If,
prior to the date that the obligation to deliver Consideration Shares under
this Agreement is settled with M-real, Sappi shall issue or grant to holders of
Sappi Shares a Rights Issue, in each case at a price per Sappi Share which is
less than the Current Market Price on the day immediately preceding the
announcement of the full terms of the Rights Issue, Sappi acknowledges and
agrees that the Consideration Share Price shall be adjusted, with effect from
the date of closing and settlement with Sappi of the last of the proceeds of
the Rights Issue, by multiplying the Consideration Share Price in force
immediately prior to such issue or grant by the following fraction:

 

	
  (A
  x B) + C

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (A
  x D)

  	
   

  

 

where:

 

A                                       means,
the Current Market Price in respect of a Sappi Share on the day immediately
preceding the announcement of the full terms of the Rights Issue,

 

B                                       is
the number of Sappi Shares in issue immediately before the announcement of the
full terms of the Rights Issue (excluding any Sappi Shares held in treasury by
Sappi or any of its subsidiaries);

 

C                                       is
the aggregate proceeds raised by Sappi pursuant to the Rights Issue expressed
in ZAR after the deduction of the fees, expenses and other costs of the Rights
Issue; and

 

D                                       is
the number of Sappi Shares in issue immediately following completion of the
Rights Issue (excluding any Sappi Shares held in treasury by Sappi or any of
its subsidiaries),

 

PROVIDED THAT where the effect of any
adjustment would be that the Consideration Share Price would be less than ZAR
1.00 being the nominal value of a Sappi Share, the Consideration Share Price
shall be ZAR 1.00 and Sappi shall compensate M-real by way of a payment in cash
of an amount per share which is equal to the amount by which the Consideration
Share Price falls short of the nominal value of ZAR 1.00.

 

2.                                    If,
prior to the date the obligation to deliver Consideration Shares under this
Agreement is settled with M-real, Sappi shall have announced or completed a
share capital reorganisation or special dividend or capital distribution or any
other action (other than the declaration or payment of an ordinary dividend) in
respect of the capital of Sappi, the effect of which would be to disadvantage
M-real as compared to the position they would have been in had all of the
Consideration Shares been issued and delivered on the date of this Agreement
(and in each such case no adjustment for the relevant event is made under paragraph
1 Sappi undertakes that it shall at its own expense and acting reasonably,
request an international investment bank selected by it and being reasonably
acceptable to M-Real, acting as expert, to determine as soon as practicable
what adjustment (if any) to the Consideration Share Price is fair and reasonable
to take account thereof and the date on which such adjustment should take
effect and upon such determination such adjustment (if any) shall take effect
in accordance with such determination PROVIDED THAT where the effect of any
adjustment would be that the Consideration Share Price would be less

 

186

 

than ZAR 1.00 being the nominal value of a
Sappi Share, the Consideration Share Price shall be ZAR 1.00 and Sappi shall
compensate M-real by way of a payment in cash of an amount per share which is
equal to the amount by which the Consideration Share Price falls short of the
nominal value of ZAR 1.00.

 

3.                                    An
example of the application of the principles in Part 1 of this Schedule
16 are set out in Part 2 of this Schedule 16.

 

187

 

Part 2

 

Assumptions

 

	
   

  	
   

  	
  ZAR

  	
   

  	
  €

  	
   

  
	
  Share Price

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consideration Share Price (30 day VWAP at announcement)

  	
   

  	
  82.39

  	
   

  	
  7.16

  	
   

  
	
  Current Market Price (5 day VWAP prior to full terms of rights offer
  set)

  	
   

  	
  81.50

  	
   

  	
  6.81

  	
   

  
	
  FX Rates

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current ZAR/EUR FX

  	
   

  	
  11.964

  	
   

  	
   

  	
   

  
	
  30 Day Avg ZAR/EUR FX prior to announcement

  	
   

  	
  11.5044

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dividend Post Closing/ Pre Rights Offering (Per Share)

  	
   

  	
  2.41

  	
   

  	
   

  	
   

  
	
  Rights Issue Discount to Current Market Price

  	
   

  	
  40

  	
  %

  	
   

  	
   

  
	
  Determination of
  Consideration Shares

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consideration Share Proceeds (MM)

  	
   

  	
  575

  	
   

  	
  50

  	
   

  
	
  Consideration Share Price

  	
   

  	
  82.39

  	
   

  	
  7.16

  	
   

  
	
  Consideration Shares (# MM)

  	
   

  	
  6.98

  	
   

  	
  6.98

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If €450 MM Rights Issue is
  Taken Up by Shareholders

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consideration Shares

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders Take Up (MM)

  	
   

  	
  5384

  	
   

  	
  450

  	
   

  
	
  Less: Proceeds Used to Pay Rights Issue Costs (MM)

  	
   

  	
  (215

  	
  )

  	
  (18

  	
  )

  
	
  Rights Issue Proceeds Net of Issue Costs (MM)

  	
   

  	
  5169

  	
   

  	
  432

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current Price

  	
   

  	
  81.50

  	
   

  	
  6.81

  	
   

  
	
  Rights Issue Discount to Current Market Price

  	
   

  	
  40

  	
  %

  	
  40

  	
  %

  
	
  Underwrite Price

  	
   

  	
  48.90

  	
   

  	
  4.09

  	
   

  
	
  Rights Issue Proceeds (MM)

  	
   

  	
  5,384

  	
   

  	
  450

  	
   

  
	
  Shares Issued to Rights Holders / Underwriters (# MM)

  	
   

  	
  110.10

  	
   

  	
  110.10

  	
   

  
	
  Total Shares Outstanding Pre Rights Issue Excl Consideration Shares(#
  MM)

  	
   

  	
  229

  	
   

  	
  229

  	
   

  
	
  TSO Post Rights Issue (# MM)

  	
   

  	
  339.10

  	
   

  	
  339.10

  	
   

  
	
  Theoretical Ex Rights Price

  	
   

  	
  70.28

  	
   

  	
  5.87

  	
   

  
	
  Adjustment Factor

  	
   

  	
  86.23

  	
  %

  	
  86.23

  	
  %

  
	
  Consideration Share Price

  	
   

  	
  82.39

  	
   

  	
  7.16

  	
   

  
	
  Adjusted Consideration Share Price

  	
   

  	
  71.04

  	
   

  	
  6.18

  	
   

  
	
  Consideration Share Proceeds (MM)

  	
   

  	
  575

  	
   

  	
  50

  	
   

  
	
  Consideration Shares Adjusted
  for Rights Issue (# MM)

  	
   

  	
  8.10

  	
   

  	
  8.10

  	
   

  

 

188

 

IN WITNESS whereof the parties have entered into this Agreement the day
and year first before written.

 

 

	
  SIGNED
  by

  	
   

  	
  

  	
   

  	
   /s/ Esa Kaikkonen

  
	
  for and
  on behalf of M-REAL CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  

  	
   

  	
   /s/ Esa Kaikkonen

  
	
  for and on behalf of M-REAL
  DEUTSCHE HOLDING

  	
   

  	
   

  
	
  GMBH

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  

  	
   

  	
   /s/ Esa Kaikkonen

  
	
  for and on behalf of M-REAL
  HALLEIN A.G.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  

  	
   

  	
   /s/ Esa Kaikkonen

  
	
  for and on behalf of M-REAL
  NL HOLDING B.V.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  

  	
   

  	
   /s/ Esa Kaikkonen

  
	
  for and on behalf of M-REAL
  ZANDERS GMBH

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

189

 

	
  SIGNED by

  	
   

  	
  

  	
   

  	
   /s/ R J Boëttger and RD Hope

  
	
  for and on behalf of SAPPI
  LIMITED

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  

  	
   

  	
   /s/ R J Boëttger and RD Hope

  
	
  for and on behalf of SAPPI
  DEUTSCHLAND

  	
   

  	
   

  
	
  HOLDING GMBH

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  

  	
   

  	
   /s/ R J Boëttger and RD Hope

  
	
  for and on behalf of SAPPI
  NETHERLANDS BV

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  

  	
   

  	
   /s/ R J Boëttger and RD Hope

  
	
  for and on behalf of SAPPI
  PAPIER HOLDING

  	
   

  	
   

  
	
  GMBH, AUSTRIA

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  

  	
   

  	
   /s/ R J Boëttger and RD Hope

  
	
  for and on behalf of SAPPI
  FINLAND I OY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

190

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