Document:

EX-10.7

 Exhibit 10.7 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT
TREATS AS PRIVATE OR CONFIDENTIAL. THE REDACTED TERMS HAVE BEEN MARKED WITH THREE ASTERISKS [***] 
 FORM OF SUPPLY AGREEMENT 

This Supply Agreement (“Agreement”) is made as of September 1, 2021 by and between Sylvamo North America, LLC, a Delaware Company, with
corporate offices located in Memphis TN (“Buyer”) and International Paper Company, a New York corporation with corporate offices located at 6400 Poplar Avenue, Memphis, TN 38197 (“Seller”). 

WHEREAS, prior to the date hereof Seller, through its North American Container business unit, manufactured and sold corrugated packaging products
(“Products”) to Seller’s North American Papers business unit (the “Papers Business”); and 
 WHEREAS, Seller is spinning off the
Papers Business into a stand-alone, publicly traded company operated under Buyer’s name and marks by Buyer (the “Transaction”); and 

WHEREAS, Buyer will purchase and Seller will to continue to supply Products that were supplied to the Papers Business prior to the close of the Transaction,
as further described herein. 
 NOW, THEREFORE, the parties hereto agree as follows: 

 

					
	 CONTRACT ELEMENT
	  	 SPECIFICS

	1.	  	Term of Contract	  	Three (3) Years (“Initial Term”). After the Initial Term, the Agreement shall automatically renew for a successive one (1) year term (a “Renewal Term”) unless either party gives written notice of
termination to the other party at least ninety (90) days prior to the expiration of the Initial Term or Renewal Term (the Initial Term and Renewal Term referred to herein as the “Term”).
			
	2.	  	Start Date and End Date	  	September1, 2021 through August 31, 2024
			
	3.	  	Purchase Commitment	  	During the Term of this Agreement, Buyer agrees to purchase 100% of its requirements for the Products identified in the attached Exhibit A from International Paper, including any replacements, modifications or revisions of said
Products (“Replacement Products”). Provided, however, in the event International Paper is unable to manufacture the Replacement Product(s) to meet Buyer’s requirements, Buyer shall be free to purchase said Replacement Product(s) from
an alternate supplier.
			
	4.	  	Prices	  	Initial prices are listed in Exhibit A. Prices may be changed as described below in Section 5.
			
	5.	  	Price changes based on changes in price/ton of linerboard	  	The prices of Products shall increase or decrease by [***]% for every $10/ton movement in the midpoint of the East Coast, open market price for 42# unbleached kraft linerboard as reported in the “Price Watch” section of
Pulp & Paper Week (“PPW”). The benchmark price for calculating a change in the price of linerboard shall be $[***]/ton for the initial adjustment and thereafter the baseline will be the midpoint of the East Coast open market price
as of the immediately prior price adjustment under this Agreement. Price change is made quarterly (Jan 1, April 1, July 1 and Oct 1) based on PPW price publication for the 2nd month for
the prior quarter (i.e., Nov for Jan 1, Feb for April 1, May for July 1, August for October 1). Price changes will be implemented with shipments. $20 per ton min trigger (cumulative)
			
	6.	  	Payment Terms	  	Net 30 days from date of invoice
			
	7.	  	Minimum order	  	Full or mixed full truckload, small quantity adders for any order less than 6,000 pieces
			
	8.	  	Freight	  	FOB Buyer location. All pricing includes freight with the exception of shipment to South Coast Paper. For South Coast Paper, freight is added as a separate line and billed to Buyer.

					
	 CONTRACT ELEMENT
	  	 SPECIFICS

	9.	  	Lead Time for
Orders	  	Ten (10) working days existing items, Fifteen (15) working days for new items. Changes will be communicated to the customer to better understand if expectations have changed.
			
	10.	  	Drop Trailers / Warehousing	  	All items are quoted make and ship. Warehousing is not included in pricing. For locations that require drop trailers (i.e., Sumter), pricing includes [***] drop trailers. Any additional trailer need will be charged at monthly fee of
$[***].
			
	11.	  	Cost Savings	  	Seller will work with Buyer to identify cost savings on an annual basis. The annual targeted cost savings shall be [***] percent ([***]%); however, the parties acknowledge that the foregoing is not intended to be a guarantee of cost
savings.
			
	12.	  	Commercialization Support	  	Seller will support Buyer with efforts around corrugated packaging opportunities with end-use customers. Our businesses will also schedule top to top meetings as appropriate, to discuss
strategies on key customers / support.
			
	13.	  	Pre-press and Printing Plates	  	Buyer pays for new and changed items, Seller pays for repairs and replacements. Print plates shall be procured only from Seller approved tooling manufacturers
			
	14.	  	Cutting Dies	  	Buyer pays for new and changed items, Seller pays for repairs and replacements
			
	15.	  	Termination for Cause and/or Performance	  	This Agreement may be terminated as follows: (i) by either party, upon written notice to the other party in the event that the other breaches any of its obligations under this Agreement in any material respect and such breach
continues for a period of 30 days after the non-breaching party has given the breaching party written notice of such breach; or (ii) by either party, in the event that the other files a petition in
bankruptcy or makes an assignment for the benefit of creditors or a third party files a petition in bankruptcy against the other, which petition is not dismissed within 30 days after filing. The parties acknowledge that failure of International
Paper to fulfill orders pursuant to Customer’s requirements, as identified in Section 3, in accordance with the agreed upon quality and service standards, shall constitute a breach of this Agreement that is subject to cure or termination
in accordance with this provision.

 The parties also agree that the provisions contained in any Schedules or Addenda attached hereto shall apply
to the purchase and sale of Products under this Agreement. In addition, the Standard Terms and Conditions of Sale of Packaging Products attached hereto are incorporated into this Agreement and shall apply to the purchase and sale of Products under
this Agreement, provided that any of the foregoing provisions and the provisions in any Schedules or Addenda shall prevail over any conflicting provisions in the Standard Terms and Conditions. 

The parties hereby consent to this Agreement as evidenced by the signatures of their authorized representatives on the date or dates indicated
below. 
  

	
	INTERNATIONAL PAPER COMPANY
	
	By:___________________________
	          (Signature)
	
	______________________________
	(Name -- typed or printed)
	
	______________________________
	(Title)
	
	______________________________
	(Date)

 EXHIBIT A 

PRICE LIST SCHEDULE 

[***]EX-10.8

 Exhibit 10.8 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT
TREATS AS PRIVATE OR CONFIDENTIAL. THE REDACTED TERMS HAVE BEEN MARKED WITH THREE ASTERISKS [***] 
 GLOBAL SOURCING AGREEMENT- IP
EMEA 
 Between 
 Papeteries d’Espaly. a private
limited liability company governed by the laws of France, with a share capital of 2 947 836,63 EUR, with its registered office at Espaly - 43000 Le Puy and registered under number 585 950 298 RCS Le Puy en Velay hereinafter referred to as
“Supplier”, 
 Represented by: 
 And 

IP Belgian Services Company SRL, a limited liability company existing under the laws of Belgium, with registered office at Chaussée de la Hulpe 166, B-1170 Brussels (Belgium), and registered in the Register of Legal Persons under the number RPM 0864.502.107, acting in the name and for the account of its affiliates as listed in Annex 1 “IP Facilities”
hereinafter referred to as “International Paper” or 
 “IP”. 

Supplier and IP are collectively referred to as the “Parties” and individually as a “Party”. 

Whereas Supplier produces/distributes Boxes, hereinafter called the “Product(s)” and shall provide Services as defined by this contract, and
International Paper is willing to buy said Products for its affiliate, the parties agree as follows. 
 1. SCOPE OF AGREEMENT 

Supplier commits to sell and supply the Products under the terms and conditions of this Agreement. 

This Agreement and the terms and conditions contained herein are applicable to all current stock, non-stock, and
future new products within Supplier’s product lines that shall mutually be agreed to be appropriate for International Paper’s applications. 
 IP
does not commit to supply Products exclusively from Supplier. Any volume or quantity is given as a best estimate or potential. IP does not guarantee the purchase of any specific volumes or quantities to Supplier. 

2. TERM OF THE AGREEMENT / TERMINATION 

The term of this Agreement is 3 years, beginning on May 1st, 2020 and ending on April 30th, 2022. 

This Agreement may be extended for an additional period with the mutual agreement of both parties. 

3. QUALITY 
 Supplier will supply the
Products with the quality standards and service levels as defined in the specifications as agreed by both Parties. Both Parties will review on regular basis, at least quarterly, the past quality and service performance and will define corrective
measures to improve quality and services levels. 
 Supplier is encouraged to propose a product of an alternate specification for any application where the
supplier identifies an opportunity for reduces cost and/or greater value. Supplier basis for proposing and alternative specification must be clearly stated. 

Supply of an alternate Product is subject to IP’s prior approval, and if needed Trial procedures as described in Annex 4 “Product
Specification” will be needed. 

  
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 4. PRICES / TITLE AND RISK OF LOSS / PRICE PROTECTION / PAYMENT TERMS 

All prices are in EUROS and will be adjusted quarterly based on the Price Revision Formula attached in Annex 2. 

Any price surcharge that is not clearly defined as such in this Agreement is supposed to be included in prices attached in Annex 2. 

All prices are DAP IP Saillat (Incoterms 2010), VAT excluded. Supplier shall provide transportation for all products purchased by IP via either
Supplier’s vehicles, Distributor’s vehicles, or common carrier. 
 IP shall, at all times during the term of this Agreement, monitor third
parties’ prices for the same or similar Products and have the ability to buy from that third party supplier if Supplier does not match third party’s lower prices for the same or similar products and specifications. 

The Payment Terms for all orders from IP being placed with Supplier using traditional purchase orders, blanket order releases and EDI purchase orders is 60
[sixty] days from Invoice date and after the Products invoiced have been delivered to the appropriate affiliate. 
 5. DELIVERIES TIMES /
INVENTORIES 
 Time is of the essence, Supplier shall always respect previously agreed delivery times. 

After receiving and accepting the IP’s order by Supplier otherwise Supplier is obliged to liquidated damages of 2% of value of claimed delivery per day
for each delivery that is delivered late will apply, up to a maximum of 10% of the value of claimed delivery. 
 This will apply also to orders that do not
correspond to a full truck load. 
 6. PURCHASE ORDERS / SPECIFICATIONS 

IP is allowed to enter purchase orders based on following Minimum Order Quantity 

Minimum order quantities are defined by each items. MOQ are provided in Annex 2.1 – “PRICE LIST” 

7. TRIALS/MEET COMPETITION 
 IP reserves
the right to run trials to investigate new and more cost-efficient technology or that is more appropriate for IP’s application at any time without prior approval or notification to Supplier. Supplier will be given the opportunity by IP to meet
new performance requirements and/or costs established from these trials. 
 IP reserves the right to consult market competitions on yearly basis to assess
the competitiveness of the pricing proposed by the Supplier. Supplier will be given the opportunity by IP to meet new requirements and/or costs established from these consultation. 

8. SUBCONTRACTORS 
 Supplier will act as
general contractor. Supplier is not allowed to use any subcontractors without IP’s prior written approval. In the event of breaching this clause the Supplier will pay to IP liquidated damages of 100,000 EUR, without prejudice to IP’s
claims for damages exceeding that amount. 
 9. GOVERNING LAW 

The validity and interpretation of this Agreement and of the rights and obligations of the parties hereto shall be governed and construed according to the Law
of Belgium. 

  
 Page 2 

									
	Signed in two counterparts.	 		 	
			
	PAPETERIES D’ESPALY	 		 	IP Belgian Services Company SRL,
			
	 /s/ Olivier Gazengel
	 		 	 /s/ Danny Pieters

	By:	 	Olivier Gazengel	 		 	By:	 	Danny Pieters
	Title:	 	Directeur Général	 		 	Title:	 	Proxyholder
Director Global Sourcing EMEA
	Date:	 		 		 	Date:	 	

 List of Annexes: 
 Annex 1: List
of IP Facilities 
 Annex 2: Prices and Price Revision Formula 
  

 

  
 Page 3 

 ANNEX 1 – LIST OF FACILITIES 

[***] 

  
 Page 4 

 ANNEX 2 - PRICE LIST & PRICE REVISION MECHANISM 

[***] 

  
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