Document:

Exhibit

Exhibit 10.18
OULU LAND LEASE AGREEMENT
Between Enso Oy, Kanavaranta 1, 00160 Helsinki, Finland (the “Lessor”), on the one hand, and Forchem Oy, P.O. Box 165, 90101 Oulu, Finland (the “Lessee”), on the other hand, the following Agreement has been made effective this day 30 of August 1996.
WHEREAS, following the acquisition of Forchem Oy by International Paper Finland Oy pursuant to the Purchase and Sale Agreement between International Paper Finland Oy and International Paper Company, on the one hand, and Enso Oy and UPM-Kymmene Corporation, on the other, dated August 30, 1996 (the “Purchase and Sale Agreement”), in order to produce chemicals at its plant located next to Enso Oy’s plant in Oulu, Forchem Oy needs continued use of the premises as specified below in this Agreement.
NOW THEREFORE, the following Agreement has been entered between the parties
		
	1.
	LEASED PROPERTY

		
	1.1
	A parcel of approximately 89.500 m2 of site no. 24 in block 1 in the Nuottasaari district of the City of Oulu indicated on the map attached as Annex 1 hereto, excluding buildings owned by the Lessor or third party, if any, (the “Leased Property”) as shown on the map.

		
	2.
	RENT

		
	2.1
	The annual rent for the Leased Property shall amount to FIM 13,000.

		
	2.2
	The rent is payable annually in advance for each calendar year on the third banking day of January of each year. The default interest is according to Finnish law.

		
	2.3
	The rent is bound to the changes in the cost-of-living index (1951:10=100) to the extent permitted under the Act on the Restriction of the Use of Index Clauses (No. 1222/1994, as amended) or any act that may supersede such Act. The cost-of-living index for December 1996 shall not be considered as the basic index and as adjustment index of December of each year. Adjustment of the rent caused by changes in the index are taken into account as of the annual lease payment for the following calendar year.

		
	3.
	PERIOD OF LEASE

		
	3.1
	The period of lease shall commence on the 31st of August 1996 and expire on the 31st of August 2046.

		
	3.2
	At any time within the twelve months of the expiration of the term hereof, the Lessee on notice may extend the period of lease until 31st of August 2095. If the Lessee exercises its option and continues the lease after 31st of August 2046 the rent shall be adjusted by agreement to correspond to the prevailing local market rent for industrial property at such date and failing agreement, by arbitration as set forth below.

		
	3.3
	Save for clause 3.4 below, the Lessor shall not have the right to terminate this Agreement unless the Lessee is materially in breach of the terms and conditions of this Agreement and such breach leads to significant damage for the Lessor and the Lessee fails to remedy such breach within a reasonable time after receiving a written complaint from the Lessor.

		
	3.4
	In the event the Lessee permanently ceases industrial operations at the Leased Property, the Lessor, commencing eighteen months following the cessation of such operations, may terminate this Agreement by giving six months’ notice to the Lessee, provided that the Lessee has not before the expiration of such six months period initiated or resumes industrial operations at the Leased Property within such period. For such purposes of this Section permanent cessation of the industrial operations refers to permanent closing of the site.

		
	3.5
	The Lessee for its part may terminate this Agreement for any reason on twelve months’ notice to the Lessor.

		
	3.6
	Upon termination of this Agreement, the Lessee shall remove at its own cost the equipment from the Leased Property and shall level and remove the Buildings to their foundations as soon as reasonably practicable after the termination date, but no later than eighteen months thereafter.

		
	4.
	RIGHT TO REGISTER

		
	4.1
	The Lessee shall have the right to apply for a mortgage to secure its leasehold on the Leased Property without the Lessor’s consent.

		
	4.1
	The Lessor shall assist the Lessee and make all reasonable efforts to secure that the leasehold will be registered at Lessee’s expense on the real estate unit where the Leased Property is situated with the same priority as the existing leasehold for the Leased Property.

		
	5.
	RIGHT TO SUBLEASE

		
	5.1
	During the term hereof, the Lessee may sublease the premises or any part thereof to a company owned or controlled by International Paper Company, subject to the terms and conditions herein and provided that the Lessee remains responsible at all times for the performance of the sublessee.

		
	6.
	TRANSFERABILITY

		
	6.1
	The Lessee shall have the right to transfer the Lease Agreement to a third party without the Lessor’s consent.

		
	7.
	USE OF LEASED PROPERTY

		
	7.1
	The Lessee shall use the Leased Property for industrial purposes or for other purposes that directly or indirectly serves industry.

		
	7.2
	The Lessee shall have the right to construct new buildings and equipment as well as to install any interior or exterior signs on the Leased Property.

		
	7.3
	The Lessee is responsible for the legality of its activities conducted on the Leased Premises and for obtaining necessary permits for such activities.

		
	7.4
	The Lessee shall have the right of access to the property owned by the Lessor surrounding the Leased Property and to use the roads, railways, fairways and parking palaces located thereon. Additionally, the Lessee shall have the right to build across such property electric, water and steam lines, the placement of which is to be agreed between parties in order to minimize the disruption caused to the Lessor by such arrangements.

		
	7.5
	The Lessor shall have the right to keep the buildings owned by it on the Leased Property without compensation.

		
	7.6
	The Lessor shall have the right of access to the Leased Property and the right to use the roads, railways and fairways located thereon, Additionally, the Lessor shall have the right to build across the Leased Property electric, water and steam lines, the placement of which is agreed upon between the parties in order to minimize the disruption caused to the Lessee by such arrangements.

		
	7.7
	The owner of the cables and pipes crossing the Leased Property shall be responsible for such equipment unless otherwise has been separately agreed between the parties.

		
	8.
	INDEMNIFICATION

		
	8.1
	The environmental undertakings in the Purchase and Sale Agreement Article 13.1 thereof shall apply mutas mutandis with respect to the obligations of the particular parties to this Agreement and are incorporated herein by reference.

		
	9.
	ENTIRE AGREEMENT

		
	9.1
	This Agreement constitutes the entire Agreement of the parties with respect to the subject matter hereof, supersedes and cancels any prior Leases, oral written, and may not be modified except in writing signed by both parties.

		
	10.
	LANGUAGE

		
	10.1
	This Agreement is executed in Finnish, which is the governing language of this Agreement; however in the event of a dispute, the corresponding English translation agreed by the Parties (annexed to this Agreement as Annex 2) may be referred to by either party for purposes of interpreting the Parties’ intention.

		
	11.
	ARBITRATION; CHOICE OF LAW

		
	11.1
	Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or validity of any such agreement hereunder shall be finally settles by the arbitration in accordance with the Arbitration Rules of the Finnish Central Chamber of Commerce. The arbitration shall be held in Helsinki and the arbitration proceedings shall be conducted in the English language, the arbitrators shall be three in number and appointed by the Board of Arbitration of the Central Chamber of Commerce in Finland.

		
	11.1
	This Agreement is governed by Finnish law.

		
	12.
	NOTICES

		
	12.1
	All notices, request, demands and other communications shall be in writing in English or Finnish and shall be deemed to have duly served or delivered if sent by courier or air mail post in registered prepaid envelope or by telefax to the following, or if no longer applicable, to the parties’ last notified address.

If to the Lessor, Attention: Corporate Lawyer
Enso Oy
94800 Kemi
Telefax +358 698 224 890
If to the Lessee, Attention: Managing Director
Forchem Oy
P.O. Box 165
90101 Oulu
Telefax +358 81 316 3101
With a copy to: General Manager
Arizona Chemical Company
1001 East Business Highway 98
Panama City, Florida 3240 
USA
Telefax +1 904 785 4599
and to: Managing Director 
Arizona Chemical Company
Massvägen 15
S-820 22 Sandarne, Sweden
USA
Telefax +46 270 601 00
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement in Helsinki, Finland as of the day and year first written, in four duplicate original copies.
Lessor:        Lessee:
ENSO OY        FORCHEM OY
/s/ [illegible]        /s/ [illegible]Exhibit

Exhibit 10.19
AMENDMENT FOR LAND LEASE CONTRACT

THIS AMENDMENT AGREEMENT (this “Second Amendment Agreement”) is made on 15 February 2013 (the “Effective Date”)

BY

		
	(1)
	Stora Enso Oyj (formerly Veitsiluoto Oy), a company incorporated in Finland with corporate identification number 1039050-8 (“The Lessor”)

		
	(2)
	Arizona Chemical Oy (formerly Forchem Oy), a company incorporated in Finland with corporate identification number 2095659-5 (“The Lessee”).

Hereinafter together the “Parties” and individually a “Party”.

BACKGROUND AND PURPOSE

The Parties have signed a Land Lease Contract (“Land Lease Contract”) on 21 December 1993 and a First Amendment Agreement on 14 January 1994 on which basis the Lessee has used Chemical Pier number 1 for its loading and off-loading purposes. Since the Chemical Pier number 1 does no longer fulfil the requirements of a safe pier the Lessee has commenced the preparations to take the Chemical Pier number 2 into operation. The Lessee will start operating on the Chemical Pier number 2 according and under the agreement with Port of Oulu. 

The purpose of this Second Amendment Agreement is to enable the building of the chemical pipelines between the Chemical Pier number 2 and the Lessee’s premises.

For avoidance of doubt, the Land Lease Contract of 21 December 1993 and the First Amendment Agreement of 14 January 1994 remain valid and in force. 

AMENDMENTS TO THE LAND LEASE CONTRACT

The Parties hereto agree that, with effect from the Effective Date, the Land Lease Contract shall be amended as follows:

		
	(i)
	The Lessee is entitled to build and maintain chemical pipelines on and outside the leased area owned by the Lessor. The chemical pipelines are defined in the Appendix 1.

The Lessor understands that the chemical pipelines are required and essential for the operations of the Lessee.

		
	(ii)
	The pipelines of the Lessee that will lead to the Chemical Pier number 2 shall be built on the existing pipebridge of the Lessor.

The alignment of the pipeline will be separately agreed by the Parties.

The Parties acknowledge that the building process will take place during the year 2013.

		
	(iii)
	The Lessee is obliged to finance not more than 50 per cent of such costs that the possibly at a later stage installed, additional supporting brackets that might be needed for the Lessor’s pipebridge, may cause. The obligation is effective for such costs that have materialised and been presented to the Lessee within ten (10) years from the Effective Date of this Second Amendment Agreement.

The Lessor agrees to inform the Lessee in writing one (1) year prior to the commencement of such aforementioned work that the Lessee would be financially involved.

The measurements of the supporting brackets and the length of the support, that the Lessee is obliged to finance, may not exceed the space and length that the installation of the now installed new pipes of the Lessee, leading to the Chemical Pier number 2 will require from the pipebridge of the Lessor.

		
	(iv)
	The Lessee will be responsible for the maintenance of its pipeline.

The Lessor allows the Lessee to perform work and maintenance on and to the Lessee’s pipeline.

		
	(v)
	The Lessor is responsible for the maintenance of the pipebridge.  The Lessor Agrees to keep the pipebridge in a good condition and to prevent any malfunctions, breakage by stress or any other failure that could cause malfunction to the Lessee’s chemical pipeline.

The Lessor is responsible for such accidents or leakages that are caused by the breakage, malfunction or failure of the pipebridge.

		
	(vi)
	The Parties understand that the Lessee’s chemical pipelines convey chemicals.

The Parties understand that the pipebridge of the Lessor contains several pipelines. The Parties agree that they will take jointly the necessary steps in order to ensure the safety of the pipelines. These steps include but are not limited to emergency stop and stop buttons, leak pool, fire water pipes and emergency shower.

The parties understand that the pipebridge includes pipelines of three entities; Stora Enso, Arizona Chemical and Eka Synthomer.  Therefore the Parties agree that the costs of the safety measures shall be carried 34 per cent by the Lessee and 66 per cent by the Lessor.  The Lessor is free to request Eka Synthomer to participate to the safety development measures.

		
	(vii)
	In the unlikely event of leakage that is not caused by any failure, breakage or malfunction of the pipebridge, the full responsibility is on the owner of the specific pipeline. However the Parties agree to act favourably to the other Party’s proper fulfilment of environmental responsibilities in an event of leakage.

		
	(viii)
	Both Parties shall maintain such an insurance coverage that is required by law, including, but not limited to:

		
	•
	Commercial General Liability in the amounts not less than a combined single limit of Two Million Euro (2,000,000 euro) for personal injury or death and for damage to or the destruction of property, including coverage for Products and Completed Operations Hazards and Personal and Advertising Injury;

		
	•
	Liability Insurance with a minimum limit of One Million Euro (1,000,000 euro), insuring against loss due to negligence or misconduct of the Lessor, its agents or employees. Such policy shall include a Pollution Liability endorsement covering sudden and accidental occurrence only.

A Certificate of Insurance shall evidence compliance with the above, which, by its terms shall prohibit any cancellation or material change in coverage absent thirty (30) days notice to Arizona Chemical. On or before the expiration date of the insurance coverage, the Lessor shall furnish like evidence of continuing or replacement coverage. The Lessor is entitled to use only insurance companies of good reputation and with good financial standing.

		
	(ix)
	The Lessor agrees not to obstruct but to reasonably assist without any cost, the Lessee in dismantling of the Lessee’s pipes in the Chemical Pier number 1.

The Chemical Pier number 1 will be dismantled during year 2014.

		
	(x)
	Shall the Lessor be incorporated during the contractual period, the Contract will pass to the founded company as it is.

The Lessee is entitled to transfer the Contract as a whole, including the rights and responsibilities the Contract creates, to a third party in the events of acquisition, outsourcing and in any other whole or partial asset or business transfer.

		
	(xi)
	The Contract is valid until further notice. The period of notice is twelve (12) months.

The Lessor’s right to give notice has been restricted. The Lessor is not allowed to give notice before the end of the year 2044.

For avoidance of doubt, the preferential right of the Lessee to lease the land again with same terms with the necessary changes having been made by informing the Lessor in writing before the end of the year 2043 will not be amended.

ALTERATIONS 

Any alterations to this Second Amendment Agreement shall be agreed between the Parties and made in writing.

DATE, PLACE AND SIGNATURES

The amendment has been made in two identical copies; one for each Party.

Oulu 15 February 2013 

/s/ Jari Karkkainen        /s/ D. Schofield    
Stora Enso Oyj, Oulu Mill    Arizona Chemical Oy
Jari Karkkainen,
Mill Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00254-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00254-of-00352.parquet"}]]