Document:

Exhibit 10.7.2

Exhibit 10.7.2

[LETTERHEAD OF NORSKE SKOG CANADA LIMITED]

November 2, 2004

Western Forest Products Inc.

3rd Floor, 435 Trunk Road

Duncan, British Columbia

V9L 2P9

	 	 	 
	Attention:

	 	Mr. John Dalton
	 

	 	General Manager, Log Supply

Dear John:

Supply Arrangements for Chips, Sawdust, Hog Fuel and Sawlogs

Thank you for your letter of August 17, 2004.

In order to complete our records we would like to confirm that Western Forest Products Inc. is the
“Lumberco” referred to in the Plan of Compromise and Arrangement for the Doman companies.

We would also like to confirm that Western Forest Products Inc. has accordingly effective July 28,
2004 (as the effective date under the plan) assumed the obligations of Doman Industries Limited
and/or Doman Forest Products Limited arising after that date under the following fibre supply
agreements, all as amended up to and including July 28, 2004 (including the amendments documented
in our letters of December 2, 2002 and February 11, 2003):

	 	1.	 	Chip and Sawlog Supply Agreement dated September 8, 1980 originally between British
Columbia Forest Products Limited and Doman Industries Limited;

	 	2.	 	Sawdust Purchase Agreement originally between Doman Forest Products Limited and Crown
Forest Industries Limited dated January 1, 1987; and

	 	3.	 	Hog Fuel Purchase Agreement originally between Doman Forest Products Limited and
British Columbia Forest Products Limited dated April 14, 1978.

As a result the parties to the above agreements are now Western Forest Products Inc. and
NorskeCanada.

Please confirm that the above is correct by signing and returning the enclosed copy of this letter
to us.

 

 

 

Yours very truly,

Brian Nordman

Vice-President, Fibre Supply

Confirmed and agreed this                      day of November, 2004

	 	 	 	 	 
	WESTERN FOREST PRODUCTS INC.	 	 
	 
	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 

	 	 

 

- 2 -Exhibit 10.7.3

Exhibit 10.7.3

PORTIONS OF THIS EXHIBIT DENOTED WITH THREE ASTERISKS (***) HAVE BEEN

OMITTED AND WILL BE SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT

WITH THE SECURITIES AND EXCHANGE COMMISSION.

[LETTERHEAD OF NORSKE SKOG CANADA LIMITED]

February 1, 2005

Western Forest Products Inc.

3rd Floor, 435 Trunk Road

Duncan, British Columbia

V9L 2P9

	 	 	 
	Attention:

	 	Mr. John Dalton
	 

	 	General Manager, Log Supply

Dear John:

Supply Arrangements for Chips, Sawdust, Hog Fuel and Sawlogs

We are writing to confirm the correction we discussed to the Schedule of Revised Terms attached to
our letter of December 2, 2002 to Doman Forest Products Ltd. regarding changes to the Chip and
Sawlog Supply Agreement dated September 8, 1980 originally between British Columbia Forest Products
Limited and Doman Industries Limited now between NorskeCanada and Western Forest Products Inc.

We confirm that the December 2, 2002 letter is amended by replacing the Schedule of Revised Terms
attached to that letter with the Schedule of Revised Terms attached to this letter. The only
changes are to the fifth bullet point under the heading “Chip and Sawlog Agreement”, the third
bullet point under the heading “Hog Fuel Supply Agreement”, deletion of references to the Chemainus
mill and replacing references to Doman with Western. The Chip and Sawlog Agreement and the Hog
Fuel Supply Agreement as amended by the December 2, 2002 letter and this letter remain in effect.

Please confirm your agreement with the above by signing and returning the enclosed copy of this
letter to us.

Yours very truly,

Brian Nordman

Vice-President, Fibre Supply

Confirmed and agreed this                      day of February, 2005

	 	 	 	 	 
	WESTERN FOREST PRODUCTS INC.	 	 
	 
	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 

	 	 

 

 

 

SCHEDULE OF REVISED TERMS

Chip and Sawlog Agreement

	•	 	Annual commitment of Chips sold to Norske by Western to be varied for the 1st year
following the effective date of the CCAA arrangement (“Effective Date”) to (***) Volumetric
Units in first four months, (***) in the next four months and (***) in the last four months.
The annual commitment for years 2, 3 and 4 after the Effective Date will be (***) Volumetric
Units and for the balance of the term will be (***) Volumetric Units per year

	•	 	Term extended so that the agreement expires 10 years from the Effective Date

	•	 	All Chips produced at Western’s Ladysmith, Cowichan Bay and Western Lumber sawmills
(Saltair and Nanaimo) will be delivered to Norske. Norske will deliver back to Western the
volume of Chips in excess of the annual commitment.

	•	 	Norske will arrange for Western to be offered (***) cubic metres of Sawlogs for every
Volumetric Unit of Chips purchased by Norske under the Agreement up to the annual commitment
volume

	•	 	Norske will also have the first right to purchase all other Chips produced by Western’s
Ladysmith, Cowichan Bay, Duke Point, Vancouver and Western Lumber (Saltair and Nanaimo) mills
that are surplus to the needs of the Woodfibre Pulp Mill

	•	 	Other terms and conditions, including pricing, quality, and delivery arrangements remain in
effect

Sawdust Agreement

	•	 	Term extended so that the agreement expires 10 years from the Effective Date. Cancellation
by either party on 12 months notice shall not apply until after the second last year of the
term.

	•	 	Western will sell all Sawdust (except red cedar) produced at all of its sawmill facilities
in coastal British Columbia, including Ladysmith, Cowichan Bay, Duke Point, Vancouver and
Western Lumber facilities (currently Saltair and Nanaimo)

	•	 	Cedar sawdust will be purchased at Norske’s option for use in the sawdust process

	•	 	Other terms and conditions, including pricing, quality and delivery arrangements remain in
effect

Hog Fuel Supply Agreement

	•	 	Term extended so that the agreement expires 10 years from the Effective Date. Cancellation
by either party on 12 months notice shall not apply until after the second last year of the
term.

	•	 	Hog Fuel produced at the mills referenced under the heading Chip and Sawlog Agreement will
be delivered to Norske’s Crofton mill or other mills as directed by Norske

	•	 	Norske will have the first right to purchase all other Hog Fuel produced by Western’s Duke
Point mill and merchandiser and Vancouver mill that are surplus to the needs of the Woodfibre
Pulp Mill

	•	 	All other terms and conditions of the existing Hog Fuel supply arrangement between Norske
and Western, including pricing, quality and delivery arrangements will apply

Pulplog Supply Arrangement

During the term of the Chip and Sawlog Agreement, Norske will offer Western on a first rights basis
any surplus pulplogs Norske is willing to offer to sell for cash to any potential arms-length buyer

 

- 2 -Exhibit 10.7.4

Exhibit 10.7.4

PORTIONS OF THIS EXHIBIT DENOTED WITH THREE ASTERISKS (***) HAVE BEEN

OMITTED AND WILL BE SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT

WITH THE SECURITIES AND EXCHANGE COMMISSION.

[LETTERHEAD OF NORSKECANADA]

June 27, 2005

Western Forest Products Inc.

3rd Floor, 435 Trunk Road

Duncan, British Columbia

V9L 2P9

	 	 	 
	Attention:

	 	Mr. John Dalton
	 

	 	General Manager, Log Supply

Dear John:

Amended Chip Supply Arrangement

We refer to our letter of February 1, 2005 and Schedule of Revised Terms attached to that letter
regarding changes to the Chip, Sawdust and Hog Fuel Supply Agreements originally between British
Columbia Forest Products Limited and Doman Industries Limited now between NorskeCanada and Western
Forest Products Inc. (“Western”).

NorskeCanada is currently entitled to an annual commitment of Chips produced at Western’s
Ladysmith, Cowichan Bay and Western Lumber sawmills (Saltair and Nanaimo) as set out in the
Schedule of Revised Terms. In addition NorskeCanada has the first right to purchase all other
chips (“Surplus Chips”) produced by Western’s Ladysmith, Cowichan Bay, Duke Point, Vancouver and
Western Lumber (Saltair and Nanaimo) mills that are surplus to the needs of the Woodfibre Pulp Mill
as set out in the fifth bullet point in the Chip and Sawlog Agreement portion of the Schedule of
Revised Terms.

We understand that Western may wish to have the right to those Surplus Chips. In order for that to
occur we agree to the following further amendments to the terms and conditions of the September 8,
1980 Chip and Sawlog Agreement (as amended to the date of this letter):

	 	1.	 	the volume of Chips to be sold to NorskeCanada by Western for the period from July
29, 2005 to December 31, 2005 will be (***) Volumetric Units (i.e. based on an annual
commitment of (***) Volumetric Units for that five month period);

 

 

 

	 	2.	 	should Western give notice to NorskeCanada by December 31, 2005 that Western wishes
to terminate NorskeCanada’s right to any Chips in excess of the annual commitment of (***)
Volumetric Units, then:

	 	(a)	 	as of the date of receipt of Western’s notice, NorskeCanada will cease to
have the first right to purchase the Surplus Chips; and

	 	(b)	 	the annual commitment of Chips to be sold to NorskeCanada by Western will
continue at (***) Volumetric Units per year for the balance of the Term; and

	 	3.	 	otherwise, the annual commitment of Chips to be sold to NorskeCanada for the period
from January 1, 2006 to July 28, 2006 will be (***) Volumetric Units (i.e. based on an
annual commitment of (***) Volumetric Units for that 7 month period), (***) Volumetric
Units per year for each of the next two years after July 28, 2006 and (***) Volumetric
Units per year for the balance of the Term.

Capitalized terms used but not defined in this letter and defined in the Chip and Sawlog Agreement
have the meanings specified in that agreement. The Chip and Sawlog Agreement, as amended to the
date of this letter and as further amended by this letter, remains in full force and effect.

If the above is acceptable, please acknowledge your agreement with the above by signing and
returning the enclosed copy of this letter to us.

Yours very truly,

NORSKE SKOG CANADA LIMITED

as managing partner for and on behalf of

NORSKECANADA

	 	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Brian Nordman	 	 
	 

	 	Vice-President, Fibre Supply
	 	 

Confirmed and agreed this                      day of June, 2005

	 	 	 	 	 
	WESTERN FOREST PRODUCTS INC.	 	 
	 
	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 

	 	 

 

- 2 -

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