Document:

Exhibit 10.1

 

AMENDMENT
TO CONTRACT

FOR SALE
(AND DELIVERY) OF FOREST PRODUCTS

 

This AMENDMENT TO CONTRACT FOR
SALE (AND DELIVERY) OF FOREST PRODUCTS is made and entered into as
of the 23rd day of May, 2006, by and between INTERNATIONAL
PAPER COMPANY, a New York corporation (“IP”) and BLUE RIDGE PAPER PRODUCTS, INC., a Delaware corporation
(“Blue Ridge Paper”).

 

WITNESSETH

 

WHEREAS, IP (as
successor in interest to Champion International Corporation) and Blue Ridge
Paper are parties to that certain Wood Chip Supply Agreement, dated May 14,
1999, as amended (the “Chip Agreement”), whereby IP agreed to sell and deliver
and Blue Ridge Paper agreed to purchase and receive at its Canton, North
Carolina Paper Mill (“Paper Mill”) certain hardwood chips and price chips (“Primary
Chips”) pursuant to terms and conditions thereof; and

 

WHEREAS, IP and Blue
Ridge Paper entered into that certain Contract for Sale (and Delivery) of
Forest Products, dated February 5, 2004, as amended (the “Residual Chip
Agreement,” and together with the Chip Agreement sometimes collectively
referred to herein as the “Agreements”), whereby IP agreed to sell and deliver
and Blue Ridge Paper agreed to purchase and receive at its Paper Mill certain
residual hardwood chips (“Residual Chips,” and together with the Primary Chips
sometimes collectively referred to herein as the “Chips”) pursuant to the terms
and conditions thereof; and

 

WHEREAS, the parties
hereto wish to further extend the term of the Agreements and to amend and
modify the Residual Chip Agreement as hereinafter set out.

 

NOW, THEREFORE, for
and in consideration of the premises and other good and valuable consideration,
the receipt and adequacy of which are herby acknowledged, the parties hereto
agree that the Residual Chip Agreement shall be amended and modified as
follows:

 

1.                                      Term.
The term of the Agreements shall continue indefinitely until terminated by
a party hereto upon thirty (30) days’ prior written notice to the other party.

 

2.                                      Residual
Chips. IP shall make a good faith effort to purchase an incremental
21,000 tons of Residual Chips yearly to be delivered to the Royal Blue Chip
Mill for shipment to Blue Ridge Paper’s Paper Mill. Said amount shall be over
and above the volume commitment of 265,000 tons of Primary Chips pursuant to
the Chip Agreement. Further, IP hereby grants to Blue Ridge Paper a right of
first refusal with respect to the first 21,000 tons of Residual Chips it
purchases and receives at its Royal Blue Chip Mill. IP will deliver said 21,000
tons of Residual Chips in increments of 400 – 500 tons (4 - 5 rail cars) per
week in each given year.

 

 

3.                                      Storage,
Shipping and Title / Risk of Loss. IP shall no longer be required to
store the Residual Chips separately from the Primary Chips on IP’s pads at
its Royal Blue Chip Mill. Further, both the Residual Chips and the Primary
Chips may be loaded onto rail cars and shipped together to the Paper Mill
and, except as modified by the following sentences of this section, the
provisions of the Chip Agreement regarding the shipment of Chips shall remain
in full force and effect and govern said shipments.

 

4.                                      Pricing.
Pricing of all Chips delivered hereunder will be based on the blended
volume of Primary Chips and Residual Chips. The blended price will be
calculated by using a weighted average of the previous month’s average Residual
Chips’ delivered costs, including the current 1.4% calculation for
pre-screening loss, and the previous month’s average Primary Chips’ costs,
including their processing, overhead and procurement costs. Any adjustments for
price correction shall be made the last week of the month retroactively for the
first day of that month. A breakdown of the volume ratio and prices of Primary
Chips and Residual Chips will be made to Blue Ridge Paper upon requests.

 

5.                                      Additional
Provisions. The Agreements shall remain in full force and effect except
to the extent hereby modified and they are hereby ratified and confirmed by the
parties hereto.

 

This Amendment shall be binding on the parties hereto and their
respective successors and assigns.

 

Executed as of the date first hereinabove set out.

 

	
   

  	
  INTERNATIONAL PAPER COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jim Fitzgerald

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Region Manager

  	
   

  
	
   

  	
   

  
	
   

  	
  BLUE RIDGE PAPER PRODUCTS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert M. Shanahan

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  VP Manufacturing

  	
   

  

 

 

 

	
  Jim Fitzgerald

  	
  1515 Bourne Street

  
	
  Region Manager

  	
  Georgetown, SC

  
	
   

  	
  29440

  
	
   

  	
  PHONE 843 520 5600

  
	
   

  	
  FAX 843 527 1583

  

 

 

May 23, 2006

 

Dear Jerry:

 

Based on several discussions, the following is a summary of issues that
International Paper and Blue Ridge Paper discussed and agreed to implement.
These operational processes will become effective with our signatures
acknowledging this agreement.

 

AGREEMENT OF PROVISIONS FROM FEBRUARY, 2006

 

1.               IP agrees to
maintain a minimum on-hand inventory of chip tons as follows:

 

(a)     At the Royal Blue Chip Mill,
IP will maintain an inventory of Hardwood Chip tons of not less than the
quantity specified below for each corresponding month:

 

	
  Month

  	
   

  	
  Hardwood Chip Tons

  	
   

  
	
  January

  	
   

  	
  18,000

  	
   

  
	
  February

  	
   

  	
  16,000

  	
   

  
	
  March

  	
   

  	
  14,000

  	
   

  
	
  April

  	
   

  	
  12,000

  	
   

  
	
  May

  	
   

  	
  12,000

  	
   

  
	
  June

  	
   

  	
  10,000

  	
   

  
	
  July

  	
   

  	
  10,000

  	
   

  
	
  August

  	
   

  	
  12,000

  	
   

  
	
  September

  	
   

  	
  14,000

  	
   

  
	
  October

  	
   

  	
  16,000

  	
   

  
	
  November

  	
   

  	
  19,000

  	
   

  
	
  December

  	
   

  	
  20,000

  	
   

  

 

(b)    At the Silverstreet Chip Mill,
IP will maintain an inventory of Pine Chip tons of not less than the quantity
specified below for the corresponding month:

 

	
  Month

  	
   

  	
  Hardwood Chip Tons

  	
   

  
	
  January

  	
   

  	
  24,000

  	
   

  
	
  February

  	
   

  	
  23,000

  	
   

  
	
  March

  	
   

  	
  19,000

  	
   

  
	
  April

  	
   

  	
  15,000

  	
   

  
	
  May

  	
   

  	
  12,000

  	
   

  
	
  June

  	
   

  	
  12,000

  	
   

  

 

 

	
  July

  	
   

  	
  12,000

  	
   

  
	
  August

  	
   

  	
  12,000

  	
   

  
	
  September

  	
   

  	
  13,000

  	
   

  
	
  October

  	
   

  	
  18,000

  	
   

  
	
  November

  	
   

  	
  24,000

  	
   

  
	
  December

  	
   

  	
  24,000

  	
   

  

 

IP and Blue Ridge Paper agree that the inventory may be stored in
both roundwood and chip form. Additionally, both parties agree that deviations from this
schedule may be necessary from time to time and are acceptable if
agreed to by both parties.

 

2.               IP will make every
reasonable effort to offer substitute chips from other IP chipping locations
for any shortfall of normal orders at Silverstreet or Royal Blue chip mills.

 

3.               IP will modify
month end invoices to eliminate “partial week billings” for in-transit loads
after the January 2006 invoice.

 

4.               Blue Ridge Paper
further agrees to comply with the payment terms of the Wood Chip Supply
Agreement dated May 14, 1999 and shall make payment to IP within seven
days of the date of invoice. IP shall invoice Blue Ridge Paper weekly.

 

 

	
   

  	
  With Regards

  
	
   

  	
   

  
	
   

  	
  /s/ Jim Fitzgerald

  	
   

  
	
   

  	
  Jim Fitzgerald

  
	
   

  	
  Region Manager

  

 

 

	
  AGREED TO AND ACCEPTED

  
	
  BY:

  
	
   

  
	
  BLUE RIDGE PAPER PRODUCTS, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Robert M. Shanahan

  	
   

  
	
   

  	
   

  
	
  Its:

  	
  VP Manufacturing

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  7/12/06Exhibit
10.1

CERTAIN PORTIONS OF THIS EXHIBIT
HAVE BEEN AFFORDED CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT OF 1934.  THE OMITTED
MATERIALS HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

AMENDMENT NO. 2 TO

DEVELOPMENT, SUPPLY AND SUBCONTRACTING AGREEMENT

This Amendment No. 2 to the Development, Supply and
Subcontracting Agreement, dated as of May 30, 2001, as amended pursuant to
Amendment No. 1 dated January 4, 2006 (the “Agreement”), by and between American
Bank Note Holographics, Inc., a Delaware corporation (“ABNH”), with its
principal place of business at 2 Applegate Drive, Robbinsville, NJ 08691, and
CFC International, Inc., a Delaware corporation (“CFC”), with its principal
place of business at 500 State Street, Chicago Heights, IL 60411, is entered
into as of July 26, 2006.  Capitalized
terms used herein and not otherwise defined shall have the meaning ascribed to
such terms in the Agreement.

WHEREAS, ABNH and CFC are parties to the Agreement,
under which ABNH currently purchases from CFC, and CFC sells to ABNH, the
HoloMag Foils as described in Amended Schedule A of the Agreement;

WHEREAS, ABNH has
invented a solution (the “Invention”) to address electrostatic discharge (“ESD”)
involving discontinuities in a conductor such as the metal layer of HoloMag,
and CFC and ABNH have collaborated to incorporate the Invention into the
manufacturing process for HoloMag,  and
all HoloMag products incorporating the Invention shall be referred to by the
parties as Generation 2 HoloMag or Generation 2 Product;

WHEREAS, in
accordance with Section 20 of the Agreement, ABNH has notified CFC of its
requirement for changes in certain processes relating to the production of its
existing HoloMag product in order to produce the Generation 2 Product; and ABNH
and CFC have used their best efforts to cooperate on incorporating this change
into the current CFC structure, chemistries and processes;

WHEREAS, the
parties are entering into this Amendment in order to give effect to the
obligation of CFC to produce the [*] for a Generation 2 Product, and the
obligation of ABNH to purchase such [*], in accordance with the terms of the
Agreement.

 

NOW, THEREFORE, the parties covenant and agree as
follows:

1.0                                 The
parties agree that the Generation 2 Product are HoloMag foils under the
Agreement, and that the obligations of ABNH and CFC under the Agreement with
respect to HoloMag Foils shall apply to the Generation 2 Product, except as
otherwise provided herein.

*       Confidential

 Page 1
 

 

2.0                                 The
Generation 2 Product will incorporate [*]. 
The [*] will be implemented in one of three scenarios, at ABNH’s option:

·                  Scenario  1
— ABNH will [*].  CFC will [*], and ABNH
will [*] as described below.

·                  Scenario 2 —
CFC will [*].  CFC will [*], and ABNH
will [*] as described below.

·                  Scenario 3 —
CFC will [*].

CFC will use its
reasonable commercial efforts to implement Scenario 1, 2 and 3 as promptly as
possible. ABNH will provide certain information to CFC [*] upon CFC’s request
in order to assist CFC in the implementation of Scenarios 1, 2 and 3.  Notwithstanding the foregoing, CFC is
responsible for delivering the finished HoloMag Foils in accordance with the
Amended Schedule A pursuant to purchase orders submitted by ABNH to CFC for any
of the three scenarios listed above.

3.0                                 If
Scenario 1 is implemented, then Section 1 of Amended Schedule A of the
Agreement shall be amended to re-designate paragraphs (f), (g), (h), (i) and
(j) as paragraphs (h), (i), (j), (k) and (l), and shall be further amended by
including the following provision as new paragraph (f):  “(f) CFC will supply ABNH with [*] (either
[*] at ABNH’s choice), and ABNH will [*]. CFC will continue to be responsible
for supplying the finished reels to ABNH in accordance with this Amended
Schedule A.  CFC will supply ABNH with
[*] in accordance with the specifications set forth in Schedule D to this
Agreement.  ABNH will return the
materials to CFC after [*] in accordance with the specifications set forth in
Schedule E to this Agreement.  ABNH will
notify CFC in the event any of the materials CFC supplies do not conform to the
specifications set forth in Schedule D to this Agreement.  CFC will notify ABNH in the event any of the
materials ABNH returns to CFC do not conform to the specifications set forth in
Schedule E to this Agreement.  [*].  Amended Schedule A shall be further amended
by including the following provision as new paragraph (g): “CFC will have to
add an in-coming inspection step to the existing process to examine and test
any incoming materials from ABNH before further [*] steps are performed.”

4.0                                 If
Scenario 1 is implemented, then the Agreement is hereby further amended by
adding the following new Section 22 thereto: 
“As CFC’s sole remedy, ABNH will pay CFC a price of $[*] per tape inch
for any material that CFC supplies to ABNH that conforms to the specifications
set forth in Schedule D of this Agreement, and that (i) ABNH does not return to
CFC after [*], (ii) ABNH returns to CFC and CFC rejects  upon receipt and inspection at CFC before
further processing only if CFC provides evidence satisfactory to ABNH that such
materials do not conform with the specifications set forth in Schedule E of
this Agreement,  or (iii)  ABNH returns to CFC and CFC rejects after
additional

*       Confidential

 Page 2
 

 

processing at CFC only if
CFC provides evidence satisfactory to ABNH that such materials do not conform
with the specifications set forth in Schedule E of this Agreement. Any material
that CFC supplies to ABNH that does not conform to the specifications set forth
in Schedule D of this Agreement shall be quarantined by ABNH, and upon ABNH
providing CFC with evidence satisfactory to CFC that the material does not
comply with the specifications set forth in Schedule D, the material may be
destroyed or returned to CFC, without any payment to CFC. Any material that
ABNH supplies to CFC that CFC believes does not conform to the specifications
set forth in Schedule E of this Agreement shall be quarantined by CFC, at which
time CFC shall notify ABNH of its observations, and ABNH will inspect the
material at CFC and determine its disposition. Notwithstanding the foregoing,
if ABNH and CFC mutually agree after inspection at CFC that greater than [*]%,
or such other percentage as may be determined in accordance with Section 9.0
below, of the surface area of a bulk roll ([*] in length and [*] nominal width)
is determined to not be in conformance with the specifications in Schedule E
then, at ABNH’s sole determination, the roll will either be scrapped at CFC and
ABNH will pay $[*] per tape inch for the roll or the roll will be processed at
CFC and ABNH will pay the price per Amendment No. 2 Schedule B for all good
finished reels and [*]% of that price for all finished reels which were
rejected as a result of ABNH’s processing.” 
Reference procedure #[*] and form #[*] for detailed instructions in
preparation of a discrepant material report and form to be utilized in case of
rejection of materials.

5.0                                 If
Scenario 2 is implemented, then Section 1 of Amended Schedule A of the
Agreement shall be amended to re-designate paragraphs (f), (g), (h), (i) and
(j) as paragraphs (h), (i), (j), (k) and (l), and shall be further amended by
including the following provision as new paragraph (f):  “(f) CFC will [*].  CFC will supply ABNH with [*], and ABNH will
[*]. CFC will continue to be responsible for supplying the finished reels to
ABNH in accordance with this Amended Schedule A.  CFC will supply ABNH with materials in
accordance with the specifications set forth in Schedule F to this Agreement.  ABNH will return the materials to CFC after
[*] in accordance with the specifications set forth in Schedule G to this
Agreement.  ABNH will notify and provide
evidence satisfactory to CFC in the event any of the materials CFC supplies do
not conform to the specifications set forth in Schedule F to this
Agreement.  CFC will notify ABNH in the
event any of the materials ABNH returns to CFC do not conform to the
specifications set forth in Schedule G to this Agreement. [*].”  Amended Schedule A shall be further amended
by including the following provision as new paragraph (g): “CFC will have to
add an in-coming inspection step to the existing process to examine and test
any incoming materials from ABNH before further [*] steps are performed.”

*       Confidential

 Page 3
 

 

6.0                                 If
Scenario 2 is implemented, then the Agreement is hereby further amended by
adding the following new Section 22 thereto: 
“As CFC’s sole remedy, ABNH will pay CFC a price of $[*] per tape inch
for any material that CFC supplies to ABNH that conforms to the specifications
set forth in Schedule F of this Agreement, and that (i) ABNH does not return to
CFC after [*], (ii) ABNH returns to CFC and CFC rejects  upon receipt and inspection at CFC before
further processing only if CFC provides evidence satisfactory to ABNH that such
materials do not conform with the specifications set forth in Schedule G of
this Agreement,  or (iii)  ABNH returns to CFC and CFC rejects after
additional processing at CFC only if CFC provides evidence satisfactory to ABNH
that such materials do not conform with the specifications set forth in
Schedule G of this Agreement. Any material that CFC supplies to ABNH that does
not conform to the specifications set forth in Schedule F of this Agreement
shall be quarantined by ABNH, and upon ABNH providing CFC with evidence
satisfactory to CFC that the material does not comply with the specifications
set forth in Schedule F, the material may be destroyed or returned to CFC,
without any payment to CFC. Any material that ABNH supplies to CFC that CFC
believes does not conform to the specifications set forth in Schedule G of this
Agreement shall be quarantined by CFC, at which time CFC shall notify ABNH of
its observations, and ABNH will inspect the material at CFC and determine its
disposition.”

7.0                                 If
Scenario 3 is implemented, then Section 1 of Amended Schedule A of the
Agreement shall be amended to re-designate paragraphs (f), (g), (h), (i) and
(j) as paragraphs (h), (i), (j), (k) and (l), and shall be further amended by
including the following provision as new paragraph (f):  “(f) CFC will [*] specified by ABNH in
consultation with CFC. Amended Schedule A shall be further amended by including
the following provision as new paragraph (g): 
“CFC will [*].”  Amended Schedule
A shall be further amended by inserting the provisions of Schedule F, Section
3.12 into Schedule A as a new Section 2(e).

8.0                                 (a)
The Agreement is hereby further amended by deleting Amended Schedules B and B1
of the Agreement and replacing them with the attached Amended Schedules B and
B1.

(b) The Agreement is
hereby further amended by adding the attached Schedules D, E, F and G hereto to
the Agreement as new Schedules D, E, F and G.

9.0                                 ABNH
and CFC agree to continue to work closely together and collaborate on improvements
to the production process and the process of capturing relevant production and
quality data which will be used to review the procedures and specifications in
Section 4.0 above and Schedules D, E, F and G attached hereto within three to
six months of the date of this Amendment. With respect to Section 4.0 above,
ABNH and CFC agree to review the data from each [*] during the six-

*       Confidential

 Page 4
 

 

month period beginning
with the date of this Amendment or initial production run whichever is later to
determine the percentage of surface area [*] in Schedule E [*].

10.0                           CFC
acknowledges that ABNH disclosed to CFC its Invention, and a method of
implementing the Invention through [*] as ABNH Proprietary Information, and CFC
and ABNH have collaborated to implement such invention in the manufacturing
process for HoloMag.  ABNH will provide
certain information to CFC regarding [*] upon CFC’s request in order to assist
CFC in the implementation of Scenarios 1, 2 and 3.    CFC shall not use [*] for any applications
that would infringe current enforceable unexpired ABNH patent numbers [*] other than for products for ABNH.  ABNH has filed patent applications on the
Invention.  ABNH hereby grants to CFC a
perpetual, non-exclusive, irrevocable, limited, non-sublicensable, royalty-free
license to ABNH’s intellectual property rights related to the Invention
including any patents that ABNH may be issued on the Invention.  The aforementioned license shall be limited
to only those applications of CFC that are not competitive with any product or
market that ABNH participates in as of July 2006, and such license shall
specifically exclude any applications involving holograms on financial
transaction cards.  CFC hereby grants to
ABNH a perpetual, exclusive, irrevocable, unrestricted, non-sublicensable,
royalty-free license to CFC’s intellectual property rights related to any
improvements CFC makes to the Invention, including any patents that may be
obtained by CFC thereon.  The
aforementioned license to improvements made by CFC shall be limited to only
those applications of ABNH that are not competitive with any product or market
that CFC participates in as of July 2006, but specifically includes all
applications which ABNH participates in as of July 2006.

11.0                           Governing
Law. This Amendment shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to
principles of conflicts of laws.

12.0                           Counterparts.
This Amendment may be executed in counterparts and all counterparts shall
constitute one document, notwithstanding that all the parties may not be
signatories to the same counterpart.

13.0                           Entire
Agreement. Except as expressly provided herein, the Agreement shall remain
unchanged and in full force and effect.

[Signature page follows]

*       Confidential

 Page 5
 

 

IN WITNESS WHEREOF, the undersigned have hereby
executed this Amendment as of the date first set forth above.

	
  

  	
  AMERICAN BANK NOTE HOLOGRAPHICS, INC.

  
	
   

  	
  By:

  	
  /s/ Kenneth Traub

  
	
   

  	
   

  	
  Name: Kenneth Traub

  
	
   

  	
   

  	
  Title:President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CFC INTERNATIONAL, INC.

  
	
   

  	
  By:

  	
  /s/ Dennis Lakomy

  
	
   

  	
   

  	
  Name: Dennis Lakomy

  
	
   

  	
   

  	
  Title: CFO

  

 

 Page 6

 

 

Amendment No. 2 Schedule
B

If Scenario 1 is implemented:

 

	
  1⁄2”

  	
   

  	
  1/3”

  
	
   

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  
	
  HiCo Silver

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  HiCo Tinted

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  LoCo Silver

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  LoCo Tinted

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  

 

If Scenario 2 is implemented:

 

	
  1⁄2”

  	
   

  	
  1/3”

  
	
   

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  
	
  HiCo Silver

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  HiCo Tinted

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  LoCo Silver

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  LoCo Tinted

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  

 

If Scenario 3 is implemented:

 

	
  1⁄2”

  	
   

  	
  1/3”

  
	
   

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  
	
  HiCo Silver

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  HiCo Tinted

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  LoCo Silver

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  LoCo Tinted

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  

 

The above prices apply to all orders.  Minimum order size is [*] reels for 1⁄2 inch or
[*] reels for 1/3 inch.  The above four
different types of magnetic cannot be combined to arrive at the minimum order
size.  Multiple ABNH customers or
different holographic patterns cannot be combined.  Different label copy positions can be
combined to arrive at the minimum.

_______________________

*Confidential

 Page 7
 

 

 

Amendment No. 2 Schedule
B 1

If Scenario 1 is implemented and ABNH [*]:

 

	
  1/2”

  	
   

  	
  1/3”

  
	
   

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  	
   

  	
  Price/TI

  	
   

  	
  Price/Roll

  
	
  HiCo Silver

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  HiCo Tinted

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  LoCo Silver

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  LoCo Tinted

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  

 

ABNH  [*], CFC
[*].  CFC [*].  ABNH may implement the arrangement in this
Amendment No. 2 Schedule B1 at any time for any proportion of its requirements
and will notify CFC accordingly.

The above prices apply to all orders.  The minimum order size is [*] reels for 1⁄2
inch wide or [*] reels for 1/3 inch wide. 
The above four different types of magnetic cannot be combined to arrive
at the minimum order size.  Multiple ABNH
customers or different holographic images cannot be combined.  Different label copy positions can be
combined to arrive at the minimum order size.

_______________________

*Confidential

 

 Page 8

 

 

SCHEDULE
D

(Scenario 1)

[*]

	
  1.

  	
  SCOPE — This specification
  covers the requirements for the following attributes:

  
	
   

  	
   

  
	
   

  	
  1.1

  	
   

  	
  Functional properties.

  
	
   

  	
  1.2

  	
   

  	
  Cosmetic properties.

  
	
   

  	
  1.3

  	
   

  	
  Packaging and labeling.

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  DESCRIPTION — [*]

  
	
   

  	
   

  
	
  3.

  	
  FUNCTIONAL PROPERTIES:

  
	
   

  	
   

  
	
   

  	
  3.1

  	
   

  	
  [*]

  
	
   

  	
  3.2

  	
   

  	
  [*]

  
	
   

  	
  3.3

  	
   

  	
  [*]

  
	
   

  	
  3.4

  	
   

  	
  [*]

  
	
   

  	
  3.5

  	
   

  	
  [*]

  
	
   

  	
  3.6

  	
   

  	
  [*]

  
	
   

  	
  3.7

  	
   

  	
  [*]

  
	
   

  	
  3.8

  	
   

  	
  [*]

  
	
   

  	
  3.9

  	
   

  	
  [*]

  
	
   

  	
  3.10

  	
   

  	
  [*]

  
	
   

  	
  3.11

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  PACKAGING AND LABELING:

  
	
   

  	
   

  
	
   

  	
  4.1

  	
   

  	
  [*]

  
	
   

  	
  4.2

  	
   

  	
  [*]

  
	
   

  	
  4.3

  	
   

  	
  [*]

  
	
   

  	
  4.4

  	
   

  	
  [*]

  
	
   

  	
  4.5

  	
   

  	
  [*]

  
	
   

  	
  4.6

  	
   

  	
  [*]

  
	
   

  	
  4.7

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  WARRANTY:

  
	
   

  	
  CFC will make every reasonable effort to generate
  materials that the [*] conforms to the specifications set forth in this
  Schedule D. CFC agrees to replace at its own expense any such material not in
  conformance with such specifications.

  

 

 

 

 

 

 

 

 

 

*Confidential

 

 1

 

 

SCHEDULE E

(Scenario
1)

SPECIFICATIONS for [*]

 

	
  1.0

  	
   

  	
  Scope

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
   

  	
  The specifications listed herein have been
  established for the purpose of outlining the parameters of acceptance for the
  [*] processed by ABNH and returned to CFC as a component and for further
  conversion into a Generation 2 HoloMagTM.

  
	
   

  	
   

  	
   

  	
   

  
	
  2.0

  	
  Processes

  
	
   

  	
   

  
	
   

  	
  2.1

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
  3.0

  	
  [*]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
   

  	
  [*]

  
	
   

  	
  3.2

  	
   

  	
  [*]

  
	
   

  	
  3.3

  	
   

  	
  [*]

  
	
   

  	
  3.4

  	
   

  	
  [*]

  
	
   

  	
  3.5

  	
   

  	
  [*]

  
	
   

  	
  3.6

  	
   

  	
  [*]

  
	
   

  	
  3.7

  	
   

  	
  [*]

  
	
   

  	
  3.8

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
  4.0

  	
  [*]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
   

  	
  [*]

  
	
   

  	
  4.2

  	
   

  	
  [*]

  
	
   

  	
  4.3

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
  5.0

  	
   

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
   

  	
  [*]

  
	
   

  	
  5.2

  	
   

  	
  [*]

  

 

 

 

 

 

 

 

 

 

 

*Confidential

 1
 

 

 

 

 

	
   

  	
  5.3

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.5

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.6

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.7

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
  6.0

  	
  [*]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.0

  	
   

  	
   

  	
  WARRANTY:

  
	
   

  	
   

  	
  ABNH will make every reasonable effort to generate
  materials that the [*] conforms to the specifications set forth in this
  Schedule E.

  

 

 

 

 

 

 

 

 

 

 

 

 

*Confidential

 

 2

 

 

SCHEDULE F

 

(Scenario 2)

[*]

 

	
  1.

  	
  SCOPE — This specification
  covers the requirements for the following attributes:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
   

  	
  Functional properties.

  
	
   

  	
  1.2

  	
   

  	
  Cosmetic properties.

  
	
   

  	
  1.3

  	
   

  	
  Packaging and labeling.

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  DESCRIPTION — [*]

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  FUNCTIONAL PROPERTIES:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
   

  	
  [*]

  
	
   

  	
  3.2

  	
   

  	
  [*]

  
	
   

  	
  3.3

  	
   

  	
  [*]

  
	
   

  	
  3.4

  	
   

  	
  [*]

  
	
   

  	
  3.5

  	
   

  	
  [*]

  
	
   

  	
  3.6

  	
   

  	
  [*]

  
	
   

  	
  3.7

  	
   

  	
  [*]

  
	
   

  	
  3.8

  	
   

  	
  [*]

  
	
   

  	
  3.9

  	
   

  	
  [*]

  
	
   

  	
  3.10

  	
   

  	
  [*]

  
	
   

  	
  3.11

  	
   

  	
  [*]

  
	
   

  	
  3.12

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  PACKAGING AND LABELING:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
   

  	
  [*]

  
	
   

  	
  4.2

  	
   

  	
  [*]

  
	
   

  	
  4.3

  	
   

  	
  [*]

  
	
   

  	
  4.4

  	
   

  	
  [*]

  
	
   

  	
  4.5

  	
   

  	
  [*]

  
	
   

  	
  4.6

  	
   

  	
  [*]

  
	
   

  	
  4.7

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
   

  	
  WARRANTY:

  
	
   

  	
   

  	
  CFC will make every reasonable effort to generate
  materials that the [*] material conforms to the specifications set forth in
  this Schedule F. CFC agrees to replace at its own expense any such material
  not in conformance with such specifications.

  
	
   

  	
   

  	
   

  

 

 

 

 

 

 

 

*Confidential

 

 1

 

 

SCHEDULE G

(Scenario
2)

SPECIFICATIONS for [*]

	
  1.0

  	
  Scope

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  The specifications listed herein have been
  established for the purpose of outlining the parameters of acceptance for the
  [*] processed by ABNH and returned to CFC as a component and for further
  conversion into a Generation 2 HoloMagTM.

  
	
   

  	
   

  	
   

  
	
  2.0

  	
  Processes

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  [*]

  
	
  3.0

  	
   

  	
  [*]

  
	
   

  	
  3.1

  	
  [*]

  
	
   

  	
  3.2

  	
  [*]

  
	
   

  	
  3.3

  	
  [*]

  
	
   

  	
  3.4

  	
  [*]

  
	
   

  	
  3.5

  	
  [*]

  
	
   

  	
  3.6

  	
  [*]

  
	
   

  	
  3.7

  	
  [*]

  
	
   

  	
  3.8

  	
  [*]

  
	
  4.0

  	
   

  	
  [*]

  
	
   

  	
  4.1

  	
  [*]

  
	
   

  	
  4.2

  	
  [*]

  
	
  5.0

  	
   

  	
  [*]

  
	
   

  	
  5.1

  	
  [*]

  
	
   

  	
  5.2

  	
  [*]

  

 

 

 

 

 

 

 

 

 

*Confidential

 1
 

 

 

 

	
  

  	
   

  	
   

  
	
   

  	
  5.3

  	
  [*]

  
	
   

  	
   

  	
   

  
	
   

  	
  5.4

  	
  [*]

  
	
   

  	
   

  	
   

  
	
   

  	
  5.5

  	
  [*]

  
	
   

  	
   

  	
   

  
	
   

  	
  5.6

  	
  [*]

  
	
   

  	
   

  	
   

  
	
   

  	
  5.7

  	
  [*]

  
	
   

  	
   

  	
   

  
	
  6.0

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  [*]

  
	
   

  	
   

  	
   

  
	
  7.0

  	
   

  	
  WARRANTY:

  
	
   

  	
   

  	
  ABNH will make every reasonable effort to generate
  materials that the [*] conforms to the specifications set forth in this
  Schedule G.

  
	
   

  	
   

  	
   

  

 

 

 

 

 

 

*Confidential

 

 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]