Document:

Exhibit
10.10

FORM OF

AGREEMENT

FOR THE PROVISION OF
TRANSITION SERVICES

BY AND AMONG

INTERNATIONAL PAPER COMPANY

AND

KAPSTONE KRAFT PAPER COMPANY

Dated as of January 1, 2007

 

AGREEMENT FOR THE
PROVISION OF TRANSITION SERVICES

THIS AGREEMENT (this “Agreement”),
effective as of 12.01 am on January 1, 
2007 (the “Effective Date”),
by and among International Paper Company, a New York corporation (the “Seller”)
and Kapstone Kraft Paper Corporation, a Delaware corporation (“Buyer”).
Buyer is referred to herein as the “Service Receiver,”
and Seller is referred to herein as the “Service Provider.”

WHEREAS, the Service Provider and the Service
Receiver are parties to that certain Agreement of Purchase and Sale dated as of
June 23, 2006 (the “Purchase Agreement”), pursuant to which the Buyer purchased
from the Seller certain Assets related to the Business (as both Assets and
Business are defined in the Purchase Agreement);

WHEREAS, this Agreement is the Transition
Services Agreement referred to in Section  1.5(s) of the Purchase Agreement; and

NOW, THEREFORE, in consideration of the
foregoing and the respective warranties, covenants and agreements hereinafter
set forth, and intending to be legally bound hereby, the parties hereto agree
as follows:

Section 1.                                Definitions

In this Agreement, the following terms shall have the following
meanings.

“EDS Letter of Intent” means the
Letter of Intent to be entered into at the Closing by the Service Receiver and
Electronic Data Systems Corporation and EDS Information Services LLC, a form of
which is attached hereto as Exhibit A.

“SAP Transitional Services Agreement”
means the Transitional Services Agreement to be entered into at the Closing by
the Service Provider, the Service Receiver and SAP America, Inc., a form of
which is attached hereto as Exhibit B.

“Service Receiver Data” means all the data
provided by the Service Receiver or created by the Service Provider solely on
behalf of the Service Receiver that is used by the Service Provider solely in
relation to the provision of the Services including, without limitation,
employee information, customer information, product details and pricing
information.

“Services” means any of the services set forth in
the Schedules attached hereto.

“Term” means, with respect to each of the
Services, the period of time beginning on the Closing Date and expiring on the
date set forth in the applicable Schedule.

“User Access Agreement” means a
User Access Agreement, a form of which is attached hereto as Exhibit C,
to be entered into by each employee of the Service Receiver who will have
access to certain of the Service Provider’s applications that are designated by
the Service

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Provider
(including, but not limited to, TRAMS, the Wood Procurement System, and CBOPS)
for the benefit of the Service Provider.

All terms not otherwise defined herein shall
have the meaning ascribed to such terms in the Purchase Agreement.

Section 2.                                Services

(a)                                  Commencing on the Closing Date and continuing throughout the
respective Terms, the Service Provider shall provide to the Service Receiver,
in connection with the Service Receiver’s operation of the Business, the
Services set forth on Schedules attached hereto, in each case subject to the terms
and conditions set forth herein. The Services shall be performed by Service
Provider with substantially the same degree of care, skill, prudence, quality
and efficiency for comparable services performed for the Business when it was
owned by the Service Provider.  The
Services shall also be substantially equivalent in nature, scope, volume and
quality as provided for the Business in the ordinary course in the six (6)
months immediately prior to Closing. 
Systems (as defined in Section 15) will be operated as is and
maintenance will be limited to break/fix. 
Any Enhancements (defined below) to the Systems will be dealt with on a
case by case basis and will require the Service Receiver to provide a written
description of the Enhancement, project plan, deliverables, staffing and cost
estimates.  Such a description will be
reviewed by the Project Manager appointed by Service Provider as set forth in
Section 4 herein, and such Project Manager will determine whether any work will
be performed.  The Service Provider will
bill such services in respect to the Systems at a cost of $     
per hour.  In addition, Service Receiver
shall reimburse Service Provider for all reasonable out-of-pocket expenses
incurred by Service Provider in connection therewith.  For purposes of this agreement, “Enhancement(s)”
shall mean any new improvements, modifications, releases, updates, upgrades and
versions of the Systems.

(b)                                 The Service Receiver understands that the Services provided
hereunder are transitional in nature and are furnished by the Service Provider
for the purpose of facilitating the transactions contemplated by the Purchase
Agreement. The Service Receiver further understands that the Service Provider
is not in the business of providing Services to third parties and will not
provide the Services beyond the applicable Term.  In the event that Service Provider, in its
discretion, requires additional resources in order to perform its obligations
hereunder, the Service Provider may engage such resources at the Service
Receiver’s sole cost and expense upon Service Receiver’s consent, which shall
not be unreasonably withheld.  The
Service Receiver agrees to transition to its own internal organization or other
third party service providers the provision of each of the Services as promptly
as reasonably practicable, but in no case later than the expiration of the
applicable Term.  Service Provider shall
reasonably cooperate with any third party service providers for the transition
of the Services.

(c)                                  The Service Receiver understands that certain Services will
be provided to it by the Service Provider pursuant to agreements between the
Service Provider and various vendors. 
Service Provider shall promptly notify Service Receiver of the vendors
and the Services that will be provided by such vendors in writing.  The Service Receiver will cooperate with any
third party providing Services on behalf of the Service Provider in order to
facilitate the provision and receipt of such Services.  The Service Receiver acknowledges that such
Services

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are dependent on such cooperation, and that its
failure to so cooperate shall relieve the Service Provider of its obligation to
provide the related Services to the extent such failure renders such provision
impractical or impossible.

(d)                                 The Service Receiver will use commercially reasonable efforts
to provide information, including the Service Receiver Data, and documentation
necessary for the Service Provider to provide the Services in accordance with
the standards set forth in Section 2(a). 
The Service Receiver will provide such information and documentation in
the format Service Receiver currently has such information and documentation or
as otherwise agreed by the parties.  The
Service Receiver acknowledges that certain Services are dependent upon such
information and documentation, and that its failure to provide such information
and documentation as set forth herein shall relieve the Service Provider of its
obligation to provide the related Services to the extent such failure renders
such provision impractical or impossible. 
The Service Provider shall assist the Service Receiver in identifying
which types of Service Receiver Data are required for the provision of
Services.

(e)                                  The Service Receiver will reasonably cooperate with the
Service Provider in order to facilitate the provision and receipt of the
Services.  The Service Receiver
acknowledges that such Services are dependent on such cooperation, and that its
failure to so cooperate shall relieve the Service Provider of its obligation to
provide the related Services to the extent such failure renders such provision
impractical or impossible.  The Service
Receiver will comply with all applicable policies and procedures of the Service
Provider provided to the Service Receiver in connection with its receipt of the
Services.  Without the prior written
consent of the Service Provider, the Service Receiver will not allow any third
parties access to Service Provider’s network including, but not limited to, WAN
or Internet connectivity, during the term of this Agreement.

Section 3.                                Payment

(a)                                  In consideration for the provision of Services by the Service
Provider, the Service Receiver agrees to pay to the Service Provider those
amounts determined in accordance with the rates and charges set forth in the applicable
Schedule attached hereto. In addition, the Service Receiver shall pay the
Service Provider all incidental costs and expenses reasonably incurred by the
Service Provider in providing the Services including, but not limited to, air
fare (coach class), lodging, meals, mileage, parking and ground transportation,
in each case in accordance with the Service Provider’s standard policies with
respect to such incidental costs and expenses. Notwithstanding the above, the
Service Provider shall have the option to increase the charges for any Service
provided to the Service Receiver (i) at any time it increases the charges to
its own business units for substantially the same service; provided, however,
that any increases in charges for such Services shall be limited to the average
increases in rates charged for substantially the same services to the Service
Provider’s business units; provided, further such increase shall
not exceed      % or (ii) if the Service is provided
pursuant to an agreement between the Service Provider and a third party, and
the third party increases its charges under such agreement.

(b)                                 Within twenty-one (21) days of the last day of each calendar
month, the Service Provider shall provide to the Service Receiver an invoice
for the preceding month’s

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Services, which shall include (i) the Services
provided by the Service Provider to the Service Receiver for such month in
accordance with the Schedules, (ii) the charges for such Services, (iii) a list
of the actual costs and expenses incurred by the Service Provider for such
month, and (iv) reasonable documentation verifying the actual expenses in
addition to the rates and charges set forth in the Schedules attached
hereto.  The amount stated in such invoices
shall be paid by the Service Receiver in full within thirty (30) days of the
invoices being issued to an account designated by the Service Provider.

(c)                                  Without prejudice to the Service Provider’s other rights and
remedies, where any sum remains unpaid five (5) days after the applicable due
date, it shall carry interest, which shall accrue daily, from the due date
until the date of actual payment, at an annual interest rate of nine percent
(9%).

(d)                                 All payments due to the Service Provider under this Agreement
shall be exclusive of any sales tax or other applicable similar tax or levy,
which shall be payable by the Service Receiver except for any taxes based on
Service Provider’s net income.

(e)                                  The Service Receiver shall pay all amounts due under this
Agreement free of any set-off, deduction or withholding.

(f)                                    In the event of any material service interruption, whether or
not scheduled, or any other disputed invoiced amount, Service Provider and
Service Receiver agree to negotiate in good faith to adjust the relevant
charges for the applicable Services or other costs if and to the extent
appropriate.

Section 4.                                Project Managers

The Service Provider and the Service Receiver
shall each appoint a person to act as its project manager (each, a “Project Manager”)
to deal with issues arising out of the performance of this Agreement, and to
facilitate orderly provision and receipt of the Services. Initially, the
Project Manager for the Service Provider shall be Dennis Schroeder, and the
Project Manager for the Service Receiver shall be Danny Tomlinson.  Each party agrees to provide reasonable
access (in person, by telephone or electronically via e-mail) during normal
business hours to its Project Manager for problem resolution.

Section 5.                                Dispute Resolution

(a)                                  In the event of any dispute, controversy or claim arising out
of or relating to this Agreement, or the breach, termination or validity
thereof, including the dispute of any fees or any claim by a party that the
other party has breached the terms hereof (each, a “Dispute”),
the Project Managers shall meet (by telephone or in person) no later than two
(2) business days after receipt of notice by either party of a request for
resolution of a Dispute.  The Project
Managers shall enter into negotiations aimed at resolving any such
Dispute.  If the Project Managers are
unable to reach a mutually satisfactory resolution of the Dispute within ten
(10) business days after receipt of notice of the Dispute, the Dispute shall be
referred to an Executive Committee (the “Executive Committee”)
comprised of at least one member of the senior management of each party.  The initial members of the Executive
Committee, including relevant contact information, are set forth on Schedule IX, and either party may replace its
Executive

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Committee
members at any time with other members of similar seniority by providing notice
in accordance with Section 13.  The
Executive Committee will meet (by telephone or in person) during the next ten
(10) business days and attempt to resolve the Dispute.  In the event that the Executive Committee is
unable to resolve the Dispute, the Dispute shall be referred to arbitration as
set forth in Section 5(b).

(b)                                 Any Dispute that cannot be resolved by the Executive
Committee shall be settled exclusively by arbitration before a single
arbitrator (“Arbitrator”), in accordance with
this Section 5(b) and the Commercial Arbitration Rules and Expedited Procedures
of the American Arbitration Association (“AAA”) then in
effect (the “Rules”).  Judgment upon any award rendered by the
Arbitrator may be entered by any state or federal court having jurisdiction
thereof.  Such arbitration shall be
administered by the AAA and shall be the exclusive remedy for determining any
such Dispute, regardless of its nature.

(i)                         If the parties are unable to agree upon an arbitrator, within
fifteen (15) days of receipt by respondent of the demand for arbitration, the
parties shall select a single arbitrator from a list of nine (9)
arbitrator-candidates selected by the AAA. 
Any arbitrator-candidate proposed by the AAA shall be an attorney (or
retired judge) admitted to practice for at least fifteen (15) years, with
significant experience as an arbitrator of large commercial cases.  If the parties are unable to agree upon an
arbitrator from the list so drawn within fifteen (15) days of receipt thereof,
then the parties shall each have the opportunity to strike up to three (3)
names from the list without cause, to rank the remaining names in order of
preference in accordance with the Rules, and to simultaneously return the list
to the AAA within twenty (20) days of the transmittal date (or on such date as
directed by the AAA).  If a party does
not return the list within the time specified, all persons named therein shall
be considered acceptable.  Of the
arbitrator-candidates remaining on the list and in accordance with the
designated order of mutual preference, the AAA shall invite the acceptance of
an arbitrator to serve.  If for any
reason none of the arbitrators remaining on the list are available to serve,
the parties shall repeat the striking and ranking process with a new list
supplied by the AAA until an Arbitrator is selected.

(ii)                      Consistent with the expedited nature of arbitration, the
parties shall be entitled to reasonable discovery subject to the discretion of
the Arbitrator.  The Arbitrator may, upon
an appropriate motion, dismiss any claim without an evidentiary hearing if the
party bringing the motion establishes that it would be entitled to summary
judgment if the matter had been pursued in court litigation.  In the event of a conflict between the
applicable rules of the AAA and the provisions of this Section 5(b)(ii), the
provisions of this Section 5(b)(ii) shall govern.

(iii)                   Any
filing fees shall be borne initially by the party requesting arbitration.  Thereafter, each party shall be responsible
for its own expenses and attorneys’ fees, and fifty percent (50%) of the costs
and fees of the arbitration.

(iv)                  The
Arbitrator shall have the authority to award any remedy of relief in accordance
with the terms of this Agreement and the laws of State of Tennessee.  The Arbitrator shall render an award and
written opinion, stating the findings of fact and conclusions of law on which
the award is based, and the award shall be final and binding upon the parties.

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Neither party shall have the right to appeal the
Arbitrator’s decision, except on the limited grounds set forth in the Federal
Arbitration Act, 9 U.S.C. § 1 et seq.

(v)                     Unless
mutually agreed by the parties otherwise, any arbitration shall take place in
Chicago, Illinois.

Section 6.                                Ownership and Transfer of Intellectual Property

(a)                                  The Service Receiver Data shall be and shall remain the
property of the Service Receiver and, to the extent reasonably practicable
without unreasonable cost or effort, shall be promptly provided by the Service
Provider upon the Service Receiver’s request; provided that in no event
shall the Service Provider be required to change the format or otherwise modify
the Service Receiver Data.  Service
Provider shall only use the Service Receiver Data to provide the Services to
Service Receiver as set forth herein and for no other purpose whatsoever.  In the event that the Service Receiver
requires any additional migration services, the Service Receiver shall submit a
written request describing such services to the Service Provider’s Project
Manager, and the Service Provider shall decide, in its sole discretion, whether
to provide such migration services.  All
such migration services shall be provided at the Service Receiver’s sole cost
and expense. The Service Provider’s services will be billed at $___ per hour
which is consistent with the rate for enhancements to the Systems.  In addition, Service Receiver shall reimburse
Service Provider for all out-of-pocket expenses incurred by Service Provider in
connection therewith.

(b)                                 All other data, information and intellectual property created
by the Service Provider in connection with provision of the Services shall
remain property of the Service Provider. 
Notwithstanding the foregoing, Service Provider hereby grants to Service
Receiver a perpetual, non-exclusive, irrevocable, royalty-free right and
license with rights to sublicense and reproduce, make derivative works of in
any form of medium, whether known now or later developed, make, create, modify,
have made, use any modifications, enhancements, or derivative works of such
data, information and intellectual property created in connection with the
provision of the Services.

Section 7.                                Sub-Contracting; Third Party Agreements

(a)                                  The Service Provider may delegate or sub-contract its duties
under this Agreement to a qualified third party, provided that,
notwithstanding such delegation or sub-contracting, the Service Provider shall
still remain liable for the performance of its duties hereunder.

(b)                                 The Service Receiver acknowledges that the Services provided
through third parties or using third-party Intellectual Property are subject to
the terms and conditions of any applicable agreements between the Service
Provider and such third parties, and the Service Receiver agrees to comply with
such terms and conditions provided in writing to Service Receiver.

(c)                                  Notwithstanding anything to the contrary contained herein,
the Service Provider shall use reasonable best efforts to obtain any consents
or licenses from vendors that the Service Provider believes are necessary in
order to provide services under this Agreement;

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provided, however, that the Service Provider shall not be
required to pay any fees to any vendor to obtain such consent or license that
is required for the provision of the Services, and the Service Receiver shall
pay any fees for such required consent or license.  In the event that the Service Provider is
unable to obtain any such consent, the parties will work together to agree upon
a commercially reasonable alternative arrangement.  Any costs and expenses incurred by the
Service Provider (i) in connection with its efforts to obtain and implement
such consents and (ii) in connection with the implementation of any such
commercially reasonable alternative arrangement shall be borne by the Service
Receiver.

Section 8.                                Term and Termination and Effects of Termination

(a)                                  The term of this Agreement shall begin on the Effective Date
and continue until the earlier of (i) termination or expiration of all of the respective
Terms or (ii) termination in accordance with Section 8(c), 8(d) or 8(e).

(b)                                 Except as otherwise provided herein or unless otherwise
agreed in writing by the parties, the Service Provider’s obligation to provide
or procure, and the Service Receiver’s obligation to purchase, a Service shall
cease as of the end of the applicable Term.

(c)                                  Service Receiver may terminate this Agreement or any Schedule
for convenience upon forty-five (45) days prior written notice to Service
Provider; provided that Service Receiver shall pay any third party costs
which Service Provider incurs as a result of terminating any contractual
relationships with the third party providers.

(d)                                 If the Service Receiver should, at any time during the
respective Terms, cease to require the Service Provider to provide any of the
Services set forth in the Schedules (the “Designated
Services”), Service Receiver shall have the right to terminate the
Services in accordance with Section 8(c) and the following restrictions:

(i)                         Schedule III (1) & (2) — provides basic site connectivity
plus other basic services which are interrelated and cannot be terminated until
all services requiring network access have been terminated.  Services in Schedules I, II, IV and V require
network access.

(ii)                      Schedules I, II and IV must be terminated
simultaneously.  However, the Credit
function on Schedule II may be moved to the Service Receiver but will still
require the SAP services from Schedule I.

(iii)                   Schedule
III (3) thru (6) — no restrictions.

(iv)                  Schedule
V — no restrictions.

(v)                     Other
Schedules — no restrictions.

(e)                                  In the event that a party commits a breach of any of the
material terms or conditions of this Agreement, the other party may terminate
this Agreement (i) if such breach may be cured, upon written notice if the
breaching party fails to cure such breach within thirty

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(30) days after its receipt of written notice thereof
or (ii) if such breach is incapable of cure, upon written notice.

(f)                                    Upon termination or expiration of this Agreement, the Service
Receiver shall pay to the Service Provider all monies due to the Service
Provider in respect of Services provided prior to such termination or
expiration.  In addition, each party
shall, at the disclosing party’s option, return or destroy the Confidential
Information of the other party.  In the
event that the disclosing party elects destruction, the other party shall
furnish to the disclosing party a written certificate of destruction signed by
an officer of the certifying party.

Section 9.                                Limitation of Liability

(a)                                  Except for breach of a party’s confidentiality obligations
and a party’s indemnity obligations set forth in Section 10, neither party
shall be liable (including any liability for the acts and omissions of its
employees, agents and sub-contractors) to the other party in connection with
this Agreement except with respect to direct damages arising out of the other
party’s willful misconduct or gross negligence in performing its obligations
under this Agreement, provided that such direct damages shall not exceed
the aggregate fees paid or payable by or to the other party pursuant to this
Agreement.

(b)                                 Neither party shall be liable for any indirect, special,
consequential or liquidated damages of any kind whatsoever (including, without
limitation, attorneys’ fees) arising out of or in connection with performing
its obligations under this Agreement, even if it had been advised, knew or
should have known the possibility thereof including, but not limited to lost
profits, lost business revenue and failure to realize expected savings.

Section 10.                          Indemnification

(a)                                  The Service Receiver hereby
agrees to indemnify and hold the Service Provider, its employees, shareholders,
officers, directors and agents harmless from and against any and all third party:
claims, actions, suits, losses, demands, damages, costs and expenses (including
reasonable attorneys’ fees) (“Losses”)
arising out of the gross negligence or willful misconduct of Service Receiver
in performing its obligations under this Agreement, including its obligations
under Section 14.  The Service Provider
hereby agrees to indemnify and hold the Service Provider, its employees,
shareholders, officers, directors and agents harmless from and against any Losses
arising out of or resulting from the willful misconduct of Service Provider in
performing its obligations under this Agreement.  In the event that any deliverable or work
product infringes a third party’s intellectual property rights or Service
Provider receives a notice of a possible infringement of a third party’s
intellectual property rights.  Service
Provider shall (i) procure or obtain the right for Service Receiver to continue
using it at Service Receiver’s cost with prior written consent; (ii) modify the
deliverable or work product to make it non-infringing or (iii) refund to
Service Receiver the fees paid for the Services that are subject to such
infringement.  The obligations of the
indemnifying party under this Section 10 with respect to third party Losses
will be subject to the following terms and conditions:

(i)                                    Any party making a claim for indemnification
pursuant to this Section 10 (the “Indemnified Party”) must give the other
party who indemnification is sought (the

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“Indemnifying
Party”) written
notice of such claim (an “Indemnification Claim Notice”) promptly
after the Indemnified Party receives any written notice of any action, lawsuit,
proceeding, investigation or other claim (a “Proceeding”) against or involving the
Indemnified Party by a third party, or otherwise discovers the liability,
obligation or facts giving rise to such claim for indemnification; provided
that the failure to notify or delay in notifying an Indemnifying Party shall
not relieve the Indemnifying Party of its obligations pursuant to this Section
10, except to the extent that such failure actually harms the Indemnifying
Party.  Such notice must contain a
description of the claim and the nature and amount of the Losses (to the extent
that the nature and amount of the Losses is known or reasonably ascertainable
at such time).

(ii)                                  With respect to the defense of any Proceeding
against or involving an Indemnified Party in which a third party in question
seeks the recovery of a sum of money, the Indemnifying Party may appoint as
lead counsel of such defense any legal counsel selected by the Indemnifying
Party.

(iii)                               the Indemnified Party will be entitled to
participate in the defense of such claim and to employ counsel of its choice
for such purpose at its own expense; provided that the Indemnifying
Party will bear the reasonable fees and expenses of such separate counsel
incurred prior to the date upon which the Indemnifying Party assumes control of
such defense;

(iv)                              Notwithstanding Section 10(a)(iii), the
Indemnifying Party shall not be entitled to assume control of the defense of
such claim, and will pay the reasonable fees and expenses of legal counsel
retained by the Indemnified Party (which counsel shall be reasonably acceptable
to the Indemnified Party), if

(a)                                  the Indemnifying Party elects within fifteen
(15) days in writing not to assume the defense of the claim,

(b)                                 a conflict of interest exists or could
reasonably be expected to arise which, under applicable principles of legal
ethics, could reasonably be expected to prohibit a single legal counsel from representing
both the Indemnified Party and the Indemnifying Party in such Proceeding, or

(c)                                  a court of competent jurisdiction rules that
the Indemnifying Party has failed or is failing to prosecute or defend
vigorously such claim;

provided, in each case,
that the Indemnified Party shall be prohibited from compromising or settling
the claim without the prior written consent of the Indemnifying Party, which
consent shall not be unreasonably withheld or delayed.

(b)                                 In the event that the Indemnifying Party assumes
the defense of such claim, the Indemnified Party will cooperate with and make
available to the Indemnifying Party such assistance, personnel, witnesses and
materials as the Indemnifying Party may reasonably request.  Regardless of which party defends such claim,
the other party shall have the right at its expense to participate in the
defense assisted by counsel of its own choosing.

(c) 
Without the prior written consent of the Indemnified Party (which shall
not be unreasonably withheld or delayed), the Indemnifying Party shall not
enter into any settlement of

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any such claim for which the
Indemnifying Party has assumed the defense if pursuant to or as a result of
such settlement, such settlement would result in any liability on the part of
the Indemnified Party for which the Indemnified Party is not entitled to
indemnification hereunder.  If a firm
offer is made to settle such claim, which offer the Indemnifying Party is
permitted to settle under this Section 10(c), and the Indemnifying Party
desires to accept and agree to such offer, the Indemnifying Party shall give
written notice to the Indemnified Party to that effect.  If the Indemnified Party objects to such firm
offer within ten (10) days after its receipt of such notice, the Indemnified
Party may continue to contest or defend such claim and, in such event, the
maximum liability of the Indemnifying Party as to such claim shall not exceed
such amount of such settlement offer payable by the Indemnifying Party
hereunder, plus other Losses paid or incurred by the Indemnified Party up to
the point such notice had been delivered.

Section 11.                          Insurance

Each party shall, throughout the term of this
Agreement, carry appropriate insurance with a reputable insurance company
covering property damage, business interruptions and general liability
insurance (including contractual liability) to protect its own business and
property interests.

Section 12.                          Force Majeure

(a)                                  Neither party shall be liable for delay in performance (other
than the payment of money) caused by circumstances beyond the reasonable
control of the party affected (an event of “Force
Majeure”), including but not limited to (i) acts of God, the
elements, epidemics, explosions, accidents, landslides, lightning, earthquakes,
fires, storms (including but not limited to tornadoes and hurricanes or tornado
and hurricane warnings), sinkholes, floods, or washouts; (ii) labor shortage or
trouble including strikes or injunctions (whether or not within the reasonable
control of such party and provided that the settlement of strikes and other
labor disputes shall be entirely within the discretion of the party
experiencing the difficulty); (iii) inability to obtain material, equipment or
transportation; (iv) national defense requirements, war, blockades, insurrections,
sabotage, riots, arrests and restraints of the government, either federal or
state, civil or military (including any governmental taking by eminent domain
or otherwise); or (v) any applicable law, regulation or rule or the enforcement
thereof by any governmental or regulatory agency having jurisdiction, that
limits or prevents a party from performing its obligations hereunder or any
notice from any such agency of its intention to fine or penalize such party or
otherwise impede or limit such party’s ability to perform its obligations
hereunder.

(b)                                 The Service Provider will use its commercially reasonable
efforts to provide uninterrupted Services through the respective Terms. In the
event, however, that the Service Provider is wholly or partially prevented from
providing a Service or Services either temporarily or permanently by reason of
any Force Majeure event, or the Service Provider, in the exercise of its
reasonable good faith judgment, deems it necessary to suspend delivery of a
Service hereunder for purposes of inspection, maintenance, repair, replacement
of equipment parts or structures, or similar activities, the Service Provider
shall not be obligated to deliver such Service during such periods, provided
that the Service Provider agrees to give prior written notice of any scheduled
interruption. Notices provided under this Section 12(b) shall be provided to
the Service Receiver’s Vice President of Information Technology or other
executive

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designated
by the Service Receiver, and may be provided by e-mail at an address designated
by the Service Receiver.

Section 13.                          Notices

All demands, notices,
communications and reports (“notices”)
provided for in this Agreement will be in writing and will be either personally
delivered, mailed by registered mail, return receipt requested, or sent by
reputable overnight courier service (delivery charges prepaid) to any Party at
the address specified below, or at such address, to the attention of such other
Person, and with such other copy, as the recipient party has specified by prior
written notice to the sending Party pursuant to the provisions of this
Section 13:

(a)                                  If to the Service Provider to:

International
Paper Company 

6400 Poplar Avenue

Memphis, TN 38197

Fax No.: (901) 214-1248

Attention: General Counsel

with
copies to:

Vinson
& Elkins L.L.P.

666
Fifth Avenue, 26th Floor

New
York, NY  10103

Fax
No.: (212) 237-0100

Attention: Charles E.
Carpenter, Esq.

(b)                                 If to the Service Receiver:

Stone
Arcade Acquisition Corp.

One
Northfield Plaza, Suite 480

Northfield,
IL 60093

Attention:
Roger W. Stone

with
a copy to:

Sonnenschein, Nath & Rosenthal LLP

7800 Sears Tower

233 South Wacker Drive

Chicago, IL  60606

Attention: 
Donald G. Lubin, Esq.

Any such notice will be deemed to have been
given when delivered personally, upon receipt if sent by registered mail,
return receipt requested, or on the business day after deposit with a reputable
overnight courier service, as the case may be.

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Section 14.                          Confidentiality of Information

(a)                                  Except as provided below, all data and information disclosed
between the Service Provider and the Service Receiver pursuant to this
Agreement, including information relating to or received from third parties and
any Service Receiver Data, is deemed confidential (“Confidential Information”).  A party receiving Confidential Information
(the “Receiving
Party”) will not use such information for any purpose other than for
which it was disclosed and, except as otherwise permitted by this Agreement,
shall not disclose to third parties any Confidential Information for a period
of five (5) years from the termination or expiration of this Agreement, provided
that the Receiving Party’s obligation hereunder shall not apply to information
that:

(i)                         is already in the Receiving Party’s possession at the time of
disclosure thereof;

(ii)                      is or subsequently becomes part of the public domain through
no action of the Receiving Party;

(iii)                   is
subsequently received by the Receiving Party from a third party which has no
obligation of confidentiality to the party disclosing the Confidential
Information; or

(iv)                  information
developed or provided by the Service Provider to be used by the Service
Receiver in the ordinary course of business.

(b)                                 Notwithstanding Section 14(a), Confidential Information may
be disclosed by the Receiving Party:

(i)                         to the Receiving Party’s affiliates, directors, officers,
employees, agents (including, in the case of the Service Provider, any third
parties engaged to provide the Services), auditors, consultants and financial
advisers (collectively, “Agents”), provided
that the Receiving Party ensures that such Agents comply with this Section 14;
and

(ii)                      as required by applicable law, provided that, if
permitted by law, written notice of such requirement shall be given promptly to
the other party so that it may take reasonable actions to avoid and minimize
the extent of such disclosure, and the Receiving Party shall cooperate with the
other party as reasonably requested by the other party in connection with such
actions.

(c)                                  If, at any time, either party determines that the other party
has disclosed, or sought to disclose, Confidential Information in violation of
this Agreement, that any unauthorized personnel of the other party has accessed
Confidential Information, or that the other party or any of its personnel has
engaged in activities that may lead to the unauthorized access to, use of, or
disclosure of such party’s Confidential Information, such party shall
immediately terminate any such personnel’s access to the Confidential
Information and immediately notify the other party.  In addition, either party shall have the
right to deny personnel of the other party access to such party’s Confidential
Information upon notice to the other party in the event that such party
reasonably believes that such personnel pose a security concern.  Each party will

 12
 

 

cooperate
with the other party in investigating any apparent unauthorized access to or
use of such party’s Confidential Information.

Section 15.                          System Security

(a)                                  If the Service Receiver is given access to any of the Service
Provider’s computer systems or software (collectively, “Systems”)
in connection with receipt of the Services, the Service Receiver shall comply
with all of the Service Provider’s system security policies, procedures and
requirements that have been provided in writing to Service Receiver
(collectively, “Security Regulations”),
including but not limited to, Service Provider’s Information Resource Use
Policy attached hereto and made a part hereof as Exhibit D and will not tamper with, compromise or
circumvent any security or audit measures employed by the Service
Provider.  The Service Receiver shall
access and use only those Systems of the Service Provider for which it has been
granted the right to access and use.

(b)                                 The Service Receiver will use commercially reasonable efforts
to ensure that only those of its personnel who are specifically authorized to
have access to the Systems of the Service Provider gain such access, and to
prevent unauthorized access, use, destruction, alteration or loss of
information contained therein, including notifying its personnel of the
restrictions set forth in this Agreement and of the Security Regulations.

(c)                                  If, at any time, the Service Receiver determines that any of
its personnel has sought to circumvent, or has circumvented, the Security
Regulations, that any unauthorized Service Receiver personnel has accessed the
Systems, or that any of its personnel has engaged in activities that may lead
to the unauthorized access, use, destruction, alteration or loss of data,
information or software, the Service Receiver shall immediately terminate any
such personnel’s access to the Systems and immediately notify the Service
Provider.  In addition, the Service
Provider shall have the right to deny personnel of the Service Receiver access
to its Systems upon notice to the Service Receiver in the event that the
Service Provider reasonably believes that such personnel have engaged in any of
the activities set forth above in this Section 15(c) or otherwise pose a security
concern.  The Service Receiver will
cooperate with the Service Provider in investigating any apparent unauthorized
access to the Service Provider’s Systems.

Section 16.                          Miscellaneous

(a)                                  Severability.  Should any provision
of this Agreement for any reason be declared invalid or unenforceable, such
decision shall not affect the validity or enforceability of any of the other
provisions of this Agreement, which remaining provisions shall remain in full
force and effect, and the application of such invalid or unenforceable
provision to persons or circumstances other than those as to which it is held
invalid or unenforceable shall be valid and enforced to the fullest extent
permitted by law. In such circumstances, the parties agree to negotiate in good
faith amendments to this Agreement designed to restore to the parties the
respective benefits they held under this Agreement prior to the declaration of
invalidity or unenforceability.

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(b)                                 Interpretation.  The article and
section headings contained in this Agreement are solely for the purpose of
reference, are not part of the agreement of the parties and shall not in any
way affect the meaning or interpretation of this Agreement.

(i)                         As used in this Agreement, the term “person” shall mean and include
an individual, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency
thereof.

(ii)                      As used in this Agreement, an “affiliate” of, or a person “affiliated”
with, a specified person, is a person directly, or indirectly through one or
more intermediaries, controls, or is controlled by, or is under common control
with, the person specified.

(iii)                   As
used in this Agreement, “including”
shall mean including without limitation.

(c)                                  Counterparts.  This Agreement may
be executed simultaneously in counterparts, each of which will be deemed an
original but all of which together will constitute one and the same instrument.

(d)                                 Entire Agreement; Amendments.  This Agreement and
the Purchase Agreement constitute the entire agreement among the parties with
respect to the subject matter hereof and supersede all other prior agreements
and understandings, both written and oral, between or among the parties with
respect to the subject matter hereof. 
This Agreement may not be amended except by an instrument in writing
signed on behalf of each of  the parties
hereto. Any agreement on the part of a party hereto to any extension or waiver
shall be valid only if set forth in an instrument in writing signed on behalf
of such party.

(e)                                  Governing Law.  This Agreement will
be governed by, and construed and enforced in accordance with, the laws of the
State of Tennessee (regardless of the laws that might otherwise govern under
applicable principles of conflicts of laws thereof) as to all matters,
including but not limited to matters of validity, construction, effect,
performance and remedies.

(f)                                    Binding Effect; Assignment.  This Agreement and
all of the provisions hereof shall be binding upon and shall inure to the benefit
of the parties hereto and their respective successors and permitted assigns.
Except as expressly provided in Section 7 hereof, neither this Agreement nor
any of the rights, interests or obligations hereunder shall be assigned,
directly or indirectly, including, without limitation, by operation of law, by
any party hereto without the prior written consent of the other party hereto; provided
however, that either party may assign or delegate its rights and
obligations hereunder without the consent of the other party to any affiliate; provided,
further that any such assignment or delegation shall not relieve the
assigning or delegating party of any of its obligations under this Agreement.

(g)                                 Waiver.  The failure of
either party to insist in any one or more instances upon strict performance of
any of the provisions of this Agreement or to take advantage of any of its
rights shall not operate as a continuing waiver of such rights.

(h)                                 No Third Party Beneficiaries.  This Agreement is
solely for the benefit of the Service Provider and its successors and permitted
assigns, with respect to the obligations of

 14
 

 

the Service Receiver under this Agreement, and for the
benefit of the Service Receiver, and its successors and permitted assigns, with
respect to the obligations of the Service Provider under this Agreement, and
this Agreement shall not be deemed to confer upon or give to any other third
party any remedy, claim liability, reimbursement, cause of action or other
right.

(i)                                     Independent Contractor Status.  The Service Provider
shall be deemed to be an independent contractor to the Service Receiver.  Nothing contained in this Agreement shall
create or be deemed to create the relationship of employer and employee between
the Service Provider and the Service Receiver. 
The relationship created between the Service Provider and the Service
Receiver pursuant to or by this Agreement is not and shall not be one of
partnership or joint venture.  No party
to this Agreement shall, by reason hereof, be deemed to be a partner or a joint
venturer of any other party hereto in the conduct of their respective
businesses and/or the conduct of the activities contemplated by this Agreement.
Except as specifically and explicitly provided in this Agreement, and subject
to and in accordance with the provisions hereof, no party to this Agreement is
now, shall become, or shall be deemed to be an agent or representative of any
other party hereto.  Except as herein
explicitly and specifically provided, neither party shall have any authority or
authorization, of any nature whatsoever, to speak for or bind the other party
to this Agreement.

[Remainder
of This Page is Intentionally Left Blank.]

 

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IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of the date first
above written.

	
  

  	
  INTERNATIONAL PAPER COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ C. Cato Ealy

  	
   

  
	
   

  	
   

  	
  Name: C. Cato Ealy

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  KAPSTONE
  KRAFT PAPER
 CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Roger W. Stone

  	
   

  
	
   

  	
   

  	
  Name: Roger W. Stone

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  

 

 1Exhibit 10.11

CITY OF FORDYCE, ARKANSAS

and

INTERNATIONAL PAPER COMPANY

LEASE AGREEMENT

Dated as of January 1, 1997

LEASE AGEREMENT

THIS LEASE AGREEMENT, dated as of January 1, 1997, by
and between the CITY OF FORDYCE, ARKANSAS, a municipality under the laws of the
State of Arkansas, as lessor (the “City”), and INTERNATIONAL PAPER COMPANY, a
corporation organized and existing under and by virtue of the laws of he State
of New York, as lessee (the “Company”).

WITNESSETH:

WHEREAS, the City is authorized and empowered under
the laws of the State of Arkansas, including particularly Title 14, Chapter
164, Subchapter 2 of the Arkansas Code of 1987 Annotated (the “Act”), to issue
revenue bonds and expend the proceeds thereof to finance the cost of acquiring,
constructing and equipping lands, buildings or facilities for securing or
developing industry; and

WHEREAS, the City has undertaken
to furnish permanent financing of the cost of acquiring certain industrial facilities located
in Fordyce, Arkansas by the issuance of its Industrial Development Revenue
Bonds - International Paper Company Project, in the aggregate principal amount
of $1,050,000 (the “Bonds”), and in connection therewith the City and the Company have entered into this Lease
Agreement); and

NOW, THEREFORE, for valuable consideration, receipt of
which is hereby acknowledged by the City and
the Company, and in consideration of the mutual benefits and covenants herein
contained, the City and the Company AGREE as follows:

 

ARTICLE I

DEFINITIONS

Section 1.1             Definitions.  In addition to the words and terms elsewhere
defined in this Lease Agreement, the following words and terms as used in this
Lease Agreement shall have the following meanings:

“Act” — Title 14, Chapter 164, Subchapter 2
of the Arkansas Code of 1987 Annotated, as amended and enacted from time to
time.

“Bonds” — The City of Fordyce, Arkansas Industrial
Development Revenue Bonds - International Paper Company Project, Series A and
B, in the aggregate principal amount of $1,050,000, issued pursuant to the Bond
Purchase Agreement.  Two Bonds designated
“Series A” shall be issued in the principal amount of $450,000 each, and one
Bond designated “Series B” shall be issued in the principal amount of $150,000.

“Bond Purchase Agreement” — The Bond Purchase
Agreement dated as of January 1, 1997, between the City and the Purchasers, and
any amendments and supplements thereto.

“City” — City of Fordyce, Arkansas, a municipality
under the laws of the State of Arkansas, and its successors and assigns.

“Company” International Paper Company, a corporation
organized and existing under the laws of the State of New York, and any assign
that assumes the obligations of the Company pursuant to the provisions of this Lease Agreement.

“Environmental Laws” — Any federal, state or local law,
statute, ordinance or regulation pertaining to health, industrial
hygiene or the environmental conditions on, under or about the Premises, now or
hereafter enacted or interpreted, including, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act
of 1980 (“CERCLA’’), as
amended, 42 U.S.C. Sections 9601 et
seq., and the Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. Section 6901 et seq.

“Event of Default” — Any event of default specified in
Section 6.1 hereof.

“Hazardous Substances” — (a)  Those substances included within the
definitions of “hazardous substances”, “Hazardous
materials”, “toxic substances” or “solid waste” in CERCLA, RCRA and the
Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801 et seq. and in
the regulations promulgated pursuant to said laws;

(b)           Those
substances defined as “hazardous wastes” or “PCB” in the applicable statutes of
the State of Arkansas as amended from time to time, and in the
regulations promulgated thereunder;

 2
 

 

(c)           Those substances listed in the United
States Department of Transportation Tab1e (49 CFT 172.101 and amendments
thereto) or by the Environmental Protection Agency (or any successor agency) as
hazardous substances (40 CFR Part 302 and amendments thereto);

(d)           Such
other substances, materials and wastes which are or become regulated under
applicable local, state or federal law, which are classified as hazardous,
corrosive, ignitable, or toxic under federal, state or local laws or
regulations; and

(e)           Any
material, waste or substance which is (i) petroleum; (ii) asbestos; (iii) polychlorinated biphenyls;
(iv) designated as a “hazardous substance” pursuant to Section 311 of the
Clean Water Act, 33 U.S.C. Sections 1251 at seq. (33 U.S.C. 1321) or listed
pursuant to Section 3078 of the Clean Water Apt (33 U.S.C. 1317); (v) flammable
explosives; or (vi) radioactive materials.

“Lease Agreement” — This Lease Agreement and any
amendments and supplements hereto.

“Mortgage” — The Mortgage dated as of January 1, 1997,
between the City and the Purchasers, and any amendments and supplements
thereto.

“Permitted Encumbrances” — (i) This Lease Agreement,
the Mortgage, and the Bond Purchase
Agreement, (ii) liens for taxes and assessments not then delinquent; (iii) any
mechanic’s, laborer’s, materialmen’s, supplier’s, or vendor’s lien for work or
services performed or materials furnished which are not yet due and payable; (iv)
utility, access and other easements and rights of way, restrictions,
reversions and exceptions that will not
interfere with or impair the
operations being conducted on the Premises, (v) such minor defects, irregularities, encumbrances, easements,
rights of way, and clouds on title as normally exist with respect to properties
similar in character to the Premises and as do not materially impair the value
or utility of the Premises; and (vi) any other defect, irregularity,
encumbrance, easement, right of way or cloud on title which is waived or
permitted in writing by the City and Company.

“Premises” — The land, buildings, improvements and
facilities leased by this Lease Agreement and described in Section 2.1 hereof.

“Purchasers”
— Citizens First Bank, Fordyce, Arkansas (“Citizens”), Fordyce Bank
& Trust Company, Fordyce, Arkansas (“FB&T”), and the Arkansas
Development Finance Authority (“ADFA”). 
Citizens and FB&T are the original purchasers of the Series A Bonds,
and ADFA is the original purchaser of the
Series B Bond, and the references include any subsequent owners of the
Bonds.

“State” — The State of Arkansas.

Section 1.2             Use of Words and Phrases.  “Herein”, “hereby”, “hereunder”, “hereof”, “hereinabove”,
“hereinafter”, and other equivalent words and phrases refers to this Lease
Agreement and not solely to the particular portion thereof in which any such
word is used.  The definitions act forth
In Section 1.1 hereof include both singular and plural. Whenever used herein,
any pronoun shall be deemed to include both singular and plural and to cover
all genders.

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ARTICLE II

DEMISING CLAUSES; DURATION OF LEASE TERM; 

RENTAL PROVISIONS

Section 2.1             Lease of Premises.  Subject to the tarns and provisions hereinafter
set forth, and in consideration of the rent to be paid by the Company and in
consideration of the covenants and agreements herein contained to be kept and
performed by the Company, the City does hereby lease, demise and let unto the
Company, subject to Permitted Encumbrances, and the Company does hereby hire
and take from the City, subject to Permitted Encumbrances, for the uses and
purposes hereinafter set out, a parcel of property and all improvements,
located in the City of Fordyce,
Dallas County, Arkansas, with the specific premises outlined on Exhibit “A”,
which is attached hereto and made a part hereof (the “Premises”) .

TO HAVE AND TO HOLD the Premises unto the
Company for the team of this Lease Agreement as hereafter set forth.

Section 2.2             Term.  (a)  Initial
Term.  Unless sooner terminated or
extended as hereinafter provided, this Lease Agreement shall be for a period of
twenty (20) years, commencing on January 10, 1997 (the “Commencement Date”) and
ending an January 10, 2017.

(b)           Option
Terms.  Provided the Company is not
then in default, the City hereby grants to the Company the option to extend the
term of this Lease Agreement for two (2) additional periods.  The Company may exercise the first option for
five (5) years (“First Option Term”) by giving the City written notice not
later than twelve (12) months before the expiration of the is initial
term.  The Company may exercise the
second option for four (4) years (“Second Option Term”) by giving the City
written notice not later than twelve (12) months before the expiration of the
First  Option Term. Time is of the
essence with respect to the Company’s exercise of those options.  Such renewals shall be on the same terms and conditions as
contained herein except that the annual base rent for both Option Terms shal1
be Nine Thousand Nine Hundred Eighty-Four and 00/100 ($9,984.00), payable in
equal monthly installments of Eight Hundred Thirty-Two and 00/100 Dollars ($832.00).

Section 2.3             Rent.  (a) 
The Company agrees to pay
to the City, without demand, deduction or set-off, except as provided in this
Lease Agreement, an initial annual base rental at the rate of One Hundred
Thirteen Thousand One Hundred Ninety-six and 00/100 Dollars ($113,196.00) per
annum, payable in equal monthly installments on the tenth day of each calendar
month, commencing February 10, 1997, during the term of this Lease Agreement in
the amount of Nine Thousand Four Hundred Thirty-Three Thousand and 00/100
($9,433.00).

(b)           Upon the
seventh (7th) anniversary of the commencement date, the annual rent shall be
adjusted to reflect the then current
interest rate on the Series A Bonds (the interest on which shall be Two Hundred
(200) basis points over the
interest rate of similar eight (8) year U.S. Treasury Notes, in no event exceeding
nine percent (9%) per annum, determined as provided in the Bond Purchase
Agreement).  The adjusted annual rent
shall not exceed One Hundred Sixteen Thousand Nine Hundred Forty and 00/100
Dollars ($116,940.00), payable in

 4
 

 

monthly installments of Nine
Thousand Seven Hundred Forty-Five and 00/100 Dollars ($9,745.00).

(c)           Upon
the fifteenth (15th) anniversary of the Commencement Date the annual base rent shall be Nine Thousand Nine Hundred Eighty-Four and 00/100 ($9,984.00), payable in equal monthly installments of
Eight Hundred Thirty-Two and 00/100 Dollars
($832.00).

(d)           Each
payment made pursuant to this Section 2.3 shall be made in immediately
available funds directly to the Purchasers
for the account of the City at the address of the
Purchasers set forth herein or, in the
case of each subsequent owner of
the Bonds, at the place designated in the notice of
assignment of the Bonds provided in Section 2.09 of the Bond Purchase Agreement,
or at such other place as shall from time to time be designated by the
Purchasers or such subsequent owner of the Bonds in each case after notice in writing to the City and the Company.

(e)           In
the event the Company should fail to make, or cause to be made, any of the
payments required in this Section, the item or installment so in default
shall continue as an obligation of the Company until the amount in default shall have been fully paid.

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ARTICLE III

USE OF PREMISES

Section 3.1             Use of Premises.  The Premises shall be used by the Company for
general office and warehouse use, manufacturing of paper products and uses
incidental thereto.

The City represents that the Company’s use as set forth herein
complies with all zoning ordinances and covenants and restrictions of record
applicable to the Premises.

Section 3.2             Compliance with Laws.  During the term of this Lease
Agreement, the Company shall, at the Company’s own cost and expense, comply with all
laws, ordinances, orders, rules, regulations and requirements of all federal,
state and municipal governments and appropriate departments, commissions,
boards and officers thereof relating
to the Premises, whether or not
the same require repairs or alterations to the Premises.  The Company shall have the right to contest
by appropriate legal proceedings, without cost or expense to the City, the
validity of any law, ordinance, order, rule, regulation or requirement,
applicable to the Premises, if no lien, charge or liability shall be imposed
against the Premises or the City’s interest therein by reason thereof, and in such event, the Company may postpone compliance therewith until the final
determination of any such proceeding.

Section 3.3             Services and Utilities.  The City shall furnish, at its own cost and
expense, sewer, water, electric, gas and telephone connections into the Premises.

The Company shall pay all utility bills, including,
but not limited to water, sewer, gas, electricity, telephone, fuel, light, and heat bills, for the Premises
which services shall be separately
monitored for the Premises.

Section 3.4             Maintenance and Repairs.  The Company shall, at all times during the term and at is own cost and expense, keep and maintain the Premises in good
order and condition, except as such repairs are rendered necessary by the
negligence of the City, its agents, employees, or invitees.

Section 3.5             Damage and Destruction.  (a)  In
the event of the total destruction of the Premises by fire or other casualty
during the term hereof, including any casualty attributable to any condition of
the Premises which pre-exists the
Commencement Data of this Lease Agreement or in the event of such partial destruction thereof as to render the Premises
untenantable or unfit for occupancy, therein
either event, unless such damages can, in the reasonable opinion of the City and the Company, be repaired
within one hundred eighty (180) days after the occurrence, this Lease Agreement
and the term hereby created shall cease from the date of such damage or destruction and the Company shall upon written notice from the City
surrender the Premises to the City and the
Company shall pay rent within said term only to the time of such damage or destruction.

If, however, in
the reasonable opinion of the City and the Company, the damage as aforesaid can be repaired within one hundred
eighty (180) days from the occurrence thereof, the City shall repair the Premises with all reasonable speed, and this Lease Agreement shall continue in full force and effect.

 6
 

 

(b)           In
the event or the partial destruction of the Premises by fire or other casualty
during the term hereof, including any casualty attributable to any condition of
the Premises which pre-exists the Commencement Date of this Lease Agreement, which partial destruction
does not render the Premises untenantable or unfit for occupancy, the City
shall repair the damage with all reasonable speed within Sixty (60) days
thereafter, and this Lease Agreement shall continue in full force and effect.

(c)           If
the City does not restore the Premises or the affected portion to tenantability
within the periods set forth in subsections (a) and (b) above, the Company may
then terminate this Lease Agreement, retroactive to the date of casualty by
written notice delivered to the City within fifteen (15) days after the end of
those periods.

(d)           All
insurance money paid on account of such casualty shall be paid to the City and
used to repair or restore the damaged or destroyed property.  It requested by the Company, all insurance
proceeds delivered to the City
pursuant to the terms of this
Lease Agreement shall be held in
a separate account in any bank or trust company selected by the City and acceptable to the Company.  The Company shall have the right to
audit the expenditure and handling of such proceeds.

(e)           The
City’s obligation to repair or restore the Premises pursuant to this Section
3.5 shall be limited to the insurance proceeds received by the City for such purpose. 
If the insurance money
shall he insufficient to pay all coats of such repair or restoration, the City shall not be liable for the deficiency.  Any balance of the insurance proceeds
remaining over and above the cost of such repair or restoration shall be used
to prepay or redeem the outstanding principal of the Bonds, in accordance with
the provisions of the Bond Purchase Agreement, and the rent payable under
Section 2.3 hereof shall be
adjusted downwards accordingly.

Section 3.6             Building Alterations.  The Company may, at its own cost and
expense, with the City’s prior written consent, which consent shall not be
unreasonably withheld, make alterations, additions, or improvements in or to
the Premises providing (i) the structural integrity and market value of the
Premises are not materially lessened by reason thereof, (ii) such work is
completed in a good and
workmanlike manner and in compliance with all applicable laws, rules, regulations and ordinances, and (iii) the specifications for
such work equals or exceeds the specifications for the original construction of
the Premises, taking into consideration any changes in construction practices
and technology which may exist at the time
of such alterations.

All alterations, additions, and improvements which may be erected, installed or affixed on or
in the Premises during the term are and shall be deemed to be and immediately
become part of the realty and the sole
and absolute property of the City and shall be deemed to be part of the
Premises, except that all furniture, trade fixtures or demountable partitions
installed by the Company shall be and remain the property of the Company.

The Company may, at its own
cost and expense, without the City’s consent, install,
replace or remove any of the Company’s trade
fixtures, furniture, demountable partitions and equipment (all hereinafter referred to as “Trade Fixtures”).  Any or all such Trade Fixtures shall be and
remain the property of the Company, and may, at the Company’s option and 

 7
 

 

expense, be removed by
the Company at any time during the term of the Lease Agreement or at the Lease
Agreement expiration date.  Thu Company
shall be liable for damaged to the Premises caused by the Company’s removal of its Trade Fixtures.

Section 3.7             Signs.  The Company shall not attach or erect or permit anyone
to attach or erect any signs, symbols, lettering of any kind on the walls or roof of the Premises without the prior written consent of the City, which
consent shall not be unreasonably
withheld.

Section 3.8             Access and Inspection.  The Company shall have access to the Premises
twenty-four (24) hours a day, cloven (7) days a week.

The City and the Purchasers shall have the right to enter upon the Premises during
reasonable business hours for the purpose of inspection or for maintenance work
or repairs in accordance with the provisions hereof, provided that prior notice
shall be given to the Company.  The City
and the Purchasers shall also have the right to enter at any time without
notice in the event of fire, explosion or other emergency, for the purposes of controlling, extinguishing or
abating the same.

Section 3.9             Insurance.  The Company
shall, at the Company’s sole cost and expense, keep the Premises and
improvements thereon covered by Fire and Extended Coverage insurance against
the perils of fire, flood, lightning, windstorm, hurricane, hail, explosion,
radioactive contamination, riot, civil commotion, vandalism, malicious
mischief, smoke, aircraft or land vehicle, sonic shock wave, molten material,
liquid and leakage of fire protection equipment, in an amount not less than one hundred percent (100%) of the
replacement value thereof, including all improvements, alterations and
additions which may be made.  The Company
is responsible to pay all deductible amounts under this insurance.  The Company shall also procure and maintain a
policy or policies of Comprehensive General Liability insurance, including
contractual liability, with minimum limits of $1,000,000 combined single limit
for bodily injury and property damage. 
The Company shall have the right to self insure the risks consistent
with the Company’s practices at similar facilities.

In addition, the Company shall procure and maintain
during the entire term of this agreement, a policy or policies insuring: (i) Worker’s Compensation with minimum limits meeting statutory
requirements, or a state approved self insurance plan; and (ii) Comprehensive
General Liability insurance, including contractual, liability coverage, with a
minimum combined single limit of $1,000,000 for bodily injury and property
damage.  The Company shall have the right
to self insure the risk consistent with the Company’s practices at similar
facilities.  The Company is responsible
for any and all deductible amounts under all policies required to be carried.

The insurance required by
this Section shall name the City as an
insured and the Purchasers as loss
payees with respect to such insurance. 
If requested, the Company shall provide the City and the Purchasers with
a certificate or certificates of insurance providing evidence of this
coverage.  (Requests for certificates of
insurance should be directed to the International Paper Risk Management
Department, 6400 Poplar Avenue, Memphis, TN, 30197.  A copy of this executed Lease Agreement must
be sent with any requests for
certificates.)  All certificates issued
on the Company’s behalf shall contain a standard thirty (30) day
notice of 

 8
 

 

cancellation or material
change.  The Company shall have the right
to audit the expenditure
and handling of proceeds of any insurance required by this Section.

Section 3.10           Taxes and Assessments.  The Company shall pay all general real estate
taxes on the Premises and all special assessments, levies and any other typo of
levy on real estate, prior to the date when such taxes shall become delinquent.  The Company shall reimburse the City for the
foregoing taxes.

Notwithstanding the foregoing, taxes shall not include
taxes or
assessments for (i) improvements or alterations made by the City outside of the
Premises, (ii) additions to the land or building, and (iii) the
City’s federal or state income, franchise, inheritance or estate taxes.

The Company shall have the unrestricted right to
contest the amount or validity of any taxes and special assessments required to
be borne by it pursuant to this Section by appropriate legal proceedings
provided, however, this shall not be deemed or construed in any way as
relieving, modifying or extending the Company’s covenant to pay the same as
required in this Section.  The City shall
not be required to join in any such
proceeding unless it shall be
necessary for it to do so in order to
properly prosecute such proceeding, in which event the City agrees to
join in the proceeding.

The parties hereto recite knowledge of the decision of
the Supreme Court of the state of Arkansas in Wayland v. Snapp, 232 Ark.
57, 334 S.W. 2d 633 (1960), concerning the exemption of properties owned by
municipalities and used for securing and developing industry under and pursuant
to the provisions of the Act.  The City
has represented to the Company, and the City and the Company acknowledge that
under their and other interpretations of present law, no part at the Premises
will be subject to ad valorem taxation by the State or by any political or
taxing subdivision thereof, and these factors, among others, materially induced
the Company to enter into this Lease
Agreement.

Section 3.11           Condemnation.  If the whole or any part of the Premises hereby leased shall be take by any
public authority under the power of eminent domain, or shall be sold to such
authority under the threat of such power, then this Lease Agreement shall cease
on the part so taken or sold from the date the possession of such part shall be
required for such public purpose, and the rent provided hereunder shall be paid
to such date.  The net amount awarded as
damages or paid as a result of such taking (being the gross award less attorney’s
fees and other expenses and costs incurred in the condemnation proceedings)
shall be paid to the Purchasers and used to prepay or redeem the outstanding
principal of the Bonds in accordance with the provisions of the Bond Purchase
Agreement.

If the portion of the Premises taken or sold is such
as to destroy or impair the usefulness of the Premises for the purpose for
which same have been leased hereunder, then the Company may elect to terminate
this Lease Agreement and declare the same null and void as of the date of such
taking or sale by giving written notice thereof to the City within thirty (30) days after the
date of such taking or sale.  If the
Company deem not elect to terminate this Lease Agreement than the rent payable
by the Company under Section 2.3 hereof from and after the date when such
possession is taken shall be reduced in the same proportion that the usefulness
of the Premises is diminished for the Company’s business operation, such
proportion to be mutually 

 9
 

 

agreed upon by both
parties, with due consideration being given to all pertinent factors, including
the square footage of the space and the improvements involved.

Each party shall be entitled separately to assert
against the condemning authority and to recover such damages as may have
accrued to and for its respective estate.

 10

 

ARTICLE IV

SPECIAL COVENANTS AND AGREEMENTS

Section 4.1             Indemnification.  The Company agrees to indemnify and save the
City harmless against and from all claims by or on behalf of any person, firm,
corporation or other legal entity arising from the conduct, use, operation or
management of, or from any work or thing done on, the Premises during the term
of this Lease Agreement from (i) the operations
conducted by the Company on the Premises, (ii) any breach or default on the
part of the Company in the performance of any of its obligations under this Lease Agreement, (iii) any act
or negligence of the Company or any of its agents, contractors, servants,
employees or licensees or (iv) any act or negligence of any assignee or
sublessee of the Company, or of any agents, contractors, servants, employees or
licensees of any assignee or sublessee of the Company.

The Company further agrees to indemnify and save the
City harmless against and from all claims by or on behalf of any person, firm,
corporation or other legal entity, but only if such claims are made not later
than one year following the termination of this Lease Agreement, arising from
the damages resulting in whole or in part from the escape, seepage, leakage,
spillage, discharge, emission, discharging or release from or on, the Premises
of any Hazardous Substance during the term of this Lease Agreement, including,
but not limited to, any losses, liabilities, damages, injuries, costs
(including response costs), expenses or claims asserted or arising under the
Comprehensive Environmental Response, Compensation and Liability Act, the
Resource Conservation and Recovery Act, any so-called “Superfund” or “Superlien”
law, or any other Federal, State or local statute, law, ordinance, code, rule,
regulation, order or decree regulating, relating to or imposing liability or
standards of conduct concerning any hazardous, toxic or dangerous waste,
substance or material, to the extant caused by or resulting directly from the
acts or omissions of the Company.

The Company agrees that,
in the event any suit or action is brought against the City, its agents or
employees to recover for or on
account of any such claim, cause of action, loss, damage or cost, the Company
will, at the request of the City, appear and defend said suit or action at the
sole cost and expense of the Company, and will pay any judgment, including
principal, interest and cost, that may be entered against the City therein when
said suit or action is finally determined.

Section 4.2             Hazardous Substances; Compliance
with Environmental Laws. 
(a)  Except in strict compliance with all Environmental Laws,
the Company shall not acquire, use, generate, manufacture, produce, store,
release, discharge, dispose of, or arrange for the disposal of on, under or
about the Premises or transport to or from the Premises any
Hazardous Substance or allow any other person or entity to do so.

(b)           The
Company shall keep and maintain the Premises in compliance with, and shall not
cause or permit the Premises to be in violation of, any Environmental Law.

(c)           The
Company shall give prompt written notice to the City and the Purchasers of:

 11
 

 

(i)            Any
proceeding by any government authority with respect to the presence of any
Hazardous Substance on the Premises or the migration thereof from or to other
property,

(ii)           All
claims made by any third party against the Company or the Premises relating to
loss or injury from any Hazardous Substance;

(iii)          The
Company’s discovery of any occurrence or condition on the Premises or adjoining
real property or in the vicinity of the Premises that could cause the Premises
or part thereof to be subject to any restrictions on the ownership, occupancy,
transferability or use of the Premises under any Environmental Law or to be
subject to response or cleanup costs.

Section 4.3             Quiet Enjoyment.  The City covenants that the Company, upon paying said rent and performing the
covenants and agreements contained herein, shall and may peaceably and quietly hold and enjoy the Premises for their
term provided herein.

 12
 

 

ARTICLE V

ASSIGNMENT AND SUBLEASING

Section 5.1             By Company.  Except as provided herein, the Company shall
not assign this Lease Agreement nor sublet the Premises, in whole or in part,
without the prior written consent of the City, which consent shall not be unreasonably
withheld.  The consent of the City need
not be obtained if the assignment or subletting is to a subsidiary or an affiliate of the Company.

No consent by the City to any assignment or sublease by the Company
shall relieve the Company of any obligation to be performed by the Company
under this Lease Agreement.

The Company shall, within fifteen (15) days after the
delivery thereof, furnish to the City and the Purchasers a true and complete
copy of the agreements or other documents effectuating any such assignment or
sublease.

Section 5.2             By City.  The city shall have the right to sell, assign, transfer, in whole or
in part, all of its rights in the Premises provided that any successor to the
City agrees in writing that so long as the Company is not in default in the
payment of rent or in the performance of any of the terms, covenants and
conditions of this Lease Agreement upon the Company’s part to be performed (a)
the Company shall not be disturbed in its possession and said successor shall
carry out the City’s obligations under this Lease Agreement; and (b) the
Company shall not be named in any action or proceedings by the holder of any
mortgage to foreclosure thereunder, and any such action shall not result in the
cancellation or termination of this Lease Agreement.  It is understood and agreed that (a) this
Lease Agreement (and the payments due hereunder) will be assigned to the
Purchasers as security for the payment of the principal of and interest on the
Bonds, and (b) the Premises will be mortgaged to the Purchasers pursuant to the
Mortgage as security for the payment of the principal of and interest on the
Bonds.

 13
 

 

ARTICLE VI

EVENTS OF DEFAULT AND REMEDIES

Section 6.1             Events of Default.  The occurrence of any one of the following
shall constitute an Event of Default:

(a)           Failure
by the Company to pay when due any payment required to be made under Section
2.3 hereof, which failure shall continue for a period of ten (10) days.

(b)           Failure
by the Company to observe and perform any covenant, condition or agreement on
its part to be observed or performed, which failure shall continue (i) for a
period of thirty (30) days after written notice, specifying such failure and
requiring that it be remedied, is given to the Company by the City or the
Purchasers, unless the City and the Purchasers shall agree in writing to an
extension of such time prior to its expiration, or (ii) for such longer period
as may be necessary to remedy such default provided corrective action is
instituted by the Company within the applicable period and is being diligently
pursued.

(c)           The
dissolution or liquidation of the Company or the filing by the Company of a
voluntary or involuntary petition it bankruptcy, or failure by the Company
promptly to lift any execution, garnishment or attachment of such consequence
as will impair its ability to carry out its obligations under this Lease
Agreement, or an assignment by the Company for the benefit of its creditors, or
the entry by the Company into an agreement of composition with its creditors,
or the approval by a court of competent jurisdiction of a .petition applicable to the Company in any
proceeding for its reorganization instituted under the provisions of any bankruptcy act, or under any
similar act which may hereafter be enacted.

Section 6.2             Remedies on Default.  Whenever any Event of Default hereunder shall
have happened and be continuing, the Purchasers, or the City with the prior
consent oaf the Purchasers, may
take one or any combination of the following remedial steps:

(a)           Re-enter
and take possession of the Premises, enforcing this Lease Agreement or
terminating this Lease Agreement, and sell or lease the Premises, holding the
Company liable for all rent and other payments due up to the effective date of such selling or leasing
and for the difference in the purchase price, rent and other amounts paid by
the purchaser or lessee pursuant to such sale or lease and the rents and other
amounts payable by the Company hereunder; and

(b)           Take
whatever action at law or in equity may appear necessary or desirable to
collect the rent then due and thereafter to become due, or to enforce
performance and observance of any obligation, agreement or covenant of the
Company under this Lease Agreement.

Any amounts collected pursuant to action taken under
this Section shall be applied in accordance with the Bond
Purchase Agreement.

Section 6.3             No Remedy Exclusive.  No remedy conferred upon or reserved to the
City or the Purchasers by this Lease Agreement is intended to be exclusive of
any other available remedy or remedies, but each and every such remedy shall be
cumulative and shall be in addition to every other 

 14
 

 

remedy given under this Leave Agreement or now or hereafter existing at
law or in equity or by statute. No delay or omission to exercise any right or
power accruing
upon any Event of Default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right or power may be
exercised from time to time and as often as may be deemed expedient. In order
to entitle the City or the Purchasers to exercise any remedy reserved to it in
this Article, it shall not be necessary to give any notice other than such
notice as may be required in this Article.

Section 6.4             Waiver of Breach.  In the event that any agreement contained
herein shall be breached by either the
Company or the City and such breach shall thereafter be waived by the
other party, such waiver shall be limited to the particular breach so waived
and shall not be deemed to waive any other breach hereunder.  In view of the assignment of the City’s
rights in and under this Lease Agreement to the Purchasers under the Bond
Purchase Agreement, the City shall have no power to waive any default hereunder
by the Company without the consent of the Purchasers, and the Purchasers may
exercise any of the rights of the City hereunder.

 15
 

 

ARTICLE VII

MISCELLANEOUS

Section 7.1             Surrender of Premises.  At the expiration or termination of this Lease Agreement, or any
extension or renewal hereof, the Company
agrees to surrender the Premises to the
City in as good condition and state of repair as when received, ordinary
wear, tear, depreciation, decay and loss by and casualty excepted.

Notwithstanding the foregoing, any claims relating to the condition of the Premises,
including but not limited to the Company’s
obligation, if any, to maintain or repair the Premises or to make improvements
or alterations or to remove or restore such items, must be presented in writing by the City to the Company within
forty-five (45) days (which time is of the essence) after expiration or
termination of this Lease Agreement or such claims sha11 be irrevocably waived.

Section 7.2             Holding Over.  In the event the Company remains in
possession of the Premises after the expiration or termination of this Lease Agreement or any
extension or renewal hereof, such holding over shall not serve to renew or
extend this Lease Agreement.  The Company
shall be deemed to be occupying the Premises as a month-to-month tenant with a
rental rate of one hundred percent
(100%) of the rental rate in
effect at the end of the Lease Agreement.

Section 7.3             Notices.  Except as otherwise provided in this Lease
Agreement, all notices, certificates or other communications shall be
sufficiently given and shall be deemed given when delivered by hand delivery or
when the same has been mailed by registered or certified
mail, postage prepaid, to the City, the
Company, or the Purchasers.  Copies of
each notice, certificate or other communication given hereunder by or to the
Company shall be mailed by registered or certified mail, postage prepaid, to the Purchasers; provided, however, that the effectiveness of any such notice shall not be affected
by the failure to send any such copies. 
Notices, certificates or other communications shall be sent to the
following addresses:

	
  City:

  	
   

  	
  City of Fordyce,
  Arkansas

  City Hall, 101 South Main

  Fordyce, Arkansas 71742

  Attention:    Mayor

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
  International Paper Company

  South Edgar Street

  Fordyce, Arkansas 71742
Attention: Plant Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  International Paper Company

  One Maynard Drive

  Park Ridge, NJ 07656

  Attention:      Counsel.

  
	
   

  	
   

  	
   

  

 

 16
 

 

 

	
  Purchasers:

  	
   

  	
  Citizens First Bank 611

  W. 4th Stoat
Fordyce, Arkansas 71742
Attention:  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fordyce Bank and Trust Company

  200 W. 4th Street

  Fordyce, Arkansas71742

  Attention:  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Arkansas Development Finance Authority

  100 Main Street, Suite 200

  Little Rook, Arkansas 72201-8023

  Attention:  President

  

 

Any of the foregoing may, by notice given hereunder, designate any
further or different address to which subsequent notices, certificates or other
communications shall be sent.

Section 7.4             Successors and Assigns.  Except as may be hereinabove, specifically provided to the contrary, this Lease Agreement shall be binding
upon and inure to the benefit or the parties hereto, and their respective successors and assigns.

Section 7.5             Captions.  The captions of the Articles herein are
inserted only as a matter of convenience and for reference, and in no way
define, limit, or describe the scope of this Least Agreement, nor the intent of
the provisions hereof.

Section 7.6             Title.  The City covenants that it has full
power and authority to enter into this Lease Agreement as fee title owner of
the Premises.

Section 7.7             Brokerage.  The City and the Company warrant that no
broker was involved in this Least Agreement or the transactions contemplated
hereby.  Each party agrees to defend and
indemnify the other party from claims for real estate commissions or fees
arising out of any acts or negotiations of the indemnifying party with any
broker, realtor or finder.

Section 7.8             Recordability of Lease.  (a) 
This Lease Agreement shall be recorded and filed in such manner and in
such places as may be required by law in order to fully preserve and
protect the security of the owners of the Bonds and to perfect the security
interest created by the Bond Purchase Agreement.

(b)           A photocopy or other reproduction of this Lease Agreement
may be filed as a financing statement pursuant to the Uniform Commercial Code,
although the signatures of the Company and the City on such reproduction are
not original manual signatures.

Section 7.9             Consent of the City and the
Company.  If any of the provisions
under the term of this Lease Agreement require the consent or approval of the
City or the Company before either party can do any act, such consent or
approval shall not be unreasonably withheld or delayed.

 17
 

 

Section 7.10           Mutual Attorneys’ Fees.  In the event either party institutes
legal proceedings against the other for breach of any of the terms, conditions
or covenantal of this Lease Agreement, or legal proceedings seeking an
interpretation of this Lease Agreement, the losing party shall pay all costs,
charges and expenses relative thereto, including reasonable attorneys’ fees of
the prevailing party.

Section 7.11           Time of Essence.  Time is of the essence of this Agreement.

Section 7.12           Governing Law.  This Lease Agreement and the rights
and obligations of the parties hereto shall be interpreted, construed, and
enforced in accordance with the laws of the State of Arkansas.

Section 7.13           Severability.  If any provision of this Lease Agreement shall be held or
deemed to be or shall in fact, be illegal, inoperative or unenforceable, the
same shall not affect any other provision or provisions herein contained or
render the same invalid, inoperative, or unenforceable to any extent
whatsoever.

Section 7.14           No Personal Liability.  No covenant or agreement contained in this
Lease Agreement shall be deemed to be the covenant or agreement of any
official, officer, agent, or employee of the City or the Company in his
individual capacity, and no such person shall be subject to any personal
liability or accountability by reason of the issuance thereof.

Section 7.15           Amendments,
Changes and Modifications.  Except an otherwise provided in this Lease Agreement or the Bond
Purchase Agreement, subsequent to the initial issuance of Bonds and prior to
payment in full of the Bonds (or the provision for payment thereof having been
made in accordance with this provisions of the Bond Purchase Agreement), this Lease Agreement may not be effectively amended,
changed, modified, altered or
terminated nor any provision waived, without the written consent of the
Purchasers.

Section 7.16           Limitation of City’s Obligations.  Any obligation of the City created by or arising out at this Lease Agreement shall be
payable solely out of the revenues derived from this Lease Agreement or the
sale of the Bonds or income earned on invested funds as provided in the Bond
Purchase Agreement and shall not constitute, and no breach of this Lease
Agreement by the City shall impose, a pecuniary liability upon the Issuer or a
charge upon the City’s general credit.

Section 7.17           Execution of Counterparts.  This Lease Agreement may be simultaneously
executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.

 18
 

 

IN WITNESS WHEROF, the City and The Company have
caused this Lease Agreement to be executed in their respective corporate names
and their respective corporate seals to be hereunto affixed and attested by
their duly authorized officers, all as of the date first above written.

	
  

  ATTEST:

  	
   

  	
  LESSOR:

  CITY OF FORDYCE, ARKANSAS

  
	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
  By:

  	
  /s/

  
	
  City Clerk

  	
   

  	
  Mayor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LESSEE:

  INTERNATIONAL PAPER COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
  NAME/TITLE:

  	
  Martin M. Molot

  
	
   

  	
   

  	
   

  	
  Manager — Bulk Dispositions

  
	
   

  	
   

  	
   

  	
             &
  Leasing

  
						

 

 19
 

 

ACKNOWLEDGMENT

	
  STATE OF ARKANSAS

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF DALLAS

  	
  )

  

Before me, a Notary Public duly commissioned,
qualified and acting, within and for the County and State aforesaid, appeared
in person the within named William Lyon and Janice McDaniel, Mayor and City
Clerk, respectively, of the City of Fordyce, Arkansas, a municipality of the
State of Arkansas, to me personally well known, who stated that they were duly
authorized in their respective capacities to execute the foregoing instrument
for and in the name of the City, and further stated and acknowledged that they
had so signed, executed and delivered the foregoing instrument for the
consideration, uses and purposes therein mentioned and set forth.

IN TESTIMONY WHEROF, I have hereunto set my hand and
official seal this 10th day of January, 1997.

	
  

  	
   

  	
  /s/

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  
	
  My Commission
  expirers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [12/14/02]

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
   

  

 

 20
 

 

ACKNOWLEDGMENT

	
  STATE OF NEW JERSEY

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF BERGEN

  	
  )

  

Before me, a Notary Public duly commissioned,
qualified and acting, within and for the County and State aforesaid, appeared

Martin M. Molot, Manager
Bulk Disposition and Leasing

respectively, of
International Paper Company, a New York corporation, to me personally well
known, who stated that they were duly authorized in their respective capacities
to execute the foregoing instrument for and in the name and behalf of the
corporation, and further stated and acknowledged that they had so signed,
executed and delivered the foregoing instrument for the consideration, uses and
purposes therein mentioned and set forth.

IN TESTIMONY WHEROF, I have hereunto set my hand and
official seal this 10th day of January, 1997.

	
  

  	
   

  	
  /s/

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  
	
  My Commission
  expirers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
   

  

 

 21
 

 

EXHIBIT A

Description of Land

The following described land situated in Denser
County, Arkansas, to-wit:

Start at the northwest
corner of the SE 1/4 NW 1/4 Section 34, Township 10 South, Range 13 West and run
east 15 feet, thence south 50 feet to the point of beginning; thence south 1270
feet, thence west 15 feet, to the southwest corner of the SE 1/4 NW 1/4, thence
south 815.15 feet
to a point in the center of Edgar
Street on the north right of way
line of the Cotton Belt Railroad , thence N 44
degrees 12 minutes 02 seconds East 1360.57 feet along said right of way, thence
North 56.6 feet to an existing 3/4” rebar., thence west 90 feat to an existing 1” pipe, thence
North 640 feet, thence west 165 feet along a fence, thence north 415 feet along
a fence to a 1/2” rebar and the south side of said street, thence west 678.55
feet back to the point of beginning, containing 30.63 acres, more or less;

AND

Start at the northwest
corner of the SE 1/4 NW 1/4, Section 34, Township 10 South, Range 13 West and
run east 15 feat, thence south 1320 feet, thence west 15 feet, to the southwest
corner of the SE 1/4 NW 1/4, thence south 815.15 feet to a point in the center
of Edgar Street on the north right of way line of the Cotton Belt Railroad, thence N 44 degrees 12
minutes 02 seconds east 1418.71 feet
along said right of way to the point of beginning; thence North 199.32 foot to
an existing 1/2” rebar, thence east 188.54 feet to an existing 3/4” rebar on said railroad right of
way, thence 44 degrees 12 minutes 02 seconds went 274.46
feet along said railroad right of
way, back to the point of beginning, containing 0.43 acres,
more or less.

This land lies as
follows:

7.42 acres in the NE1/4 SW1/4,
23.64 acres in the SE1/4 NW1/4,

Section 34, Township
10 South, Range 13 West.

CERTIFICATE OF RECORD

STATE OF ARKANSAS

COUNTY OF DALLAS

I, Norma Castleberry, Clerk of the Circuit Court and
ex-Officio Recorder for the county aforesaid, do hereby certify that the
annexed and foregoing instrument was filed for record in my office on the 14th day of January A.D., 1997, at 9:17
o’clock A.M., and the same is now duly recorded, with the acknowledgment
           and certificate
thereon, in Record Book 167, Page 158.

 22
 

 

IN TESTIMONY WHEREOF, I have set my hand and affixed
the seal of said court this 14th day of January, A.D., 1997.

NORMA CASTLEBERRY, CLERK

 23

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  2

  	
   

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
   

  	
  2

  	
   

  
	
  Section 1.2

  	
   

  	
  Use of Words and
  Phrases

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II DEMISING
  CLAUSES; DURATION OF LEASE TERM; RENTAL PROVISIONS

  	
   

  	
  4

  	
   

  
	
  Section 2.1

  	
   

  	
  Lease of Premises

  	
   

  	
  4

  	
   

  
	
  Section 2.2

  	
   

  	
  Term

  	
   

  	
  4

  	
   

  
	
  Section 2.3

  	
   

  	
  Rent

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III USE OF
  PREMISES

  	
   

  	
  6

  	
   

  
	
  Section 3.1

  	
   

  	
  Use of Premises

  	
   

  	
  6

  	
   

  
	
  Section 3.2

  	
   

  	
  Compliance with Laws

  	
   

  	
  6

  	
   

  
	
  Section 3.3

  	
   

  	
  Services and Utilities

  	
   

  	
  6

  	
   

  
	
  Section 3.4

  	
   

  	
  Maintenance and Repairs

  	
   

  	
  6

  	
   

  
	
  Section 3.5

  	
   

  	
  Damage and Destruction

  	
   

  	
  6

  	
   

  
	
  Section 3.6

  	
   

  	
  Building Alterations

  	
   

  	
  7

  	
   

  
	
  Section 3.7

  	
   

  	
  Signs

  	
   

  	
  8

  	
   

  
	
  Section 3.8

  	
   

  	
  Access and Inspection

  	
   

  	
  8

  	
   

  
	
  Section 3.9

  	
   

  	
  Insurance

  	
   

  	
  8

  	
   

  
	
  Section 3.10

  	
   

  	
  Taxes and Assessments

  	
   

  	
  9

  	
   

  
	
  Section 3.11

  	
   

  	
  Condemnation

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV SPECIAL
  COVENANTS AND AGREEMENTS

  	
   

  	
  11

  	
   

  
	
  Section 4.1

  	
   

  	
  Indemnification

  	
   

  	
  11

  	
   

  
	
  Section 4.2

  	
   

  	
  Hazardous Substances;
  Compliance with Environmental Laws

  	
   

  	
  11

  	
   

  
	
  Section 4.3

  	
   

  	
  Quiet Enjoyment

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V ASSIGNMENT
  AND SUBLEASING

  	
   

  	
  13

  	
   

  
	
  Section 5.1

  	
   

  	
  By Company

  	
   

  	
  13

  	
   

  
	
  Section 5.2

  	
   

  	
  By City

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI EVENTS OF
  DEFAULT AND REMEDIES

  	
   

  	
  14

  	
   

  
	
  Section 6.1

  	
   

  	
  Events of Default

  	
   

  	
  14

  	
   

  
	
  Section 6.2

  	
   

  	
  Remedies on Default

  	
   

  	
  14

  	
   

  
	
  Section 6.3

  	
   

  	
  No Remedy Exclusive

  	
   

  	
  14

  	
   

  
	
  Section 6.4

  	
   

  	
  Waiver of Breach

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII MISCELLANEOUS

  	
   

  	
  16

  	
   

  
	
  Section 7.1

  	
   

  	
  Surrender of Premises

  	
   

  	
  16

  	
   

  
	
  Section 7.2

  	
   

  	
  Holding Over

  	
   

  	
  16

  	
   

  
	
  Section 7.3

  	
   

  	
  Notices

  	
   

  	
  16

  	
   

  
	
  Section 7.4

  	
   

  	
  Successors and Assigns

  	
   

  	
  17

  	
   

  

 

 i
 

 

 

	
  Section 7.5

  	
   

  	
  Captions

  	
   

  	
  17

  	
   

  
	
  Section 7.6

  	
   

  	
  Title

  	
   

  	
  17

  	
   

  
	
  Section 7.7

  	
   

  	
  Brokerage

  	
   

  	
  17

  	
   

  
	
  Section 7.8

  	
   

  	
  Recordability of Lease

  	
   

  	
  17

  	
   

  
	
  Section 7.9

  	
   

  	
  Consent of the City and
  the Company

  	
   

  	
  17

  	
   

  
	
  Section 7.10

  	
   

  	
  Mutual Attorneys’ Fees

  	
   

  	
  18

  	
   

  
	
  Section 7.11

  	
   

  	
  Time of Essence

  	
   

  	
  18

  	
   

  
	
  Section 7.12

  	
   

  	
  Governing Law

  	
   

  	
  18

  	
   

  
	
  Section 7.13

  	
   

  	
  Severability

  	
   

  	
  18

  	
   

  
	
  Section 7.14

  	
   

  	
  No Personal Liability

  	
   

  	
  18

  	
   

  
	
  Section 7.15

  	
   

  	
  Amendments, Changes and
  Modifications

  	
   

  	
  18

  	
   

  
	
  Section 7.16

  	
   

  	
  Limitation of City’s
  Obligations

  	
   

  	
  18

  	
   

  
	
  Section 7.17

  	
   

  	
  Execution of Counterparts

  	
   

  	
  18

  	
   

  

 

 ii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]