HUDSON BAY OSB SUPPLY AGREEMENT

Exhibit 10.24

HUDSON BAY OSB SUPPLY AGREEMENT

HUDSON BAY OSB SUPPLY AGREEMENT (this “Agreement”) made with effect from the 7th day of March 2007 between WEYERHAEUSER SASKATCHEWAN LTD., a Saskatchewan corporation (hereinafter referred to as “Weyerhaeuser”), and DOMTAR PULP AND PAPER PRODUCTS INC., a Canadian corporation (hereinafter referred to as “Domtar”).

RECITALS

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereafter contained, Domtar and Weyerhaeuser agree herein as follows:

1.1 This Agreement shall be effective as of March 7th, 2007 (the “Effective Date”) and shall remain in effect for twenty (20) years until March 7th, 2027 (the “Initial Term”).

1.2 The parties may extend the Initial Term from time to time for such further period or periods as the parties may mutually agree in an amendment to this Agreement in writing executed by the parties.

1.3 This Agreement shall terminate automatically upon:

2.1 Subject to Section 8, Domtar agrees to make available, and Weyerhaeuser agrees to purchase up to the volume of logs set out below.

2.2 During the Initial Term, Domtar shall, on request by Weyerhaeuser, supply logs to the Mill as follows:

2.3 Both parties recognize the need for annual scheduling and operational planning. It is agreed that communication of changes to both parties’ plans will be carried out regularly and clearly. Unless otherwise agreed, the annual plan volume will be delivered in approximately twelve (12) equal monthly volumes.

2.4 Subject to Section 8, if Domtar is unable to produce annual required volumes, Domtar will on request by Weyerhaeuser provide a setting closest possible to the applicable Mill that Weyerhaeuser can access directly or using one or more contractors. Should the parties fail to agree upon any term or condition of such access, either party may, by written notice, request that the term or condition be determined in accordance with the procedures for dispute resolution set forth in Section 9 of this Agreement.

3.1 Logs sold hereunder shall meet the product specifications set forth in Exhibit “A”.

3.2 Weyerhaeuser shall make such measurements and tests as it, acting reasonably, deems necessary to determine the quantity and quality of logs supplied by Domtar. Domtar shall accept and be bound by such measurements and tests, and the results thereof, subject always to Domtar’s right to verify said measurements, tests and results upon reasonable prior notice and during regular business hours. Any correction required to be made by a party to an amount paid for a particular shipment of logs as a result of this Section 3.2 shall not, in any case, be made to an amount paid for a shipment of logs delivered more than 60 days prior to such measurement and testing.

3.3 Weyerhaeuser expressly reserves the right to inspect any phase of Domtar’s operations pertaining to the manufacture and shipment of logs upon reasonable prior notice and during regular business hours.

4.1 Domtar agrees to be bound by Weyerhaeuser’s weigh scale except that Domtar has the right to verify said measurements, tests and results upon reasonable prior notice and during regular business hours. Weyerhaeuser will measure on the basis of ten rolling samples per month.

5.1 Subject to section 2.3, the logs shall be delivered by Domtar to the applicable Mill.

5.2 The logs shall be made available at an agreed upon schedule and as near as possible at uniform daily rates, subject to alternative delivery schedules as Weyerhaeuser and Domtar may from time to time agree upon in writing so as to accommodate, where possible, the other party’s production schedules, and subject, where applicable, to any plant shutdowns, maintenance or force majeure incurred by either party.

5.3 Domtar shall be solely and exclusively responsible for the construction of roads that facilitate its harvesting and operations. Domtar makes no representations or warranties as to the standards of any of the roads or water crossings constructed or maintained by Domtar once Domtar has completed its hauling.

6.1 All logs to be supplied by Domtar under this Agreement shall be supplied free and clear of any and all prior claims, security interests, mortgages, liens, charges or any other encumbrances whatsoever. Title to, all rights of property in, and all risks of loss or damage or destruction to the logs shall pass to Weyerhaeuser f.o.b. the applicable Mill. Notwithstanding the foregoing, if the parties have agreed that Weyerhaeuser has the right to harvest the logs itself, then title to, all rights of property in, and all risks of loss or damage or destruction to the logs shall pass to Weyerhaeuser upon harvesting of the logs.

7.1 The price will be negotiated annually upon the mutual agreement of the parties. The price for logs will be at fair market value or the next best alternative price at which either party can demonstrate that it can purchase or sell the logs, as the case may be, from or to a third party based on term contracts of a similar duration and which exclude spot market pricing. If the parties fail to agree upon a delivered price in any given period and if Weyerhaeuser does not harvest the logs itself, either party may, by written notice, request that the delivered price be determined in accordance with the procedures for dispute resolution set forth in Section 9 of this Agreement.

7.2 All prices are exclusive of sales and any other taxes applicable to the sale of logs under this Agreement.

7.3 Subject to Section 4.2, the balance of the purchase price shall be due and payable on or before the 15th day of each month setting forth the quantities of logs purchased during the preceding month, the applicable prices and a calculation of the total amount payable in respect thereof. Weyerhaeuser shall deliver the statement to Domtar within two (2) business days thereafter together with payment for the logs purchased during the preceding month. If payment is made to Domtar after net thirty (30) days, interest is due thereafter at a rate equal to the prime rate announced by The Toronto-Dominion Bank (or its successor) for Canadian dollar loans to its Canadian customers on commercial loans plus 2% per annum. Domtar shall have the right to suspend future deliveries if the invoiced amounts are not paid by Weyerhaeuser after ninety (90) days.

7.4 If the parties have agreed that Weyerhaeuser shall harvest the logs itself, then payment for the logs shall be made by Weyerhaeuser following scaling of the logs by Weyerhaeuser at its Mill, which payment shall include applicable management fees to Domtar. Weyerhaeuser shall pay Domtar within fifteen (15) days of having scaled the logs at its Mill. If the parties fail to agree upon payment, either party may, by written notice, request that the delivered price be determined in accordance with the procedures for dispute resolution set forth in Section 9 of this Agreement.

7.5 Each party shall maintain detailed records of: (i) all measurements and tests made by it pursuant to this Agreement; and (ii) all costs incurred by it for which it is, pursuant to this Agreement, entitled to be reimbursed in whole or in part by the other party. Each party shall make such records available to the other party for inspection at all reasonable times at the expense of the party making the request for an inspection.

7.6 Weyerhaeuser will pay Crown fees on receipt of the Crown invoice. Each party agrees to pay any fines or penalties levied by the Crown against the other party or such party as a result of any activities performed by or on behalf of such party under this Agreement.

Force Majeure may be declared by the affected party for events beyond the reasonable control of the party declaring force majeure, including but not limited to such events as a strike, lockout, labour dispute, coalition between workers, accident, fire, explosion, flood, embargo, war, riot, sabotage, act of God, enemy action, blockade, any decision of any government, or subdivision or agency thereof, delay or default of carriers or loggers, shutdown of a facility or forestry operations, inability to secure or a delay in securing machinery, equipment, material, supplies, including supply of logs, fuel, or power necessary to the contractors or operation of facility, and general market conditions for the product or supplies for a facility, but not for lack of funds. In an event of force majeure:

9.1 Any issue, dispute or controversy arising pursuant to this Agreement (a “Dispute”) shall be settled in the following manner. Upon written request of either party, the representatives of Weyerhaeuser and of Domtar shall promptly confer and exert their commercially reasonable efforts without the necessity of any formal proceeding related thereto to reach a reasonable and equitable resolution of such Dispute. If such representatives are unable to resolve such Dispute within ten (10) business days, the Dispute shall be referred to the responsible senior management of each party for resolution. Neither party shall seek any other means of resolving any Dispute arising in connection with this Agreement until both parties’ responsible senior management have had at least five (5) business days to resolve the Dispute following its referral to them.

9.2 Should the parties’ senior management be unable to resolve the Dispute as provided for under this Section 9, the Dispute shall be settled by a single arbitrator in the city of Saskatoon, Saskatchewan, in accordance with the Saskatchewan Arbitration and Mediation Institute Arbitration Rules (or successor) then in effect. The procedures for arbitration shall be governed by the Commercial Arbitration Act (Saskatchewan). The single arbitrator shall have expertise in the area of the pulp and forestry industry. The arbitrator may award costs to the prevailing party. The arbitrator’s decision shall be final and binding upon the parties.

9.3 Either party may trigger an arbitration by notice to the other and the parties shall have thirty (30) days to provide positions in writing to the arbitrator. The arbitrator shall make a determination within another thirty (30) days or within such other period the arbitrator may determine, bearing in mind the time sensitive nature of this process.

9.4 While any issue is under dispute, Domtar shall continue to supply and Weyerhaeuser shall continue to purchase the logs under the terms in effect before the Dispute arose. Any logs supplied during the Dispute settlement process shall be subject to a retroactive price adjustment as determined by the arbitrator once the price has been determined through the dispute resolution process set forth under this Section 9.

9.5 If the issue in dispute is price, the arbitrator shall consider the factors set out in Section 7.1 of this Agreement.

10.1 Domtar warrants to Weyerhaeuser that Domtar has good, clear and unencumbered title to the logs sold hereunder and has the full lawful right to sell said logs. Domtar further warrants that each delivery of logs shall meet the specifications contained in Exhibit “A”. Domtar’s obligation under this warranty is limited to a reduction of the price (to be mutually agreed upon by the parties) to reflect the failure to meet such specifications. THIS WARRANTY IS EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES EXPRESSED OR IMPLIED, INCLUDING MERCHANTABILITY, AND ALL OTHER OBLIGATIONS OR LIABILITIES ARISING OUT OF DOMTAR’S FAILURE TO MEET SAID SPECIFICATIONS, INCLUDING LIABILITIES ARISING FROM CLAIMS OF CONTRACT OR TORT.

10.2 In no event will either party be liable to the other for any special, incidental or consequential damages (including, without limiting the generality of the foregoing, or punitive damages), regardless of whether the party knows or should have known of the possibility of such damages being incurred by the aggrieved party.

In the event of the sale or other form of transfer of all or substantially all of the assets composing any or all of the Mill, the parties shall consent to the assignment of this Agreement to the purchaser of such Mill provided that the purchaser undertakes in writing to be bound by each of the terms hereof as if it was an original party to this Agreement. If there is a the transfer of the Prince Albert FMA, the parties shall consent to the extent possible of the assignment of this Agreement to the transferee of such FMA, the whole subject to the approval and consent of Saskatchewan Environment. In such event, the assigning party shall be released from any ongoing obligations hereunder as and from the date of transfer of such assets.

Any notice, consent, approval, authorization, waiver or permission hereunder shall be ineffective unless in writing, signed by a representative of the sender authorized to do so by an officer of the sender, and shall be deemed given only when delivered in person to an officer of the addressee or when transmitted by facsimile (provided confirmation is sent by mail within 1 business day) or upon receipt when such notice was sent by mail. The term “sent by mail” shall mean deposited in the mail, registered or certified mail return receipt requested, postage prepaid, addressed to the receiving party at the address and to the attention of the person below or such other address or person as the receiving party may notify the other:

The laws of the Province of Saskatchewan shall govern all aspects of this Agreement, including its validity, interpretation, performance, operation and enforcement. It is the intent of the parties that this Agreement be the binding and enforceable obligation of each party and be interpreted as aforesaid from and after the date of execution hereof.

Both parties shall comply with all applicable federal, provincial and local laws, rules, and regulations, including, but not limited to, occupational safety and health laws, unemployment compensation laws, worker’s compensation laws, Ministry of Transportation regulations, and each party specifically agrees to indemnify and hold the other harmless from any claims, liabilities or expenses arising out of the violation of any such laws, rules and regulations.

This Agreement supersedes all prior agreements and communications and shall not be altered by either party except by consent of both parties in writing executed by their duly authorized representatives.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above mentioned.