Purchase Agreement Between Orchids Paper Products Company and Recard S.p.A for Tissue Machine and Related Equipment

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Summary

This agreement is between Orchids Paper Products Company (the buyer) and Recard S.p.A (the seller) for the purchase and delivery of a tissue paper machine and related equipment, including spare parts and installation services. The contract outlines payment terms, delivery schedules, penalties for late delivery, and warranty periods. Key obligations include timely shipment of equipment, adherence to documentation requirements, and specific payment milestones. Penalties apply for late delivery or missed deadlines, and the warranty lasts up to three years or twelve months after installation, whichever comes first.

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EX-10.8 16 c92640exv10w8.txt EXHIBIT 10.8 EXHIBIT 10.8 [DICK ENGINEERING] Dick Engineering Inc. Suite 500 One Concorde Gate Toronto, Ontario M3C 3N6 REQUISITION NO 1001 Telephone ###-###-#### TELEFAX ###-###-#### TO (SELLER) PROJECT Recard S.p.A Tissue Machines Paper Machine No. 4 55019 Villa Basilica Lucca, Italy OWNER Orchids Paper Products Company Telephone 39.0572.43067 Telefax 30.0572.43011 ORDER DATE Feb 8/05 Attn: Mauro Michelini ORDER SENT VIA DELIVER TO (BUYER) e-mail Orchids Paper Products Company 4826 Hunt Street DELIVERY REQUIRED BY Mid-America Industrial Park see below Pryor, OK ###-###-#### SHIP VIA Telephone ###-###-#### sea and truck Telefax ###-###-#### FOB POINT Attn: Michael Sage 4826 Hunt Street, Pryor, OK COPIES TO (INDICATE W/ATTACH WHERE APPLICABLE) FUNDS D. Luxmore Euro File 1.04.058.3.2.6 TERMS OF PAYMENT see below
- --------- ------- ------------------------------------------------------------- --------------- --------------- ITEM QTY DESCRIPTION UNIT PRICE ITEM PRICE - --------- ------- ------------------------------------------------------------- --------------- --------------- A 1 lot Base machine [***] [***] - --------- ------- ------------------------------------------------------------- --------------- --------------- B 1 lot Spare parts including: included in included in 1- suction press roll complete with supports and bearings item A item A 1- felt roll 1- wire roll 1- bearing for suction press roll 1- bearing for Yankee cylinder 1- rotation joint for steam inlet and condensate discharge - --------- ------- ------------------------------------------------------------- --------------- --------------- C 1 lot Stairs and walkways complete in AISI 316 [***] [***] - --------- ------- ------------------------------------------------------------- --------------- --------------- D 1 lot Approach flow system including, fan pump, primary screen, [***] [***] secondary screen, polished approach flow pipe and broke pulper - --------- ------- ------------------------------------------------------------- --------------- --------------- E 1 lot DCS for machine control system, approach flow system and [***] [***] hood including operator station all fully configures - --------- ------- ------------------------------------------------------------- --------------- --------------- F 1 lot Fixed price for field personnel expenses including [***] [***] airfares, hotel accommodation, ground transportation, meals and daily pocket money - --------- ------- ------------------------------------------------------------- --------------- --------------- G 1 lot Integration of core extraction station into end of storage [***] [***] rails - --------- ------- ------------------------------------------------------------- --------------- --------------- H 1 lot AISI 316 SS frames [***] [***] - --------- ------- ------------------------------------------------------------- --------------- --------------- I 1 lot Mist exhaust system [***] [***] - --------- ------- ------------------------------------------------------------- --------------- --------------- TOTAL [***] - --------- ------- ------------------------------------------------------------- --------------- --------------- BUYER'S accounting coding: o to be confirmed - --------- ------- ------------------------------------------------------------- --------------- --------------- TAG the Goods as follows: o to be confirmed - --------- ------- ------------------------------------------------------------- --------------- --------------- Goods shall conform to the following DOCUMENTS which form a part of this Requisition: o Engineer's Purchasing documents revision 2 dated March 8, 2005 o Seller's Proposed Documentation Submitting Schedule o Seller's Quotation - --------- ------- ------------------------------------------------------------- --------------- --------------- If there is a conflict with the Requisition, the order of PRIORITY of the documents, from highest to lowest, shall be: - --------- ------- ------------------------------------------------------------- --------------- ---------------
[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portions has been omitted and filed separately with the Securities and Exchange Commission. [DICK ENGINEERING] REQUISITION NO _NO 2
- --------- ------- ------------------------------------------------------------- --------------- --------------- ITEM QTY DESCRIPTION UNIT PRICE ITEM PRICE - --------- ------- ------------------------------------------------------------- --------------- --------------- o Requisition o Engineer's Addenda in reverse chronological order o Engineer's Request for Quotation o Engineer's Drawings o Seller's Quotation - --------- ------- ------------------------------------------------------------- --------------- --------------- WARRANTY PERIOD shall commence on the date of the Purchase Order and terminate on the earlier of: a. The last day of the twelfth month following that month during which the Goods are checked out and put into operation b. The third anniversary date of the date of the Purchase Order - --------- ------- ------------------------------------------------------------- --------------- --------------- DELIVERY shall conform to the following: o drawings issued as per the attached documentation submitting schedule o Sole plate ready to ship two months from down payment o Wire, felt section approach flow and mist exhaust system ready to ship seven months from down payment o Yankee dryer section ready to ship nine months from down payment o Reel and other accessories ready to ship nine months from down payment o Seller shall notify Buyer at least 48 hr in advance of shipment Orchids has calculated that any delay in the start-up of the paper machine will cost Orchids at least [***] in parent roll procurement, plus another [***] interest on construction, for a total of [***]. Recard agrees to pay a penalty for lateness in the delivery of the Goods. a) the penalty would apply after a 2 week period of grace has expired. b) the penalty would be [***]/day and capped at [***] of the total contract price c) for completion of interim tasks, such as delivery of submittals, or a shipment of machinery, the penalty would be [***] of total payments made to date d) delivery means the goods are ready to ship to the Buyer's site. - --------- ------- ------------------------------------------------------------- --------------- --------------- PAYMENT TERMS shall conform to the following: 15% execution of the purchase order 5% Buyer's receipt of all preliminary foundation drawings 5% Buyer's receipt of all certified foundation drawings 15% Five months after down payment 50% Ready to ship last shipment 10% At test certification Recard has agreed to accomplish specific tasks by certain dates against which, progress payments will be made by Orchids. Orchids has made hedging arrangements to have Euros available at fixed exchange rates on those dates to make these payments. If any of these dates are missed by more than 15 days within the first 90 days of the start of the Contract, or are missed by more than 30 days after the first 90 days, Recard agrees to pay the difference between the prevailing exchange rate and the fixed rate at the time the task has been accomplished. - --------- ------- ------------------------------------------------------------- --------------- ---------------
SIGNATURE - -------------------------------- NAME D. Luxmore [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portions has been omitted and filed separately with the Securities and Exchange Commission. [DICK ENGINEERING] Dick Engineering Inc. Suite 500 One Concorde Gate Toronto, Ontario M3C 3N6 REQUISITION NO 1002 REV 2 Telephone ###-###-#### TELEFAX ###-###-#### TO (SELLER) PROJECT Premiair Technology Inc. Paper Machine No. 4 970 Montee de Liesse Suite 201 OWNER Ville St.-Laurent, Quebec Orchids Paper Products Company H4T 1W7 Tel: (514) 333-3377 ORDER DATE Apr 18/05 Attn: Peter Walker ORDER SENT VIA DELIVER TO (BUYER) e-mail Orchids Paper Products Company 4826 Hunt Street DELIVERY REQUIRED BY Mid-America Industrial Park see below Pryor, OK ###-###-#### SHIP VIA Telephone ###-###-#### truck Telefax ###-###-#### FOB POINT Attn: Michael Sage Orchids Paper Products Company COPIES TO (INDICATE W/ATTACH WHERE APPLICABLE) FUNDS File 1.04.058.3.3 US dollars TERMS OF PAYMENT see below
- --------- ------- ------------------------------------------------------------- --------------- --------------- ITEM QTY DESCRIPTION UNIT PRICE ITEM PRICE - --------- ------- ------------------------------------------------------------- --------------- --------------- This requisition is the current version. Changes that have been made have been indicted in the margin. - --------- ------- --------------------------------------------------------------- ------------- --------------- A 1 lot Ultra High Performance Hood [***] [***] - --------- ------- --------------------------------------------------------------- ------------- --------------- B 1 lot Process air system included in included in item A item A - --------- ------- --------------------------------------------------------------- ------------- --------------- C 1 lot Wet end remote manual profiling included in included in item A item A - --------- ------- --------------------------------------------------------------- ------------- --------------- D 1 lot Heat recovery included in included in item A item A - --------- ------- --------------------------------------------------------------- ------------- --------------- E 1 lot Delivery to FOB Point included in included in item A item A - --------- ------- --------------------------------------------------------------- ------------- --------------- TOTAL PRICE [***] - --------- ------- --------------------------------------------------------------- ------------- --------------- BUYER'S accounting coding: -------------------------------------------------------------- o 3.3 - --------- ------- --------------------------------------------------------------- ------------- --------------- TAG the Goods as follows: o to be confirmed - --------- ------- --------------------------------------------------------------- ------------- ---------------
[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portions has been omitted and filed separately with the Securities and Exchange Commission. [DICK ENGINEERING] REQUISITION NO 1002 REV 2 2
- --------- ------- ------------------------------------------------------------- --------------- --------------- ITEM QTY DESCRIPTION UNIT PRICE ITEM PRICE - --------- ------- ------------------------------------------------------------- --------------- --------------- Goods shall conform to the following DOCUMENTS which form a part of this Requisition: o Engineer's Purchasing documents revision 3 dated April 18, 2005 o Seller's Contract and Specifications dated April 12, 2005 - --------- ------- --------------------------------------------------------------- ------------- --------------- If there is a conflict with the Requisition, the order of PRIORITY of the documents, from highest to lowest, shall be: o Requisition o Engineer's Addenda in reverse chronological order o Engineer's Request for Quotation o Engineer's Drawings o Seller's Quotation - --------- ------- --------------------------------------------------------------- ------------- --------------- WARRANTY PERIOD shall commence on the date of the Purchase Order and terminate on the earlier of: a. The last day of the twelfth month following that month during which the Goods are checked out and put into operation b. The third anniversary date of the date of the Purchase Order - --------- ------- --------------------------------------------------------------- ------------- --------------- DELIVERY shall conform to the following: o Supply fans at FOB Point by August 31, 2005 o Ductwork at FOB Point by October 30, 2005 o Hood at FOB Point by November 15, 2005 o Seller shall notify Buyer at least 48 hr in advance of shipment Buyer has calculated that any delay in the start-up of the paper machine will cost Buyer at least [***] in parent roll procurement, plus another [***] interest on construction, for a total of [***]. Seller agrees to pay a penalty for lateness in the delivery of the Goods. a) the penalty would apply after a 2 week period of grace has expired b) the penalty would be [***] and capped at [***] of the total contract price c) deleted item c d) delivery means the goods are ready to ship to the Buyer's site. - --------- ------- --------------------------------------------------------------- ------------- ---------------
[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portions has been omitted and filed separately with the Securities and Exchange Commission. [DICK ENGINEERING] REQUISITION NO 1002 REV 2 3
- --------- ------- ------------------------------------------------------------- --------------- --------------- ITEM QTY DESCRIPTION UNIT PRICE ITEM PRICE - --------- ------- ------------------------------------------------------------- --------------- --------------- PAYMENT TERMS shall conform to the following: 15% execution of the purchase order 15% with issuance of drawings for approval 20% with issuance of certified drawings 40% pro-rata with delivery or offer to ship 10% against drying rate acceptance test not later than 180 days after delivery Seller has agreed to accomplish specific tasks by certain dates against which progress payments will be made by Buyer. - --------- ------- --------------------------------------------------------------- ------------- ---------------
SIGNATURE /s/ B. MCNEELY - -------------------------------- NAME B. McNeely