Contract Terms

Other Conditons of Sale for Timber and Wood/Pulp
(This is a merge file that goes out with all timber sale bid prospecti.)

The following additional items summarize conditions included in the sale contract which must be signed by the Buyer of the timber and cordwood/pulp described in this prospectus:

1.  Karl Davies will be appointed Agent for the Seller and will act as necessary to assure successful   completion of the contract.

2.  Harvesting residues (i.e., tops and chunks) will be property of the <RESIDUES>.  Tops will be lopped to lie within <TOPS> feet of the ground.  Chunks will be <CHUNKS>.

3. No reserved trees will be cut unless absolutely necessary for the cutting operation.  All unmarked  trees cut of necessity will be paid for at the same rate as other trees of that species and grade on  the tract.  Unmarked trees cut unnecessarily will be paid for at triple the stumpage rate for that species and grade.

4. The Buyer's right in the timber and wood/pulp will terminate and revert to the Seller at the expiration of the contract period.

5. A performance deposit of 10% of the sale amount will be made by the Buyer to the Agent at least  3 days before cutting begins.  This deposit, plus interest, will be returned to the Buyer upon satisfactory completion of the contract.

6. The Buyer will assume all responsibility for loss and liability on account of all accidents, losses or   damages resulting from his activities under the contract, and will provide copies of insurance policies for loss and liability and workmen's compensation.

7. The Buyer will abide by all relevant state laws (i.e., Forest Fire and Forest Cutting Practices).

8. The Buyer will be authorized to construct skid and truck roads, subject to the approval of the Seller's Agent.

9. The Buyer will make every effort to protect reserved trees and regeneration from unnecessary damage during the cutting operation.  Any excessive rutting or erosion will be repaired to the Agent's satisfaction.

10. The Agent will reserve the right to shut down the cutting operation when unfavorable weather   conditions would cause excessive damage to skid and/or truck roads.

11. The Agent will determine if any corrective measures are needed to satisfy the conditions of the contract, and will pay for them by deductions from the performance deposit if necessary.

12. If for any reason the contract is terminated because of the Buyer's failure to comply with the terms of the contract before completion of the cutting of the sale area, the Buyer will receive reimbursement for the trees paid for but not cut, less any necessary compensation to the Seller and/or Agent.

13. Any controversy relating to the contract will be settled by arbitration in Northampton, MA.

14. The Seller will warrant ownership and right to sell the timber and cordwood/pulp described in the contract.


NOTE: A blank, void copy of the sale contract will be sent upon request.