TIMBER NOTICE OF SALE SALE NAME: QUALITY SORTS AGREEMENT …

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TIMBER NOTICE OF SALE Page 1 of 3 6/29/2021 SALE NAME: QUALITY SORTS AGREEMENT NO: 30-101636-30-101645 AUCTION: September 30, 2021 starting at 10:00 a.m. COUNTY: Grays Harbor Pacific Cascade Region Office, Castle Rock, WA SALE LOCATION: Sale located approximately 5 miles south of Porter, Wa PRODUCTS SOLD AND SALE AREA: All delivered logs, except leave trees marked with blue paint, leave trees bound by yellow "Leave Tree Area" tags and all down timber existing 5 years prior to the day of sale, bounded by the following; White "Timber Sale Boundary" tags with pink "Timber Harvest Boundary" flagging and blue "Special Management Area" tags with pink flagging in Unit 1 and 2; All trees described in Schedule A Trees bounded by white "Timber Sale Boundary" tags with pink "Timber Harvest Boundary" flagging and blue "Special Management Area" tags with pink flagging in Unit 3; All timber described in Schedule A bounded by white "Timber Sale Boundary" tags with pink "Timber Harvest Boundary" flagging and blue "Special Management Area" tags with pink flagging in Unit 4 and 5; Orange "Right of Way Boundary" tags and pink "Timber Harvest Boundary" flagging in Unit 6 meeting the specifications described below; on parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., containing 84 acres, more or less. MINIMUM BID AND ESTIMATED LOG VOLUMES: Agreement # Sort # Species and Sort Specifications Average Log Length Estimated Volume Tons Per MBF Minimum Bid Delivered Prices Total Appraised Value Bid Deposit Mbf Tons $/mbf $/Ton 101636 1 DF 5-11" 28' 1081 7675 7.1 $600.00 $648,600.00 $64,860.00 101637 2 DF 12-19" 28' 725 4205 5.8 $650.00 $471,250.00 $47,125.00 101638 3 DF 20"+ 28' 300 1530 5.1 $625.00 $187,500.00 $18,750.00 101639 4 DF HQ 12"+ 28' 1429 8288 5.8 $720.00 $1,028,880.00 $102,888.00 101640 5 WW 5-11" 28' 41 307 7.5 $525.00 $21,525.00 $2,152.50 101641 6 WW 12"+ 28' 28 156 5.6 $550.00 $15,400.00 $1,540.00 7A RA 8"+ 28' 279 1953 7 $600.00 101642 7B MA 8"+ 24' 2 14 7 $350.00 FIXED $168,100.00 $16,810.00 101643 8 DF Pulp 2"+ N/A 22 286 13 $26.00 $7,436.00 $743.60 101644 9 WW Pulp 2"+ N/A 3 39 13 $26.00 $1,014.00 $101.40 101645 10 Hardwood Pulp 2"+ N/A 77 1001 13 $26.00 $26,026.00 $2,602.60 Totals: 3987 25454 $2,575,731.00 CERTIFICATION: This sale is certified under the Sustainable Forestry Initiative® program Standard (cert no: PwC-SFIFM-513) BID METHOD: Sealed Bids UNIT OF MEASURE: MBF Scale/Tonnage Scale

Transcript of TIMBER NOTICE OF SALE SALE NAME: QUALITY SORTS AGREEMENT …

TIMBER NOTICE OF SALE

Page 1 of 3 6/29/2021

SALE NAME: QUALITY SORTS AGREEMENT NO: 30-101636-30-101645 AUCTION: September 30, 2021 starting at 10:00 a.m. COUNTY: Grays Harbor Pacific Cascade Region Office, Castle Rock, WA

SALE LOCATION: Sale located approximately 5 miles south of Porter, Wa PRODUCTS SOLD AND SALE AREA: All delivered logs, except leave trees marked with blue paint, leave trees bound by yellow

"Leave Tree Area" tags and all down timber existing 5 years prior to the day of sale, bounded by the following;

White "Timber Sale Boundary" tags with pink "Timber Harvest Boundary" flagging and

blue "Special Management Area" tags with pink flagging in Unit 1 and 2; All trees described in Schedule A Trees bounded by white "Timber Sale Boundary" tags

with pink "Timber Harvest Boundary" flagging and blue "Special Management Area" tags with pink flagging in Unit 3;

All timber described in Schedule A bounded by white "Timber Sale Boundary" tags with

pink "Timber Harvest Boundary" flagging and blue "Special Management Area" tags with pink flagging in Unit 4 and 5;

Orange "Right of Way Boundary" tags and pink "Timber Harvest Boundary" flagging in

Unit 6 meeting the specifications described below; on parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., containing 84 acres, more or less.

MINIMUM BID AND ESTIMATED LOG VOLUMES:

Agreement #

Sort #

Species and Sort Specifications

Average Log

Length

Estimated Volume

Tons Per

MBF

Minimum Bid Delivered Prices

Total Appraised

Value

Bid Deposit

Mbf Tons $/mbf $/Ton 101636 1 DF 5-11" 28' 1081 7675 7.1 $600.00 $648,600.00 $64,860.00 101637 2 DF 12-19" 28' 725 4205 5.8 $650.00 $471,250.00 $47,125.00 101638 3 DF 20"+ 28' 300 1530 5.1 $625.00 $187,500.00 $18,750.00 101639 4 DF HQ 12"+ 28' 1429 8288 5.8 $720.00 $1,028,880.00 $102,888.00 101640 5 WW 5-11" 28' 41 307 7.5 $525.00 $21,525.00 $2,152.50 101641 6 WW 12"+ 28' 28 156 5.6 $550.00 $15,400.00 $1,540.00

7A RA 8"+ 28' 279 1953 7 $600.00 101642 7B MA 8"+ 24' 2 14 7 $350.00

FIXED $168,100.00 $16,810.00

101643 8 DF Pulp 2"+ N/A 22 286 13 $26.00 $7,436.00 $743.60 101644 9 WW Pulp 2"+ N/A 3 39 13 $26.00 $1,014.00 $101.40 101645 10 Hardwood Pulp

2"+ N/A 77 1001 13 $26.00 $26,026.00 $2,602.60

Totals: 3987 25454 $2,575,731.00 CERTIFICATION: This sale is certified under the Sustainable Forestry Initiative® program Standard (cert

no: PwC-SFIFM-513) BID METHOD: Sealed Bids UNIT OF MEASURE: MBF Scale/Tonnage Scale

TIMBER NOTICE OF SALE

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EXPIRATION DATE: April 30, 2022 ALLOCATION: Export Restricted PAYMENT SECURITY: To be determined by the State as described in Clause P-045.2 of the Purchaser’s Contract. BIDDING PROCEDURES: A separate sealed bid and envelope must be submitted for each log sort. Prospective

Purchasers may bid on any or all log sorts. On the day of sale the Purchaser must bring their bid deposit up to 10% of their total bid price. Complete bidding procedures and auction information may be obtained from the Pacific Cascade Region Office in Castle Rock WA. Phone number (360)577-2025.

TIMBER EXCISE TAX: Purchaser must pay the forest excise taxes associated with the log sorts delivered to them.

The tax rate for this sale is 4.2 %. Taxable Stumpage = Total Delivered Value – (Harvest Cost + Estimated Haul Cost + ARRF). For more information contact the Department of Revenue, Forest Tax Section at 1-800-548-8829.

Use the following rates for estimating taxable stumpage: Harvest Cost = $140.69 per MBF for sorts 1, 2, 3, 4, 5, 6 and 7 and $12.00 per Ton for sorts 8, 9 and 10. Hauling Services Payment Rate per Ton = (Base Rate + Mileage Rate) x (1.40) Base Rate = $2.35 per ton

Mileage Rate = (($0.16 x C miles) + ($0.11 x A miles)) x Fuel Index Factor

ARRF = $0.00 per MBF for sorts 8, 9 and 10 and $26.00 per MBF for sorts 1, 2, 3, 4, 5, 6 and 7. Note: To calculate ARRF rates per ton use the tons\mbf conversion factor in the table above. Long-haul surcharge: An additional haul payment of $25/mbf net scale for mbf scale sorts or $4.60/ton for tonnage sorts will be added for delivery destinations in excess of 250 total one-way miles (A miles plus C miles).

CONFIRMATION: Each sort is subject to confirmation following auction. Sorts will not be confirmed until

at least 10 days after auction. Final contract award is contingent upon the State’s haul cost analysis. Actual haul route may vary and is subject to change at the State’s discretion.

SPECIAL REMARKS: The successful Purchaser(s) will be required to purchase logs from the sale area upon

delivery to their location specified in the bid submitted. Logs will be delivered to the Purchaser’s delivery location by the State’s contract harvester. Purchaser is responsible for weighing and scaling costs. All tonnage loads will be weighed and all mbf loads will be scaled at State approved locations. The State reserves the right to determine where logs are authorized to be scaled and weighed.

TIMBER NOTICE OF SALE

Page 3 of 3 6/29/2021

All road work must be completed by August 31, 2021. See road plan for details. For more information regarding this log sort sale visit our web site: http://www.dnr.wa.gov/programs-and-services/product-sales-and-leasing/timber-sales/timber-auction-packets. If you have questions call Josh Watten at the Pacific Cascade Region Office at (360)577-2025 or Steve Teitzel at the Product Sales and Leasing Division Office in Olympia at (360)902-1741.

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Unit 1 60 Acres

Unit 213 Acres

Unit 3 RMZ5 Acres

Unit 4 HWC1.7 Acres

Unit 5 HWC2.5 Acres

Unit 6 ROW1 Acre

10 YEAR CONIFER

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T I M B E R S A L E M A PS A L E N A M E :A G R E E M E N T # :T O W N S H I P ( S ) :T R U S T ( S ) :

R E G IO N :C O U N T Y ( S ) :E L E VAT I O N R G E :

30-101627

³Prepared By:

0 1,000 2,000 3,000500 Feet

mcoz490 Modification Date: mcoz490 4/5/2021

Sale AreaRiparian Restoration

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Riparian Mgt Zone

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Timber Type Change

Existing RoadsRequired Pre-Haul MaintenanceRequired ReconstructionOptional Construction

> Streams]% Stream Typek Stream Type Break" Survey Monumentâ Bridge

o Leave Tree Area <1/4-acre

Pacific Cascade RegionQUALITY SORTS

T16R5W 320-600Grays Harbor

Capitol Grant (7), Charitable/Educational/Penal & Reformatory Instit. (6), Normal School (8)

All State Unless Otherwise Noted

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Porter Creek Rd.0.7 mi.

South Bank Rd.1.3 mi.

Russell Rd.0.5 mi.

Dennis Rd0.7 mi.Q-Line

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Q-5000

Q-6000

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Q-1000

Russell Rd.Q-4000

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D R I V I N G M A PS A L E N A M E :A G R E E M E N T # :T O W N S H I P ( S ) :T R U S T ( S ) :

R E G IO N :C O U N T Y ( S ) :E L E VAT I O N R G E :

QUALITY SORTS

³Prepared By:

Pacific Cascade Region

DRIVING DIRECTIONS:From US Highway 12(Porter) turn west on to Porter Creek Road and follow for 0.7 milesTurn left on to South Bank Road and follow for 1.3 miles. Turn right on to Russell Road and follow for 0.5 miles to Dennis Road. Turn left on to Dennis Road and follow for 0.7 miles to the Q-Line gate. Continue on the Q-Line through the gate for 1.7 miles to the Q-5000. At the intersection continue on foot on the Q-5000 to Unit 2 and 5.To access Units 1,3 and 4 continue in the Q-Line for 0.8 miles to the Q-6000. Continue down the Q-6000 on foot to the units.

mcoz490 Modification Date: mcoz490 12/2/2020

Timber Sale UnitHaul RouteOther RouteHighway

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30-101627T16R5W

Grays Harbor320-600

Capitol Grant (7), Charitable/Educational/Penal & Reformatory Instit. (6), Normal School (8)

Map may not be to scale

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6/21/2021 1 of 17 Agreement No. 30-0101636

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101636

SALE NAME: QUALITY SORT 1

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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6/21/2021 2 of 17 Agreement No. 30-0101636

Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101636 1 DF 5"-11" HQ: Surface characteristics for high quality (HQ) log sorts will have sound tight knots not to exceed 1.5 inches in diameter, may include logs with not more than two larger knots up to 2.5 inches in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third of the top end of the log.

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

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6/21/2021 3 of 17 Agreement No. 30-0101636

Agreement No.

Sort #

Scaling Rule

101636 1 WS

Average Log Length Preferred Log Lengths 28'

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

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6/21/2021 4 of 17 Agreement No. 30-0101636

b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

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6/21/2021 5 of 17 Agreement No. 30-0101636

G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

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6/21/2021 6 of 17 Agreement No. 30-0101636

c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

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6/21/2021 7 of 17 Agreement No. 30-0101636

G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

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b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF

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$20/mbf for Utility logs (Adjusted Gross). Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-038.2 Average Log Length and Payment Reduction

If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01)

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Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th) Average log length payment reductions calculated by the Purchaser must be approved by the State, prior to payment for the final billing period. Third-party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

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P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract. Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

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L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

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b. Unless Purchaser and the State have made a prior agreement in writing, Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

a. When Purchaser’s refusal to accept forest products does not prevent further harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated

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damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

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SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101637

SALE NAME: QUALITY SORT 2

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101637 2 DF 12"-19" HQ: Surface characteristics for high quality (HQ) log sorts will have sound tight knots not to exceed 1.5 inches in diameter, may include logs with not more than two larger knots up to 2.5 inches in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third of the top end of the log.

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

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Agreement No.

Sort #

Scaling Rule

101637 2 WS

Average Log Length Preferred Log Lengths 28'

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

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b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

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G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

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c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

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G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

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b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF

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$20/mbf for Utility logs (Adjusted Gross). Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-038.2 Average Log Length and Payment Reduction

If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01)

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Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th) Average log length payment reductions calculated by the Purchaser must be approved by the State, prior to payment for the final billing period. Third-party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

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P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract. Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

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L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

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b. Unless Purchaser and the State have made a prior agreement in writing, Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

a. When Purchaser’s refusal to accept forest products does not prevent further harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated

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damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

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SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101638

SALE NAME: QUALITY SORT 3

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101638 3 DF 20"+ HQ: Surface characteristics for high quality (HQ) log sorts will have sound tight knots not to exceed 1.5 inches in diameter, may include logs with not more than two larger knots up to 2.5 inches in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third of the top end of the log.

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

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Agreement No.

Sort #

Scaling Rule

101638 3 WS

Average Log Length Preferred Log Lengths 28'

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

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b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

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G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

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c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

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G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

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b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF

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$20/mbf for Utility logs (Adjusted Gross). Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-038.2 Average Log Length and Payment Reduction

If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01)

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Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th) Average log length payment reductions calculated by the Purchaser must be approved by the State, prior to payment for the final billing period. Third-party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

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P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract. Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

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L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

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b. Unless Purchaser and the State have made a prior agreement in writing, Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

a. When Purchaser’s refusal to accept forest products does not prevent further harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated

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damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

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SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101639

SALE NAME: QUALITY SORT 4

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101639 4 DF HQ 12"+ HQ: Surface characteristics for high quality (HQ) log sorts will have sound tight knots not to exceed 1.5 inches in diameter, may include logs with not more than two larger knots up to 2.5 inches in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third of the top end of the log.

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

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Agreement No.

Sort #

Scaling Rule

101639 4 WS

Average Log Length Preferred Log Lengths 28'

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

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b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

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G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

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c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

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G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

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b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF

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$20/mbf for Utility logs (Adjusted Gross). Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-038.2 Average Log Length and Payment Reduction

If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01)

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Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th) Average log length payment reductions calculated by the Purchaser must be approved by the State, prior to payment for the final billing period. Third-party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

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P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract. Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

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L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

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b. Unless Purchaser and the State have made a prior agreement in writing, Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

a. When Purchaser’s refusal to accept forest products does not prevent further harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated

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damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

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SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101640

SALE NAME: QUALITY SORT 5

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101640 5 WW 5"-11"

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

Agreement No.

Sort #

Scaling Rule

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101640 5 WS

Average Log Length Preferred Log Lengths 28'

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its

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facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

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G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

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d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

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G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).

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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-038.2 Average Log Length and Payment Reduction

If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01)

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Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th) Average log length payment reductions calculated by the Purchaser must be approved by the State, prior to payment for the final billing period. Third-party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

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P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract. Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

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L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

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b. Unless Purchaser and the State have made a prior agreement in writing, Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

a. When Purchaser’s refusal to accept forest products does not prevent further harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated

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damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

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SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101641

SALE NAME: QUALITY SORT 6

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101641 6 WW 12"+

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

Agreement No.

Sort #

Scaling Rule

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101641 6 WS

Average Log Length Preferred Log Lengths 28'

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its

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facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

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G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

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d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

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G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).

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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-038.2 Average Log Length and Payment Reduction

If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01)

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Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th) Average log length payment reductions calculated by the Purchaser must be approved by the State, prior to payment for the final billing period. Third-party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

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P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract. Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

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L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

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b. Unless Purchaser and the State have made a prior agreement in writing, Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

a. When Purchaser’s refusal to accept forest products does not prevent further harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated

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damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

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SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101642

SALE NAME: QUALITY SORT 7

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101642 7A RA 8"+ 7B MA 8"+

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

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Agreement No.

Sort #

Scaling Rule

101642 7 WS

Average Log Length Preferred Log Lengths A: 28' B: 24'

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least

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between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

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G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

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c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

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G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

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b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF for Sort A and $350.00/MBF for Sort B

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$20/mbf for Utility logs (Adjusted Gross). Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-038.2 Average Log Length and Payment Reduction

If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01)

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Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th) Average log length payment reductions calculated by the Purchaser must be approved by the State, prior to payment for the final billing period. Third-party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

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P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract. Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

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L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

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b. Unless Purchaser and the State have made a prior agreement in writing, Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

a. When Purchaser’s refusal to accept forest products does not prevent further harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated

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damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

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SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101643

SALE NAME: QUALITY SORT 8

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101643 8 DF Pulp 2"+

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

Agreement No.

Sort #

Scaling Rule

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101643 8 WS

Average Log Length Preferred Log Lengths N/A

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its

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facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

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G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

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d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

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G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/Ton

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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-039.2 Tonnage Sort Payment Reduction Requirements

Purchaser must provide a plan in writing, acceptable to the State, to acquire third party Scribner mbf scaling information in order to be eligible for a payment reduction for a tonnage sort according to clauses P-036.2 or P-037.2. Logs delivered and accepted by the Purchaser prior to the State’s acceptance of Purchaser’s written payment reduction plan are not eligible for payment reduction.

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Failure of Purchaser to provide sample scale data in a timely, accurate and legible basis will void an approved sample scale plan. An approved payment reduction plan can be voided at the sole discretion of the State. For the purpose of tonnage sort payment reduction requests, preferred log lengths for tonnage sawlog sorts shall include the following plus any additional lengths identified in clause G-024.2: Species Type Preferred Lengths Conifer Sorts 16’, 20’, 24’, 26’, 32’, 40’ Hardwood Sorts 18’, 20’, 26’, 28’, 30’, 36’, 38’, 40’

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.

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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

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L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

b. Unless Purchaser and the State have made a prior agreement in writing,

Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

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a. When Purchaser’s refusal to accept forest products does not prevent further

harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

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D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101644

SALE NAME: QUALITY SORT 9

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101644 9 WW Pulp 2"+

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

Agreement No.

Sort #

Scaling Rule

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101644 9 WS

Average Log Length Preferred Log Lengths N/A

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its

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facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

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G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

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d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

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G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/Ton

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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-039.2 Tonnage Sort Payment Reduction Requirements

Purchaser must provide a plan in writing, acceptable to the State, to acquire third party Scribner mbf scaling information in order to be eligible for a payment reduction for a tonnage sort according to clauses P-036.2 or P-037.2. Logs delivered and accepted by the Purchaser prior to the State’s acceptance of Purchaser’s written payment reduction plan are not eligible for payment reduction.

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Failure of Purchaser to provide sample scale data in a timely, accurate and legible basis will void an approved sample scale plan. An approved payment reduction plan can be voided at the sole discretion of the State. For the purpose of tonnage sort payment reduction requests, preferred log lengths for tonnage sawlog sorts shall include the following plus any additional lengths identified in clause G-024.2: Species Type Preferred Lengths Conifer Sorts 16’, 20’, 24’, 26’, 32’, 40’ Hardwood Sorts 18’, 20’, 26’, 28’, 30’, 36’, 38’, 40’

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.

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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

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L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

b. Unless Purchaser and the State have made a prior agreement in writing,

Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

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a. When Purchaser’s refusal to accept forest products does not prevent further

harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

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D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES

LOG SALE AND PURCHASE CONTRACT

AGREEMENT NO. 30-0101645

SALE NAME: QUALITY SORT 10

THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:

Section G: General Terms

G-001.2 Definitions

The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.

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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.

G-010.2 Products Sold and Sale Area

Purchaser was the successful bidder on September 30, 2021 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the QUALITY SORTS Timber Sale described as parts of Sections 6, and 7 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.

G-022.2 Sorting Specifications

Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications: Agreement No.

Sort #

Description Destination

101645 10 Hardwood Pulp 2"+

G-024.2 Manufacturing Standards

All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.

Agreement No.

Sort #

Scaling Rule

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101645 10 WS

Average Log Length Preferred Log Lengths N/A

"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.

a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.

b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.

c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.

G-026.2 Log Delivery Destination

Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.

G-027.2 Log Delivery Schedule and Conditions

a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.

b. Improperly loaded trucks - It is understood and agreed that the Purchaser

incurs no obligation to accept improperly or illegally loaded trucks in its

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facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.

c. Log Delivery Interruptions - Purchaser may schedule times in which delivery

of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.

d. Required Acceptance of Daily Load Deliveries and Notification - If the State

is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:

1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or

2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.

e. State Notification to Purchaser - The State will notify the Purchaser when it

anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.

f. If payments are not received or, the State determines that the payment security

has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.

G-030.2 Contract Term and Expiration Date

Purchaser agrees to accept and pay for forest products delivered through the period ending February 28, 2022.

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G-050.2 Contract Term Extension

Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.

G-054.2 Early Contract Termination

The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.

G-056.2 Force Majeure

No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.

G-060.2 Exclusion of Warranties

The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:

a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.

b. The CONDITION of the forest products. The forest products will be

conveyed "AS IS."

c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.

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d. Items contained in any other documents prepared for or by the State.

G-065 Regulatory Disclaimer

The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.

G-070.2 Limitation on Damage

In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.

G-112.2 Title

The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.

G-116.2 Sustainable Forestry Initiative® (SFI) Certification

Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: PwC-SFIFM-513.

G-160.2 Agents

The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.

G-180 Modifications

Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.

G-190 Contract Complete

This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.

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G-200.2 Notice

Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s address of record, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.

G-210.2 Violation of Contract

a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.

b. The State has the right to remedy the breach in the absence of any indicated

attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.

c. If Purchaser’s violation is a result of a failure to make payment to the State

when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.

G-240.2 Dispute Resolution

The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.

a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.

b. The Region Manager will issue a written decision on Purchaser’s request

within five business days.

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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.

d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a

conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.

G-252.2 Forest Excise Tax

Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.

G-253.2 Harvesting Cost Information

The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.

G-260 Venue

This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.

G-330.2 Contract Review

Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.

Section P: Payments and Securities

P-010 Initial Deposit

Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.

P-028.2 Payment for Forest Products Delivered

Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/Ton

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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause. Purchaser will not be billed for any delivered logs that are scaled as containing metal.

P-036.2 Missorts and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet the sorting specifications in G-022.2 are considered mis-sorts. Purchaser receiving mis-sort Forest Products is required to pay the State at the bid price under this contract. However, when mis-sorted Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor* 0.2 for diameter mis-sort 0.3 for high quality mis-sort *Logs eligible for payment reduction based on multiple reduction factors will be calculated at the higher payment reduction factor. Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code

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P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products

Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting manufacturing standards as described in clause G-024.2 are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 8% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third-party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp, sample scaling, and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.

P-039.2 Tonnage Sort Payment Reduction Requirements

Purchaser must provide a plan in writing, acceptable to the State, to acquire third party Scribner mbf scaling information in order to be eligible for a payment reduction for a tonnage sort according to clauses P-036.2 or P-037.2. Logs delivered and accepted by the Purchaser prior to the State’s acceptance of Purchaser’s written payment reduction plan are not eligible for payment reduction.

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Failure of Purchaser to provide sample scale data in a timely, accurate and legible basis will void an approved sample scale plan. An approved payment reduction plan can be voided at the sole discretion of the State. For the purpose of tonnage sort payment reduction requests, preferred log lengths for tonnage sawlog sorts shall include the following plus any additional lengths identified in clause G-024.2: Species Type Preferred Lengths Conifer Sorts 16’, 20’, 24’, 26’, 32’, 40’ Hardwood Sorts 18’, 20’, 26’, 28’, 30’, 36’, 38’, 40’

P-040.2 Weighing and Scaling Costs

Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.

P-045.2 Guarantee of Payment

Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.

P-050.2 Billing and Payment Procedure for Forest Products Delivered

The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.

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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.

P-080 Payment Account Refund

Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.

Section L: Log Definitions and Accountability

L-010.2 Forest Products Conveyed

Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clause G-022.2 and manufacturing standards defined by clause G-024.2 of this contract

L-014.2 Sorts Delivered to Incorrect Destination

Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.

L-071.2 Log and Load Reporting Service

This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.

L-080 Scaling Rules

Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.

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L-110 State Approval of Log Scaling and Weighing Locations

Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or enroute to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.

Section D: Damages

D-010 Liquidated Damages

The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.

D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance

a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.

b. Unless Purchaser and the State have made a prior agreement in writing,

Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.

D-027.2 Failure to Accept Forest Products Sold

Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.

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a. When Purchaser’s refusal to accept forest products does not prevent further

harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.

b. When Purchaser’s refusal to accept forest products causes a stoppage of the

State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:

LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment

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D-030.2 Inadequate Log Accountability

Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.

SIGNATURES This agreement may be executed in any number of counterparts (including by electronic mail in portable document format (.pdf), or by facsimile) each of which shall be deemed an original but all of which, when taken together, shall constitute one and the same Agreement binding on all parties. IN WITNESS WHEREOF, the Parties hereto have entered into this contract.

STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch ____________________ Pacific Cascade Region Manager Print Name Date: ________________ Date: _________________ Address:

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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)

STATE OF ____________________________)

) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________

WASHINGTON STATE DEPARTMENT OF NATURAL RESOURCES

FOREST EXCISE TAX ROAD SUMMARY SHEET

Region:

Timber Sale Name:

Application Number:

EXCISE TAX APPLICABLE ACTIVITIES

Construction: linear feet Road to be constructed (optional and required) but not abandoned

Reconstruction: linear feet Road to be reconstructed (optional and required) but not abandoned

Abandonment: linear feet Abandonment of existing roads not reconstructed under the contract

Decommission: linear feet Road to be made undriveable but not officially abandoned.

Pre-Haul Maintenance: linear feet Existing road to receive maintenance work (optional and required) prior to haul

linear feet

linear feet

EXCISE TAX EXEMPT ACTIVITIES

Temporary Construction: Roads to be constructed (optional and required) and then abandoned

Temporary Reconstruction: Roads to be reconstructed (optional and required) and then abandoned

All parties must make their own assessment of the taxable or non-taxable status of any work performed under the timber sale contact. The Department of Revenue bears responsibility for determining forest road excise taxes. The Department of Natural Resources developed this form to help estimate the impact of forest excise taxes. However, the information provided may not precisely calculate the actual amount of taxes due. The Department of Revenue is available for consultation by calling 1.800.548.8829. (Revised 9/18)

Page 1 of 3 Revised 03/15/2010 (FRCD)

40PRE-CRUISE NARRATIVE

UNIT ACREAGES AND METHOD OF DETERMINATION:

Unit # Harvest R/W or RMZ WMZ

Legal Description (Enter only one legal for each

unit) Sec/Twp/Rng

Gra

nt o

r Tru

st

Gro

ss P

ropo

sal

Acr

es

Deductions from Gross Acres (No harvest acres)

Net

Har

vest

Acr

es

Acreage Determinatio

n

(List method and error of

closure if applicable)

RM

Z/

WM

Z A

cres

Leav

e Tr

ee

Acr

es

Exis

ting

Roa

d A

cres

Oth

er A

cres

(d

escr

ibe)

1 16N05W Sec 6 06, 07, 08

100.6 36.1 4.1 0 60.4

GPS (Trimble)

2 16N05W Sec 7 07, 03

29.4

15.3 1.1 0 13 GPS (Trimble)

3(RMZ) 16N05W Sec 6 06 5 0 0 0 5 GPS (Trimble)

4(HWC) 16N05W Sec 7 07, 08

1.7 0 0 0 1.7 GPS (Trimble)

5(HWC) 16N05W Sec 7 07 2.5 0 0 0 2.5 GPS (Trimble)

6(ROW) 16N05W Sec 6 06 1 0

0 0 1 GPS (Trimble)

TOTAL ACRES

140 51 5

84

Sale Name: Quality VRH RMZ Sorts Region: Pacific Cascade Agreement #: 30-0101627 District: Lewis Contact Forester:Marty Cozart Phone / Location: 360.669.3822

Grays Harbor

Alternate Contact:Dave Sund Phone / Location: 360.880.5802

Other information:

Type of Sale: Log Sort (Contract harvest) Harvest System: Uphill Cable

40

Harvest System: Ground based Enter % of sale acres

60

Harvest System: Select harvest system

Page 2 of 3 Revised 03/15/2010 (FRCD)

HARVEST PLAN AND SPECIAL CONDITIONS:

Unit # Harvest Prescription: (Leave, take, paint color, tags, flagging etc.)

Special Management areas:

Other conditions (# leave trees, etc.)

1

Variable Retention Harvest: Boundaries are marked with white “Timber Sale Boundary" tags and pink “Timber Harvest Boundary” flagging. Clumped leave trees are marked with yellow "Leave Tree Area" tags, pink flagging and blue paint. a boundary.

Leave Trees clumps are marked with yellow “Leave Tree Area” tags, and individual trees marked with blue paint at DBH and blue butt marks

2

Variable Retention Harvest: Boundaries are marked with white “Timber Sale Boundary" tags and pink “Timber Harvest Boundary” flagging. Clumped leave trees are marked with yellow "Leave Tree Area" tags, pink flagging and blue paint. a boundary.

Leave Trees clumps are marked with yellow “Leave Tree Area” tags, and individual trees marked with blue paint at DBH and blue butt marks

3 Riparian Management Zone Thinning:

Outer edge of the RMZ thinning is marked with blue ”Special Management Area” tags and pink flagging. The Inner No Harvest Zone is marked with white “Timber Sale Boundary” tags and pink Flagging.

All take trees are marked with a single band of orange paint and an orange butt mark.

4 Hardwood Conversion:

Outer edge of the hardwood conversion is marked with blue ”Special Management Area” tags and pink flagging. The Inner No Harvest Zone is marked with white “Timber Sale Boundary” tags and pink Flagging.

All Leave Trees are marked with a single band of blue paint and butt mark.

5 Hardwood Conversion:

All Leave Trees are marked with a single

Page 3 of 3 Revised 03/15/2010 (FRCD)

Outer edge of the hardwood conversion is marked with blue ”Special Management Area” tags and pink flagging. The Inner No Harvest Zone is marked with white “Timber Sale Boundary” tags and pink Flagging.

band of blue paint and butt mark.

6 Right-of-Way: Marked with orange “Right-of-Way” tags and pink “Timber Harvest Boundary” flagging

OTHER PRE-CRUISE INFORMATION:

Unit # Primary,secondary Species / Estimated Volume (MBF)

Access information (Gates, locks, etc.)

Photos, traverse maps required

1 DF,RA/ 3100 Q-Line PCP1 Logging Plan Map 2 DF,RA/ 780 3 DF/ 15 4 RA/ 50 5 RA/ 50 6 DF/ 10 TOTAL MBF 4005

REMARKS:

Prepared By: Marty Cozart Date: 6/29/20

Title: NRS2

CC: Dave Sund

Timber Sale Cruise ReportQuality VRH RMZ Sorts

Sale Name: QUALITY VRH RMZ SORTS

Sale Type: SORT

Region: PACIFIC CASC

District: LEWIS

Lead Cruiser: Blake Warnstadt

Other Cruisers:DPClark

Cruise Narrative:Location: Quality sorts is a small timber sale located up Dennis Rd between the Q-line and Rock Creek- SW of Porter. It is approximately a 15 minute haul to Highway 12 in Porter. Approximately 40% of the sale may require cable harvest system or Yoder with the majority being ground based logging. The sale consists of 6 sub units.

Sub-unit 1 is 60 acres and is comprised of two age classes. The north end of unit has approximately 24 acres of 40 year old managed DF. The rest of the stand is approximately 36 acres of natural second growth DF around 73 years old with a few WH, MA, and some RA in the lower end. Stand health is good with little to no insect or disease problems and little blow down. A small amount of stem decay observed. There is a fair amount of spike knots and some sinuosity in the 40 year old fir but overall looks good. The 73 year old portion has pole quality trees but may not be be haulable due to the road. Most of the log quality is good high B, Special Mill or regular domestic with few spikes, forks, and light sweep.

Sub-unit 2 is 13 acres. Approximately 2 acres are managed 40 year old DF, the rest is 73 year old DF with a few hardwoods and a trace of RC, MA, and WH. Log quality is high and there are several poles. There is very little blowdown, and defect is low.

Sub-unit 3 is 5 acres of Riparian Management Zone Thinning. The stand is 40 year old DF. Stand health is good with some spike knots, light sweep, a few forked trees, and little to no insect or disease damage. Most of the logs are Regular Domestic.

Sub-unit 4 and Sub-unit 5 1.7 acres of Hardwood Conversion. All conifers will be left standing. There is a trace amount of MA. Most of the volume is in RA sawlogs and RA pulp.

Sub-unit 6 is a 1 acre Right-of-Way comprised of mostly 40 year old DF with a few RA and WH. Trees have good tree shape with some sweeps, crooks, forks and spike knots. Most of the log quality is Regular Domestic and Utility.

Timber Sale Notice Volume (MBF)

MBF Volume by GradeSp QMD Rings/In Age All Spec Mill 1 Saw 2 Saw 3 Saw 4 Saw UtilityDF 20.2 8.0 56 3,556.2 354.0 2,075.3 976.5 129.0 21.4RA 15.1 355.0 9.2 122.9 98.5 68.4 55.8WH 13.2 54.4 13.4 25.2 13.3 2.4GF 26.0 17.1 14.1 2.5 0.5MA 14.2 2.9 1.8 1.2

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MBF Volume by GradeSp QMD Rings/In Age All Spec Mill 1 Saw 2 Saw 3 Saw 4 Saw UtilityALL 18.8 8.0 56 3,985.6 354.0 9.2 2,227.3 1,102.9 210.7 81.2

Timber Sale Notice Weight (tons)

Tons by GradeSp All Spec Mill 1 Saw 2 Saw 3 Saw 4 Saw UtilityDF 24,399.1 2,050.8 13,315.3 7,704.0 1,154.5 174.5RA 2,694.7 54.9 838.3 739.1 622.1 440.3WH 522.2 130.4 238.6 119.8 33.4GF 98.5 76.6 17.5 4.5MA 24.3 10.6 13.7ALL 27,738.8 2,050.8 54.9 14,371.2 8,699.1 1,896.5 666.3

Timber Sale Overall Cruise Statistics (Cut + Leave Trees)

BA(sq ft/acre)

BA SE(%)

V-BAR(bf/sq ft)

V-BAR SE(%)

Net Vol(bf/acre)

Vol SE(%)

260.5 4.4 184.1 2.2 48,774 4.9

Timber Sale Unit Cruise Design

Unit Design Cruise Acres

FMA Acres

N Plots

N Cruise Plots

N Void Plots

QUALITY VRH RMZ SORTS U1

B2C: VR, 2 BAF (40, 27.78 for some species) Measure/Count Plots, Sighting Ht = 16 ft

60.4 64.8 61 31 1

QUALITY VRH RMZ SORTS U2

B2C: VR, 2 BAF (46.94, 27.78 for some species) Measure/Count Plots, Sighting Ht = 16 ft

13.0 14.1 14 9 0

QUALITY RFRS THIN U3

B1: VR, 1 BAF (33.61) Measure All, Sighting Ht = 4.5 ft

5.0 5.0 6 6 0

QUALITY RFRS HWC U4

B2: VR, 2 BAF (40, 27.78 for some species) Measure All, Sighting Ht = 16 ft

1.7 1.7 3 3 0

QUALITY RFRS HWC U5

B2: VR, 2 BAF (40, 27.78 for some species) Measure All, Sighting Ht = 16 ft

2.5 2.5 4 4 0

QUALITY ROW U6

B1: VR, 1 BAF (33.61) Measure All, Sighting Ht = 4.5 ft

1.0 1.4 3 3 0

All 83.6 89.3 91 56 1

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Timber Sale Log Grade x Sort Summary

Sp Status Grade Sort Dia Len BF Net Defect % Tons MBF NetDF DEAD UTILITY Pulp 8.5 40.0 42 0.0 31.6 3.5DF LIVE 2 SAW Domestic 14.9 38.0 12,225 5.6 6,822.2 1,022.0DF LIVE 2 SAW HQ-A 17.2 40.0 203 0.0 99.7 17.0DF LIVE 2 SAW HQ-B 15.8 39.0 12,396 2.7 6,393.4 1,036.3DF LIVE 3 SAW Domestic 8.9 39.0 10,118 2.3 6,802.3 845.9DF LIVE 3 SAW HQ-B 11.0 40.0 1,563 0.4 901.7 130.7DF LIVE 4 SAW Domestic 5.7 29.0 1,542 1.4 1,154.5 128.9DF LIVE CULL Cull 7.5 4.0 0 100.0 0.0 0.0DF LIVE SPECIAL MILL HQ-A 17.4 40.0 4,235 0.1 2,050.8 354.0DF LIVE UTILITY Pulp 6.2 14.0 214 2.4 142.8 17.9GF LIVE 2 SAW Domestic 18.0 36.0 168 0.0 76.6 14.1GF LIVE 3 SAW Domestic 11.6 36.0 30 0.0 17.5 2.5GF LIVE UTILITY Pulp 8.5 18.0 6 0.0 4.5 0.5MA LIVE 2 SAW Domestic 14.8 20.0 21 0.0 10.6 1.8MA LIVE CULL Cull 6.7 21.0 0 100.0 0.0 0.0MA LIVE UTILITY Pulp 5.0 31.0 14 0.0 13.7 1.2RA LIVE 1 SAW Domestic 18.2 26.0 111 2.4 54.9 9.2RA LIVE 2 SAW Domestic 13.1 30.0 1,470 4.6 838.4 122.9RA LIVE 3 SAW Domestic 10.7 32.0 1,178 7.5 739.0 98.5RA LIVE 4 SAW Domestic 7.8 30.0 820 6.5 622.1 68.6RA LIVE CULL Cull 5.3 14.0 0 100.0 0.0 0.0RA LIVE UTILITY Pulp 5.6 26.0 667 0.8 440.3 55.8WH LIVE 2 SAW Domestic 14.7 40.0 160 2.6 130.4 13.4WH LIVE 3 SAW Domestic 8.8 36.0 302 8.4 238.6 25.2WH LIVE 4 SAW Domestic 5.3 34.0 159 1.2 119.9 13.3WH LIVE CULL Cull 5.0 6.0 0 100.0 0.0 0.0WH LIVE UTILITY Pulp 5.3 26.0 29 0.0 33.4 2.4

Timber Sale Log Grade x Diameter Bin Summary

Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 DEAD UTILITY 5.6 40.0 8 0.0 8.1 0.7DF 5 - 7 LIVE 4 SAW 5.6 30.0 1,469 1.3 1,101.5 122.8DF 5 - 7 LIVE CULL 5.7 4.0 0 100.0 0.0 0.0DF 5 - 7 LIVE UTILITY 5.9 14.0 195 2.7 129.3 16.3DF 5 - 7 LIVE 3 SAW 6.9 38.0 1,951 1.4 1,488.9 163.1DF 8 - 11 LIVE 4 SAW 8.7 21.0 73 1.9 53.0 6.1

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Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetDF 8 - 11 LIVE UTILITY 9.3 15.0 19 0.0 13.5 1.6DF 8 - 11 LIVE 3 SAW 9.8 39.0 9,441 2.2 6,042.0 789.3DF 8 - 11 LIVE CULL 10.2 10.0 0 100.0 0.0 0.0DF 8 - 11 DEAD UTILITY 11.4 40.0 34 0.0 23.5 2.9DF 12 - 15 LIVE 3 SAW 12.4 39.0 288 1.9 173.1 24.1DF 12 - 15 LIVE CULL 13.5 3.0 0 100.0 0.0 0.0DF 12 - 15 LIVE 2 SAW 13.6 38.0 11,380 3.5 6,705.8 951.4DF 16 - 19 LIVE CULL 16.9 2.0 0 100.0 0.0 0.0DF 16 - 19 LIVE SPECIAL MILL 17.2 40.0 3,349 0.0 1,634.4 279.9DF 16 - 19 LIVE 2 SAW 17.4 39.0 6,985 4.4 3,586.2 584.0DF 20+ LIVE CULL 20.7 8.0 0 100.0 0.0 0.0DF 20+ LIVE 2 SAW 23.0 39.0 6,459 5.0 3,023.3 540.0DF 20+ LIVE SPECIAL MILL 23.2 40.0 886 0.6 416.4 74.1GF 8 - 11 LIVE UTILITY 8.5 18.0 6 0.0 4.5 0.5GF 8 - 11 LIVE 3 SAW 11.6 36.0 30 0.0 17.5 2.5GF 16 - 19 LIVE 2 SAW 18.0 36.0 168 0.0 76.6 14.1MA 5 - 7 LIVE UTILITY 5.0 31.0 14 0.0 13.7 1.2MA 5 - 7 LIVE CULL 6.7 21.0 0 100.0 0.0 0.0MA 12 - 15 LIVE 2 SAW 14.8 20.0 21 0.0 10.6 1.8RA 5 - 7 LIVE CULL 5.4 15.0 0 100.0 0.0 0.0RA 5 - 7 LIVE UTILITY 5.4 26.0 466 1.2 320.1 39.0RA 5 - 7 LIVE 4 SAW 6.4 30.0 244 10.3 192.2 20.4RA 8 - 11 LIVE CULL 8.4 17.0 0 100.0 0.0 0.0RA 8 - 11 LIVE 4 SAW 8.8 30.0 576 4.7 429.9 48.1RA 8 - 11 LIVE UTILITY 9.3 40.0 201 0.0 120.2 16.8RA 8 - 11 LIVE 3 SAW 10.9 32.0 1,178 7.5 739.0 98.5RA 12 - 15 LIVE 2 SAW 13.3 30.0 1,470 4.6 838.4 122.9RA 16 - 19 LIVE 1 SAW 17.3 28.0 83 3.1 43.6 7.0RA 20+ LIVE 1 SAW 20.5 20.0 27 0.0 11.3 2.3WH 5 - 7 LIVE CULL 5.0 6.0 0 100.0 0.0 0.0WH 5 - 7 LIVE 4 SAW 5.3 34.0 159 1.2 119.9 13.3WH 5 - 7 LIVE UTILITY 5.3 26.0 29 0.0 33.4 2.4WH 5 - 7 LIVE 3 SAW 7.5 34.0 72 0.0 63.1 6.1WH 8 - 11 LIVE 3 SAW 9.4 36.0 230 10.8 175.5 19.2WH 12 - 15 LIVE 2 SAW 14.7 40.0 160 2.6 130.4 13.4

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Timber Sale Log Sort x Diameter Bin Summary

Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 DEAD Pulp 5.6 40.0 8 0.0 8.1 0.7DF 5 - 7 LIVE Cull 5.7 4.0 0 100.0 0.0 0.0DF 5 - 7 LIVE Pulp 5.9 14.0 195 2.7 129.3 16.3DF 5 - 7 LIVE Domestic 6.1 33.0 3,420 1.4 2,590.5 286.0DF 8 - 11 LIVE Pulp 9.3 15.0 19 0.0 13.5 1.6DF 8 - 11 LIVE Domestic 9.7 38.0 8,212 2.5 5,347.4 686.5DF 8 - 11 LIVE Cull 10.2 10.0 0 100.0 0.0 0.0DF 8 - 11 LIVE HQ-B 10.7 40.0 1,303 0.5 747.6 108.9DF 8 - 11 DEAD Pulp 11.4 40.0 34 0.0 23.5 2.9DF 12 - 15 LIVE Domestic 13.4 37.0 6,313 5.2 3,961.6 527.8DF 12 - 15 LIVE Cull 13.5 3.0 0 100.0 0.0 0.0DF 12 - 15 LIVE HQ-B 13.6 39.0 5,355 1.4 2,917.3 447.6DF 16 - 19 LIVE Cull 16.9 2.0 0 100.0 0.0 0.0DF 16 - 19 LIVE HQ-A 17.2 40.0 3,552 0.0 1,734.1 296.9DF 16 - 19 LIVE Domestic 17.4 38.0 2,356 6.0 1,210.9 196.9DF 16 - 19 LIVE HQ-B 17.5 40.0 4,427 3.7 2,275.6 370.1DF 20+ LIVE Cull 20.7 8.0 0 100.0 0.0 0.0DF 20+ LIVE HQ-B 22.4 38.0 2,875 3.4 1,354.7 240.4DF 20+ LIVE HQ-A 23.2 40.0 886 0.6 416.4 74.1DF 20+ LIVE Domestic 23.6 40.0 3,584 6.3 1,668.6 299.6GF 8 - 11 LIVE Pulp 8.5 18.0 6 0.0 4.5 0.5GF 8 - 11 LIVE Domestic 11.6 36.0 30 0.0 17.5 2.5GF 16 - 19 LIVE Domestic 18.0 36.0 168 0.0 76.6 14.1MA 5 - 7 LIVE Pulp 5.0 31.0 14 0.0 13.7 1.2MA 5 - 7 LIVE Cull 6.7 21.0 0 100.0 0.0 0.0MA 12 - 15 LIVE Domestic 14.8 20.0 21 0.0 10.6 1.8RA 5 - 7 LIVE Cull 5.4 15.0 0 100.0 0.0 0.0RA 5 - 7 LIVE Pulp 5.4 26.0 466 1.2 320.1 39.0RA 5 - 7 LIVE Domestic 6.4 30.0 244 10.3 192.2 20.4RA 8 - 11 LIVE Cull 8.4 17.0 0 100.0 0.0 0.0RA 8 - 11 LIVE Pulp 9.3 40.0 201 0.0 120.2 16.8RA 8 - 11 LIVE Domestic 9.9 31.0 1,754 6.6 1,168.8 146.6RA 12 - 15 LIVE Domestic 13.3 30.0 1,470 4.6 838.4 122.9RA 16 - 19 LIVE Domestic 17.3 28.0 83 3.1 43.6 7.0RA 20+ LIVE Domestic 20.5 20.0 27 0.0 11.3 2.3WH 5 - 7 LIVE Cull 5.0 6.0 0 100.0 0.0 0.0WH 5 - 7 LIVE Pulp 5.3 26.0 29 0.0 33.4 2.4

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Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetWH 5 - 7 LIVE Domestic 5.8 34.0 231 0.8 182.9 19.3WH 8 - 11 LIVE Domestic 9.4 36.0 230 10.8 175.5 19.2WH 12 - 15 LIVE Domestic 14.7 40.0 160 2.6 130.4 13.4

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Cruise Unit ReportQUALITY VRH RMZ SORTS U1

Unit Sale Notice Volume (MBF): QUALITY VRH RMZ SORTS U1

MBF Volume by GradeSp QMD Rings/In Age All Spec Mill 2 Saw 3 Saw 4 Saw UtilityDF 20.2 8.0 56 2,980.5 180.0 1,788.4 886.7 108.2 17.2RA 14.5 160.4 72.8 34.0 35.8 17.8WH 11.2 34.9 21.8 13.0ALL 19.1 8.0 56 3,175.8 180.0 1,861.1 942.6 157.1 35.0

Unit Sale Notice Weight (tons): QUALITY VRH RMZ SORTS U1

Tons by GradeSp All Spec Mill 2 Saw 3 Saw 4 Saw UtilityDF 20,616.5 1,036.8 11,579.1 6,894.3 968.8 137.6RA 1,195.1 490.2 258.6 304.5 141.8WH 313.5 197.0 116.5ALL 22,125.1 1,036.8 12,069.3 7,349.8 1,389.8 279.4

Unit Cruise Design: QUALITY VRH RMZ SORTS U1

Design Cruise Acres

FMA Acres

N Plots

N Cruise Plots

N Void Plots

B2C: VR, 2 BAF (40, 27.78 for some species) Measure/Count Plots, Sighting Ht = 16 ft

60.4 64.8 61 31 1

Unit Cruise Summary: QUALITY VRH RMZ SORTS U1

Sp Cruised Trees All Trees Trees/Plot Ring-Count TreesDF 133 274 4.5 4RA 14 30 0.5 0WH 4 5 0.1 0ALL 151 309 5.1 4

Unit Cruise Statistics (Cut + Leave Trees): QUALITY VRH RMZ SORTS U1

Sp BA(sq ft/acre)

BA CV(%)

BA SE(%)

V-BAR(bf/sq ft)

V-BAR CV(%)

V-BAR SE(%)

Net Vol(bf/acre)

Vol CV(%)

Vol SE(%)

DF 247.4 44.6 5.7 199.4 30.9 2.7 49,346 54.3 6.3RA 18.8 283.2 36.3 141.5 21.9 5.8 2,656 284.0 36.7

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Sp BA(sq ft/acre)

BA CV(%)

BA SE(%)

V-BAR(bf/sq ft)

V-BAR CV(%)

V-BAR SE(%)

Net Vol(bf/acre)

Vol CV(%)

Vol SE(%)

WH 4.1 641.6 82.1 139.3 36.4 18.2 577 642.6 84.1ALL 270.3 36.4 4.7 194.5 31.8 2.6 52,579 48.4 5.3

Unit Summary: QUALITY VRH RMZ SORTS U1

Sp Status Rx N D QMD BL THT BF Net

Defect %

TPA BA RD Tons MBF Net

DF LIVE CUT 119 ALL 20.0 98 126 46,740 4.0 107.4 234.4 52.4 19,527.8 2,823.1DF LIVE POLE 14 ALL 21.8 123 159 2,606 4.0 5.0 13.1 2.8 1,088.7 157.4RA LIVE CUT 14 ALL 14.5 71 88 2,656 8.1 16.4 18.8 4.9 1,195.1 160.4WH LIVE CUT 4 ALL 11.2 75 93 577 8.7 6.1 4.1 1.2 313.5 34.8ALL LIVE POLE 14 ALL 21.8 123 159 2,606 4.1 5.0 13.1 2.8 1,088.7 157.4ALL LIVE CUT 137 ALL 19.1 94 120 49,973 4.3 129.9 257.3 58.5 21,036.4 3,018.3ALL ALL ALL 151 ALL 19.2 95 121 52,579 4.3 134.9 270.4 61.3 22,125.1 3,175.7ALL ALL ALL 151 ALL 19.2 95 121 52,579 4.3 134.9 270.4 61.3 22,125.1 3,175.7

Unit Stand Table: QUALITY VRH RMZ SORTS U1

Sp D Status Rx N QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF 12 LIVE CUT 1 12.0 89 113 307 5.5 2.4 1.9 0.6 137.7 18.6DF 14 LIVE CUT 5 13.8 81 103 1,360 3.3 9.3 9.6 2.6 653.3 82.2DF 16 LIVE CUT 15 15.5 86 112 4,527 2.9 22.1 29.0 7.4 2,096.8 273.4DF 18 LIVE CUT 18 17.5 90 115 5,390 5.4 21.2 35.3 8.5 2,580.0 325.6DF 20 LIVE CUT 22 19.5 96 122 7,209 5.2 20.9 43.2 9.8 3,291.6 435.4DF 22 LIVE CUT 11 21.5 104 133 4,045 4.1 8.6 21.8 4.7 1,781.6 244.3DF 24 LIVE CUT 13 23.4 121 156 5,788 5.2 8.5 25.4 5.3 2,403.0 349.6DF 26 LIVE CUT 11 25.5 130 167 5,616 3.5 6.2 22.0 4.4 2,179.0 339.2DF 28 LIVE CUT 4 27.2 119 152 1,899 4.5 2.0 8.0 1.5 691.6 114.7DF 30 LIVE CUT 4 29.0 129 167 2,100 6.8 1.7 7.9 1.5 761.1 126.8DF 32 LIVE CUT 3 31.6 124 160 1,589 2.9 1.1 6.0 1.1 571.2 96.0DF 34 LIVE CUT 2 33.5 136 176 1,202 4.6 0.6 3.9 0.7 401.6 72.6DF 36 LIVE CUT 4 35.7 132 170 2,332 5.2 1.1 8.0 1.3 799.2 140.8DF 38 LIVE CUT 2 37.5 122 156 1,050 6.9 0.5 4.1 0.7 385.2 63.4DF 40 LIVE CUT 2 39.5 133 172 1,225 5.4 0.5 3.9 0.6 394.7 74.0DF 42 LIVE CUT 1 41.0 128 165 591 0.8 0.2 2.1 0.3 199.0 35.7DF 44 LIVE CUT 1 43.0 124 160 512 11.7 0.2 2.2 0.3 201.2 30.9DF 18 LIVE POLE 2 17.5 107 137 289 0.0 1.2 2.0 0.5 139.6 17.4DF 20 LIVE POLE 1 20.0 117 151 168 0.0 0.4 0.9 0.2 71.8 10.1

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Sp D Status Rx N QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF 22 LIVE POLE 5 21.8 123 158 901 0.0 1.7 4.5 1.0 371.9 54.4DF 24 LIVE POLE 4 23.5 134 173 778 0.6 1.3 3.8 0.8 331.7 47.0DF 26 LIVE POLE 1 26.0 147 190 236 0.0 0.3 1.0 0.2 89.7 14.3DF 30 LIVE POLE 1 30.0 139 180 235 0.0 0.2 0.9 0.2 84.0 14.2RA 8 LIVE CUT 1 8.0 42 50 110 6.5 3.8 1.3 0.5 44.0 6.6RA 12 LIVE CUT 1 11.0 68 88 144 15.2 2.1 1.4 0.4 82.0 8.7RA 14 LIVE CUT 1 14.0 76 94 181 9.6 1.2 1.3 0.3 78.2 11.0RA 16 LIVE CUT 5 15.8 81 101 941 11.1 4.8 6.5 1.6 431.6 56.8RA 18 LIVE CUT 3 17.3 81 101 589 7.0 2.5 4.1 1.0 273.3 35.6RA 20 LIVE CUT 2 19.0 87 109 469 2.9 1.3 2.6 0.6 188.1 28.3RA 22 LIVE CUT 1 22.0 80 99 221 2.8 0.6 1.5 0.3 97.9 13.4WH 10 LIVE CUT 1 9.0 64 79 106 12.2 2.4 1.1 0.4 61.9 6.4WH 12 LIVE CUT 2 12.0 76 95 256 13.8 2.6 2.0 0.6 154.2 15.4WH 14 LIVE CUT 1 14.0 99 125 215 0.0 0.9 1.0 0.3 97.4 13.0

Unit Log Grade Summary: QUALITY VRH RMZ SORTS U1

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetDF LIVE 2 SAW 15.3 38.0 29,609 4.5 11,579.1 1,788.4DF LIVE 3 SAW 9.1 39.0 14,681 2.0 6,894.3 886.7DF LIVE 4 SAW 5.7 29.0 1,791 1.4 968.8 108.2DF LIVE CULL 7.5 4.0 0 100.0 0.0 0.0DF LIVE SPECIAL MILL 17.2 40.0 2,980 0.0 1,036.8 180.0DF LIVE UTILITY 6.2 14.0 284 2.3 137.6 17.2RA LIVE 2 SAW 13.0 30.0 1,204 5.1 490.2 72.8RA LIVE 3 SAW 10.7 32.0 563 10.7 258.6 34.0RA LIVE 4 SAW 7.7 30.0 593 7.1 304.5 35.8RA LIVE CULL 5.2 15.0 0 100.0 0.0 0.0RA LIVE UTILITY 5.4 25.0 295 2.5 141.8 17.8WH LIVE 3 SAW 8.9 36.0 361 9.6 197.0 21.8WH LIVE 4 SAW 5.3 34.0 216 1.2 116.5 13.0WH LIVE CULL 5.0 6.0 0 100.0 0.0 0.0

Unit Log Sort Summary: QUALITY VRH RMZ SORTS U1

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetDF LIVE Cull 7.5 4.0 0 100.0 0.0 0.0DF LIVE Domestic 9.4 36.0 29,429 4.2 13,180.0 1,777.5DF LIVE HQ-A 17.2 40.0 2,980 0.0 1,036.8 180.0

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Sp Status Grade Dia Len BF Net Defect % Tons MBF NetDF LIVE HQ-B 14.7 39.0 16,652 2.6 6,262.1 1,005.8DF LIVE Pulp 6.2 14.0 284 2.3 137.6 17.2RA LIVE Cull 5.2 15.0 0 100.0 0.0 0.0RA LIVE Domestic 10.0 30.0 2,361 7.0 1,053.3 142.6RA LIVE Pulp 5.4 25.0 295 2.5 141.8 17.8WH LIVE Cull 5.0 6.0 0 100.0 0.0 0.0WH LIVE Domestic 6.8 35.0 577 6.6 313.5 34.9

Unit Log Grade x Sort Summary: QUALITY VRH RMZ SORTS U1

Sp Status Grade Sort Dia Len BF Net Defect % Tons MBF NetDF LIVE 2 SAW Domestic 14.9 38.0 14,903 6.0 6,123.7 900.1DF LIVE 2 SAW HQ-B 15.8 39.0 14,706 2.9 5,455.4 888.2DF LIVE 3 SAW Domestic 8.9 39.0 12,734 2.3 6,087.6 769.2DF LIVE 3 SAW HQ-B 11.0 40.0 1,947 0.5 806.7 117.6DF LIVE 4 SAW Domestic 5.7 29.0 1,791 1.4 968.8 108.2DF LIVE CULL Cull 7.5 4.0 0 100.0 0.0 0.0DF LIVE SPECIAL MILL HQ-A 17.2 40.0 2,980 0.0 1,036.8 180.0DF LIVE UTILITY Pulp 6.2 14.0 284 2.3 137.6 17.2RA LIVE 2 SAW Domestic 13.0 30.0 1,204 5.1 490.2 72.8RA LIVE 3 SAW Domestic 10.7 32.0 563 10.7 258.6 34.0RA LIVE 4 SAW Domestic 7.7 30.0 593 7.1 304.5 35.8RA LIVE CULL Cull 5.2 15.0 0 100.0 0.0 0.0RA LIVE UTILITY Pulp 5.4 25.0 295 2.5 141.8 17.8WH LIVE 3 SAW Domestic 8.9 36.0 361 9.6 197.0 21.8WH LIVE 4 SAW Domestic 5.3 34.0 216 1.2 116.5 13.0WH LIVE CULL Cull 5.0 6.0 0 100.0 0.0 0.0

Unit Log Grade x Diameter Bin Summary: QUALITY VRH RMZ SORTS U1

Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 LIVE 4 SAW 5.7 29.0 1,731 1.4 937.0 104.5DF 5 - 7 LIVE CULL 5.8 3.0 0 100.0 0.0 0.0DF 5 - 7 LIVE UTILITY 6.0 14.0 261 2.5 125.9 15.8DF 5 - 7 LIVE 3 SAW 6.9 38.0 2,233 0.9 1,202.0 134.9DF 8 - 11 LIVE 4 SAW 8.2 22.0 61 0.0 31.8 3.7DF 8 - 11 LIVE 3 SAW 9.9 39.0 12,088 2.3 5,538.1 730.1DF 8 - 11 LIVE CULL 10.1 10.0 0 100.0 0.0 0.0DF 8 - 11 LIVE UTILITY 10.1 14.0 23 0.0 11.7 1.4

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Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetDF 12 - 15 LIVE 3 SAW 12.5 40.0 360 0.0 154.2 21.8DF 12 - 15 LIVE 2 SAW 13.6 38.0 13,877 3.9 5,930.6 838.1DF 12 - 15 LIVE CULL 13.6 4.0 0 100.0 0.0 0.0DF 16 - 19 LIVE SPECIAL MILL 16.9 40.0 2,676 0.0 942.2 161.6DF 16 - 19 LIVE 2 SAW 17.4 39.0 8,594 4.7 3,219.8 519.1DF 20+ LIVE CULL 20.7 8.0 0 100.0 0.0 0.0DF 20+ LIVE SPECIAL MILL 22.0 40.0 304 0.0 94.6 18.4DF 20+ LIVE 2 SAW 23.1 39.0 7,138 5.6 2,428.7 431.2RA 5 - 7 LIVE CULL 5.2 15.0 0 100.0 0.0 0.0RA 5 - 7 LIVE UTILITY 5.4 25.0 295 2.5 141.8 17.8RA 5 - 7 LIVE 4 SAW 6.7 30.0 242 12.0 133.8 14.6RA 8 - 11 LIVE 4 SAW 9.0 30.0 352 3.5 170.7 21.2RA 8 - 11 LIVE 3 SAW 10.7 32.0 563 10.7 258.6 34.0RA 12 - 15 LIVE 2 SAW 13.0 30.0 1,204 5.1 490.2 72.8WH 5 - 7 LIVE CULL 5.0 6.0 0 100.0 0.0 0.0WH 5 - 7 LIVE 4 SAW 5.3 34.0 216 1.2 116.5 13.0WH 5 - 7 LIVE 3 SAW 7.8 36.0 62 0.0 31.2 3.7WH 8 - 11 LIVE 3 SAW 9.2 36.0 300 11.3 165.7 18.1

Unit Log Sort x Diameter Bin Summary: QUALITY VRH RMZ SORTS U1

Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 LIVE Cull 5.8 3.0 0 100.0 0.0 0.0DF 5 - 7 LIVE Pulp 6.0 14.0 261 2.5 125.9 15.8DF 5 - 7 LIVE Domestic 6.1 33.0 3,963 1.1 2,139.0 239.4DF 8 - 11 LIVE Domestic 9.7 39.0 10,562 2.5 4,917.4 638.0DF 8 - 11 LIVE Cull 10.1 10.0 0 100.0 0.0 0.0DF 8 - 11 LIVE Pulp 10.1 14.0 23 0.0 11.7 1.4DF 8 - 11 LIVE HQ-B 10.7 40.0 1,586 0.6 652.5 95.8DF 12 - 15 LIVE Domestic 13.5 37.0 8,205 5.2 3,731.9 495.6DF 12 - 15 LIVE Cull 13.6 4.0 0 100.0 0.0 0.0DF 12 - 15 LIVE HQ-B 13.6 39.0 6,032 1.7 2,352.8 364.3DF 16 - 19 LIVE HQ-A 16.9 40.0 2,676 0.0 942.2 161.6DF 16 - 19 LIVE Domestic 17.3 38.0 2,907 6.7 1,099.0 175.6DF 16 - 19 LIVE HQ-B 17.4 40.0 5,686 3.6 2,120.8 343.4DF 20+ LIVE Cull 20.7 8.0 0 100.0 0.0 0.0DF 20+ LIVE HQ-A 22.0 40.0 304 0.0 94.6 18.4DF 20+ LIVE HQ-B 22.4 38.0 3,348 3.6 1,135.9 202.2

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Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetDF 20+ LIVE Domestic 23.9 40.0 3,791 7.2 1,292.7 229.0RA 5 - 7 LIVE Cull 5.2 15.0 0 100.0 0.0 0.0RA 5 - 7 LIVE Pulp 5.4 25.0 295 2.5 141.8 17.8RA 5 - 7 LIVE Domestic 6.7 30.0 242 12.0 133.8 14.6RA 8 - 11 LIVE Domestic 9.9 31.0 915 8.1 429.3 55.2RA 12 - 15 LIVE Domestic 13.0 30.0 1,204 5.1 490.2 72.8WH 5 - 7 LIVE Cull 5.0 6.0 0 100.0 0.0 0.0WH 5 - 7 LIVE Domestic 5.6 34.0 277 0.9 147.8 16.8WH 8 - 11 LIVE Domestic 9.2 36.0 300 11.3 165.7 18.1

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Cruise Unit ReportQUALITY VRH RMZ SORTS U2

Unit Sale Notice Volume (MBF): QUALITY VRH RMZ SORTS U2

MBF Volume by GradeSp QMD Rings/In Age All Spec Mill 2 Saw 3 Saw 4 Saw UtilityDF 20.2 544.4 174.0 282.1 71.6 16.7RA 15.1 118.7 34.8 36.4 20.2 27.2WH 16.9 18.1 13.4 2.3 2.4GF 26.0 17.1 14.1 2.5 0.5ALL 18.2 698.3 174.0 344.3 112.9 36.9 30.1

Unit Sale Notice Weight (tons): QUALITY VRH RMZ SORTS U2

Tons by GradeSp All Spec Mill 2 Saw 3 Saw 4 Saw UtilityDF 3,509.7 1,014.0 1,691.4 653.7 150.6RA 925.4 245.3 274.2 199.2 206.7WH 195.6 130.4 31.8 33.4GF 98.5 76.6 17.5 4.5ALL 4,729.2 1,014.0 2,143.7 977.2 349.8 244.5

Unit Cruise Design: QUALITY VRH RMZ SORTS U2

Design Cruise Acres

FMA Acres

N Plots

N Cruise Plots

N Void Plots

B2C: VR, 2 BAF (46.94, 27.78 for some species) Measure/Count Plots, Sighting Ht = 16 ft

13.0 14.1 14 9 0

Unit Cruise Summary: QUALITY VRH RMZ SORTS U2

Sp Cruised Trees All Trees Trees/Plot Ring-Count TreesDF 22 44 3.1 0RA 16 26 1.9 0WH 3 3 0.2 0GF 1 1 0.1 0ALL 42 74 5.3 0

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Unit Cruise Statistics (Cut + Leave Trees): QUALITY VRH RMZ SORTS U2

Sp BA(sq ft/acre)

BA CV(%)

BA SE(%)

V-BAR(bf/sq ft)

V-BAR CV(%)

V-BAR SE(%)

Net Vol(bf/acre)

Vol CV(%)

Vol SE(%)

DF 202.5 98.3 26.3 206.8 36.3 7.7 41,875 104.8 27.4RA 71.8 129.5 34.6 127.2 24.4 6.1 9,130 131.8 35.1WH 15.6 198.7 53.1 89.3 52.2 30.2 1,392 205.5 61.1GF 4.4 374.2 100.0 297.0 0.0 0.0 1,316 374.2 100.0ALL 294.2 52.1 13.9 182.5 41.2 6.4 53,713 66.4 15.3

Unit Summary: QUALITY VRH RMZ SORTS U2

Sp Status Rx N D QMD BL THT BF Net

Defect %

TPA BA RD Tons MBF Net

DF LIVE CUT 17 ALL 19.6 68 92 37,355 1.5 86.2 180.6 40.8 3,130.9 485.6DF LIVE POLE 5 ALL 22.8 109 140 4,520 1.5 7.7 21.9 4.6 378.8 58.8GF LIVE CUT 1 ALL 26.0 130 169 1,316 0.0 1.2 4.4 0.9 98.5 17.1RA LIVE CUT 16 ALL 15.1 68 96 9,130 7.1 57.7 71.8 18.5 925.4 118.7WH LIVE CUT 3 ALL 16.9 44 53 1,392 1.9 10.0 15.6 3.8 195.6 18.1ALL LIVE CUT 37 ALL 17.9 67 92 49,193 2.5 155.1 272.4 64.0 4,350.4 639.5ALL LIVE POLE 5 ALL 22.8 109 140 4,520 1.5 7.7 21.9 4.6 378.8 58.8ALL ALL ALL 42 ALL 18.2 69 94 53,713 2.5 162.8 294.3 68.6 4,729.2 698.3ALL ALL ALL 42 ALL 18.2 69 94 53,713 2.5 162.8 294.3 68.6 4,729.2 698.3

Unit Stand Table: QUALITY VRH RMZ SORTS U2

Sp D Status Rx N QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF 10 LIVE CUT 1 10.0 51 63 897 0.0 21.3 11.6 3.7 106.0 11.7DF 14 LIVE CUT 3 13.3 36 59 2,001 4.4 34.0 32.7 9.0 273.4 26.0DF 20 LIVE CUT 1 20.0 100 128 1,708 7.1 4.7 10.3 2.3 169.9 22.2DF 24 LIVE CUT 1 23.0 110 141 2,189 0.0 3.3 9.6 2.0 190.2 28.5DF 26 LIVE CUT 1 25.0 120 154 2,594 0.0 3.0 10.1 2.0 209.1 33.7DF 28 LIVE CUT 3 27.0 115 147 7,223 2.1 7.7 30.4 5.9 606.8 93.9DF 30 LIVE CUT 1 29.0 120 155 2,703 3.8 2.4 10.8 2.0 218.9 35.1DF 34 LIVE CUT 3 33.7 125 161 8,737 0.5 5.2 32.1 5.5 672.6 113.6DF 36 LIVE CUT 1 36.0 130 168 3,394 0.0 1.6 11.1 1.8 231.8 44.1DF 38 LIVE CUT 2 37.5 125 160 5,911 3.4 2.9 21.9 3.6 452.2 76.8DF 20 LIVE POLE 1 20.0 95 121 764 0.0 1.9 4.2 0.9 66.5 9.9DF 24 LIVE POLE 4 23.7 114 147 3,756 0.0 5.7 17.7 3.6 312.3 48.8GF 26 LIVE CUT 1 26.0 130 169 1,316 0.0 1.2 4.4 0.9 98.5 17.1RA 12 LIVE CUT 2 12.0 70 87 948 3.3 10.8 8.5 2.5 109.0 12.3

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Sp D Status Rx N QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetRA 14 LIVE CUT 4 13.2 51 99 2,095 4.2 19.4 18.5 5.1 212.1 27.2RA 16 LIVE CUT 3 15.3 78 98 1,619 13.8 10.3 13.2 3.4 171.5 21.1RA 18 LIVE CUT 3 17.7 83 103 2,037 7.3 7.8 13.3 3.2 186.6 26.5RA 20 LIVE CUT 4 19.2 76 94 2,430 6.2 9.1 18.3 4.2 246.3 31.6WH 12 LIVE CUT 1 12.0 30 34 187 0.0 6.7 5.2 1.5 33.4 2.4WH 24 LIVE CUT 1 23.0 76 95 616 0.0 1.8 5.1 1.1 82.7 8.0WH 26 LIVE CUT 1 25.0 70 87 589 4.5 1.5 5.2 1.0 79.5 7.7

Unit Log Grade Summary: QUALITY VRH RMZ SORTS U2

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetDF LIVE 2 SAW 16.2 40.0 21,699 1.8 1,691.4 282.1DF LIVE 3 SAW 8.2 36.0 5,507 1.9 653.7 71.6DF LIVE 4 SAW 6.0 31.0 1,283 0.7 150.6 16.7DF LIVE CULL 7.5 13.0 0 100.0 0.0 0.0DF LIVE SPECIAL MILL 18.9 40.0 13,386 0.3 1,014.0 174.0GF LIVE 2 SAW 18.0 36.0 1,082 0.0 76.6 14.1GF LIVE 3 SAW 11.6 36.0 195 0.0 17.5 2.5GF LIVE UTILITY 8.5 18.0 40 0.0 4.5 0.5RA LIVE 2 SAW 13.5 32.0 2,678 4.2 245.3 34.8RA LIVE 3 SAW 10.6 32.0 2,803 6.7 274.2 36.4RA LIVE 4 SAW 8.2 30.0 1,557 5.8 199.2 20.2RA LIVE CULL 5.5 13.0 0 100.0 0.0 0.0RA LIVE UTILITY 6.4 31.0 2,092 0.0 206.7 27.2WH LIVE 2 SAW 14.7 40.0 1,027 2.6 130.4 13.4WH LIVE 3 SAW 7.3 31.0 178 0.0 31.8 2.3WH LIVE UTILITY 5.3 26.0 187 0.0 33.4 2.4

Unit Log Sort Summary: QUALITY VRH RMZ SORTS U2

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetDF LIVE Cull 7.5 13.0 0 100.0 0.0 0.0DF LIVE Domestic 8.9 35.0 14,785 2.2 1,363.0 192.2DF LIVE HQ-A 18.7 40.0 14,692 0.2 1,113.7 191.0DF LIVE HQ-B 14.2 40.0 12,399 1.4 1,033.0 161.2GF LIVE Domestic 15.8 36.0 1,276 0.0 94.0 16.6GF LIVE Pulp 8.5 18.0 40 0.0 4.5 0.5RA LIVE Cull 5.5 13.0 0 100.0 0.0 0.0RA LIVE Domestic 10.1 31.0 7,038 5.6 718.7 91.5

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Sp Status Grade Dia Len BF Net Defect % Tons MBF NetRA LIVE Pulp 6.4 31.0 2,092 0.0 206.7 27.2WH LIVE Domestic 11.0 36.0 1,205 2.3 162.2 15.7WH LIVE Pulp 5.3 26.0 187 0.0 33.4 2.4

Unit Log Grade x Sort Summary: QUALITY VRH RMZ SORTS U2

Sp Status Grade Sort Dia Len BF Net Defect % Tons MBF NetDF LIVE 2 SAW Domestic 18.3 39.0 9,002 2.3 653.7 117.0DF LIVE 2 SAW HQ-A 17.2 40.0 1,306 0.0 99.7 17.0DF LIVE 2 SAW HQ-B 15.0 40.0 11,392 1.5 938.0 148.1DF LIVE 3 SAW Domestic 7.9 36.0 4,500 2.3 558.7 58.5DF LIVE 3 SAW HQ-B 10.1 40.0 1,007 0.0 95.0 13.1DF LIVE 4 SAW Domestic 6.0 31.0 1,283 0.7 150.6 16.7DF LIVE CULL Cull 7.5 13.0 0 100.0 0.0 0.0DF LIVE SPECIAL MILL HQ-A 18.9 40.0 13,386 0.3 1,014.0 174.0GF LIVE 2 SAW Domestic 18.0 36.0 1,082 0.0 76.6 14.1GF LIVE 3 SAW Domestic 11.6 36.0 195 0.0 17.5 2.5GF LIVE UTILITY Pulp 8.5 18.0 40 0.0 4.5 0.5RA LIVE 2 SAW Domestic 13.5 32.0 2,678 4.2 245.3 34.8RA LIVE 3 SAW Domestic 10.6 32.0 2,803 6.7 274.2 36.4RA LIVE 4 SAW Domestic 8.2 30.0 1,557 5.8 199.2 20.2RA LIVE CULL Cull 5.5 13.0 0 100.0 0.0 0.0RA LIVE UTILITY Pulp 6.4 31.0 2,092 0.0 206.7 27.2WH LIVE 2 SAW Domestic 14.7 40.0 1,027 2.6 130.4 13.4WH LIVE 3 SAW Domestic 7.3 31.0 178 0.0 31.8 2.3WH LIVE UTILITY Pulp 5.3 26.0 187 0.0 33.4 2.4

Unit Log Grade x Diameter Bin Summary: QUALITY VRH RMZ SORTS U2

Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 LIVE 4 SAW 5.5 33.0 1,097 0.0 129.4 14.3DF 5 - 7 LIVE CULL 6.3 17.0 0 100.0 0.0 0.0DF 5 - 7 LIVE 3 SAW 6.8 36.0 1,649 3.4 224.0 21.4DF 8 - 11 LIVE 3 SAW 9.1 36.0 3,858 1.2 429.7 50.2DF 8 - 11 LIVE 4 SAW 9.5 20.0 187 4.6 21.2 2.4DF 8 - 11 LIVE CULL 11.4 2.0 0 100.0 0.0 0.0DF 12 - 15 LIVE 2 SAW 13.7 40.0 8,337 0.5 730.3 108.4DF 16 - 19 LIVE SPECIAL MILL 17.7 40.0 9,099 0.0 692.2 118.3DF 16 - 19 LIVE 2 SAW 18.2 40.0 4,994 2.0 366.4 64.9

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Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetDF 20+ LIVE 2 SAW 22.6 39.0 8,369 2.8 594.7 108.8DF 20+ LIVE SPECIAL MILL 23.7 40.0 4,287 0.8 321.8 55.7GF 8 - 11 LIVE UTILITY 8.5 18.0 40 0.0 4.5 0.5GF 8 - 11 LIVE 3 SAW 11.6 36.0 195 0.0 17.5 2.5GF 16 - 19 LIVE 2 SAW 18.0 36.0 1,082 0.0 76.6 14.1RA 5 - 7 LIVE UTILITY 5.4 28.0 909 0.0 97.4 11.8RA 5 - 7 LIVE CULL 5.5 13.0 0 100.0 0.0 0.0RA 5 - 7 LIVE 4 SAW 6.3 30.0 270 6.8 33.4 3.5RA 8 - 11 LIVE 4 SAW 8.8 29.0 1,286 5.6 165.8 16.7RA 8 - 11 LIVE UTILITY 9.0 40.0 1,183 0.0 109.3 15.4RA 8 - 11 LIVE 3 SAW 10.6 32.0 2,803 6.7 274.2 36.4RA 12 - 15 LIVE 2 SAW 13.5 32.0 2,678 4.2 245.3 34.8WH 5 - 7 LIVE UTILITY 5.3 26.0 187 0.0 33.4 2.4WH 5 - 7 LIVE 3 SAW 7.3 31.0 178 0.0 31.8 2.3WH 12 - 15 LIVE 2 SAW 14.7 40.0 1,027 2.6 130.4 13.4

Unit Log Sort x Diameter Bin Summary: QUALITY VRH RMZ SORTS U2

Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 LIVE Domestic 6.2 34.0 2,745 2.1 353.4 35.7DF 5 - 7 LIVE Cull 6.3 17.0 0 100.0 0.0 0.0DF 8 - 11 LIVE Domestic 9.0 34.0 3,037 1.8 355.8 39.5DF 8 - 11 LIVE HQ-B 10.1 40.0 1,007 0.0 95.0 13.1DF 8 - 11 LIVE Cull 11.4 2.0 0 100.0 0.0 0.0DF 12 - 15 LIVE HQ-B 13.6 40.0 6,409 0.0 564.4 83.3DF 12 - 15 LIVE Domestic 14.1 39.0 1,928 2.3 165.9 25.1DF 16 - 19 LIVE HQ-A 17.6 40.0 10,405 0.0 791.9 135.3DF 16 - 19 LIVE Domestic 18.4 40.0 1,640 0.0 111.9 21.3DF 16 - 19 LIVE HQ-B 18.9 40.0 2,048 4.7 154.8 26.6DF 20+ LIVE HQ-B 22.4 40.0 2,935 2.4 218.8 38.2DF 20+ LIVE Domestic 22.6 38.0 5,434 3.0 375.9 70.6DF 20+ LIVE HQ-A 23.7 40.0 4,287 0.8 321.8 55.7GF 8 - 11 LIVE Pulp 8.5 18.0 40 0.0 4.5 0.5GF 8 - 11 LIVE Domestic 11.6 36.0 195 0.0 17.5 2.5GF 16 - 19 LIVE Domestic 18.0 36.0 1,082 0.0 76.6 14.1RA 5 - 7 LIVE Pulp 5.4 28.0 909 0.0 97.4 11.8RA 5 - 7 LIVE Cull 5.5 13.0 0 100.0 0.0 0.0RA 5 - 7 LIVE Domestic 6.3 30.0 270 6.8 33.4 3.5

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Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetRA 8 - 11 LIVE Pulp 9.0 40.0 1,183 0.0 109.3 15.4RA 8 - 11 LIVE Domestic 9.7 31.0 4,090 6.4 439.9 53.2RA 12 - 15 LIVE Domestic 13.5 32.0 2,678 4.2 245.3 34.8WH 5 - 7 LIVE Pulp 5.3 26.0 187 0.0 33.4 2.4WH 5 - 7 LIVE Domestic 7.3 31.0 178 0.0 31.8 2.3WH 12 - 15 LIVE Domestic 14.7 40.0 1,027 2.6 130.4 13.4

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Cruise Unit ReportQUALITY RFRS THIN U3

Unit Sale Notice Volume (MBF): QUALITY RFRS THIN U3

MBF Volume by GradeSp QMD Rings/In Age All 3 Saw 4 Saw UtilityDF 15.0 17.5 11.1 2.7 3.7ALL 15.0 17.5 11.1 2.7 3.7

Unit Sale Notice Weight (tons): QUALITY RFRS THIN U3

Tons by GradeSp All 3 Saw 4 Saw UtilityDF 149.2 94.8 21.4 33.0ALL 149.2 94.8 21.4 33.0

Unit Cruise Design: QUALITY RFRS THIN U3

Design Cruise Acres

FMA Acres

N Plots

N Cruise Plots

N Void Plots

B1: VR, 1 BAF (33.61) Measure All, Sighting Ht = 4.5 ft

5.0 5.0 6 6 0

Unit Cruise Summary: QUALITY RFRS THIN U3

Sp Cruised Trees All Trees Trees/Plot Ring-Count TreesRA 1 1.0 0DF 5 28 4.7 0ALL 5 29 4.8 0

Unit Cruise Statistics (Cut + Leave Trees): QUALITY RFRS THIN U3

Sp BA(sq ft/acre)

BA CV(%)

BA SE(%)

V-BAR(bf/sq ft)

V-BAR CV(%)

V-BAR SE(%)

Net Vol(bf/acre)

Vol CV(%)

Vol SE(%)

RA 33.6 0.0 0.0DF 156.8 35.0 14.3 125.0 8.4 3.7 19,599 36.0 14.8ALL 162.4 30.5 12.4 125.0 8.4 3.7 20,299 31.6 13.0

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Unit Summary: QUALITY RFRS THIN U3

Sp Status Rx N D QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF DEAD CUT 1 ALL 18.0 83 105 700 8.0 3.2 5.6 1.3 29.8 3.5DF LIVE CUT 4 ALL 14.5 82 105 2,800 8.0 19.5 22.4 5.9 119.4 14.0DF LIVE LEA 23 ALL 15.9 74 93 16,099 8.0 93.4 128.8 32.3 686.5 80.5RA LIVE LEA 1 ALL 14.0 69 85 5.2 5.6 1.5ALL DEAD CUT 1 ALL 18.0 83 105 700 7.9 3.2 5.6 1.3 29.8 3.5ALL LIVE LEA 24 ALL 15.8 74 93 16,099 8.0 98.6 134.4 33.8 686.5 80.5ALL LIVE CUT 4 ALL 14.5 82 105 2,800 8.0 19.5 22.4 5.9 119.4 14.0ALL ALL ALL 5 ALL 15.0 82 105 3,500 7.9 22.7 28.0 7.2 149.2 17.5ALL ALL ALL 29 ALL 15.7 75 95 19,599 8.0 121.3 162.4 41.0 835.7 98.0

Unit Stand Table: QUALITY RFRS THIN U3

Sp D Status Rx N QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF 12 LIVE CUT 1 12.0 77 98 649 9.0 7.1 5.6 1.6 28.4 3.2DF 14 LIVE CUT 1 14.0 80 101 634 9.0 5.2 5.6 1.5 26.9 3.2DF 16 LIVE CUT 1 16.0 86 109 774 2.5 4.0 5.6 1.4 32.0 3.9DF 18 DEAD CUT 1 18.0 83 105 707 0.0 3.2 5.6 1.3 31.6 3.5DF 18 LIVE CUT 1 18.0 94 120 736 17.4 3.2 5.6 1.3 30.3 3.7DF 10 LIVE LEA 1 10.0 52 64 415 0.0 10.3 5.6 1.8 18.9 2.1DF 12 LIVE LEA 1 12.0 61 76 576 0.0 7.1 5.6 1.6 23.2 2.9DF 14 LIVE LEA 4 13.7 68 86 2,298 0.0 21.8 22.4 6.0 105.7 11.5DF 16 LIVE LEA 4 15.7 76 96 2,781 0.0 16.6 22.4 5.6 116.7 13.9DF 18 LIVE LEA 7 17.8 83 104 5,361 0.0 22.6 39.2 9.3 221.3 26.8DF 20 LIVE LEA 4 19.5 87 111 2,960 0.0 10.8 22.4 5.1 131.7 14.8DF 22 LIVE LEA 2 21.0 92 117 1,709 0.0 4.7 11.2 2.4 69.0 8.5RA 14 LIVE LEA 1 14.0 69 85 5.2 5.6 1.5

Unit Log Grade Summary: QUALITY RFRS THIN U3

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetDF DEAD UTILITY 8.5 40.0 707 0.0 31.6 3.5DF LIVE 3 SAW 9.0 39.0 2,219 6.6 94.8 11.1DF LIVE 4 SAW 5.1 31.0 533 2.2 21.4 2.7DF LIVE CULL 11.5 2.0 0 100.0 0.0 0.0DF LIVE UTILITY 5.6 12.0 41 0.0 1.4 0.2

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Unit Log Sort Summary: QUALITY RFRS THIN U3

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetDF DEAD Pulp 8.5 40.0 707 0.0 31.6 3.5DF LIVE Cull 11.5 2.0 0 100.0 0.0 0.0DF LIVE Domestic 7.4 36.0 2,752 5.8 116.2 13.8DF LIVE Pulp 5.6 12.0 41 0.0 1.4 0.2

Unit Log Grade x Sort Summary: QUALITY RFRS THIN U3

Sp Status Grade Sort Dia Len BF Net Defect % Tons MBF NetDF DEAD UTILITY Pulp 8.5 40.0 707 0.0 31.6 3.5DF LIVE 3 SAW Domestic 9.0 39.0 2,219 6.6 94.8 11.1DF LIVE 4 SAW Domestic 5.1 31.0 533 2.2 21.4 2.7DF LIVE CULL Cull 11.5 2.0 0 100.0 0.0 0.0DF LIVE UTILITY Pulp 5.6 12.0 41 0.0 1.4 0.2

Unit Log Grade x Diameter Bin Summary: QUALITY RFRS THIN U3

Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 LIVE 4 SAW 5.1 31.0 533 2.2 21.4 2.7DF 5 - 7 LIVE CULL 5.1 2.0 0 100.0 0.0 0.0DF 5 - 7 DEAD UTILITY 5.6 40.0 136 0.0 8.1 0.7DF 5 - 7 LIVE UTILITY 5.6 12.0 41 0.0 1.4 0.2DF 5 - 7 LIVE 3 SAW 7.7 40.0 678 8.7 32.3 3.4DF 8 - 11 LIVE 3 SAW 9.5 40.0 1,075 0.0 43.6 5.4DF 8 - 11 DEAD UTILITY 11.4 40.0 571 0.0 23.5 2.9DF 12 - 15 LIVE 3 SAW 12.1 36.0 466 16.5 19.0 2.3DF 12 - 15 LIVE CULL 13.1 2.0 0 100.0 0.0 0.0DF 16 - 19 LIVE CULL 16.9 2.0 0 100.0 0.0 0.0

Unit Log Sort x Diameter Bin Summary: QUALITY RFRS THIN U3

Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 LIVE Cull 5.1 2.0 0 100.0 0.0 0.0DF 5 - 7 DEAD Pulp 5.6 40.0 136 0.0 8.1 0.7DF 5 - 7 LIVE Pulp 5.6 12.0 41 0.0 1.4 0.2DF 5 - 7 LIVE Domestic 6.1 34.0 1,211 5.9 53.7 6.1DF 8 - 11 LIVE Domestic 9.5 40.0 1,075 0.0 43.6 5.4DF 8 - 11 DEAD Pulp 11.4 40.0 571 0.0 23.5 2.9

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Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetDF 12 - 15 LIVE Domestic 12.1 36.0 466 16.5 19.0 2.3DF 12 - 15 LIVE Cull 13.1 2.0 0 100.0 0.0 0.0DF 16 - 19 LIVE Cull 16.9 2.0 0 100.0 0.0 0.0

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Cruise Unit ReportQUALITY RFRS HWC U4

Unit Sale Notice Volume (MBF): QUALITY RFRS HWC U4

MBF Volume by GradeSp QMD Rings/In Age All 1 Saw 2 Saw 3 Saw 4 Saw UtilityRA 15.2 27.8 4.4 2.0 10.2 8.0 3.1ALL 15.2 27.8 4.4 2.0 10.2 8.0 3.1

Unit Sale Notice Weight (tons): QUALITY RFRS HWC U4

Tons by GradeSp All 1 Saw 2 Saw 3 Saw 4 Saw UtilityRA 225.7 30.9 13.9 77.6 78.4 24.9ALL 225.7 30.9 13.9 77.6 78.4 24.9

Unit Cruise Design: QUALITY RFRS HWC U4

Design Cruise Acres

FMA Acres

N Plots

N Cruise Plots

N Void Plots

B2: VR, 2 BAF (40, 27.78 for some species) Measure All, Sighting Ht = 16 ft

1.7 1.6 3 3 0

Unit Cruise Summary: QUALITY RFRS HWC U4

Sp Cruised Trees All Trees Trees/Plot Ring-Count TreesDF 1 1.0 0RA 11 11 3.7 0ALL 11 12 4.0 0

Unit Cruise Statistics (Cut + Leave Trees): QUALITY RFRS HWC U4

Sp BA(sq ft/acre)

BA CV(%)

BA SE(%)

V-BAR(bf/sq ft)

V-BAR CV(%)

V-BAR SE(%)

Net Vol(bf/acre)

Vol CV(%)

Vol SE(%)

DF 52.9 0.0 0.0RA 140.3 96.0 55.4 116.5 22.6 6.8 16,344 98.6 55.8ALL 157.9 68.3 39.4 116.5 22.6 6.8 18,396 72.0 40.0

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Unit Summary: QUALITY RFRS HWC U4

Sp Status Rx N D QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF LIVE LEA 1 ALL 43.0 131 169 1.7 17.6 2.7RA LIVE CUT 11 ALL 15.2 66 81 16,344 6.4 111.3 140.3 36.0 225.7 27.8ALL LIVE LEA 1 ALL 43.0 131 169 1.7 17.6 2.7ALL LIVE CUT 11 ALL 15.2 66 81 16,344 6.4 111.3 140.3 36.0 225.7 27.8ALL ALL ALL 11 ALL 15.2 66 81 16,344 6.4 111.3 140.3 36.0 225.7 27.8ALL ALL ALL 12 ALL 16.0 67 82 16,344 6.4 113.0 157.9 38.7 225.7 27.8

Unit Stand Table: QUALITY RFRS HWC U4

Sp D Status Rx N QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF 44 LIVE LEA 1 43.0 131 169 1.7 17.6 2.7RA 12 LIVE CUT 2 12.0 60 73 2,386 6.2 31.9 25.1 7.2 37.2 4.1RA 14 LIVE CUT 1 13.0 58 71 1,249 5.2 13.6 12.5 3.5 17.8 2.1RA 16 LIVE CUT 6 15.5 71 87 9,191 7.2 57.5 75.2 19.1 125.0 15.6RA 24 LIVE CUT 1 23.0 83 103 2,167 3.1 4.9 14.1 2.9 26.1 3.7RA 26 LIVE CUT 1 26.0 60 73 1,352 6.8 3.6 13.4 2.6 19.6 2.3

Unit Log Grade Summary: QUALITY RFRS HWC U4

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetRA LIVE 1 SAW 16.8 30.0 2,595 4.9 30.9 4.4RA LIVE 2 SAW 12.2 30.0 1,200 6.8 13.9 2.0RA LIVE 3 SAW 11.1 30.0 6,002 4.9 77.6 10.2RA LIVE 4 SAW 7.6 30.0 4,735 6.7 78.4 8.0RA LIVE CULL 5.0 22.0 0 100.0 0.0 0.0RA LIVE UTILITY 5.3 24.0 1,812 0.0 24.9 3.1

Unit Log Sort Summary: QUALITY RFRS HWC U4

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetRA LIVE Cull 5.0 22.0 0 100.0 0.0 0.0RA LIVE Domestic 9.5 30.0 14,532 5.7 200.8 24.7RA LIVE Pulp 5.3 24.0 1,812 0.0 24.9 3.1

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Unit Log Grade x Sort Summary: QUALITY RFRS HWC U4

Sp Status Grade Sort Dia Len BF Net Defect % Tons MBF NetRA LIVE 1 SAW Domestic 16.8 30.0 2,595 4.9 30.9 4.4RA LIVE 2 SAW Domestic 12.2 30.0 1,200 6.8 13.9 2.0RA LIVE 3 SAW Domestic 11.1 30.0 6,002 4.9 77.6 10.2RA LIVE 4 SAW Domestic 7.6 30.0 4,735 6.7 78.4 8.0RA LIVE CULL Cull 5.0 22.0 0 100.0 0.0 0.0RA LIVE UTILITY Pulp 5.3 24.0 1,812 0.0 24.9 3.1

Unit Log Grade x Diameter Bin Summary: QUALITY RFRS HWC U4

Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetRA 5 - 7 LIVE CULL 5.0 22.0 0 100.0 0.0 0.0RA 5 - 7 LIVE 4 SAW 5.2 31.0 879 6.1 17.2 1.5RA 5 - 7 LIVE UTILITY 5.3 24.0 1,812 0.0 24.9 3.1RA 8 - 11 LIVE 4 SAW 8.7 30.0 3,856 6.9 61.1 6.6RA 8 - 11 LIVE 3 SAW 11.1 30.0 6,002 4.9 77.6 10.2RA 12 - 15 LIVE 2 SAW 12.2 30.0 1,200 6.8 13.9 2.0RA 16 - 19 LIVE 1 SAW 16.8 30.0 2,595 4.9 30.9 4.4

Unit Log Sort x Diameter Bin Summary: QUALITY RFRS HWC U4

Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetRA 5 - 7 LIVE Cull 5.0 22.0 0 100.0 0.0 0.0RA 5 - 7 LIVE Domestic 5.2 31.0 879 6.1 17.2 1.5RA 5 - 7 LIVE Pulp 5.3 24.0 1,812 0.0 24.9 3.1RA 8 - 11 LIVE Domestic 9.7 30.0 9,858 5.7 138.7 16.8RA 12 - 15 LIVE Domestic 12.2 30.0 1,200 6.8 13.9 2.0RA 16 - 19 LIVE Domestic 16.8 30.0 2,595 4.9 30.9 4.4

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Cruise Unit ReportQUALITY RFRS HWC U5

Unit Sale Notice Volume (MBF): QUALITY RFRS HWC U5

MBF Volume by GradeSp QMD Rings/In Age All 1 Saw 2 Saw 3 Saw 4 Saw UtilityRA 16.7 48.1 4.8 13.3 17.9 4.4 7.7MA 14.2 2.9 1.8 1.2ALL 16.3 51.0 4.8 15.1 17.9 4.4 8.8

Unit Sale Notice Weight (tons): QUALITY RFRS HWC U5

Tons by GradeSp All 1 Saw 2 Saw 3 Saw 4 Saw UtilityRA 348.5 24.0 88.9 128.7 40.0 66.9MA 24.3 10.6 13.7ALL 372.8 24.0 99.5 128.7 40.0 80.6

Unit Cruise Design: QUALITY RFRS HWC U5

Design Cruise Acres

FMA Acres

N Plots

N Cruise Plots

N Void Plots

B2: VR, 2 BAF (40, 27.78 for some species) Measure All, Sighting Ht = 16 ft

2.5 2.5 4 4 0

Unit Cruise Summary: QUALITY RFRS HWC U5

Sp Cruised Trees All Trees Trees/Plot Ring-Count TreesDF 1 1.0 0RA 14 14 3.5 0MA 2 2 0.5 0ALL 16 17 4.3 0

Unit Cruise Statistics (Cut + Leave Trees): QUALITY RFRS HWC U5

Sp BA(sq ft/acre)

BA CV(%)

BA SE(%)

V-BAR(bf/sq ft)

V-BAR CV(%)

V-BAR SE(%)

Net Vol(bf/acre)

Vol CV(%)

Vol SE(%)

DF 52.9 0.0 0.0RA 132.0 36.3 18.1 145.8 16.8 4.5 19,233 40.0 18.7MA 20.5 115.9 57.9 57.3 37.8 26.7 1,173 121.9 63.8ALL 165.6 43.9 22.0 133.9 28.6 7.1 22,175 52.4 23.1

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Unit Summary: QUALITY RFRS HWC U5

Sp Status Rx N D QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF LIVE LEA 1 ALL 40.0 127 164 1.5 13.2 2.1MA LIVE CUT 2 ALL 14.2 43 51 1,173 24.7 18.6 20.5 5.4 24.3 2.9RA LIVE CUT 14 ALL 16.7 77 96 19,233 4.4 86.8 132.0 32.3 348.5 48.1ALL LIVE LEA 1 ALL 40.0 127 164 1.5 13.2 2.1ALL LIVE CUT 16 ALL 16.3 71 88 20,406 5.8 105.4 152.5 37.7 372.8 51.0ALL ALL ALL 17 ALL 16.9 72 89 20,406 5.8 106.9 165.7 39.8 372.8 51.0ALL ALL ALL 16 ALL 16.3 71 88 20,406 5.8 105.4 152.5 37.7 372.8 51.0

Unit Stand Table: QUALITY RFRS HWC U5

Sp D Status Rx N QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF 40 LIVE LEA 1 40.0 127 164 1.5 13.2 2.1MA 12 LIVE CUT 1 12.0 35 41 463 0.0 13.8 10.9 3.1 13.7 1.2MA 20 LIVE CUT 1 19.0 65 80 710 34.1 4.9 9.6 2.2 10.6 1.8RA 12 LIVE CUT 1 12.0 70 87 1,030 2.2 11.7 9.2 2.6 22.5 2.6RA 14 LIVE CUT 1 14.0 68 84 1,223 2.1 8.8 9.4 2.5 23.0 3.1RA 16 LIVE CUT 5 15.6 78 97 6,520 6.1 35.8 47.4 12.0 124.7 16.3RA 18 LIVE CUT 2 17.5 82 102 2,891 2.4 11.3 18.8 4.5 52.7 7.2RA 20 LIVE CUT 2 19.0 80 99 2,890 2.4 9.5 18.8 4.3 51.1 7.2RA 22 LIVE CUT 1 21.0 85 106 1,574 6.0 4.0 9.6 2.1 27.8 3.9RA 24 LIVE CUT 1 23.0 80 99 1,590 3.5 3.2 9.2 1.9 23.6 4.0RA 26 LIVE CUT 1 26.0 80 99 1,515 7.1 2.6 9.6 1.9 23.1 3.8

Unit Log Grade Summary: QUALITY RFRS HWC U5

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetMA LIVE 2 SAW 14.8 20.0 710 0.0 10.6 1.8MA LIVE CULL 6.7 21.0 0 100.0 0.0 0.0MA LIVE UTILITY 5.0 31.0 463 0.0 13.7 1.2RA LIVE 1 SAW 19.2 22.0 1,931 0.0 24.0 4.8RA LIVE 2 SAW 13.9 30.0 5,319 2.3 88.9 13.3RA LIVE 3 SAW 10.9 32.0 7,145 3.9 128.7 17.9RA LIVE 4 SAW 8.3 30.0 1,773 3.3 40.0 4.4RA LIVE CULL 6.1 18.0 0 100.0 0.0 0.0RA LIVE UTILITY 5.8 28.0 3,065 0.0 66.9 7.7

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Unit Log Sort Summary: QUALITY RFRS HWC U5

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetMA LIVE Cull 6.7 21.0 0 100.0 0.0 0.0MA LIVE Domestic 14.8 20.0 710 0.0 10.6 1.8MA LIVE Pulp 5.0 31.0 463 0.0 13.7 1.2RA LIVE Cull 6.1 18.0 0 100.0 0.0 0.0RA LIVE Domestic 11.3 31.0 16,168 2.9 281.6 40.4RA LIVE Pulp 5.8 28.0 3,065 0.0 66.9 7.7

Unit Log Grade x Sort Summary: QUALITY RFRS HWC U5

Sp Status Grade Sort Dia Len BF Net Defect % Tons MBF NetMA LIVE 2 SAW Domestic 14.8 20.0 710 0.0 10.6 1.8MA LIVE CULL Cull 6.7 21.0 0 100.0 0.0 0.0MA LIVE UTILITY Pulp 5.0 31.0 463 0.0 13.7 1.2RA LIVE 1 SAW Domestic 19.2 22.0 1,931 0.0 24.0 4.8RA LIVE 2 SAW Domestic 13.9 30.0 5,319 2.3 88.9 13.3RA LIVE 3 SAW Domestic 10.9 32.0 7,145 3.9 128.7 17.9RA LIVE 4 SAW Domestic 8.3 30.0 1,773 3.3 40.0 4.4RA LIVE CULL Cull 6.1 18.0 0 100.0 0.0 0.0RA LIVE UTILITY Pulp 5.8 28.0 3,065 0.0 66.9 7.7

Unit Log Grade x Diameter Bin Summary: QUALITY RFRS HWC U5

Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetMA 5 - 7 LIVE UTILITY 5.0 31.0 463 0.0 13.7 1.2MA 5 - 7 LIVE CULL 6.7 21.0 0 100.0 0.0 0.0MA 12 - 15 LIVE 2 SAW 14.8 20.0 710 0.0 10.6 1.8RA 5 - 7 LIVE UTILITY 5.5 28.0 2,492 0.0 56.0 6.2RA 5 - 7 LIVE CULL 5.8 18.0 0 100.0 0.0 0.0RA 5 - 7 LIVE 4 SAW 7.6 30.0 332 2.1 7.8 0.8RA 8 - 11 LIVE CULL 8.4 17.0 0 100.0 0.0 0.0RA 8 - 11 LIVE 4 SAW 8.5 30.0 1,441 3.6 32.3 3.6RA 8 - 11 LIVE 3 SAW 10.9 32.0 7,145 3.9 128.7 17.9RA 8 - 11 LIVE UTILITY 11.3 40.0 574 0.0 10.9 1.4RA 12 - 15 LIVE 2 SAW 13.9 30.0 5,319 2.3 88.9 13.3RA 16 - 19 LIVE 1 SAW 18.1 24.0 1,016 0.0 12.7 2.5RA 20+ LIVE 1 SAW 20.5 20.0 914 0.0 11.3 2.3

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Unit Log Sort x Diameter Bin Summary: QUALITY RFRS HWC U5

Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetMA 5 - 7 LIVE Pulp 5.0 31.0 463 0.0 13.7 1.2MA 5 - 7 LIVE Cull 6.7 21.0 0 100.0 0.0 0.0MA 12 - 15 LIVE Domestic 14.8 20.0 710 0.0 10.6 1.8RA 5 - 7 LIVE Pulp 5.5 28.0 2,492 0.0 56.0 6.2RA 5 - 7 LIVE Cull 5.8 18.0 0 100.0 0.0 0.0RA 5 - 7 LIVE Domestic 7.6 30.0 332 2.1 7.8 0.8RA 8 - 11 LIVE Cull 8.4 17.0 0 100.0 0.0 0.0RA 8 - 11 LIVE Domestic 10.2 32.0 8,586 3.9 160.9 21.5RA 8 - 11 LIVE Pulp 11.3 40.0 574 0.0 10.9 1.4RA 12 - 15 LIVE Domestic 13.9 30.0 5,319 2.3 88.9 13.3RA 16 - 19 LIVE Domestic 18.1 24.0 1,016 0.0 12.7 2.5RA 20+ LIVE Domestic 20.5 20.0 914 0.0 11.3 2.3

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Cruise Unit ReportQUALITY ROW U6

Unit Sale Notice Volume (MBF): QUALITY ROW U6

MBF Volume by GradeSp QMD Rings/In Age All 2 Saw 3 Saw 4 Saw UtilityDF 14.7 13.8 4.8 7.1 1.4 0.5WH 16.0 1.4 1.1 0.3ALL 14.8 15.2 4.8 8.2 1.6 0.5

Unit Sale Notice Weight (tons): QUALITY ROW U6

Tons by GradeSp All 2 Saw 3 Saw 4 Saw UtilityDF 123.7 44.8 61.2 13.7 3.9WH 13.1 9.8 3.3ALL 136.8 44.8 71.0 17.1 3.9

Unit Cruise Design: QUALITY ROW U6

Design Cruise Acres

FMA Acres

N Plots

N Cruise Plots

N Void Plots

B1: VR, 1 BAF (33.61) Measure All, Sighting Ht = 4.5 ft

1.0 1.4 3 3 0

Unit Cruise Summary: QUALITY ROW U6

Sp Cruised Trees All Trees Trees/Plot Ring-Count TreesDF 11 11 3.7 0WH 1 1 0.3 0ALL 12 12 4.0 0

Unit Cruise Statistics (Cut + Leave Trees): QUALITY ROW U6

Sp BA(sq ft/acre)

BA CV(%)

BA SE(%)

V-BAR(bf/sq ft)

V-BAR CV(%)

V-BAR SE(%)

Net Vol(bf/acre)

Vol CV(%)

Vol SE(%)

DF 123.2 41.7 24.1 112.4 22.3 6.7 13,848 47.2 25.0WH 11.2 173.2 100.0 123.2 0.0 0.0 1,380 173.2 100.0ALL 134.4 50.0 28.9 113.3 21.2 6.1 15,228 54.3 29.5

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Unit Summary: QUALITY ROW U6

Sp Status Rx N D QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF LIVE CUT 11 ALL 14.7 68 90 13,848 7.5 104.6 123.2 32.1 123.7 13.8WH LIVE CUT 1 ALL 16.0 71 88 1,380 0.0 8.0 11.2 2.8 13.1 1.4ALL LIVE CUT 12 ALL 14.8 68 90 15,228 6.9 112.6 134.4 34.9 136.8 15.2ALL ALL ALL 12 ALL 14.8 68 90 15,228 6.9 112.6 134.4 34.9 136.8 15.2ALL ALL ALL 12 ALL 14.8 68 90 15,228 6.9 112.6 134.4 34.9 136.8 15.2

Unit Stand Table: QUALITY ROW U6

Sp D Status Rx N QMD BL THT BF Net Defect % TPA BA RD Tons MBF NetDF 10 LIVE CUT 1 10.0 60 75 801 20.4 20.5 11.2 3.5 8.2 0.8DF 12 LIVE CUT 2 11.5 59 74 2,189 4.0 31.2 22.4 6.6 18.3 2.2DF 16 LIVE CUT 2 15.0 56 95 2,438 0.0 18.3 22.4 5.8 20.3 2.4DF 18 LIVE CUT 1 17.0 94 120 1,642 7.6 7.1 11.2 2.7 13.6 1.6DF 20 LIVE CUT 5 19.6 86 110 6,779 9.3 26.8 56.0 12.7 63.3 6.8WH 16 LIVE CUT 1 16.0 71 88 1,380 0.0 8.0 11.2 2.8 13.1 1.4

Unit Log Grade Summary: QUALITY ROW U6

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetDF LIVE 2 SAW 12.7 38.0 4,831 10.8 44.8 4.8DF LIVE 3 SAW 7.8 39.0 7,116 2.7 61.2 7.1DF LIVE 4 SAW 5.7 33.0 1,357 5.7 13.7 1.4DF LIVE CULL 5.2 5.0 0 100.0 0.0 0.0DF LIVE UTILITY 6.1 14.0 544 5.9 3.9 0.5WH LIVE 3 SAW 10.6 36.0 1,099 0.0 9.8 1.1WH LIVE 4 SAW 5.1 33.0 281 0.0 3.3 0.3

Unit Log Sort Summary: QUALITY ROW U6

Sp Status Grade Dia Len BF Net Defect % Tons MBF NetDF LIVE Cull 5.2 5.0 0 100.0 0.0 0.0DF LIVE Domestic 8.1 37.0 13,304 6.1 119.8 13.3DF LIVE Pulp 6.1 14.0 544 5.9 3.9 0.5WH LIVE Domestic 7.9 35.0 1,380 0.0 13.1 1.4

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Unit Log Grade x Sort Summary: QUALITY ROW U6

Sp Status Grade Sort Dia Len BF Net Defect % Tons MBF NetDF LIVE 2 SAW Domestic 12.7 38.0 4,831 10.8 44.8 4.8DF LIVE 3 SAW Domestic 7.8 39.0 7,116 2.7 61.2 7.1DF LIVE 4 SAW Domestic 5.7 33.0 1,357 5.7 13.7 1.4DF LIVE CULL Cull 5.2 5.0 0 100.0 0.0 0.0DF LIVE UTILITY Pulp 6.1 14.0 544 5.9 3.9 0.5WH LIVE 3 SAW Domestic 10.6 36.0 1,099 0.0 9.8 1.1WH LIVE 4 SAW Domestic 5.1 33.0 281 0.0 3.3 0.3

Unit Log Grade x Diameter Bin Summary: QUALITY ROW U6

Sp Bin Status Grade Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 LIVE UTILITY 5.1 14.0 334 9.2 2.1 0.3DF 5 - 7 LIVE CULL 5.2 5.0 0 100.0 0.0 0.0DF 5 - 7 LIVE 4 SAW 5.7 33.0 1,357 5.7 13.7 1.4DF 5 - 7 LIVE 3 SAW 6.6 40.0 3,460 1.5 30.7 3.5DF 8 - 11 LIVE UTILITY 8.7 15.0 210 0.0 1.8 0.2DF 8 - 11 LIVE 3 SAW 9.9 38.0 3,656 3.8 30.6 3.7DF 12 - 15 LIVE 2 SAW 12.7 38.0 4,831 10.8 44.8 4.8WH 5 - 7 LIVE 4 SAW 5.1 33.0 281 0.0 3.3 0.3WH 8 - 11 LIVE 3 SAW 10.6 36.0 1,099 0.0 9.8 1.1

Unit Log Sort x Diameter Bin Summary: QUALITY ROW U6

Sp Bin Status Sort Dia Len BF Net Defect % Tons MBF NetDF 5 - 7 LIVE Pulp 5.1 14.0 334 9.2 2.1 0.3DF 5 - 7 LIVE Cull 5.2 5.0 0 100.0 0.0 0.0DF 5 - 7 LIVE Domestic 6.2 37.0 4,817 2.7 44.4 4.8DF 8 - 11 LIVE Pulp 8.7 15.0 210 0.0 1.8 0.2DF 8 - 11 LIVE Domestic 9.9 38.0 3,656 3.8 30.6 3.7DF 12 - 15 LIVE Domestic 12.7 38.0 4,831 10.8 44.8 4.8WH 5 - 7 LIVE Domestic 5.1 33.0 281 0.0 3.3 0.3WH 8 - 11 LIVE Domestic 10.6 36.0 1,099 0.0 9.8 1.1

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