Legal Forest Agreement

LEGAL FOREST AGREEMENT

This Legal Forest Agreement ("Agreement") is made and entered into as of Effective Date: by and between Landowner Name: whose address is ("Landowner"), and Forest Manager Name: whose address is ("Manager"). Landowner and Manager are each a Party and collectively the Parties.

RECITALS

WHEREAS, Landowner owns and controls certain timberland and forest resources described in Section 2 (the "Forest"); and

WHEREAS, Manager is engaged in the business of forest management, timber marketing and related services and represents that Manager has the skill and experience to perform the services described in this Agreement; and

WHEREAS, Landowner desires to grant Manager specific rights to manage, harvest and market timber on the Forest under the terms set forth herein.

NOW, THEREFORE

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms have the meanings set forth below. "Forest" means the real property and associated timber described in Section 2. "Timber" means standing trees, merchantable logs and woody biomass subject to harvest. "Management Plan" means the written plan prepared pursuant to Section 4 and incorporated herein.

2. DESCRIPTION OF PROPERTY

3. GRANT OF RIGHTS

Landowner hereby grants to Manager the exclusive right, during the Term defined in Section 6, to enter upon the Forest to conduct forest management operations, including but not limited to marking, thinning, selective harvest, clearcutting where authorized by the Management Plan, silvicultural treatments, road construction and maintenance necessary to access timber, and marketing and sale of Timber (collectively, the "Granted Rights"), subject to the limitations and conditions set forth herein.

4. MANAGEMENT PLAN; OPERATIONS

Within days of the Effective Date, Manager shall prepare and deliver to Landowner a written Management Plan describing proposed harvest units, silvicultural prescriptions, schedules, anticipated yields, roadwork and environmental protection measures. The Management Plan shall: (a) conform to applicable law and accepted forestry practices; (b) identify trees to be harvested by species, approximate volumes and proposed stumpage or sale method; and (c) include measures to protect water resources, rare species habitat, cultural sites and soil stability.

5. HARVEST, MARKETING AND SALE

Manager shall conduct marketing and sale of Timber in a commercially reasonable manner and shall obtain the best reasonably available price for Landowner. All timber sales shall be conducted under written contracts that include customary provisions for measurement, scaling, payment, stumpage adjustments and bonding for site protection. Manager shall not consummate a sale to an affiliated party without prior written consent of Landowner.

Manager must obtain Landowner's prior written approval of the purchaser for any single sale expected to exceed $ .

6. TERM

The initial term of this Agreement shall be for a period of years commencing on the Effective Date, and shall automatically renew for additional one-year periods unless either Party gives written notice of non-renewal at least days prior to the end of the then-current term.

7. COMPENSATION AND ACCOUNTING

Unless otherwise agreed in writing, Manager shall be compensated as follows (select one):

Fixed management fee of $ per .

Percentage of gross timber sale proceeds: of gross proceeds, payable within days after receipt.

Manager shall deliver to Landowner an itemized accounting of each sale within thirty (30) days of receipt and shall remit Landowner's share in accordance with the selected compensation method. All accounts and records relevant to sales and disbursements shall be made available to Landowner upon reasonable notice.

8. ENVIRONMENTAL AND REGULATORY COMPLIANCE

Manager shall conduct operations in compliance with all applicable environmental laws, permits and best management practices. Manager shall obtain all required permits and shall be responsible for securing any notices or approvals necessary for operations. Manager shall immediately notify Landowner of any noncompliance, claim or citation arising from activities under this Agreement.

9. ACCESS, ROADS AND IMPROVEMENTS

Manager shall have reasonable access to the Forest for the exercise of the Granted Rights. Manager shall construct or maintain roads only as described in the Management Plan or as authorized in writing by Landowner. Upon completion of operations, Manager shall repair or restore areas disturbed by operations in accordance with the Management Plan. Any permanent improvements constructed by Manager shall become the property of Landowner unless otherwise agreed in writing.

10. INSURANCE, BONDING AND INDEMNITY

Manager shall maintain, at Manager's expense, commercial general liability insurance with limits not less than $ per occurrence and shall provide evidence of such insurance upon request. Manager shall indemnify, defend and hold Landowner harmless from and against all claims, liabilities, damages and expenses (including reasonable attorneys' fees) arising out of Manager's negligence or willful misconduct in performing services under this Agreement, except to the extent directly caused by Landowner's negligence or willful misconduct.

11. TAXES AND ASSESSMENTS

Landowner shall remain responsible for all real property taxes, assessments and governmental charges attributable to the Forest unless otherwise agreed in writing. Manager shall be responsible for payroll and withholding taxes for Manager's employees and contractors.

12. ASSIGNMENT

Manager shall not assign or transfer any rights or obligations under this Agreement without the prior written consent of Landowner, which consent shall not be unreasonably withheld. Any purported assignment without such consent shall be void.

13. NOTICES

All notices or other communications required or permitted under this Agreement shall be in writing and delivered to the Parties at the addresses set forth in the opening paragraph or to such other address as a Party may designate in writing. Notices shall be deemed given when delivered personally, by nationally recognized overnight courier, or three (3) days after deposit in the United States mail, postage prepaid, certified or registered.

14. AMENDMENT, WAIVER AND COUNTERPARTS

This Agreement may be amended only by a written instrument signed by both Parties. No waiver of any provision hereof shall be effective unless in writing and signed by the Party against whom the waiver is asserted. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

15. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction in which the Forest is located, without regard to conflict of law principles.

16. ENTIRE AGREEMENT

This Agreement, including any attached Management Plan and exhibits, constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior agreements and understandings, whether written or oral, relating to such subject matter.

17. SEVERABILITY

If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be reformed to the extent necessary to make it enforceable, and the remaining provisions shall continue in full force and effect.

Sign Now