Publications > Internal Revenue Service > Market Segment Specialization Program > Hardwood Timber Industry

Exhibit 4

TIMBER SALES AGREEMENT
SMALL PRODUCT SALES

This AGREEMENT, made by and between __________________________________ whose address is _____________________, _________________________________ herein after referred to as the SELLER, and _____________________________ hereinafter referred to as the PURCHASER.

ARTICLE I. The SELLER hereby agrees to sell and the PURCHASER agrees to purchase, according to conditions and requirements hereinafter mentioned, the timber products described as follows: __________________________________________________________________________________________

ARTICLE II. The PURCHASER further agrees to pay to the SELLER the sum of ____________per _________ for the above designated forest products. The volume of products harvested will be determined as follows:____________________________________________________________________________________

ARTICLE III. The PURCHASER further agrees to make payments for the above described products according to the following schedule:__________________ ______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________

ARTICLE IV. This AGREEMENT cannot be assigned without the consent of the SELLER.

ARTICLE V. The SELLER agrees to the following conditions and requirements:

To guarantee title to the forest products covered by this AGREEMENT and to defend it against all claims at his expense.

To grant freedom of entry and right-of-way to the PURCHASER and his employees on and across the area covered by this AGREEMENT, provided such entry and/or right-of-way does not conflict with specific provisions of this AGREEMENT.

ARTICLE VI. The PURCHASER agrees to comply with the following conditions:

A. To cut and remove all timber from the premises of the SELLER on or before ____________ unless an extension of time is granted by the SELLER.

B. Undesignated trees cut or injured throuhgh negligence shall be paid for at ___________ the rates specified in ARTICLE II above.

C. Fences, roads and other improvements shall be protected from damage and if damaged shall be repaired to their original condition by the PURCHASER.

D. Roads used for harvest of this designated timber shall be smoothed and drained by the PURCHASER on completion of the operation, with waterbars installed as determined necessary by the Service Forester to prevent erosion.

E . The PURCHASER agrees to protect and save harmless the SELLER from any and all liability for personal injury, death and/or property damage suffered or incurred by any person in connection with the PURCHASER'S performance of this contract.

F. In case of dispute over the terms of this AGREEMENT, final decision shall rest with arbitrators, one of whom shall be selected by each party of this contract, and in case the two selected disagree, they shall select a third arbitrator, and the decision of the majority shall be final in respect to compensation to be paid by either party to the other.

_____________________              _______________________             ________________
(WITNESS)                                     (PURCHASER)                                 (DATE)

_____________________              _______________________             ________________
(WITNESS)                                    (SELLER)                                          (DATE)

TAKEN, SUBSCRIBED, and SWORN TO before me this _____________________ day of _____________, 
19 ____. My commission expires ______________________, 19 ____.

 

______________________________
(NOTARY PUBLIC)