(1) Agreement entered into this day of , 20, between of hereinafter called the seller, and of hereinafter called the buyer.

<Explanation: This specifies the parties to the contract.>

(2) This agreement shall be governed by the laws of the State of Georgia.

<Explanation: This spells out the State laws which will apply, thus avoiding confusion for absentee landowners and/or out-of-state purchasers.>

(3) The seller, having the right to sell, agrees to sell to the buyer, who agrees to buy upon the conditions hereinafter stated all timber that has been designated as follows:

and owned by the seller on the following described tract of land:

<Explanation: It is important to specify how the trees to be cut are identified. There are several ways. For example, all trees marked with red paint on both trunk and stump; all trees larger than some minimum stump diameter, so far above the ground; all trees of a given species; all trees within a marked boundary; etc. are to be cut. Consult a professional forester to determine the best method for your sale. If paint is used in marking, tee sure to specify the color and also that a paint mark be made below the level of the stump. This provides some insurance against the cutting of unmarked trees. A plant book or warranty deed can be used to determine the legal description.>

(4) Seller is the legal owner of said timber and warrants the title to the timber hereby conveyed against the lawful claims of all third parties.

<Explanation: This protects the buyer from unknown third party claims.>

(5) The purchaser agrees to pay the seller (use a or b):

a. the total sum of dollars ($ ) for said timber.

<Explanation: This is the usual method for a lump-sum sale. Under a lump-sum sale, the seller is paid a fixed amount lump- sum) for the designated timber. This fixed amount may be determined through direct negotiation with one buyer or through competitive bidding by several prospective buyers. While buyers base their bids on an estimate of the volume to be harvested, the total dollar amount received by the seller is independent of the amount actually removed It is generally recommended that landowners use this sales method, but that they do so in conjunction with competitive bidding.>

b. The following price for each unit of timber stumpage removed: per for .

<Explanation: Under this sale-by-unit, sale-hy-scale or sale-hy-piece method the designated trees are felled and measured (scaled) to determine volume. The seller is then paid so many dollars per 1, 000 board feet, per cord or per post, etc. Since the unit rate will usually vary among species, size, and product classes, an item-by-item listing is indicated. Where weight is used as a basis to determine board feet, cords, etc., Georgia law requires the buyer to provide the seller with a price quotation calculated in dollars per thousand pounds. Because it often presents problems in obtaining an accurate production tally, this sales method is more difficult to administer than the lump-sum sale. However, it has definite Federal Income Tax advantages to landowners making frequent sales (i.e. less than five years between sales).>

(6) A down payment of shall be made to the seller upon execution of this contract.

<Explanation: A down payment of 10-20% is common.>

(7) Method and time of payment shall be as follows:

<Explanation: On lump-sum sales it is desirable to have the balance paid in full before harvesting operations begin. For small sale-hy-unit sales, it is desirable to have 75-80% of the total estimated value paid in advance of harvesting. The final payment should be due upon measurement of the final log On large sale-by-unit sales, it may be necessary to establish a payment schedule, wherein the buyer makes periodic payments (i. e. weekly or biweekly) as the timber is harvested and scaled.>

(8) All timber marked or products included in this contract, until paid for in full, shall remain as the property of the seller.

<Explanation: This protects the seller from buyer's failure to pay.>

(9) This agreement will be in effect from , 20 to , 20, after which time the contract is null and void, unless written extension is granted by the seller. If no extension is granted, all rights to remaining timber return to the seller.

<Explanation: The buyer must be given a reasonable period of time to harvest the timber. However, if no termination date is established, the contract can continue indefinitely, with the buyer harvesting growth in addition to the original volume. Furthermore, extensions may be necessary due to poor logging conditions. Depending upon the circumstances of the extension, additional compensation to the seller may be in order.>

(10) The seller is free from responsibility for any injury, death or property damage caused by the buyer's logging operation in the sale area during the tenure of the agreement.

<Explanation: This protects the seller from liability for buyer's operation.>

(11) It is understood by both parties that the buyer is an independent contractor and not an employee of the seller.

<Explanation: This protects the seller from liability for Worker's Compensation, unemployment insurance, etc.>

(12) If requested by seller, buyer agrees to furnish current certificates for worker's compensation and public liability insurance.

<Explanation: Once again this protects seller from liability.>

(13) Seller may suspend operations, including removal of cut timber, if conditions of the contract are violated. Violations of conditions of the contract are sufficient grounds for termination.

<Explanation: This protects the seller from buyer's failure to follow agreed upon terms and conditions.>

(14) Any modifications or amendments, to this contract must be written, dated, signed, and witnessed.

<Explanation: This is to ensure that both parties are in agreement concerning any changes in the contract.>

(15) Prior to commencing harvesting operations, the buyer shall post a performance bond with in the amount of dollars ($).

<Explanation: A performance bond (over and above the sale price) of $500 minimum and up to 10% of sale value on large sales provides evidence and insurance to the seller that the buyer will not cause unusual damage or cut trees not in the sale. The bond can work as a joint deposit by the buyer and seller in a local bank in which a withdrawal can be made after certain conditions have been met. The bond can also be a surety bond purchased through the buyer's insurance agent. In either case, the bond is returned to the buyer upon satisfactory completion of the sale.>

(16) This agreement shall be binding on the heirs, administrators, executors, successors or assigns of both parties.

<Explanation: This is to ensure that the agreement is continued, if necessary, beyond the original parties.>

(17) In witness whereof, the parties hereto have executed this Agreement this day of , 20.

<Explanation: The buyer and seller should sign and date the contract and have it witnessed by at least two impartial observers. It is also a good idea to have the contract notarized Both parties should be provided with their own copy of the signed agreement.>