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PRIMA COLOMBIA HARDWOOD INC. INCREASES TIMBER RESERVE UNDER EXCLUSIVE AGREEMENT FROM 1,050,000 TO 3,121,720 CUBIC METERS

^{Published on 2010-12-07 06:10:27 - Market Wire}
 

 1. An increase in timber volume under the Timber Agreement from 1,050,000 to 3,121,720 cubic meters; 2. The establishment of an annual allowable cut of 208,114 cubic meters per annum with the ability to carry forward prior years' undercuts or volume shortfalls; 3. A renewed term of 15 years commencing on the date of execution of the Amendment; 4. An option to add another 10 years at the end of the 15 year term on notice from Prima Colombia; 5. The opportunity to introduce other suitable harvesting systems in addition to the helicopter harvesting; 6. A commitment to continuing cooperation including a mutual maximum 5 day turnaround provision for further approvals, signatures or actions; 7. Agreement on all consideration to be paid to the Community in respect of the timber harvested throughout the term of the Timber Agreement commencing at $10 US per cubic meter and increasing to $20 US per cubic meter over the term. Payments in respect of timber harvested are payable after the actual production and sale of the timber; and 8. An acknowledgement by both Parties that the Agreement is in good standing.