Cherry Valley Logging Company 4/10/2025

Page 21 of 42 FINAL 2/21/25 Agreement No. 2025-02 Payment will be based on the Contract rate multiplied by the volume (mbf) removed during the month or payment period. Included with the payment will be a summary report along with all related load tickets and the corresponding certified weight tickets for the payment period. The summary report will be generated using a computer spreadsheet and list the load tickets in ascending numerical order with the corresponding ticket number and weight for each load. P-70 Payment for Products: Damage, Theft, Loss, or Mismanufacture Forest products included in this agreement which are destroyed, damaged, stolen, lost, or mismanufactured shall be paid for by Purchaser on demand of the City. The rates contained in clause P-21 shall apply. P-80 Payment Account Refund Advance payments remaining on account above the value for the charges shall be returned to Purchaser within thirty (30) days following the final report of charges. P-90 Performance Security Purchaser agrees to furnish a security acceptable to the City, in the amount of $100,000 that guarantees performance of all provisions of this Contract and payment of any damages caused by operations under this Contract or resulting from Purchaser's noncompliance with any rule or law. This security must be furnished no later than the date of mutual execution of this Contract. The Contract Administrator in writing may extend this deadline, but in no event will the deadline be later than the date that Purchaser begins operations in the sale area. Performance security may be a performance and payment bond, irrevocable letter of credit, cash, savings or certificate of deposit account assignments or other methods acceptable to the City as adequate security and must name the City as the obligee or beneficiary and must be in form acceptable to the City. Performance security must remain in full force over the duration of the Contract term. Purchaser shall not operate unless the performance security has been accepted by the City. If at any time the City decides that the security has become unsatisfactory, Purchaser agrees to suspend operations and, within 30 days of notification, to replace the security with one acceptable to the City. P-100 Performance Security Reduction The City may reduce the performance security after an operating release has been issued if the City determines that adequate security exists for any remaining obligations of Purchaser. SECTION L: LOG DEFINITIONS AND ACCOUNTABILITY L-10 Forest Products Conveyed Forest products conveyed are all logs or parts of logs described by the ‘Right to Remove Forest Products and Contract Area’ (G-011) clause meeting the removal requirements listed in the ‘Required Removal of Forest Products’ (H-150) clause.