Document:

TITLE

Exhibit 10.18

FIRST

AMENDMENT TO

MANAGEMENT

AGREEMENT

 

THIS FIRST AMENDMENT (the “First Amendment’) is dated as of the 7th day

of September, 2000, by and between PIONEER RESOURCES I, LLC a Delaware limited

liability company (hereinafter referred to as “Pioneer”), and OLYMPIC

RESOURCE  MANAGEMENT LLC, a Washington limited

liability company (hereinafter referred to as “Manager”). Capitalized terms not

otherwise defined in this First Amendment shall have the meanings given to them

in that certain Management Agreement effective as of March 22, 2000 (as

amended, the “Management Agreement”).

WHEREAS, Pioneer and Manager are parties to the

Management Agreement; and

WHEREAS, the parties wish to amend the

Management Agreement, all as set forth herein.

NOW,

THEREFORE, the

parties agree as follows:

1.             Purpose. In

connection with the potential sale by Pioneer of certain Timberlands located in

Washington, Oregon and California, Pioneer desires to engage Manager, and

Manager agrees to provide disposition services, in accordance with Section 5 of

the Management Agreement and the scope of services set forth herein

(“Disposition Services”).  For Manager’s

performance of Disposition Services, Pioneer agrees to compensate Manager as

set forth herein (“Disposition Fee”). 

The purpose of this First Amendment is to set forth the terms and

conditions that apply to the Disposition Services to be provided by Manager and

the Disposition Fees to be paid by Pioneer therefor.

2.             Disposition

Services. Without limiting the Manager’s obligations to perform

administration services and property management services pursuant to the

management Agreement, and Pioneer’s obligation under Section 6.2 of the [Confidential Treatment for the omitted material has

been requested and has been filed separately with the Securities and Exchange

Commission] to implement the “value maximization plan” on the terms

as approved by the Required Lenders pursuant to the Amendment dated as of

August 11, 2000 to the [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission], the scope

of Disposition Services shall include those services customary to the marketing

and sale of real estate properties in Washington, Oregon and California, including

the following:

A.            Respond to

offers outside the normal sales process;

B.            Assist with

determination of appropriate sales price;

C.            Develop a

sales strategy for each property;

D.            Where

necessary or desirable, locate qualified real estate brokers;

E.             Prepare, or

assist with preparation of, all marketing materials and promotional activities;

F.             When

applicable, conduct all aspects of a public sale auction (and, when applicable,

a sealed bid auction), including transmittal of bid information packages to

prospective bidders; response to all inquiries from prospective bidders;

conduct property tours,

 

 

 

coordinate

other due diligence activities; select the successful bid(s); negotiate the

purchase agreement with successful bidder(s); and assist with closing of each

transaction;

G.            When

required by the Management Agreement, prepare materials to facilitate, and

otherwise assist Pioneer in obtaining, Required Lender sale approval; and

H.            Arrange for

qualified escrow services and oversee closing of each transaction.

3.             Disposition Fee.  Except as expressly provided in Section 5

hereof, Manager shall be entitled to compensation for Disposition Services as

follows:

A.            Brokered Sales.  In the event that Pioneer retains a real

estate broker to sell a Pioneer property, then Manager shall [Confidential Treatment for the omitted material has

been requested and has been filed separately with the Securities and Exchange

Commission] from the sale of said property. All costs and expenses

associated with the sale shall be an expense to Pioneer.

B.            Non-Broker Sales.  The following shall apply to sales of

Pioneer property without the use of a real estate broker:

i.              Public Sale

Auctions. Pioneer will sell a portion of the Pioneer properties

utilizing public sale auctions without the use of a real estate broker (“public

sale auction”). In conjunction with a public sale auction, Manager will perform

Disposition Services, including (1) preparation and distribution of an

information package that includes promotional materials, property information,

maps, bid information and a request for offers (hereafter “the Bid Package”);

(2) facilitate the bid process; and (3) assist with closing of each

transaction.  In the event that Pioneer

closes a sale of Pioneer property by public sale auction, then Manager shall be

entitled to a [Confidential Treatment for the

omitted material has been requested and has been filed separately with the

Securities and Exchange Commission].  All transaction costs

and expenses, such as closing costs, document preparation, taxes, escrow fees,

title insurance and similar expenses associated with the sale shall be an

expense of Pioneer.

ii.            Private Sales.  Pioneer may sell a portion of the Pioneer

properties by private sale without general solicitation to potential purchasers.

Except as specifically provided in Section 5 with respect to the sale called

NOALE involving Pioneer and the Longview Tract, in the event that Pioneer (1)

receives an unsolicited or solicited offer for a Pioneer property prior to the

date that a Bid Package is mailed for general distribution; and (2) the public

sale auction is not commenced; and (3) the offer results in a closed sale, then

Manager shall be entitled to a [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission].  All transaction costs and expenses, such as closing costs,

document preparation, taxes, escrow fees, title insurance and similar expenses

associated with the sale shall be an expense to Pioneer.

 

2

 

4.             [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission].

A.            [Confidential Treatment for the omitted material has been requested and

has been filed separately with the Securities and Exchange Commission].

B.            [Confidential Treatment for the omitted material has been requested and

has been filed separately with the Securities and Exchange Commission].

5.             Disposition Services

for Longview Tract and NOALE Exchange.  Pioneer will utilize Manager to provide

certain Disposition Services in conjunction with the Northeast Oregon Assembled

Land Exchange (“NOALE”) involving Pioneer properties and possibly with regard

to the California Longview Tract. The parties agree to the following

arrangement concerning compensation to Manager for Disposition Services

relating to these two transactions:

A.            NOALE Exchange.  It is anticipated that Pioneer will exchange

approximately 21,500 acres to the Bureau of Land Management (“BLM”) for [Confidential Treatment for the omitted material has

been requested and has been filed separately with the Securities and Exchange

Commission].  Manager will

provide Disposition Services relating to the transaction. Manager shall be

entitled [Confidential Treatment for the

omitted material has been requested and has been filed separately with the

Securities and Exchange Commission].  If the NOALE exchange is

consummated, Manager shall provide Disposition Services relating to the sale of

any of the properties received from BLM in the NOALE exchange and Manager shall

be entitled to [Confidential Treatment for

the omitted material has been requested and has been filed separately with the

Securities and Exchange Commission].

B.            Longview Tract.  Pioneer may sell all, or a portion of, the

California Longview Tract without the use of Disposition Services provided by

Manager.  Notwithstanding the provisions

of Section 3(B)(i) and 3(B)(ii) above, in the event that Pioneer sells all, or

a portion of, the California Longview Tract without utilizing the Disposition

Services of Manager, then Manager shall [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission].

6.             Consent of Required

Lenders.  Pursuant to Section

6.10 and Section 6.11 of the [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission] Pioneer and

Manager agree that the effectiveness of this First Amendment (and any amendment

of this First Amendment) is subject to, and contingent upon, the prior written

consent of the Required Lenders. 

Pioneer and Manager agree that this First Amendment shall become

effective upon the execution hereof by Manager and Pioneer and Pioneer’s

receipt of such written consent from the Required Lenders. Pioneer and Manager

acknowledge that the written consent of the Required Lenders to this First

Amendment shall not be deemed the consent of the Lenders, or indicate the

Lenders’ willingness to consent, to any specific sale transaction (including

the NOALE sale) contemplated hereby, such consent being required to the extent

set forth in [Confidential Treatment for the

omitted material has been requested and has been filed separately with the

Securities and Exchange Commission].

 

3

 

7.             Miscellaneous. This First

Amendment constitutes an integral part of the Management Agreement. Except as

expressly amended by this First Amendment, the Management Agreement shall

remain in full force and effect.

IN WITNESS WHEREOF, the

parties hereto have executed this First Amendment by and through their properly

authorized officers on the date first specified above.

	

  PIONEER:

  	

   

  	

   

  	

  MANAGER:

  
	

   

  	

   

  	

   

  	

   

  
	

  PIONEER RESOURCES I, LLC,  

  	

   

  	

   

  	

  OLYMPIC RESOURCE MANAGEMENT LLC, 

  
	

  a Delaware liability company 

  	

   

  	

   

  	

  a Washington limited liability company

  
	

   

  	

   

  	

   

  	

   

  
	

  By:  Olympic Resource

  	

   

  	

   

  	

   

  
	

  Management, Manager

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  By

  	

  /s/ Thomas M. Ringo

  	

   

  	

   

  	

  By:

  	

  /s/  David

  Nunes

  	 

	

  Its:

  	

  Vice President & CFO

  	

   

  	

   

  	

  Its:

  	

  President & COO

  	 

	

  Date:

  	

  Sept.

  7, 2000

  	

   

  	

   

  	

  Date:

  	

  9/7/00

  	 

								

4TITLE

Exhibit

10.19

 

SECOND

AMENDMENT TO

MANAGEMENT AGREEMENT

 

 

THIS

SECOND AMENDMENT TO MANAGEMENT AGREEMENT (the “Second Amendment”) dated as of

June 29, 2001 is entered into between PIONEER RESOURCES I, LLC, a Delaware

limited liability Company (“Pioneer”), and OLYMPIC RESOURCE MANAGEMENT LLC,

a Washington limited liability company (“Manager”).  Capitalized terms not otherwise defined in

this Second Amendment shall have the meanings set forth in that certain

Management Agreement between Pioneer and Manager dated as of March 22,

2000, as amended by the “First Amendment to Management Agreement” dated as of

September 7, 2000 (the “First Amendment”).  The original Management Agreement as

modified by the First Amendment shall be referred to herein as the “Management

Agreement”.

RECITAL

Pioneer and Manager are parties to the Management

Agreement and the parties wish to further amend the Management Agreement, as

set forth herein.

NOW, THEREFORE, the parties agree as follows:

AMENDMENT TO MANAGEMENT AGREEMENT

1.             [Confidential Treatment for the omitted material has been requested and

has been filed separately with the Securities and Exchange Commission]    (a) Section 2.2(a) of the Management Agreement is

deleted in its entirety and replaced by the following:

2.2          Fees. 

(a)(i) [Confidential Treatment for the

omitted material has been requested and has been filed separately with the

Securities and Exchange Commission]

                (ii)           [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission]

                (iii)          Any fees payable to Manager for

Additional Services or Optional Services performed by Manager in accordance

with Sections 4.3 and 4.4 of this Agreement, respectively, shall be

payable in accordance with the terms of Manager’s engagement by Pioneer to

perform such Additional Services or Optional Services.”

                (b)           Schedule 1 attached to this

Second Amendment shall become Schedule 1 to the Management Agreement.

                (c)           [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission]  Section 4 of the First Amendment and

Exhibit 2 to the Management Agreement (and all references thereto) are

hereby deleted from the Management Agreement.

2.             [Confidential Treatment for the omitted material has been requested and

has been filed separately with the Securities and Exchange Commission]

 

 

 

3.             Extension of Term. 

Section 8.1 of the Management Agreement is deleted in its entirety

and replaced by the following:

8.1          Term. 

The term of this Agreement shall commence as of the date hereof, and

shall continue to and including the date of [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission]  (the

“Termination Date”).  Thereafter,

this Agreement may be renewed for [Omitted Confidential Information has been filed

separately with the Securities and Exchange Commission] only upon

the mutual consent of Manager and Pioneer in each of their sole

discretions.  The provisions of

Sections 2.3(c)(ii), 6.1, 7.2, 7.3, 8.4 and 9 shall survive any

termination of this Agreement.

4.             Elimination of Pioneer Secured Fee

Obligations from Manager Mortgage.  Manager and

Pioneer agree that, from and after date hereof, the term “Pioneer Secured Fee

Obligations” is hereby deleted from the Management Agreement wherever it may

occur. Manager and Pioneer further agree that, from and after the date hereof,

the term “Pioneer Secured Obligations” shall mean only the Pioneer Secured

Indemnity Obligations.  The Manager

Mortgage shall continue in full force and effect from and after the date

hereof, but shall secure only the Pioneer Secured Indemnity Obligations and shall

cease to secure to the Pioneer Secured Fee Obligations.

5.               [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission].

(a)           [Confidential Treatment for the omitted material has

been requested and has been filed separately with the Securities and Exchange

Commission].

(b)           [Confidential Treatment for the omitted material has

been requested and has been filed separately with the Securities and Exchange

Commission].

(c)           Scheduled

Buyers.  Upon any termination of the

Management Agreement on or prior to the [Confidential

Treatment for the omitted material has been requested and has been filed

separately with the Securities and Exchange Commission], Pioneer

(acting with the consent of the Required Lenders) and Manager shall mutually

agree on a schedule listing all of the parties (the “Scheduled Buyers”)

that Manager has contacted prior to such termination concerning a sale of any

of Pioneer’s real estate. 

Notwithstanding the termination of the Management Agreement, Pioneer

shall pay to Manager [Confidential Treatment

for the omitted material has been requested and has been filed separately with

the Securities and Exchange Commission].

(d)           Deletion

of Section on Longview Tract. 

Effective from and after the date of this Second Amendment,

Section 5(B) of the First Amendment shall be deleted in its entirety, and

all future sales with respect to the Longview Tract shall be subject to and

governed by the provisions of this Section 5.

2

6.             Consent of Required Lenders. 

Pursuant to Section 6.10 and Section 6.11 of the [Confidential Treatment for the omitted material has

been requested and has been filed separately with the Securities and Exchange

Commission]  Pioneer and Manager agree that the

effectiveness of this Second Amendment (and any amendment of this Second

Amendment) is subject to, and contingent upon, the prior written consent of the

Required Lenders.  Pioneer and Manager

agree that this Second Amendment shall become effective upon the execution

hereof by Manager and Pioneer and Pioneer’s receipt of such written consent

from the Required Lenders.

7.             Miscellaneous. 

This Second Amendment constitutes an integral part of the Management

Agreement.  The Management Agreement, as

amended and supplemented by this Second Amendment, is and shall remain in full

force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Second

Amendment by and through their properly authorized officers on the date first

specified above.

PIONEER

RESOURCES I, LLC                                           OLYMPIC

RESOURCE MANAGEMENT, LLC

	

  By:

  	

  /s/

  Thomas M. Ringo

  	

   

  	

  By:

  	

  /s/

  David L. Nunes

  
	

  Its:

  	

  VP

  for Manager

  	

   

  	

  Its:

  	

   President

  
	

   

  	

  Date:  8/9/01

  	

   

  	

   

  	

  Date:  8/9/01

  

 

3

SCHEDULE I

	

  [Confidential Treatment for the omitted material has been

  requested and has been filed seperately with the Securities and Exchange

  Commission] Timber Tract or HBU Sales (A)

  
	

  (all figures actual)

  	

   

  	

  Acres

  	

   

  	

  Value

  	

   

  	

  Relative

  Value%

  	

   

  	

   

  	

   

  	

   

  
	

  Riffe Lake

  	

   

  	

  4,885

  	

   

  	

  [Confidential Treatment for the

  omitted material contained in the entire column has been requested and has

  been filed separately with the Securities and Exchange Commission]

  	

   

  	

  [Confidential Treatment for the

  omitted material contained in the entire column has been requested and has

  been filed separately with the Securities and Exchange Commission]

  	

   

  	

  [Confidential Treatment for the

  omitted material contained in the entire column has been requested and has

  been filed separately with the Securities and Exchange Commission]

  	

   

  	

  [Confidential Treatment for the

  omitted material contained in the entire column has been requested and has

  been filed separately with the Securities and Exchange Commission]

  
	

  Aloha

  	

   

  	

  5,622

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Commander All

  	

   

  	

  43,263

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Williams Ranch

  	

   

  	

  4,504

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

4

 

	

  Willets

  	

   

  	

  14,158

  	

   

  	

  [Confidential Treatment for the

  omitted material contained in the entire column has been requested and has

  been filed separately with the Securities and Exchange Commission]

  	

   

  	

  [Confidential Treatment for the

  omitted material contained in the entire column has been requested and has

  been filed separately with the Securities and Exchange Commission]

  	

   

  	

  [Confidential Treatment for the

  omitted material contained in the entire column has been requested and has

  been filed separately with the Securities and Exchange Commission]

  	

   

  	

  [Confidential Treatment for the

  omitted material contained in the entire column has been requested and has

  been filed separately with the Securities and Exchange Commission]

  
	

  Longview

  	

   

  	

  57,635

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  East Oregon

  	

   

  	

  192,854

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  322,921

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

Note

(A):  If HBUs or sub-tracts are sold, monthly rate

reduction is calculated per this pre-determined schedule (e.g. sell a 1,227

acre Oregon HBU, [Confidential Treatment for

the omitted material has been requested and has been filed separately with the

Securities and Exchange Commission].  Reduction mechanism outlined above does not apply to timber deed

acres.

 

5

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