Document:

EXHIBIT 10.28

 

	Void after November 15, 2018	Warrant No. ________

 

 

 

			This Warrant and any shares acquired upon the exercise of this Warrant have not been registered
under the Securities Act of 1933. This Warrant and such shares may not be sold or transferred in the absence of such registration
or an exemption therefrom under said Act. This Warrant and such shares may not be transferred except upon the conditions specified
in this Warrant, and no transfer of this Warrant or such shares shall be valid or effective unless and until such conditions shall
have been complied with.

 

 

NANO VIBRONIX, INC.

 

FORM OF AMENDED AND RESTATED

SERIES B-2 PARTICIPATING CONVERTIBLE PREFERRED
STOCK PURCHASE WARRANT

 

Nano Vibronix, Inc. (the “Company”), having
its principal office at 105 Maxess Road, Suite S124, Melville, NY 11747, hereby certifies that, for value received, _____________
(“Investor”), or assigns, is entitled, subject to the terms set forth below, to purchase from the Company at any time
on, or from time to time after, November___, 2011 and before 5:00 P.M., New York City time, on November 15 , 2018, or as curtailed
in accordance with the terms hereof (the “Expiration Date”), ______________ fully paid and non-assessable shares
of Warrant Shares of the Company, at the Purchase Price per share of $0.199. The number and character of such shares of Warrant
Shares and the Purchase Price per share are subject to adjustment as provided herein.

 

This Amended and Restated Series B-2 Participating Convertible
Preferred Stock Purchase Warrant amends, restates and supersedes in all respects that certain Warrant No. ____ issued to the Holder
on November___, 2011 (the “Original Warrant”). The Original Warrant is henceforth void and shall be of no further
force or effect as of the date hereof. However, the Company and the Holder hereby agree that (i) no consideration was paid by the
Holder in connection with the amendment and restatement of the Original Warrant, (ii) this Warrant shall be treated as a continuation
of the Original Warrant for U.S. tax purposes and (iii) for purposes of calculating any holding periods under Rule 144 of the Securities
Act of 1933, as amended, the original issuance date of this Warrant shall be November___, 2011.

 

As used herein, the following terms have the following respective
meanings:

 

“Warrant Shares” means the Series B-2 Participating
Convertible Preferred Stock of the Company Stock, par value $0.001 per share, of the Company.

 

    	 

    	 

    

 

“Affiliate” means any person or entity that,
directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a person
or entity, as such terms are used in and construed under Rule 144 under the Securities Act. With respect to a Holder, any investment
fund or managed account that is managed on a discretionary basis by the same investment manager as such Holder will be deemed to
be an Affiliate of such Holder.

 

“Business Day” means any day other than Saturday,
Sunday or other day on which commercial banks in the city of New York, New York are authorized or required by law to remain closed.

 

“Common Stock” means the common stock, par
value $0.001 per share, of the Company.

 

“Common Stock Equivalent” means any Convertible
Security or warrant, option or other right to subscribe for or purchase any additional shares of Common Stock or any Convertible
Security.

 

“Convertible Security” means any stock or
other security (other than options) that is at any time and under any circumstances, directly or indirectly, convertible into,
exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

 

“Exchange Act” means the Securities Exchange
Act of 1934 as the same shall be in effect at the time.

 

“Holder” means any record owner of this Warrant.

 

“Per Share Market Value” has the meaning
set forth in Section 2.3.

 

“Original Issue Date” means November ___,
2011.

 

“Other Securities” refers to any stock (other
than Warrant Shares) and other securities of the Company or any other entity which the Holder of this Warrant at any time shall
be entitled to receive, or shall have received, upon the exercise of this Warrant, in lieu of or in addition to Warrant Shares,
or which at any time shall be issuable or shall have been issued in exchange for or in replacement of Warrant Shares or Other Securities
pursuant to Section 5 or otherwise.

 

“Securities Act” means the Securities Act
of 1933 as the same shall be in effect at the time.

 

“Underlying Securities” means any Warrant
Shares or Other Securities issued or issuable upon exercise of this Warrant.

 

“Warrant” means, as applicable, this Warrant,
as amended and restated, or each right as set forth in this Warrant to purchase one share of Warrant Shares, as adjusted.

 

 

1.Sale or Exercise Without Registration. If,
at the time of any exercise, transfer or surrender for exchange of a Warrant or of Underlying Securities previously issued upon
the exercise of Warrants, such Warrant or Underlying Securities shall not be registered under the Securities Act, the Company may
require, as a condition of allowing such exercise, transfer or exchange, that the Holder or transferee of such Warrant or Underlying
Securities, as the case may be, furnish to the Company an opinion of counsel, reasonably satisfactory to the Company, to the effect
that such exercise, transfer or exchange may be made without registration under the Securities Act.

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2.Exercise of Warrant.

 

2.1.Exercise in Full.
Subject to the provisions hereof, this Warrant may be exercised in full by the Holder hereof by surrender of this Warrant, with
the form of subscription at the end hereof duly executed by such Holder, to the Company at its principal office accompanied by
payment, in cash or by certified or official bank check payable to the order of the Company, in the amount obtained by multiplying
the number of shares of Purchase Stock issuable upon exercise of this Warrant by the Purchase Price per share, after giving effect
to all adjustments through the date of exercise.

 

2.2.Partial Exercise.
Subject to the provisions hereof, this Warrant may be exercised in part by surrender of this Warrant in the manner and at the place
provided in Section 3.1 except that the amount payable by the Holder upon any partial exercise shall be the amount obtained by
multiplying (a) the number of shares of Warrant Shares (without giving effect to any adjustment therein) designated by the Holder
in the subscription at the end hereof, by (b) the Purchase Price per share. Upon any such partial exercise, the Company at its
expense will forthwith issue and deliver to or upon the order of the Holder hereof a new Warrant of like tenor, for the remaining
number of shares of Warrant Shares which may be purchased hereunder.

 

2.3 Cashless Exercise. In addition to the method
of payment set forth in Sections 2.1 and 2.2 and in lieu of any cash payment required thereunder, the Holder of the Warrant shall
have the right at any time and from time to time to exercise the Warrant in full or in part by surrendering this Warrant in the
manner and at the place specified in Section 3.1, specifying the number of shares for which this Warrant is being exercised. The
Company shall issue Holder the number of shares computed using the following formula:

 

	
         

        X=
	

  

	 	 	 
	where:	 	X = the number of Underlying Securities to be issued to Holder.
	 	 
	 	 	Y = the number of Underlying Securities for which this Warrant is being exercised.
	 	 
	 	 	A = the Purchase Price.
	 	 
	 	 	B = the Per Share Market Value of one share of Underlying Securities on the business day immediately preceding the date of such election

 

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“Per
Share Market Value” means on any particular date (a) the closing sales price
per share of the Underlying Securities on such date on any registered national stock exchange
on which the Underlying Securities is then listed, or if there is no such closing sales price
on such date, then the closing sales price on such exchange or quotation system on the date nearest preceding such date, or (b)
if the Underlying Securities is not then listed on a registered national stock exchange, the
closing sales price for a share of Underlying Securities in
the over-the-counter market, as reported by the OTC Bulletin Board or the OTC Markets Group, Inc. (or similar organization or agency
succeeding to its functions of reporting prices) at the close of business on such date, or (c) if the Underlying Securities
is not then reported by the OTC Bulletin Board or the OTC Markets Group, Inc. (or similar organization
or agency succeeding to its functions of reporting prices), the fair market value of a share of Underlying Securities as
determined by the Board, acting in good faith. In determining the fair market value of any shares of Underlying Securities
no consideration shall be given to any restrictions on transfer of the Underlying Securities
imposed by agreement or by federal or state securities laws, or to the existence or absence of, or any limitations on, voting rights.

 

 

2.4.Certain Exercises.
If this Warrant is to be exercised in connection with a registered public offering or sale of the Company, such exercise may, at
the election of the Holder, be conditioned on the consummation of the public offering or sale of the Company, in which case such
exercise shall not be deemed effective until the consummation of such transaction.

 

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2.5.Holder’s
Exercise Limitations. The Company shall not affect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Exercise Notice, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion
of the shares acquired upon exercise of this Warrant with respect to which such determination is being made, but shall exclude
the number of shares of Common Stock which would be issuable upon (i) conversion of the shares acquirable upon exercise of the
remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its affiliates and (ii) exercise or
conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any
other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein
beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of
this Section 2.5, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that
such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith.   To the extent that the limitation contained in this Section 2.5
applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the
submission of a form of subscription shall be deemed to be the Holder’s determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable,
in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the
accuracy of such determination.   In addition, a determination as to any group status as contemplated above shall
be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For
purposes of this Section 2.5, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by
the Company or its transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two Business Days confirm orally and in writing to the Holder the number of shares
of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial
Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving
effect to the potential issuance of shares of Common Stock issuable upon conversion of the shares acquired upon exercise of this
Warrant. The Holder, upon not less than 61 days’ prior written notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 2.5, provided that the Beneficial Ownership Limitation in no event exceeds 9.99%
of the number of shares of the Common Stock outstanding immediately after giving effect to potential issuance of shares of Common
Stock issuable upon conversion of the shares acquired upon exercise of this Warrant held by the Holder and the provisions of this
Section 2.5 shall continue to apply.  Any such increase or decrease will not be effective until the 61st day after such
written notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 2.5 to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor
holder of this Warrant. The Beneficial Ownership Limitation provisions of this Section 2.5 may be waived at the election of the
Holder upon not less than 61 days’ prior written notice to the Company. Any such waiver will not be effective and the provisions
of this paragraph shall continue to apply until the 61st day (or later, if stated in the notice) after such notice of waiver is
delivered to the Company. Unless earlier waived, the provisions of this Section 2.5 shall expire and be of no further force or
effect as of _________, 20__.

 

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3.Delivery of Stock Certificates, etc., on Exercise.
As soon as practicable after the exercise of this Warrant in full or in part, the Company at its own expense (including the payment
by it of any applicable issue taxes) will cause to be issued in the name of and delivered to the Holder hereof, or as such Holder
(upon payment by such Holder of any applicable transfer taxes) may direct, a certificate or certificates for the number of fully
paid and non-assessable shares of Warrant Shares or Other Securities to which such Holder shall be entitled upon such exercise,
plus, in lieu of any fractional share to which such Holder would otherwise be entitled, cash equal to such fraction multiplied
by the then-current Market Price of one full share, together with any other stock or other securities and property (including cash,
where applicable) to which such Holder is entitled upon such exercise pursuant to Section 4 or otherwise.

 

4.Adjustment for Dividends in Other Stock, Property,
etc.; Reclassification, etc. In case at any time or from time to time after the Original Issue Date, the holders of Warrant
Shares (or, if applicable, Other Securities) shall have received, or (on or after the record date fixed for the determination of
stockholders eligible to receive) shall have become entitled to receive, without payment therefor

 

(a)other or additional
stock or other securities or property (other than cash) by way of dividend, or

 

(b)any cash paid or payable
(including, without limitation, by way of dividend), or

 

(c)other or additional
stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, recapitalization, combination
of shares or similar corporate rearrangement,

 

then, and in each such case the Holder of this Warrant, upon
the exercise hereof as provided in Section 2, shall be entitled to receive the amount of stock and other securities and property
(including cash in the cases referred to in subdivisions (b) and (c) of this Section 4) which such Holder would hold on the date
of such exercise if on the Original Issue Date such Holder had been the Holder of record of the number of shares of Warrant Shares
called for on the face of this Warrant and had thereafter, during the period from the Original Issue Date to and including the
date of such exercise, retained such shares and all such other or additional stock and other securities and property (including
cash in the cases referred to in subdivisions (b) and (c) of this Section 4) receivable by such Holder as aforesaid during such
period, giving effect to all adjustments called for during such period by Section 5 hereof. If the number of shares of Warrant
Shares outstanding at any time after the date hereof is decreased by a combination or reverse stock split of the outstanding shares
of Common Stock, the Purchase Price per share shall be increased, and the number of shares of Warrant Shares purchasable under
this Warrant shall be decreased in proportion to such decrease in outstanding shares of Warrant Shares.

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5.Reorganization, Consolidation, Merger, etc.
In case the Company after the Original Issue Date shall (a) effect a reorganization, (b) consolidate with or merge into any other
entity or (c) transfer all or substantially all of its properties or assets to any other entity under any plan or arrangement contemplating
the dissolution of the Company, then, in each such case, the Holder of this Warrant, upon the exercise hereof as provided in Section
3 at any time after the consummation of such reorganization, consolidation or merger or the effective date of such dissolution,
as the case may be, shall be entitled to receive (and the Company shall be entitled to deliver), in lieu of the Underlying Securities
issuable upon such exercise prior to such consummation or such effective date, the stock and other securities and property (including
cash) to which such Holder would have been entitled upon such consummation or in connection with such dissolution, as the case
may be, if such Holder had so exercised this Warrant immediately prior thereto, all subject to further adjustment thereafter as
provided in this Section 5; provided that if the sole consideration to which such Holder would have been entitled upon such consummation
or in connection with such dissolution, as the case may be, if such Holder had so exercised this Warrant immediately prior thereto,
is cash, the Warrant shall be terminated upon such consummation or dissolution. The Company shall not effect any such reorganization,
consolidation, merger or sale, unless prior to or simultaneously with the consummation thereof, the successor corporation resulting
from such consolidation or merger or the corporation purchasing such assets or the appropriate corporation or entity shall assume,
by written instrument, the obligation to deliver to each Holder the shares of stock, cash, other securities or assets to which,
in accordance with the foregoing provisions, each Holder may be entitled to and all other obligations of the Company under this
Warrant. In any such case, if necessary, the provisions set forth in this Section 5 with respect to the rights thereafter of the
Holders shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to any Other Securities or assets
thereafter deliverable on the exercise of the Warrants.

 

6.Further Assurances. The Company will take all
such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
shares of stock upon the exercise of all Warrants from time to time outstanding.

 

7.Officer's Certificate as to Adjustments. In
each case of any adjustment or readjustment in the shares of Warrant Shares (or Other Securities) issuable upon the exercise of
the Warrants, the Company will issue a certificate setting forth such adjustment or readjustment and the basis therefor.

 

8.Notices of Record Date, etc. In the event of

 

(a)any taking by the Company
of a record of its stockholders for the purpose of determining the stockholders thereof who are entitled to receive any dividend
or other distribution, or any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other
securities or property, or to receive any other right, or for the purpose of determining stockholders who are entitled to vote
in connection with any proposed capital reorganization of the Company, any reclassification or recapitalization of the capital
stock of the Company or any transfer of all or substantially all the assets of the Company to or consolidation or merger of the
Company with or into any other person, or

 

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(b)any voluntary or involuntary
dissolution, liquidation or winding-up of the Company, or

 

(c)any proposed issue
or grant by the Company of any Common Stock, or any other securities, or any right or option to subscribe for, purchase or otherwise
acquire any shares of stock of any class or any other securities (other than the issue of Common Stock on the exercise of the Warrants),

 

then and in each such event the Company will mail or cause to
be mailed to each Holder of a Warrant a notice specifying (i) the date on which any such record is to be taken for the purpose
of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, (ii) the
date on which any such reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution, liquidation
or winding-up is to take place, and the time, if any, as of which the Holders of record of Underlying Securities shall be entitled
to exchange their shares of Underlying Securities for securities or other property deliverable upon such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, dissolution, liquidation or winding-up and (iii) the amount and character of
any stock or other securities, or rights or options with respect thereto, proposed to be issued or granted, the date of such proposed
issue or grant and the persons or class of persons to whom such proposed issue or grant and the persons or class of persons to
whom such proposed issue or grant is to be offered or made. Such notice shall be given at least 10 days prior to the date therein
specified.

 

9.Reservation of Stock, etc., Issuable on Exercise
of Warrants. The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise of
the Warrants, all shares of Warrant Shares (or Other Securities) from time to time issuable upon the exercise of the Warrants.

 

10.Notices, etc. All notices and other communications
from the Company to the Holder of this Warrant shall be delivered by fax or courier, at such address as may have been furnished
to the Company in writing by such Holder, or, until an address is so furnished, to and at the address of the last Holder of this
Warrant who has so furnished an address to the Company.

 

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11.Miscellaneous. This
Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the Company
and the Holder or as otherwise provided in the Subscription Agreement. This Warrant shall be governed by and construed and enforced
in accordance with the General Corporation Law of the State of Delaware without regard to principles of conflicts of law. Each
party hereby irrevocably consents and submits to the jurisdiction of any New York State or United States Federal Court sitting
in the State of New York, County of New York, over any action or proceeding arising out of or relating to this Agreement and irrevocably
consents to the service of any and all process in any such action or proceeding by registered mail addressed to such party at
its address specified herein (or as otherwise noticed to the other party). Each party further waives any objection to venue in
New York and any objection to an action or proceeding in such state and county on the basis of forum non conveniens. Each
party also waives any right to trial by jury. 

 

	Dated: __________ __, 20__	NANO VIBRONIX, INC.
	 	 
	 	By: 	 	 
	 	Name:	
	Attest: _________________________________	Title:	 

 

 

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FORM OF SUBSCRIPTION

 

(To be signed only upon exercise of Warrant)

 

To: NANO VIBRONIX, INC.

 

The undersigned, the Holder of the within
Warrant, hereby irrevocably elects to exercise the purchase right represented by such Warrant for, and to purchase thereunder,
_________ shares of Warrant Shares of Nano Vibronix, Inc., and herewith makes payment therefor

(i) of $_____________ or

(ii) by surrender of the number of Warrants included
in the within Warrant required for full exercise pursuant to Section 2.3 of the Warrant,

and requests that the certificates for such shares be issued
in the name of, and delivered to, ___________________, whose address is _______________________.

 

Dated:

 

	 	 	 
	 	(Signature must conform in all respects to name of Holder 

as specified on the face of the Warrant)
	 	 
	 	 	 
	 	         (Address)
	 	 

 

 

 

    	10a50812102ex10_26.htm

Exhibit 10.26

 

SECOND AMENDMENT TO LOAN AGREEMENT

 

	 	This Second Amendment to Loan Agreement (this "Second Amendment") is made this 15th day of August, 2013, by and among METROPOLITAN LIFE INSURANCE COMPANY, a New York corporation ("Lender"), and ORM TIMBER  OPERATING COMPANY II, LLC, a Delaware limited liability company ("Borrower") with reference to the following recitals of fact:	 

 

A.           Lender and Borrower are parties to that certain  Loan Agreement dated as of September 1, 2010 as amended by that certain First Amendment to Loan Agreement dated February 7, 2011 (as amended, the "2010 Loan Agreement"). The Loan Agreement was executed in connection with a loan (the "2010 Loan") made by Lender to Borrower evidenced by,  among  other  things,  that  certain  Promissory  Note  in the  original  principal  amount  of$11,000,000 (the "Note"). The 2010 Loan is secured by certain Deeds of Trust (as defined in the 2010 Loan Agreement) encumbering certain timberlands and related assets situated in Lewis County, Washington and Clackamas and Marion Counties, Oregon. Capitalized terms used but not defined or modified herein shall have the meanings given in the 2010 Loan Agreement.

B.           Borrower has requested that Lender make an additional loan to Borrower in the principal amount of $14,000,000 (the "Additional Loan") to be  evidenced by, among other things, a Promissory Note in the principal amount of $14,000,000 (the "Additional Note") and secured by the lien of the Deeds of Trust and the other Loan Documents.

C.           Subject to the terms and conditions set forth herein, Lender has agreed to make the Additional Loan to Borrower pursuant to that certain Term Sheet/Loan Application dated June 21, 2013 (the "Application"), which Additional Loan shall be secured as provided herein and in the other Loan Documents. The Additional Loan will also be guaranteed by ORM Timber Fund  II, Inc. (the "Guarantor").

NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower and Lender hereby agree as follows:

 

1.          Status of Existing Loan. Borrower acknowledges for the benefit of Lender that the Note, the 2010 Loan Agreement, the Deeds of Trust and the other Loan Documents all comprise valid and binding obligations enforceable in accordance with their respective terms, and that Borrower has no offset or defense against the indebtedness evidenced by the Note or any of the obligations set forth in the Loan Documents.

 

	 	     2.    Definitions and References. All references in the 2010 Loan Agreement to the following terms are hereby amended, as of the date hereof , as set forth below: 	 

 

(a)          the term "Deeds of Trust" is hereby modified to mean the Deeds of Trust, each as amended by the applicable First Amendment to Deed of Trust (the "Amendments to Deeds of Trust") executed by Borrower and Lender as of even date herewith;

 

  

  

  

 

(b)          the term "Guaranty" is hereby modified to mean the Guaranty as amended and reaffirmed by Guarantor as of even date herewith;

 

(c)          the term "Loan" is hereby modified to mean the 2010 Loan anq the Additional Loan, collectively;

 

(d)           the term "Loan Agreemenf ' is hereby modified to mean the 2010 Loan Agreement as amended hereby;

 

(e)          the term "Loan Documents" is hereby modified to mean the 2010 Loan Agreement, as amended by this Second Amendment, the Note, the Additional Note, the Deeds of Trust (as amended by the Amendments to Deeds of Trust, as defined herein), the Assignment of Timber Contracts, the Environmental Indemnity Agreement, the Guaranty Agreement, as amended and reaffirmed, the documents listed under Sections 1.5 and 6.1 of the 2010 Loan Agreement, and any and all other agreements, instruments and documents, including, without limitation, mortgages, security agreements, assignments, pledges, powers of attorney, consents, and all other written agreements heretofore, now or hereafter executed by Borrower in favor of Lender or in respect to the transactions contemplated by the 2010 Loan Agreement (as amended by this Second Amendment), in each case  as may be amended from time to time and as reaffirmed in connection with the Additional Loan;

 

(f)          the terms "Note" and "Notes" are hereby amended to mean the Note and the Additional Note, collectively, or either the 2010 Note or the Additional Note, as the context requires; and

(g)          the term "Permitted Encumbrances" shall include those items disclosed as additional exceptions in the Modification Endorsements (defined below) accepted by Lender.

 

3.          Amendment to Loan to Value Ratio. Effective following the 2013 Closing Date, the first sentence of Section 5.4.2 of the 2010 Loan Agreement is hereby modified to read as follows:

 

	
"Borrower shall not at any time cause or permit the Loan to Value Ratio to exceed Fifty Percent (50%), and any such non-compliance shall be a Default hereunder, and any such Default which is not restored to compliance by a prepayment of principal made as required under the terms of Section 5.4.4 below, shall constitute an Event of Default hereunder."

 

4.           Partial Releases. Sections 4.8.3 and 4.8.4 of the 2010 Loan Agreement are hereby amended and superseded in their entirety by the following:

"4.8.3 Lender will, in its sole and absolute  discretion, calculate a reasonable payment (the "Release Price") for such partial release and communicate same to Borrower. The Release Price shall be paid by Borrower to Lender for application to prepayment of principal of the Note. Any such prepayment shall be treated in the same manner as any other prepayment and shall be subject to prepayment premium in the same manner as any other prepayment.

  

2

  

 

4.8.4           Any request by Borrower shall be accompanied by an LTV calculation by Borrower in accordance with Section 5.4 on a pro forma basis as if the partial release requested had been granted, and any partial release shall be subject to verification by Lender of such pro forma LTV in accordance with Section 5.4 and shall be otherwise acceptable to Lender. No partial release shall be permitted which may cause any non-compliance with Section 5.4 below as determined with respect to such pro forma LTV by Lender in the exercise of its sole judgment based upon the most recent appraisal or appraisal update approved by Lender, adjusted for any previous releases, removals, growth, any other matters since such date and the best information then available to Lender. The following terms shall apply to any partial release request:

4.8.4.1            At any time that the LTV is 40% or less, Borrower may obtain partial releases for any portion of the Timberlands, without the payment of a Release Price (although Borrower shall be responsible for all costs and expenses incurred by Lender in reviewing and processing such partial release as set forth in Section 4.8.9), as long as the LTV does not exceed 40% before and after the partial release, as adjusted for any previous partial releases, and as determined by Lender, and subject to compliance with all other subsections of this Section 4.8.

4.8.4.2            At any time that the LTV is greater than 40% but less than 50%, Borrower shall have the right to obtain partial releases for a portion or portions of the Timberlands, without the payment of a Release Price (although Borrower shall be responsible for all costs and expenses incurred by Lender in reviewing and processing such partial release as set forth in Section 4.8.9), as long as the LTV after each partial release shall be equal to or less than the LTV whi.ch existed immediately prior thereto, as determined by Lender in its sole discretion based upon the most recently accepted Appraisal, and subject to compliance with all subsections of this Section 4.8.

 

4.8.4.3             In the event Borrower shall request a partial release under clause 4.8.4.2 above and the LTV test included in clause 4.8.4.2 would not be met, Borrower may make a prepayment of principal under the terms of the Note in an amount determined by Lender which shall, at the least, be sufficient to cause the LTV tests included in clause 4.8.4.2 to be met once such prepayments have been applied. Any such prepayments shall be subject to prepayment premium, if any, as set forth in the Note, in the same manner as any other prepayment."

 

        5.          Representations and Warranties. Borrower hereby restates and reaffirms all of thecovenants, representations and warranties set forth in the 2010 Loan Agreement, as 

if  made as ofthe date of this Second Amendment, except to the extent of and as modified by the following updated Schedules attached hereto and incorporated herein 

(the "Updated Schedules"):

    

         Schedule 2.3 

         Schedule 2.6.1.A 

         Schedule 2.6.2

 

Furthermore, Borrower hereby makes the following representations, warranties and covenants to Lender, it being hereby acknowledged by Borrower that Lender is relying upon

such representations, warranties and covenants as a material inducement to Lender's execution hereof:

 

  

3

  

(a)          Borrower has the power and authority to enter into this Second Amendment and all other agreements contemplated hereby, and to do all acts and things as are required or contemplated hereunder to be done, observed and performed by Borrower.

 

(b)          The execution and delivery of this Second Amendment and all other agreements to be executed by Borrower and contemplated hereby, and Borrower's performance hereunder and thereunder, do not and will not require the consent or approval of any governmental authority, nor be in contravention of or in conflict with any certificate of incorporation, certificate of organization, bylaws, limited liability company agreement or other formation documents, or the provisions of any statute, or any judgment, order, or indenture, instrument, agreement, or undertaking, to which Borrower is a party or by which Borrower or its assets or properties are or may become bound.

 

(c)          Borrower is, as of the date hereof, and shall be as of the date hereof, in full compliance with all covenants, agreements and obligations of Borrower as set forth in the 2010 Loan Agreement, the Note, the Security Documents (as defined in the 2010 Loan. Agreement), this Second Amendment and the other Loan Documents, and no Event of Default exists thereunder or hereunder, and no event or circumstance exists which with the passage of time or the giving of notice, or both, would constitute an Event of Default thereunder.

(d)          Borrower has duly performed all of its obligations under the 2010 Loan Agreement and the other Loan Documents.

 

(e)          This Second Amendment constitutes the legal, valid and binding obligations of Borrower enforceable in accordance with its terms, and the execution and delivery of this Second Amendment does not contravene, result in a breach of, or constitute a default under any deed of trust, loan agreement, indenture or other contract or agreement to which Borrower is bound, nor would such execution and delivery constitute such a default with the passage of time or the giving of notice, or both.

 

(f)          Borrower has thoroughly read and reviewed the terms and provisions of this Second Amendment and is familiar with same, and Borrower has entered into this Second Amendment voluntarily, without duress or undue influence of any kind, and with the advice and representation of legal counsel which it has selected.

 

6.           Closing. The closing of the Additional Loan (the "2013 Closing") is scheduled to be held in a manner acceptable to Lender on or before August 16, 2013 (the "2013 Closing Date"). Notwithstanding any other provision of this Second Amendment or any other Loan Documents, and without affecting in any manner the rights of Lender under the other sections of this Second Amendment, it is understood and agreed that Lender's obligation to fund the Additional Loan is subject to fulfillment of the terms and conditions of the Application, Lender's closing checklist and other terms and conditions established by Lender, and that Lender shall have no obligation to fund the Additional Loan if any Default or Event of Default shall exist at such time and unless and until the following conditions have been satisfied, all in fonn and substance satisfactory to Lender and their special counsel:

  

4

  

 

(a)          Documentation.  Lender shall have received the following documents, each to be in fonn and substance satisfactory to Lender:

 

i.            The original Additional Note, duly executed by Borrower, and the Consent and Reaffinnation Agreement duly executed by the Guarantor (the "Consent and Reaffirmation of Guaranty");

 

ii.          Multiple original counterparts  of each of the Amendments  to Deeds of Trust required in connection with the Additional Loan, with evidence that the Amendments to Deeds of Trust intended to be recorded have been duly recorded, or that arrangements satisfactory to Lender have been made for such recordation, in each office where such recordation is necessary;

 

   iii.           A solvency certificate of Borrower and Guarantor;

 

iv.          Original written opinions of counsel covering the State of Delaware and each State in which any part of the Timberlands is located in fonn and substance satisfactory to the Lender with respect to the transactions contemplated by this Second Amendment, including, without limitation, the enforceability of the Loan Documents executed by the Borrower and Guarantor.

 

v.           Certificates of a duly authorized officer or manager of each Borrower and Guarantor certifying (i) that attached thereto is a true and complete copy of the Certificate of Formation and Operating Agreement, or Articles oflncorporation and Bylaws, as applicable, and all other organizational documents of such entity, as amended to the date of such certification, (ii) that attached thereto are true and complete copies of consents executed and delivered by the officers and manager of each Borrower and Guarantor authorizing the execution, delivery and performance of this Second Amendment and the other Loan Documents to which such entity is a party, (iii) that attached thereto is a true and complete copy of the organizational documents of manager, as amended to the date of such certification, and (iv) as to the incumbency, authority and genuineness of the signature of each officer of Borrower executing this Second Amendment or any of the other Loan Documents to which Borrower or Guarantor is a party, and such other authority documents as may be requested by Lender;

 

vi.          Good standing certificates (or the equivalent) for Borrower, Guarantor and the manager of Borrower, issued by the appropriate official of each jurisdiction where the conduct of Borrower's and Guarantor's business activities or the ownership of its Properties necessitates qualification;

 

  

5

  

 

 vii.            Such modification endorsements to the Title Policy (the "Modification Endorsements"), in form and substance satisfactory to the Lender, as Lender may require, insuring the continuing validity and first priority of the lien and effect of the each of the Deeds of Trust (as amended by the Amendments to Deeds of Trust), subject only to such exceptions to and exclusions from coverage as may be acceptable to the Lender. In addition, the Lender shall have received copies of all instruments and other matters affecting title to the Property encumbered by the Deeds of Trust to the extent shown as exceptions to coverage under the Modification Endorsements and not previously approved as exceptions in the Title Policy. Ingress and egress to the Timberlands shall be by public road or deeded right of way easement included as part of the mortgaged property and  insured  under  the  Title  Policy,  except  as  disclosed  on Schedule 2.6.2, as updated and attached hereto. All premiums, charges, fees, costs and expenses of the title insurer or related to the Modification Endorsements shall be paid in full by Borrower;

 

viii.    Duplicate original counterparts of this Second Amendment, duly executed by all parties; 

 

ix.           The Updated Schedules to the Loan Agreement;

 

x.            Environmental   Questionnaire;

 

xi.           Such other documents, instruments and agreements as are required by the Application or as the Lender shall reasonably request in connection with the foregoing matters, including without limitation, updates, revisions or supplements to previously delivered information or documents where necessary to make such previously delivered information or documents true, complete and accurate;

 

xii.              a certificate signed by a duly authorized officer of Borrower dated as of the 2013 Closing Date, stating the Borrower and any Affiliate of Borrower is in compliance with all of the terms and provisions set forth in the Loan Agreement, as amended hereby; and

 

xm. a Reaffirmation of  Assignment  and  Subordination  of  Management Agreement duly executed by the Project Manager with respect to the Management Agreement of the Timberlands.

 

(b)           Other Conditions.  The following conditions shall have been and at the time of the 2013 Closing shall continue to be satisfied, to the satisfaction of Lender:

 

i.             No Event of Default shall have occurred;

 

ii.            Borrower shall have furnished to Lender on or before the date of the 2013 Closing, copies of any appraisals, valuations, timber inventory cruises or the like, and all environmental reports, in each case as required under the Loan Agreement or the Application;

 

iii.           The Loan to Value Ratio shall not exceed forty percent (40%);

 

iv.           No action, proceeding, investigation, regulation or legislation shall have been instituted, proposed or, to the knowledge of Borrower, threatened in writing before any court, governmental agency or legislative body to enjoin, restrain or prohibit, or to obtain damages in respect of the Loan Agreement (as amended hereby) or the consummation of the transactions contemplated thereby, or which is related to or arises out of the Loan Agreement or the  consummation  of  the  transactions contemplated  thereby,  and  which,  in  Lender's  sole discretion, would make it inadvisable to consummate the transactions contemplated by this Second Amendment;

 

  

6

  

v.           The Additional Note shall on the 2013 Closing Date qualify as a legal investment for  Lender  under  applicable  insurance  law  including,  without  limitation, Section 1045 of the New York Insurance Law (without regard to any "basket" or "leeway" provisions), and such acquisition shall not subject Lender .to any penalty or other onerous condition in or pursuant to any such law or regulation, and Lender shall have received such evidence as Lender may request to establish compliance with this condition;

 

vi.          Borrower shall have good and marketable fee simple title to the Timberlands, subject to no Liens except the Permitted Encumbrances, and Borrower shall have full power and authority to assign, lease, transfer, pledge and mortgage the Collateral;

 

vii.         the warranties and representations of each of Borrower, Guarantor and Project Manager contained herein and in the other Loan Documents shall be true and correct;

 

vm.        the  organizational   documents  of  Borrower  and  Guarantor  shall  be acceptable in form and substance to Lender; and

 

ix.          All conditions to the closing of the 2010 Loan as provided  in the 2010 Loan Agreement (other than the conditions in Sections 6.2.1 and 6.2.3), shall remain satisfied, and all proceedings taken in connection with the Additional Loan and the other transactions contemplated hereby and by the other Loan Documents and all documents and papers relating thereto shall be satisfactory to Lender and its special counsel. Lender and its special counsel shall have received copies of such documents and papers as they may reasonably request in connection therewith, all in form and substance satisfactory to Lender and its special counsel.

 

7.          Borrower's   Notice   Address.     Borrower's Notice address in Section 8.9 is modified to read:

 

	
  

	
c/o Olympic Resource Management LLC 

19950 Seventh Avenue NE, Suite 200

	
  

	
Poulsbo, Washington 98370 

Attention: Thomas M. Ringo 

Email:  tringo@orminc.com

 

8.          Legal Fees and Expenses. The Parties shall pay, or cause to be paid, upon request all costs and expenses incurred by Lender or incident to the preparation, execution and recordation, as required, of all agreements, instruments and other documents, in connection with the consummation of the transaction contemplated hereby, including, but not limited to, recording fees, title insurance policy or endorsement premiums or other charges of the title company, and reasonable fees and expenses of legal counsel to Lender.

 

9.          Waivers.                Any waiver herein by Lender shall not waive, affect or diminish any right of the Lender to hereafter demand strict compliance and performance by any of the Parties of all of the terms,  conditions  and  covenants  of the  Loan  Agreement  and the other Loan Documents upon each and every subsequent date when compliance is required. Any waiver herein by Lender shall not suspend, waive or affect any Event of Default by any of the Parties under the Loan Agreement, the Note, the Security Documents, or the other Loan Documents, whether such other Event of Default is prior or subsequent thereto. Any waiver herein by Lender is made in reliance upon, and is strictly subject to, the full performance by each of the Parties of the terms and conditions of this Second Amendment.

 

  

7

  

10.          Default  and Remedies.  Any default by any of the Parties in the performance of their respective obligations herein contained or any inaccuracy in the representations and warranties made by any of the Parties shall constitute an Event of Default under the terms of the Loan Agreement, Note, Security Documents and other Loan Documents and shall entitle Lender to exercise all of its rights and remedies set forth in the Loan Agreement, Note and other Loan Documents.

 

11.          Relationship   of   Parties. The  relationship  between   Borrower  and  Lender   is limited to that of debtor and creditor. The provisions in any Loan Document for  compliance with financial covenants and delivery of financial statements are intended solely for the benefit of Lender to protect its interests as Lender in assuring payments of interest, and repayment of principal, and nothing contained in this Second Amendment, the 2010 Loan Agreement or the other Loan Documents, shall be construed as (i) permitting or obligating  Lender to act as a financial or business advisor or consultant to Borrower, (ii) permitting or obligating Lender to control Borrower or conduct Borrower's operations, (iii) creating any fiduciary obligation on the part of Lender to Borrower, or (iv) creating any partnership,  tenancy-in-common, joint tenancy, joint venture, co-ownership, agency or other relationship  between the parties other than as debtor and creditor. Lender shall not in any way be responsible or liable for the debts, losses, obligations or duties  of  Borrower  with  respect  to  the Collateral or otherwise. All obligations to pay real property or other taxes, assessments,  insurance premiums and all· other fees and charges arising from the ownership, operation, use  and occupancy of the Collateral and to perform obligations under all agreements and contracts relating to the Collateral shall be the sole responsibility of Borrower.

 

12.          No Defenses. Counterclaims or Rights of Offset, Release of Lender. As a material inducement to Lender to enter . into this Second Amendment, each of the Parties hereby acknowledges, admits, and agrees that, as of the date hereof, Lender has satisfied and performed its covenants and obligations under each of the Loan Documents, and that no action or failure to act by or on behalf of Lender has or will give rise to any cause of action or other claim against Lender for breach of any of the Loan Documents or otherwise, and there exist no rights of offset, defense, counterclaim, claim, or objection in favor of any or all of them against Lender with respect to the Loan, the Collateral, and the Note or any of the other Loan Documents, or alternatively, that any and all such right of offset, defense, counterclaim, claim, or objection which any of the Parties may have or claim, of any nature whatsoever, whether known or unknown, is hereby expressly and irrevocably waived and released. With respect to that period from the beginning of time until the date of full execution and delivery hereof, each of the Parties hereby releases and forever discharges Lender, its directors, officers, employees, administrators, subsidiaries, affiliates, attorneys, agents, successors, and assigns from any and all rights, claims, demands, actions, causes of action, suits, proceedings, agreements, contracts,

 

  

8

  

 

	
  

	
judgments, damages, debts, costs, expenses, promises, agreements, duties, liabilities, or obligations, whether in law or in equity, known or unknown, choate or inchoate, which any of the Parties has had, now has, or hereafter may have, arising under or in any manner relating to, whether directly or indirectly, the Loan, the Collateral and the Note or any of the other Loan Documents, or any transactions contemplated by this Second Amendment, but only with respect to that period from the beginning of time until the date of full execution and delivery hereof; The foregoing release is intended to be, and is, a full, complete and general release in favor of Lender with respect to all claims, demands, actions, causes of action and other matters described therein, including specifically, without limitation, any claims, demands or causes of action based upon allegations of breach of fiduciary duty, breach of any alleged duty of fair dealing in good faith, economic coercion, usury, or any other theory, cause of action, occurrence, matter or thing which might result in liability upon Lender arising or occurring on or before the date hereof. Each of the Parties understands and agrees that the foregoing general release is in consideration for the agreements of Lender contained herein arid that the Parties will receive no further consideration for such release.

 

13.          Ratification; Continued Force and Effect.  This Second Amendment is only a modification of the Loan Agreement, Note, and other Loan Documents and is not intended to, and shall not be construed to, effect a novation of the Loan Agreement, Note or other Loan Documents, and, except as expressly set forth herein, all of the representations, covenants, terms. and conditions of the Loan Agreement, Note and other Loan Documents (which are incorporated herein) and the collateral security provided thereby, are not being modified, amended, cancelled, terminated, released, satisfied, superseded or otherwise invalidated hereby in any manner and shall remain in full force and effect. In the event of any conflict between the terms of this Second Amendment and the terms of any of the Loan Documents, the terms of this Second Amendment shall control. Each of the Parties hereby ratifies and confirms the Loan Documents as modified hereby, and acknowledges and agrees that the Loan Documents as modified hereby are enforceable against the Parties and against the Collateral described therein in accordance with their respective terms. The Parties acknowledge and agree that the Collateral shall remain in all respects subject to the liens, charges and encumbrances of the Deeds of Trust and the other Loan Documents and the conveyances of title effected thereby, and nothing herein contained, and nothing done pursuant hereto or in connection herewith shall affect or be construed to affect the liens, charges or encumbrances or conveyances effected thereby or the priority thereof over other liens, charges, encumbrances or conveyances, or to release or affect the liability of any party or parties whomsoever may now, or hereafter be, liable on account of the Obligations.

 

14.          Governing Law. This Second Amendment shall be governed by, and construed and enforced in accordance with, the law of the State of Washington and the Federal laws of the United States of America in force therein, and as further set forth in Section 9.6 of Loan Agreement.

 

15.          Headings. The section headings hereof are inserted for convenience of reference only and shall in no way alter, amend, define or be used in the construction or interpretation of the text of such section.

  

9

  

 

16.          Construction. Whenever the context hereof so requires, reference to the singular shall include the plural and likewise, the plural shall include the singular; words denoting gender shall be construed to  mean the masculine, feminine or neuter, as appropriate; and specific enumeration shall not exclude the general, but shall be construed as cumulative of the general recitation.

 

17.          Severability. If any clause or provision of this Second Amendment is or should ever be held to be illegal, invalid or unenforceable under any present or future law applicable to the terms hereof, then and in that event, it is the intention of the parties hereto that the remainder of this Second Amendment shall not be affected thereby, and that in lieu of each such clause or provision of this Second Amendment that is illegal, invalid or unenforceable, such clause or provision shall be judicially construed and interpreted to be as similar in substance and content to such illegal, invalid or unenforceable clause or provision, as . the context thereof would reasonably suggest, so as to thereafter be legal, valid and enforceable.

 

18.          Entire Agreement. THIS SECOND AMENDMENT EMBODIES THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES .HERETO AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO. THE PROVISIONS OF THIS SECOND AMENDMENT MAY BE AMENDED OR WAIVED ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE RESPECTIVE PARTIES TO SUCH DOCUMJ;:NTS.

 

19.          WAIVER   OF   TRIAL   BY   JURY.  TO  THE  EXTENT  PERMITTED   BY APPLICABLE LAW, THE PARTIES AND LENDER WAIVE TRIAL BY JURY IN  ANY PROCEEDING RELATING TO THE LOAN AGREEMENT OR  ANY OF THE  OTHER DOCUMENTS RELATING TO THE LOAN AND AGREE THAT NO SUCH ACTION WITH RESPECT TO WHICH A JURY TRIAL HAS BEEN WAIVED SHALL BE SOUGHT TO BE CONSOLIDATED WITH ANY OTHER ACTION WITH RESPECT TO  WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN WAIVED.

 

20.          Miscellaneous.

 

     (a)          From time to time, Borrower and Guarantor shall execute or procure and deliver to Lender such other and further documents and instruments evidencing, securing or pertaining to the Loan or the Loan Documents as shall be reasonably requested by Lender so as to evidence or effect the terms and provisions hereof.

 

     (b)         This Second Amendment may  be executed in any number of identical counterparts, each of which shall be deemed to be an original, and all of which shall collectively constitute a single agreement, fully binding upon and enforceable against the parties hereto.

  

10

  

 

(c)          This Second Amendment shall be binding upon Borrower and Guarantor, and the successors and assigns of Borrower and Guarantor, and shall be binding upon and inure to the benefit of the Lender, its successors and assigns, including any subsequent holder of the Note.

 

(d)          Borrower and Lender hereby agree that all references in the Loan Agreement to Loan Documents shall include this Second Amendment.

 

ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON  LAW.

 

[signatures follow  on next page]

 

  

11

  

 

IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the date first above written.

 

	            LENDER:  	METROPOLITAN LIFE INSURANCE	 
	 	COMPANY, a New York corporation	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Printed	Name: W. Kirk Purvis	 
	 	Title: 	 Director	 
	 	 	 	 

 

 

	          BORROWER: 	ORM TIMBER OPERATING  COMPANY II, LLC, a	 
	 	Delaware limited liability company	 
	 	 	 
	 	 	Olympic Resource Management LLC, a	 
	 	 	Washington limited liability company	 
	 	 	Its Manager	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	P · ted Name:  Thomas M. Ringo	 
	 	 	Title: CFO, VP. Treas. and Secretary	 
	 	 	 	 

CONSENT OF GUARANTOR

 

The undersigned, ORM TIMBER FUND II, INC., a Delaware corporation ("Guarantor"), is the Guarantor of the Loan pursuant to that certain Guaranty dated as of September 1, 2010, as amended and reaffirmed as of the date hereof (the "Guaranty"). Guarantor hereby consents to the terms and provisions of the foregoing Second Amendment to Loan Agreement and the related adjustments to the Loan Documents and agrees that its obligations under the Guaranty remain unmodified and in full force and effect with respect to the Loan Agreement as so amended. Guarantor hereby reaffirms the terms and obligations arising under the Guaranty as of the date hereof.

 

	GUARANTOR:   	ORM TIMBER FUND II, INC.,	 
	 	a Delaware corporation	 
	 	 	 	 
	 	By: 	Olympic Resource Management LLC,	 
	 	 	 Its Manager	 
	 	 	 	 
	
Date

	
 

	By: 	 
	 	 	       David L. Nunes	 
	 	 	       President and CEO	 
	 	 	 	 

 

  

12

  

 

SCHEDULE 2.3

 

OWNERSIDP OF BORROWER, SUBSIDIARIES, OFFICERS OF BORROWER AND STATUTORY AGENTS IN EACH STATE

 

Ownership of Borrower:

Direct ownership of Borrower is as follows:

    98.8% owned by ORM Timber Fund II, Inc. ("Guarantor")

   I .2% owned by Olympic Resource Management LLC ("Olympic") and Olympic is the member-manager of the LLC

Direct ownership of Guarantor is as follows:

   100% · owned  by  26  common  stock  investors,  one  of which  is Pope  Resources,  A 

    Delaware Limited Partnership ("Pope Resources") that owns 19.3% of Guarantor

   There are approximately 125 preferred non-voting stock investors in Guarantor 

Direct ownership of Olympic is as follows:

    100% owned by ORM, Inc., a Washington corporation, that is in tum owned 100% by 

    Pope Resources Pope MOP,  Inc., the managing  general partner  of Pope Resources  and 

    has a profit­ sharing interest only in Olympic

 

Subsidiaries of Borrower (100% owned):

 

	
Tillamook Log Company LLC, a Delaware limited liability company

 

Officers of Borrower:

David L. Nunes, President & Chief Executive Officer of Olympic

Thomas M. Ringo, Vice President, Chief Financial Officer, Treasurer & Secretary of Olympic

 

Officers of Guarantor: 

David L. Nunes, President

Thomas M. Ringo, Treasurer & Secretary

 

Officers of Pro ject Manager:

David L. Nunes, President & Chief Executive Officer

	
Thomas M. Ringo, Vice President, Chief Financial Officer, Treasurer & Secretary

 

Statutory Agents for Service of Process:

 

	
Washington:

 

 

 

Oregon:

	
Olympic Resource Management LLC 

19950 Seventh Avenue NE, Suite 200

Poulsbo, Washington 98370

 

National Registered Agent, Inc.

388 State Street, Suite 420

Salem, Oregon 97301

 

  

13

  

SCHEDULE  2.6.lA 

 

TIMBER VOLUMES

 

 

	 Appraisal Summary Report 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 Pr<!porly                        OwMr  	stmlll   Available	 	Yr.1!11.      Cr. Yr.   	 stuid.Typo	   L.S. 	 OWi Cir
	All PiilptrUei       Tlmbcr FUnd II	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 ·Mlsol  	Mfscl  	Bubl'lm:l    	 	 	 Mortgage	 
	 	 	 	 	 	MetUle Olllatml	 
	 	 	 	 	 	 	 
	LAND:	 	 	 	 	 	 
	Timberland:	19,036.3	 	 	 	 	 
	Non-limbered:	2,846.6	 	 	 	 	 
	Grand Total:	21,882.9	 	 	 	 	 

 

	 	 	 	 	 	 	 
	
PRE-Merchonloble:

	
Net Acres

	  	  	  	  	  
	
.Clearcut

	
835.7

	  	  	  	  	  
	
0- 4

	
l,194.2

	  	  	  	  	  
	
5-9

	
1,288.6

	  	  	  	  	  
	
10-14

	
1,297.1

	  	  	  	  	  
	
15-19

	
5S4.0

	  	  	  	  	  
	
20-24

	
2;997.t

	  	  	  	  	  
	
25-i

	
1,272.5

	  	  	  	  	  
	
30-34

	
1,419.8

	  	  	  	  	  
	
Total  Pre-Merch Acres

	
IOJl9.I

	  	  	  	  	  
	 	 	 	 	 	 	 
	
S\JB.Merchantoble llmber: Aj:c 35-44

	  	  	  	  	  	  
	  	  	
l2t

	
S.tl

	
Cbl_pnsaw·

	
'i>)jp..,od

	
Total MBF

	
Dout-nr

	  	
.)243',7

	
3;785.3

	
2;793.5

	
l,485.8·

	
35,618.6

	
HeDllocl;

	  	
691;2

	
l.39.2

	
.J;l80.3

	
1,06U

	
4;384J!

	
Cedar

	  	
    ·.o

	
2;

	
·53,J

	
26.3

	
85.1

	
·Ofh.·con.

	  	
36.6

	
185.5

	
240.3

	
138.4

	
650:2

	
Rt<IAliier

	  	
o;"

	
·9.1.4

	
359;9.

	
·415..8

	
867.8

	
OUi•HiKI.

	  	
1.8

	
4.7

	
1441!

	
163.9'

	
314:9

	

SUS.Merchantable Timber: Age 35-44

	 	
2 034.0

	
,SIU

	
4;771.8

	
3,298.3

	
4i;92:;7

	 	
Ams

	
12+

	
S.11

	
chlpns

	
riil,.,..i

	
Tolal MDF

	
Dona;nr

	  	
8.919.4

	
11,s61.1

	
S,789_9.

	
2.583.I

	
59,260.0

	
HeiDlo<k

	  	
3,580;8

	
4,736.2

	
3,215.5

	
3,105.7

	
14,638.2

	
Cedar

	  	
SS.1

	
94.0

	
SS.I

	
84.6

	
319.4

	
Qtll.Con.

	  	
·568.o

	
1,033.S

	
572.3

	
661.6

	
2.83S.4

	
Rt<l.Alller

	  	
63

	
363.9

	
l,013.6

	
548.4

	
1,932.2

	  OllJ, llwd.	 	  46.S  	 .165.1   	 289.4  	 116.3 	 617.9
	
                                                                            

	
Total Mor<h MBF

 

	
3,867

	
13,236.7

	
17,961..1

	
10,965,8

	
7,099.7

	
79,603.1

	
.GRAND TOTALMBF

	  	
15,270.8

	
23,469.l

	
15,737.6

	
10,398.1

	
Ui,525.8

 

  

14

  

 

	Appraisal Summary Report  
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 Property                         O\fner 	stmlll   Available	 	Yr.1!11.      Cr. Yr.   	 stuid.Typo	   L.S. 	 OWi Cir
	Copper Creel(Tlmbcr    Fund n	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 ·Mlsol  	Mfscl  	SubParcel	 	 	
Morli"ll• 

	 
	 	 	 	 	 	
MeWre Collal<ral

	 
	 	 	 	 	 	 	 
	LAND:	 Gross Acres	 	 	 	 	 
	Timberland:	11.l!IO.l	 	 	 	 	 
	Non-limbered:	1;376.9	 	 	 	 	 
	Grand Total:	u,767,o	 	 	 	 	 
	 	 	 	 	 	 	 

 

	
PRE-Merchonloble:

	
Net Acres

	  	  	  	  	  
	
.Clearcut

	
    6464

	  	  	  	  	  
	
0- 4

	
    761.7

	  	  	  	  	  
	
5-9

	
    6Q0.S

	  	  	  	  	  
	
10-14

	
    61:3

	  	  	  	  	  
	
15-19

	
    9.9:1

	  	  	  	  	  
	
20-24

	
    114:0

	  	  	  	  	  
	
25-i

	
    5923

	  	  	  	  	  
	
30-34

	
    790.4

	  	  	  	  	  
	
Total  Pre-Merch Acres

	
    3,666:1

	  	  	  	  	  
	 	 	 	 	 	 	 
	
SUS.Merchantable Timber: Age 35-44

	  	  	  	  	  	  
	  	Acres  	
l2+

	
11-11

	
Chipnsaw

	
Pulpllllod

	
Total MBF

	
Dout-nr

	  	
978.0

	
2,560.3

	
2,025.3

	
l,018.0

	
33,911.0

	
HemlOCK

	  	
481A

	
l,153.0

	
979.2

	
820.3

	
3,436.0

	
Cedar

	  	
    4.0

	
1.2

	
53.3

	
25.0

	
85.4

	
·Ofh.·con.

	  	
8>0

	
185.1

	
240.3

	
138.4

	
649.3

	
Red Alder

	  	
0.7

	
44.7

	
217.6

	
265.0

	
527.9

	
OU.Hwd

	  	
0.0

	
0.0

	
89.7

	
96.0

	
185.3

	
T9lal Sul>M.rdh MBF 

	  	
1:si>01

	
3,945.7

	
3,605.5

	
2,373.2

	
3g794.9

	 	 	 	 	 	 	 
	

Mercb111table11n1ber:  Age 45+

	
Acres

	
12+

	
8-U

	

<;.1iJP11SOW

	

l'Ulj!...00

	
TolalMDF

	
Dona;nr

	  	

8,746'8

	

11,'.383.9

	

s;m.8

	

Z;S f§. 6

	

s8,648.9

	
HeiDlo<k

	  	

3,079.3

	

4,367.3

	

2,841.3

	

2,913.1

	

13;200.9

	
Cedar

	  	

30.1

	

85:9

	
7U

	

84.6

	

278.6

	
Qtll.Con.

	  	

S.68.0

	

1,03.S

	

572.3

	

661.6

	

2,1!3S.4

	

Red Alder

	  	
63

	

107:9

	

499.7

	

3)9.8'

	

9SP

	 OllJ, llwd.	 	     0.0	    26.2	    61.1.	    28.1	    115.S
	
                                        

	
Total Mor<h MBF

 

	

3,674

	

IZ.:430-5

	

17,004.6

	

9,?li.3

	

6,546.9

	

76,0JJ.I

	
.GRAND TOTALMBF

	  	

13,990,6

	

20,950.3

	

13,;nu

	

81920.2

	
114 rs0

 

 

15

 

 

	Appraisal Summary Report  
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 Property                         Owner	Stand#   Available	 Pm:el	Yr.1!11.      Cr. Yr.   	 slind Type	   L.S. 	 OWi Cir
	RllTe Lal<o    Timber Fund ll	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Misc!  	Ml.a 	SubParcel	 	 	
MetUle Cot111tral

	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	LAND:	 Gross Acres	 	 	 	 	 
	Timberland:	
7,646.1

	 	 	 	 	 
	Non-limbered:	
1;469.8

	 	 	 	 	 
	 	 	 	 	 	 	 
	Grand Total:	
9;m;9

	 	 	 	 	 
	 	 	 	 	 	 	 

 

	
J'RE.MCl<huntable:

	
Net Acres

	  
	
Cearcut

	
189.3

	
0- 4

	
43H

	
5.9

	
687.8

	
JO ·14

	
1;235.9

	
15 • 19

	
454.9

	
20 .24

	
2,883,0

	
25 -29

	
680.2

	
JO •.J

	
689A

	
Tota!:t'rC:.Mer< Acrei

	
7,l.J

 

	
!iJJ8.'Mqcbunlal/le 1J!Dber: Age JS.H:

	  
	  	
Acr.ts

	
·12+

	
HI

	
Cldpnsaw.

	
l'ulP,-1

	
tlitllMBF·

	
'IJOufllr

	  	
256.1

	
1,2.25.0

	
168.1

	
457,9.

	
.2.101.6

	
Hemlcidi

	  	
2!3c8

	
286;2

	
201.1

	
247.7

	
94U

	
(:odor·

	  	
M

	
o:o

	
o.o

	
0.4

	
0.4

	
·OUJ. Con.

	  	
t:S

	
0.0

	
0.0

	
o.o

	
IS

	
Red Alder

	  	
o.o

	
46.7

	
142.3

	
150.S

	
339.8

	
Otll.HIKI.

	  	
1.8

	
4.7

	
54.8

	
68.4

	
129,6

	
Total Sub-Morch MBF

	
2W

	
47J.9

	
1,562.5

	
1,166.J

	
925.1

	
4,127.8

	
 

Mcrc11untable Thnbcr: Age 4S+

	  	  	  	  	  	  
	
Acr

	
12•

	
8-11

	
Chlpnnw

	
Pulp'llOOd

	
Tolid MBF

	
D01Ji·Dr

	
232.6

	
183.9

	
131.J

	
63.S

	
611.1

	
Hemlock

	
501.6

	
368.9

	
3143

	
192.5

	
1,4373

	
Cedar

	
25.6

	
8.2

	
1.0

	
o.o

	
40.8

	
Rc<IAldor

	
o.o

	
6.0

	
SU ,\>

	
2op

	
978.4

	
·Qlll•.HWd.

	
46•.5

	
139.S

	
228.3

	
jlS.2

	
502..S

	
Totid MerQI MBF                               !!IJ

 

	
806.3

	
956A

	
l,lS4.5

	
55i.8

	
J,570.0

	
'GRAND TOTALMBF

	
1,280.2

	
2,51U

	
2:420.8

	
1,4?7.9

	
7,697.8

 

  

16

  

 

SCHEDULE 2.6.2 

 

NONACCESS TO TIMBERLANDS

 

The following portions of the Riffe Lake Block:

 

Parcel A:

 

South half of the Northwest quarter; the Southwest quarter; the West half of the Southeast quarter of Section 4;

All of Section 8, except the Southeast quarter; All of Section 9;

	
  

	
All of Section 17, all in Township 11 North, Range 5 East, W.M., County of Lewis, State of Washington.

 

Parcel  B:

 

	
  

	
Northeast quarter of the Southwest quarter and the Southeast quarter of the Northwest quarter, Section 32, Township 12 North, Range 4 East, W.M., County of Lewis, State of Washington. EXCEPT that portion described as follows:  Beginning at the Northwest comer of said Southeast quarter of the Northwest quarter;·

Thence South 88°10'29" East 1,333.79 feet;

Thence South 1°22'58" West 971.98 feet;

Thence North 52°14'46" West 1,656.44 feet to the point of beginning.

 

 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}]]