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Prepared by MERRILL CORPORATION

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Exhibit 10.21    
  

 
 

AMENDMENT NO. 6
  
    TO
  
    STOCK PURCHASE AGREEMENT    
  

    THIS AMENDMENT NO. 6 TO STOCK PURCHASE AGREEMENT (this "Amendment") dated as of August 1, 2001, is made by and among Olympic Property Group LLC, a
Washington limited liability company ("OPG"), Olympic Water and Sewer, Inc., a Washington corporation (the "Company"), and Port Ludlow Associates LLC, a Washington limited liability company
("Purchaser"), regarding that certain Stock Purchase Agreement dated May 29, 2001, as amended by Amendment No. 1 dated June 1, 2001, Amendment No. 2 dated June 13,
2001, Amendment No. 3 dated June 22, 2001, Amendment No. 4 dated June 29, 2001, and Amendment No. 5 dated July 24, 2001 (as amended, the "Agreement"), among
OPG, the Company, and Purchaser, for the purchase and sale of the shares of capital stock of the Company (the "Shares"). 

    I.  EFFECT OF AMENDMENT.  This Amendment amends and modifies the Agreement. In the event of any conflict
between the Agreement and this Amendment, this Amendment shall control. Except as contained within the Agreement and this Amendment, there are no other agreements or understandings among OPG, the
Company, and Purchase relating to the Shares. Capitalized terms not otherwise defined herein shall have the meanings given them under the Agreement. 

    II.  SCHEDULES.  The schedules to the Agreement attached hereto, all of which are described below, are
hereby adopted and approved. 

    III.  FINANCIAL STATEMENTS.  Section 3.4.1 of the
Agreement is amended to provide as follows: 

3.4.1  Financial Statements. The balance sheet of the Company as of December 31, 2000, the income statement of the Company for the
fiscal year ended December 31, 2000, the balance sheet of the
Company as of June 30, 2001, and the income statement of the Company for the portion of the fiscal year ended June 30, 2001 (copies of which are attached as  Schedule 3.4.1), and the
updated balance sheet of the Company as of Closing and the statement of earnings of the Company for the period ended as
of the Closing have been prepared in accordance with GAAP applied on a consistent basis throughout the periods covered thereby, are true, complete and accurate and present fairly the financial
position of the Company as of the dates of the balance sheets and the income statements except with respect to understated deferred revenue in the amount of US$130,000.00 attributable to prepaid
utility hook-up fees received by the Company and recorded as revenue instead of deferred revenue. The financial statements described in this Section 3.4.1  are referred to in this Agreement as the
"Financial Statements." 

The
Company is subject to no contract, agreement, purchase order, lease, license, indenture, commitment, or other liability that should have been accrued under generally accepted accounting principles
except as set forth on the Financial Statements and (i) liabilities accrued since June 30, 2001, all of which are listed on  Schedule 3.4.1-A, (ii) liabilities arising under the
Contracts, the BSA, and the Revolving Note, (iii) liabilities
relating to the Property that are disclosed in the real property records of Jefferson County, Washington, and (iv) agreements, contracts, commitments, or other liabilities that total in the
aggregate less than $10,000. 

 

    Except
as expressly amended by this Amendment, the Agreement is hereby ratified and confirmed and shall remain in full force and effect. 

	PURCHASER:	 	PORT LUDLOW ASSOCIATES LLC, a

Washington limited liability company
	

 	
 	

By West Coast Northwest Pacific Partners LLC,

a Washington limited liability company,

its manager
	

 	
 	

By:	
 	

/s/ TROY D. CROSBY   

	 	 	Print Name:	 	Troy D. Crosby

	 	 	Its:	 	Chief Financial Officer

	

 	
 	

Date:	
 	

8/1/01

	
OPG:	
 	

OLYMPIC PROPERTY GROUP LLC, a

Washington limited liability company
	

 	
 	

By:	
 	

/s/ GREGORY M. MCCARRY   

	 	 	Print Name:	 	Gregory M. McCarry

	 	 	Its:	 	C.O.O.

	

 	
 	

Date:	
 	

8/1/01

	
COMPANY:	
 	

OLYMPIC WATER AND SEWER, INC., a

Washington corporation
	

 	
 	

By:	
 	

/s/ TOM GRIFFIN   

	 	 	Print Name:	 	Tom Griffin

	 	 	Its:	 	President

	

 	
 	

Date:	
 	

8/1/01

Pope Acknowledgment  

    Pope Resources, a Delaware limited partnership ("Pope"), acknowledges its obligations under the Guaranty attached to the Agreement (as executed prior to the
adoption of any amendments), and acknowledges and agrees that (i) such obligations are not and will not be limited or impaired by any amendments or modifications made to the Agreement since
Pope executed the Guaranty (including amendments or modifications that OPG may agree to after this date); and (ii) the "Agreement" as used and referenced in the Guaranty means the Agreement as
originally executed by OPG and all amendments and modifications thereto, including any that OPG may agree to after this date. Nothing 

2

 

herein is intended to limit or impair Pope's right to assert Transaction Defenses as defined in the Guaranty. 

	 	 	POPE RESOURCES, a Delaware limited partnership, by POPE MGP, Inc., a Delaware corporation, its managing general partner
	

 	
 	

By:	
 	

/s/ DAVID L NUNES   

	 	 	Name:	 	David L. Nunes
	 	 	Its:	 	President

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SCHEDULES:  

	1.5.1(i)-1	 	Water Facilities: List of Wells and Reservoirs
	1.5.1(i)-2	 	Water Facilities: Map of Wells and Reservoirs
	1.5.1(i)-3	 	Water Facilities: Description of Well and Reservoir Parcels
	1.5.1(ii)	 	Water Facilities: Map of Water Lines and Other Infrastructure
	1.5.1(iii)	 	Water Facilities: Water Permits
	1.5.1(iv)	 	Water Facilities: Other Water Permits
	1.5.1(v)	 	Water Facilities: Depreciated Personal Property
	1.5.1(vi)	 	Water Facilities: Customer Accounts
	1.5.1(vii)	 	Water Facilities: Tariff Schedule
	1.5.2(i)	 	Sewer Facilities: Map of Sewer Line Distribution System
	1.5.2(ii)	 	Sewer Facilities: Description of Treatment Plant Parcel
	1.5.2(iii)	 	Sewer Facilities: Sewer Permits
	1.5.2(iv)	 	Sewer Facilities: Other Sewer Permits
	1.5.2(v)	 	Sewer Facilities: Depreciated Personal Property
	1.5.2(vi)	 	Sewer Facilities: Customer Accounts
	1.5.2(vii)	 	Sewer Facilities: Rate Schedule
	1.5.3(i)	 	Other Company Property: Description of Land and Improvements
	1.5.3(ii)	 	Other Company Property: Depreciated Personal Property
	1.5.3(iii)	 	Contracts
	1.5.3(iv)	 	Intellectual Property
	3.3.2	 	Officers and Directors
	3.3.5	 	Capitalization
	3.3.9(a)	 	Employees
	3.3.9(b)	 	Employee Benefits
	3.3.10(b)	 	List of Tax Returns Filed (on or after 12/31/98)
	3.3.10(e)	 	Depreciated Basis of Property (5/31/01)
	3.3.11(a)	 	Litigation and Other Proceedings
	3.3.11(b)	 	Violations of Laws, Rules, and Regulations
	3.4.1	 	Copies of Financial Statements (12/31/98 and 6/30/01)
	3.4.1-A	 	Accrued Liabilities (after 6/30/01)
	3.4.3(a)	 	Material Defects
	3.4.6	 	Other Permits and Applications
	3.4.7(a)	 	Environmental Reports
	3.4.7(b)	 	Potential Material Hazardous Substances Claims
	3.4.7(c)	 	Storage of Hazardous Substances
	4.1.5	 	Form of Port Gamble Maintenance Agreement
	4.4	 	Material Governmental and Third Party Consents

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Exhibit 10.21

AMENDMENT NO. 6 TO STOCK PURCHASE AGREEMENTPrepared by MERRILL CORPORATION

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Exhibit 10.22    
  

 
 

PROMISSORY NOTE    
  

	US$5,814,742.00	 	Seattle, Washington

, 2001

    FOR
VALUE RECEIVED AND ACKNOWLEDGED, the undersigned, PORT LUDLOW ASSOCIATES LLC, a Washington limited liability company ("Maker"), hereby promises to pay collectively to POPE
RESOURCES, a Delaware limited partnership ("Holder"), or order, the principal sum of FIVE MILLION EIGHT HUNDRED FOURTEEN THOUSAND SEVEN HUNDRED FORTY-TWO DOLLARS (US$5,814,742.00), with
interest on the unpaid principal balance at an annual rate of ten percent (10%) compounded annually. Payments under this Note shall be made pursuant to the terms of that certain Subordination and
Release Agreement of even date herewith (the "Subordination and Release Agreement") upon the transfer and conveyance of residential lots, as further described therein. All principal and accrued
interest not previously paid pursuant to the Subordination and Release Agreement shall be due and payable on the third (3rd) anniversary of the date of this Note. 

	1.
	The
unpaid balance of principal and interest under this Note may be prepaid in full or in part by Maker without penalty at any time. All payments shall be applied first to accrued
interest and thereafter to principal.

	2.
	This
Note is secured by a Deed of Trust of even date herewith, to Jefferson Title Company, as Trustee (the "Deed of Trust"), on the residential lots in the unincorporated master
planned resort area
commonly known as Port Ludlow, Jefferson County, Washington, as more particularly described in the Deed of Trust.

	3.
	Principal
and interest shall be payable at the offices of Pope Resources at 19245 Tenth Avenue N.E. Poulsbo, Washington 98370, or at such other place as the Holder or holders of
this Note may designate from time to time in writing.

	4.
	The
occurrence of any of the following events shall, at the election of the Holder or holders of this Note, make the entire unpaid balance of the principal amount of this Note
immediately due and payable without notice of default, notice or demand for payment, protest or notice of non-payment or dishonor, or any other notices or demands of any kind or character
(except for any notices expressly required under the Deed of Trust or under the Subordination and Release Agreement):

	(a)
	Any
failure by Maker to make any payment on or before the date payment is due or to perform or observe any other obligation under this Note, if such failure continues for a period
of five (5) days after written notice.

	(b)
	Any
failure on the part of Maker to perform or observe any of the obligations under the Deed of Trust, if (i) in the event of a failure to perform or observe any obligation
requiring only the payment of money by Maker to the beneficiary under the Deed of Trust, such failure continues for a period of ten (10) days after written notice from the beneficiary, or
(ii) in the event of a failure to perform or observe any other obligation under the Deed of Trust, such failure continues for a period of thirty (30) days after written notice to Maker
from the beneficiary under the Deed of Trust, or for such longer period as may be reasonably required to cure such failure (provided that Maker promptly commences such cure upon receipt of notice from
the beneficiary and diligently prosecutes such cure to completion).

	(c)
	Any
failure on the part of Maker to perform or observe any of the obligations under the Subordination and Release Agreement, subject to any cure period provided for in the
Subordination and Release Agreement. 

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	5.
	Failure
of the Holder or holders of this Note to exercise the acceleration option set forth in Paragraph 4 above upon the occurrence of any event enumerated in
Paragraph 4 shall not constitute waiver of the right to exercise such option on the subsequent occurrence of any of the events enumerated in such provision.

	6.
	Principal
and interest shall be payable in lawful money of the United States of America which shall be legal tender in payment of all debts and dues, public and private, at the time
of payment. Maker waives presentment, demand for payment, notice of non-payment, protest, notice of protest, and any and all other notices or demands in connection with the delivery,
acceptance, performance, default, or enforcement of this Note (except for any notices expressly required under the Deed of Trust or under the Subordination and Release Agreement). Maker consents to
any and all assignments of this Note, extensions of time, renewals, and waivers that may be made or granted by the Holder or holders of this Note.

	7.
	If
action be instituted in connection with this Note (including, without limitation, any proceedings for collection hereof in any bankruptcy matter or case), Maker promises to pay
the Holder or holders of this Note all reasonable fees and costs in connection with such action, including, without limitation, reasonable attorneys' fees incurred in good faith.

	8.
	Any
and all notices or other communications required or permitted to be given under this Note shall be given in writing and sent by certified U.S. mail or by personal delivery,
overnight delivery or telecopier. Any such notice or other communication shall be deemed to have been given (i) if sent by U.S. mail or overnight delivery, on the date it is officially recorded
as delivered to the intended recipient by return receipt or equivalent, or (ii) if personally delivered or delivered by telecopier, upon receipt. Any notice or other communication to be given
to Maker shall be addressed to Port Ludlow Associates LLC, c/o HCV Pacific Partners LLC, 625 Market Street, Suite 600, San Francisco, California 94105, Attention: Randall J. Verrue, facsimile number
(415) 882-0901, or any other address in California as Maker may designate from time to time in writing.

	9.
	If
any term or provision of this Note, or the application thereof to any person or circumstance, shall to any extent be invalid or unenforceable, the remainder of this Note, or the
application of such term or provision to persons or circumstances other than those to which it is invalid or unenforceable, shall not be affected thereby, and each term or provision of this Note shall
be valid and enforceable to the fullest extent permitted by law.

	10.
	This
Note shall inure to the benefit of Holder's successors and assigns. 

	 	 	MAKER:	 
	

 	
 	

PORT LUDLOW ASSOCIATES LLC,

a Washington limited liability company
	

 	
 	

By: West Coast Northwest Pacific

Partners LLC, its manager
	

 	
 	

By:	

/s/ RANDALL J. VERRUE   

	 	 	 	Randall J. Verrue, President

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Exhibit 10.22

PROMISSORY NOTE

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