THIS AGREEMENT made in duplicate this........ L&s?!. . . . . . . . .

day of:&y&.Q;cA . . . . . . . 5n the year of Our Lord One Thousand Nine

Hundred and Fifty-nine,

RETWREN:

THE MINISTER OF LANDS AND FORESTS of ths Rorince of British Columbia, who, with his succemmrs in office, is

hereimf+,er caI.Ied "the Minister", of the one part,

AND

B.C. INfERIoR SAUMILIS LTD., a Corporation duly incorporated under the lawe of the Province of British Columbia, and having ita registered office in tb City of KamIoopa, in the said Frovince,

hereineftm called "the Licensee", of the other part.

WHRRRAS by Subsection (2) of Section 33 of the "Forest Act",

being Chapter I28 of the Revised Statutea of British Colmbia, 1948 and

nubsequent amendments, it is provided that the Minieter may by agreement

grant e tree farm licence to any person for the management of Crown lalds

specified laths agreement,, reserved to the sole UBB of the Licensee for

the purpose of growing continuousIy successive crops of fore& products

to be barvested in approximately equal annuel or periodic outa squalling

the sustained yield capacity of the lands in the area oovered by the licence,

or mey enter into en agreement to be known as a tree farm licence with the

ovner of other tenures to combine such other tenures and Crovn foreat lands

into e single unit reserved by mutual oonsent and egremnt to the sole uee

of the Licensee fortbe like purpose:

AND UE3RW.S the oonditions precedent to the issuance of this

liwnoe, as set forth in said Section 33, hex% been complied with to the

satisfaation of the Licenear:

NOW THIS IIiDENprmE WITNESSETB THAT pursuant to Seotion 33 of

the “Forest Act" and in consideration of the payments, agreerents and

stipulations to be made and observed by and on the part of the Lieeneee

(LLI bereimfter nentiollsd, the Minister doth hereby grant unto the licensee

-2-

tb management of the Crown lands speoified In Schedule "B" to this agreement,

which land6 are reserved to the sole use of the Licensee far the purpose of

growing continuously aacceasive crops of forest products to be harvested in

approximately equal annual or periodic cuts eqmlling the sustained yield

capcity of the said lands:

And in aouslderation of the premises, IT IS AFXEBI AGREE4 AS WIUJUS:

1. This tree farm llcenca may be referred to ac the nJamieson Creek

Tree Farm Llcencen and is mmbered Thirty-five (35) on tb Forest Service

register of tree farm licences and 011 the official atlas maps of the

Department of Lwds and Forests.

2. Thlr llccnce is given for the maintenance of the manufacturing

plant or plants owned and operated by the Licensee. Said plant or plants

shall be capable of using the allowable cut from the licence area, and such

plant or plants shall be maintained in operation in sufficient continuity

to we the wood product of the licence ammally. Notwithstanding the

provisions of thla cleuae, the Minister may, for good and snfficieut reaaona,

at his disoretion, In writing, afford such relief frap the provisions of

this cleotlon an he may EM fit.

3. The Licensee shall manage the licence area in accordance with

the provision8 of the said Section 33 of the "Porest Act? and of regulations

under the said Act for the regulation of tree farm licencee, and in accord-

ance with the mauagement working plan applicable thsreto9 for the purpose

of growing continuously successlre cropa of forest products to be harvested

in approxtitely equal annual or periodic cuts equalllng the custalued yield

capacity of the licence area.

4. The term of this licence shall be 21 years from ths date of this

agreement, subject to ths provisionc of the “Forest Act", ths regulationc

made thereunder and the provisions of this agreement, and cwpliance with

the management working plan. This licence shall be renawab1.s but subject

-3-

to remgotlatlan of the terms ard conditions of the contra& according to

the provieions of the "Poreat Act" and the regulations in force at the time

of the application for renewal.

5. The licenca me8 includes all Crown lande not otherwise alienated

at this date, ae set forth In Schedule "B" hereto9 together with alIt ths

lands -d or eontrolled by the Licensee, as set forth in Sahedule "A"

hereto, both of which are shown outlined in bold black llm ou the plan

attached hereto9 subject, however, to any increase, decrease, re-allocation

or exchange of lands a# provided by this agreement or by subsection (14)

of Section 33 of the "Forest Act"; and ln addition It includes any and all

lands that may be subsequently acquired by the Licensee and incorporated

into said Schedule "A" pursuant to Clause 7 hereof, provided also that any

lands included In Schedule "An9 the title or interest to which reverts to

the Crown, or which the Licensee elects to revert to the Crown, &all be

ooneldered (18 being included ln Schedule W firm tim time of aueh reversion.

6. The Llcense8 hereby deolaree that it owns or control8 the cuttiag

rights on each parcel of the lands Listed and described in Sohedule "A"

hereto.

7. The aoqulsitlon by tbs Lloensee of fore.& lands excepting only

cutting rights offered by the Forest Service for ccmpetltive sale, subsequent

to ths lsauanae~ of this llcence ahallp pursuant to aubeectlon (9) of said

Section 33, be reported to the Minister, and such forest lends shall te

included forthwith ln the lloence area end be incorporated in Schedule "A"

hereof to the extent required by said subseotion (9). Aoquis%tlon, aa

need harein, shall be deemed to inelude other tenures aa defined hereinafter.

8. For the purposes of eubaectlon (8) of Se&ion 33 of the "Fm-est.

Act" t the vatershed and drainage basins relating to this llwnoe are deflnsd

a8 the watershed of weeks floving into the Horth Thompson River along its

right bank between aad lncludlng the uetersheds of Skull Creek and lanes

Creek.

-4-

9. TheHinistarrrmy fkcmtimetotima withdraw fiomt.heCromlands

included in the licenoe area such lands as are required for forest axper-

imental purpwss, parks, or for aesthetic purposes; but tlm la&s so with-

drawn shall not exoead one per cent of the total area of lands in the licencs

area without tim consent of ths Licensee, and no land shell be withdrawn frcan

areas being developed under the current cutting plan without the coneent of

the Licensee. Any such withdrawals shall be deducted fYom Sohedule "B".

10. If at any t&lo, or frcm time to timet part of the Crown lands

within the tree farm area is found to be required for a higher econcanic use

than raising forest crops, op for any ~88 deemed to be eaaantial to the

public interest, said lands may be withdrawn Ppan the licence area by the

Ministar, provided that if by cm& withdrawal the productive capacity of

the licenw area Is dimin%shed by more than one-half of ona per cent of

its total productive aapaeity, othsr IaLands, if available, will be added to

the liwnce area in substitution therefor. Any suchwithdrawala shall be

deductad from Schedule "Bnt and any such additions ehall be added to

Schedule "B". For the pmposas of this section, tb develo~nt of mines

and mineral prospects lnay be deemed to be essential to ths public interest.

11. It is expressly nnderatood that the Minister may at his discretion

and at any time, either permanently or fur a specified time, withdraw from

this licence and frcm ths licence area any Crown lands needed for rights-

of-way under part VI of the "Forest Act", or for railway, highway, powsr

transmission, or other right-of-way purposes , and such lands will be deducted

fran Schedule "B".

12. In the event of the withdrawal of a~ lands from the lieence MC)B

pursuant to Clauses 9, 10, 111 and 14 hereof, the Minister may require the

Licensee to rep1ove Prom such lands within one hundred and twenty days there-

after all timber then cut thereon and all buildings, machinery, equipment,

and other property placed by it thereon and which is capable of removal.

Compensation &all be paid to the Licensee in respect of improvements

-5-

capable of rmcnal horn ths 1~4s so withdrawn to ths extent only of tbs

cost of rsmmal and damage incidental thsreto; and compsnsation shall be

paid to the Llosnsae in respsct of improvsmsnts rat capable of removal on

the basis of cost less depreciation.

Without llmlting the gansrality of the foregoing, the term

'%qmvemnts" meens all bulldlngs, structures, flxttwes, aad things eractsd

upon or affixed to suoh lauds and shall inelude machimry, boilers, tanks,

pipes, dsms, flus, roads, railways o transmission linss, and other works

used ln conneotion with the business of the Licensee. ImpFovemsnts shall

also mean areas artificially reforested by planting or seeding, ccmpensatlon

for which shall bs the cost incurred In the act of reforesting.

If ths amount of canpsnsatlon payable to the Licensee is not

agreed upon, thsn such amount shall be appraised and awarded by a single

arbitrator in case the Licenser aad Licensee agree upon one; otherwise ky

three arbitrators, one to be appointed by ths Minlstsr, ens to bs appointed

by the Licensee, and the third to bs appointed by writing under the hands

of the two appointsds such apbitratlon to bs in accordanoe with ths pro-

rislons of ths "Arbitration Act" of the Province of British Columbia. In the

event that both parties ars unable to agree on a third arbitrator, ths Chief

Justice of ths Sapreme Court of British Colmbia shall be raqusstsd to make

an appointmant.

13. If at any times or from time to time, part. of the lands inaluded

in Schadula "An is found to bs required for a higher economic uas than

raidng forest crops, said lands may be withdrawn from the licence arsa at

the request of the Llosnses and on ths consent of tbs Minister, aad after

such withdra!ial such lands will bs deductsd fran Schedule "A" and shall bs

disposed of by ths Licenses for the purpose for which they wsre withdrawn.

14. Where tbs llcencs includes within the described boundaries a

belt or eree of non-productive land surrounding or adjacent to the productive

-6 =

forest land of the liceme, any cm all of such non-productive land may be

WitMrewn from the licence at ths pleaaum of the Minister.

15. Other tenures included in this tree farm licence shall not be

sold, transferred, or otherwise disposed of except as hereinbefore provided

or except a8 provided in Section 33 of the "Forest Act".

16. This licemeg insofar as Crovu lauds in Schedule "B" are concerned,

shall not be considered to limit the uee of the lands at the discretion of

the Minister for othep purposes such as mining, trapping, hunting, fishing,

hydroelectric devalogment,or any UBB that does not materially prejudice

the rights grantad to the Liaensee to employ the use of the lands for the

growing and harvesting of forest products under ,the terms of this liceme.

17. It is uadsrstood and agreed be~twean the part&a hereto that any

right.8 under this agreement in respect of Crown lends do not include any

riparian or foreshore rights? and all such rlparlan and foreshore rights

vested in ths C~ovn In raspeat of the said Crown lands mentioned in this

agreement shall remain in the 881~ status as if thfs agreement had not been

entered into, and the Licensee shall have no rights or claims wbatsoevsr in

respect thereto b,y virtue of thla agreemsnt.

18. The Minister may direct the Licensee to have surveyed and defined

on the ground, and at the Lfcensee"s expense, any or all the boundaries of

the licence area which he may deem necessary to have so surveyed and defined.

In the event of failure of the Licensee to complete any such em-wy within

time limits set by the Minister, the I'Itiister may cause the survey to be

made and the costs shall be charged to and be payable forthwith by ths

Licensee.

19. As a first essential to the primary object of sustained yield

management of this licence9 it is agreed that all potentially productive

forest land within the licence area shall be kept by the Licensee in growing

stock as provided in Clause 20 hereof, and adequately stocked in accordance

with stindards to be defined from time to time by the Forest brvice for

landa of a canparable site quality in Brftlsh Columbia.

20. Ally landa in the licencs area denuded before the data of this

agreement which are found to bs stocked below the minimum etandards defined

by the Fcrest Service as provided in Clause 19> above, shall be classified

aa to site quality and those determined by the Forest Service to be of a

site quality Index equal to OT better than 80s unless in the cplnlon of the

Minister they are occupied by an advanced growth of brush, or otherwise

in such condition as to make planting operations economically impractical,

shall be reforested by the Licensee by artificial means with .!I merchantable

species suitable to the locality et a rate per year of not less than one

thousand acres, or ten per cent of the total acreage of such lands, which-

ever is the lesserp all to the satisfaction of the Licenser.

The Licensee further agrees that lands of site quality index

better than 110 denuded after the date of this agreement, and not fowd to

be restocked satisfactorily five years after lcggIngs will be artificially

regenerated by the Licensee before the end of the seventh yuer after logging;

and that lands of site quality Index between 130 and 110 not found to be re-

stocked satisfactorfly efght years after logging, wI.ll be artificially

regewrated by the Licensee before the end of ths tenth year after logging,

all to the satisfaction of the Licsnscr. Where In the opinion of the Chief

Forester there is a danger of brush encroachment, earlier action then spec-

ified above may be requfred b the Licenser.

21. On failure of the Licensee to ccmp;ly with ths provisions of Clause

20, the Minister, his servants or agents, may enter on the lands In respect

of which the Licensee is in default, and restock them9 and ths cost thereof

shall be recoverable by the Crown from the Licensee and may be taken in

whole or in pert frcm the deposit referred to In Clause 35 hereof.

22. The operations covered by the Licence shall be managed in

-8-

acaordanae with the currently approved management working plan, eaah of

vhiah in turn (II approved for each auacesaive period is hereby incorporated

into end made a pert of thia agreement.

23. Management working plane will be approved for suoh period as

the Chief Forester may decide, and will be subject to revision ae set forth

in the said plans.

21. Revised management working plane she.11 be suhnitted for the

approval of the Chief Forester not later then aix months prior to the expiry

of currently approved plane.

25. The objeat of each succeeding plan shall be to implement the

primary object of the licence; i.e., eustained yield in equal annual or

periodic cuts, and may embody any method of attaining that objective that

over a reasonable period of years is likely to prove economically feasible,

that Is approved by the Chief Forester , and that ia not inconsistent with

the spirit and intent of the eat and regulations. In preparing the manage-

ment working plan, advantage shall be taken of all available data and

experience.

26. Should it appear at any time to either party hereto necessary

or expedient in ceee of emergency to increase or decrease the rate of

ontting aontamplated by the cutting budget then In effect, or to alter

the cutting plan then being obaemed, then, subject to the approval of

the Chief Fore&w, emergency revision of the management working plan will

be undertaken npon the request of either the Licensee or the Chief Forester.

Wit+out limiting the generalities of the preceding paragraph,

cause for revision on account of emergency conditions will cover such thinga

so fire damage of major propcrtione , serious windthrow, insect or disease

attacks, serious damage to the Licensee's manufacturing plant, or other

catastrophe of great aixnent, or should there occur a national emergency

brought about by war, or an economic depression eevere enough in the opinion

of the Minister to justify revision of the Management Working Elan.

-9-

27. Ia the prooese of harvestlug ths crop frm tlm lloeace area,

regerdless of the temao of the land from whiah it 1s hervested, the Llceneee

ehall provide the opportunity for contractors , other then the Licensee's own

employees or shareholders who own more than one percent interest to harvest

e rollrme equivalent to a minimum of fifty per oent of the allowable cut from

Crown landa not held under other tanore but where the Mlnlstsr le satlefled

thet euch contract operation is not feasible, either by reaeou of lack of

operators or for other good and sufflalent reaeou, the Hlnlstar may relieve

the Llceneee in whole or ln pert fiwm this responaiblllty.

28. In the event of the develment on the llcence ema of lnjurloua

inmate in malbbrs which in the opinion of the Nlnleter will seriouely reduce

the current or future allowable annual harveet of wood, end which ln tlm

opinion of the Minister can be controlled, then the Licensee and Llcensor

ehell t&e euch control measures 88 may be mutually agreed upon, or the

Licensee shall take ouch control meaeuree as the Minister shall direct,

provided that the cost of such controlmessuree to the Llceneee at his own

expense in any om calendar pear shall not exceed one-half the cost of suoh

coxtrolmeasures incurred during that calendar year, orthefotalstumpago

value of that year's allowable cut, whichever may prove to be the Isseer.

For the purposes of this clause , the stumpage value shell be the rslue

appraised by the Forest Service.

29. In the event that mutual a@eement cannot be reached betueen

the parties hereto ae to the sustained-yield cutting capacity or (1.9 to

the sequence or methods of cutting to be employed at the time an mergemy,

or any other revision of the cutting plan or cutting budget 1s tuxk%aken,

the Llceneor shall determine the permissible cut and the plan and methods

of outting.

30. The Lleensee, ln his logging operations on the llcence area,

shall at all thee maintain at least as high a standard of utlllentlon

ae, in the Chief Foresterls reasonable opinion, ie be- malnt&ned by wll-

- 10 -

conduot&id logging operationa in the Ramloops Forest District.

31. Cntt~ on tlm lioenoe erea shall be done only In accordance

with the management working plan, and only after notice of intent has been

gfven to the Chief Forester and a cuttiag permit has baen issued. Such

onttlng permit shall be leened by the Chief Forester if the propowd outting

is in keeping vith the provisions of this llcence and the management working

plan. If the proposed cutting la to be on other tenurea, the cutting permit

will 00nstitut.e the Minister's 00 rvmrrence that the cutting is according

to plan end epeoify cmoh other detail8 d he may deem necese8ry, such details,

hovwer, aluaystobe inkeeplnguithths groviaione of the management working

plan and this agreement. If o&t&g is on Crown lands not held andsr other

tenures, the cuttlng permit will, in addition, fix the stqge in accordance

with snbeeotion (20), Section 33 of the "Fore&. Act". Any cutting not covered

by a cutting permit will be deemed to be in trespass aad the Licensee ahall

be assessed (I srrm by the Hlnleter in respect thereof in an amount not In

exoeee of tlm ralus of the loge or other product eo out or wasted or destroyed.

32. Tlmbermerks shall be seoured by the Uaeneee andmarking carried

out ae required by Part IX of the "Forest Act".

33. All timber harvested on the licenoe are.3 shall be sosled in cubic

feet and otherwlee in all reaps&r in accordance with the prorlslono of

Part VIII of the "Fore& Act".

34. Tt&er and wood out frm lands included in this lioenoe, regardleea

of the tenure of the lands, shall be enbjeot in all respects to the pro-

visions of Pert X of the "Forest Act" insofar as they relate to lands

granted after the l2thdey ofMarch1906.

35. The Licensee herwith deposits, par-t to eabssotlon (6) of

Section 33 of the "Fimest Act", the am of One Thoueald Dollars ($l,OCQ.OO),

receipt of vhioh is achowladged and will supplement this d-sit. b the

pawent of ten cents on each OIY) hundred oubio feet of wood harvested, but

the em total of deposits held at any one time by the Lloeneca under this

- 11 -

clause shell not emeed Two Thousand Dollars ($Z,OOO.OO). In the event that

the emount of tim deposit becomes lose then One Thouband Dollnrs ($l,OOO.W),

the Lioeneee will forthwith deposit sufficient money with the W5nlater to

briag tbs total emormt up to One Thousand Dollars ($l,OOO.oO), and thereafter

will supplement the deposit by the payment of ten cents on eeoh one hundred

cubic feet of wood harvested to bring the total emouut up to Two Thousand

Dollars (k,OCW'O). The eald deposits shell be held for tIm pmpoee of

ensuring aamplienue on the pert of the Licensee with the terms of the "Forest

Act", the regulations made thereunder, this agreement, the management work*

plea, and enypermitiseuadpurauenttothis agreement.

36. The Llceneee agrees to pay attrmpage on all merchantable wad cut,

wasted or removed by the LlcenseeW his agent.8 OII or fiam that pert of the

llcenoe eree described in Schedule '9" hereto9 88 provided in this agreement,

the "Forest Act" and tim cutting pswlt.

37. Starting onths first day of Jarmary next following the date of

this agreement, the wood harvested Prom the licence eree in eny o= year

shell not be less than fifty psr cent and not more then one hur&ed and fifty

per cent of the approved anuual ant, end ahell not very more then ten per

cent from the totel approved cut over a period of five yeers.

38. Damages, recoverable in full or in pert from the deposit made by

the Licensee tier Clause 35 hereof, may be assessed by the Winietar for

failure to observe the provisions of Clause 37 of this Indenture, as follows:

(a) The hill stumpsge value as appraised by the Forest Service on the

quantity of Umber by which the year's cut falla below fifty per cent of the

approved annual cut.

(b) Double the stumpage value as appraised by the Forest Service on

the quantity of timber by which the year's cut is in exoeea of one hundred

and fil'ty per cent of the approved annual cut, whether cut W~I Crown lauds

or fhm other tenures.

-l2-

(c) Should the total ant over five coneemtive years vary more than

ten per cent over the tote1 of the five years' approved cut, e mm per one

hundred cubic feet double the stumpage ee established for the fifth yuer of

the period, will be assessed by the Minister on the amount cut over the ten

per cent allowence9 whether cut from Crown lend or fran other tenures. Should

the total cut ovv five consecutive years vary more than ten per cent under

the total of the five years' approved cut, e ann per one hundred cubic feet

equal to the stumpage as established for the fifth year of the period, will

be aeeeaeed by the Minister on the exwunt cut under the tan per cent allowance

whether cut from Crown land or f'rau other tenores.

(d) Should tbs total cut over ten consecutive years, including the

five-year period referred to in (c) above, very less then ten per cent Prom

the total of the ten-year cutting budget es approved in the working plan,

the demegs assessed in paragraph (c) above, if any, will be refunded.

(e) For tba purposes of this paragraph, stompage shell be appraised

on the eeme baais end in the eeme mennor es provided in Clenee 31 hereof.

(f) Any damages provided for in any cutting permit mentioned in

Clause 31 meg be deducted from the deposit mentioned in Clause 35, and

thereupon the Licensee shell forthwith deposit with the Hiniater sufficient

moneys to make the said deposit equal to the amount of deposit thus required.

(g) In ths event that the lioencs is cancelled by ree8on of sny default

or breech of the licenoe by the Licensee ( then all moneys on deposit with

the L%ceneor under the terms of this agreement shell be payable to ths Crown

for demeges.

39. For the purpose of carrying out the provisions of Clause 38 hereof,

the Liaenese may elect to start e new five-year period fYan any year in

which the periodic cut for the preceding five-year period is wlthln ten

per cent of the accumleted approved annual cuts.

40. The aggregata acreage of the Crown lands in the licence erea for

the purposes of rental under subsection (19) of Section 33 of the "Foreat

- 13 -

Aot", ab of this date, shall be the total acreage as set forth in Schsdule

"B" and the working plan.

w. For the pvrpoeea of Sectlon 124, eubaection (1) of the "Pore&

Aot", Chapter.128 of the Statutes of British Columbia for 1948 and sub-

sequent amendmentn, the approwd annual productive capacity of the lioenoe

shall be such asmay be determined inths ourrentapproved working plan, and

forest protection tax shall be payable ae provided by the said Section 124.

42. All camps or other living quarters established incident to the

management of the licence area ahall be of a standard at least ae high ae

those that, in the Minister's reasonable opinion, are being maintained by

comparable well conducted forest operations In the Ramloops Forest District.

43. All roads, on landa vithln the bouadariea of this licence, ln-

olnding the lands listed in Schedule "A" , shall be held available for public

uee in acoordance with the terms of the "InduetrlalTransportation Act” and

of the "Foreat Act? relating thereto.

44. The Licensee shall provide, to the satisfaction of the Chief

Forester reasonable office and living accclmnodation for a reasonable Forest

Service inspection staff on the licenoe area or at soy headquarters, plant,

or operation maintained by the Licensee , If instructed by the Chief Forester

in writing 80 to do.

45. The Licensee shall employ one Forester, registered uuder tbs terms

of Chapter 127, R.S.B.C., 1948, and ameadmenta thereto, and ae many additional

Registered Foresters ae may be deemed necessary by the Chief Forester. The

working plan and all revisiona and amendments thereto shall be slgmd and

sealed by the Registered Forester.

46. IO ths ewnt of the bankruptcy or insolvency of the Licensee, the

Minister may oaneel tha liwnoa and any or all money on dopoeit may be

deolared by the Minister to be payable to the Crown for damages.

47. This agreekent may be amended by the parties hereto b a memoranda

In writing signed by the parties hereto.

-lA-

48. This tree farm llcemce shall not be sold or trannferrsd by the

Llcanses within ten paars immediately subsequent to the issuance of this

licence uor shall the control of the licence be transferred In any dinner

vhatsowur to a~ person or persons, firm or firms, corporation or torpor-

stlons without the written aonsent of the Minister first having been obtalmd.

49. Any notice required to be given to the Licensee by tlm Minister

cm Chief Forester under this agreema&, may bs given by written notice sent

by registered mall or delivered to the registered office of the Licenses

In British Columbia, and shall be deemed to be 80 given ou the day it would

be received by the Licensee in the ordinary courts of post, or on ths day

it was so deliverad.

50. (a) This llcencs may be terminated at any time by mutual consent

of the partlea hereto.

(b) The Licensee may termiunta this licence on two yeara' notice

In writing given to ths Minister subject 88 hereinafter provided.

(c) In ths event that the Licensee eerves notice of tsrmlnatloa of

this licenos as provided in the next preceding clause such termination

shall be subject to the following conditions:

(1) All moneys held a~) security deposit of vhatsosvsr nature

or kind or any part thereof may bs declared by the Minister

payable to the Cram for damagea or otherwise and ths

Minister shall not bs obliged to account in respect thereof.

(ii) All tenures which have reverted to the Crown pursuant to this

contract shall not revest in the Licenses.

(Iii) All improvements made on Crown lauds shallbecoma and be

the property of the Crown and the Licensee shall havs no

claim OF In any way b-a entitled to canpensation therefor:

Provided the Licsnsea may remove his own fixtures In such

(1 manner as not to damage other improvsmeuts:

!

- 15 -

Frorided alao euch rwoml aball not in any way affect the

lien of the Crown on euoh fixturee ae provided in the "Forest

Aot".

(iv) All outtlng permits lamad pursuant to this agreement shall

termiwto on the termlnatlon of the agrwment.

(v) The Lioeneee rhall forthwith pay a13 moneys owing on outstanding

acaounts for stumpage royalty, taxes, and annual rental.

(vi) All rights granted purrmant to any statute or regulatlone

or under this agreement a8 ancillary thereto and all

appurfenanws shall be oancellsd effeotive on the termiaatlon

of this licence.

51. In the event that this licence is oancelled or tarminated,

existing other tenures owned or controlled by the Llcsneeo inoluded vitb3.n

the licenoe area ahall 1n no way be encumbered by aw oammitments, agree-

ments, underrtaading or in any other manner arising out of the execution

of thir lloence.

52. In this llaencer

"A&" meann the "Forest AcV, R.S.B.C. 1948, Chapter 128, and

amendments thereto in force framtimetotime during the cm-rency ofthle

agreement.

"Approved", if not otherwise defined in the oontext, meana

approved by the Minister.

"Denuded" or "denuded lands" meane any forest lands In the licenoe

area fran or on which substantially all mature timber her been cut, logged,

or destroyed, had on which tree6 of young growth In sufflalent manbers to

produce a valuable crop according to the standards of the Fore& Service

have not yet been eetablished.

- 17 -

IN WITNESS WHEREOF the Licenser has executed tlmoe presents and

the Licensee has hereunto affixed its corporate seal by the hands of its

proper officers in that behalf.

SIGNED SEAIZD AND DELIVERED in the prasena@ of:

THE COlMON SEAL OF THE LICENSEE was hereuntoaffIxed Inthe presence of:

SCHEDULE "A"

Jan11eson Creek Tree Farm Wcence

Tree Farm Licence No. z

Forest lands in other temn-e owned or controlled by the Licensee,

included in the Jamieeon Creek Tree Farm Licence No. 35, all within the

Kamloops Land Dietriot.

Tinker Sale

x70904

X74202

X74203

X76627

X77304

X77305

x77694

X78318

x79057

x79432

land District Area In Acres

samloope 1,125

Kemloops 487

Kamloops 807

Kamloope 675

K.SClOOpS 1,440

xamloops 2,460

Kamloope 240

Kamloope 20

K8lUlOOpS 623 *

Kamloope 1,380

* 312 acres outside of Schedule "A".

Jamleson Creek Tree Farm Llaenoe

Tree Farm Llwnao No. z

Crown lands not otherwise allmated within tb following described

WC&l:

Camenoing at tim north-we& aormr of tha North-East Qumtar of

Section 14, Townshlp 23, Ran@~ 17, West of the Sixth Floridinn, Kmloopa

Divrislon of Yale Distriat, said corll~r bBlng ap~ro%i~~tOly OM mile westerly

pram Black Plnsn~ thence due north 595 chelw; thmce due eart 40 oh&m;

theme due north 100 ohains; thence due east 40 chains; thenoa due north I.60

chains; theme due east 40 chains; thencs due north l85 chains; thence due

west 3.&O chelns; thence due north 50 chains; theme due west 270 chains;

thence due south 200 chains; thence due west 1l.O chains more or less to (I

point due north of the most westerly point bn the edge of the bed of Windy

Lake on the westerly rhore thereof; thence due south 650 chsti more or less

to a point due east of the north-east aorcer of Seation 32, Township 23,

Range 181 theme wust to the said north-east corner; thence southerly along

the easterly boundary of said Section 32 to the south-east aorner thereof;

thence due west 160 &sins; thence due amth 240 chains; tbmcs due saat 240

chains; thence due south 160 chains; thence due east 63 chains; thence dm

south 240 chains; thence due east 240 chains more or less to the westerly

boundary of Township 22, Range 17; thence northerly along the said westerly

boundary of Township 22, Range 17 to the north-west corner of Section 19 of

said Township 22, Range 17; thence easterly along the northerly bounderie

of Sections 19, 20 and 21, T-hip 22, Range 17 to the southerly prolongation

of the vestarly boundary of Lot 833; thence northerly to alld along the westerly

boundary of Lots 833 and 2125 to the most northerly corner of Let 2125)

thence easterly along the northerly boundary of said Lot 2125 to the westerly

boundary of Section 27 of aforesaid Township 22, Range 17; thence northerly

-2-

and easterly along the westerly and northerly boundaries of said Section 27

to the routh-west corner of the East Half of Section 34 of said Township 22,

Range 17; thanaa northerly along the westerly boundary of the said East Half

of Seation 34 to the northerly boundary of said Township 22, Range 17; thence

eastarly along ths said northerly boundary of Tomship 22, Range 17 to tim

south-we& cornar of Section 1 of aforesaid Township 23, Range 17; thence

northerly along the westerly boundaries of Sections 1, 32, and 13 of aald

T-ship 23, Range 17 to the north-vest corner of the South-West Quarter of

aaid Seat+ l.3; thenoe easterly along the northerly boundary of the said

South-West Quarter of Section 13 to the south-vest corner of the North-East

Quarter of said Section 13; thence northerly along the westerly boundary of

the said North-East Quarter of Section 13 to the northerly boundary of

aforesaid Township 23, Range 17; thence westerly along the said northerly

boumlary of Township 238 Range 17 to the aforesaid north-west corner of

the North-East Quarter of Section L& Township 23, Range 17, being the

point of cormnenoemsnt.

- il -.c --c . .

\