Ply Log Production Agreement

   Before DSI will enter into a contract with a Grower/Producer, the grower must certify that he or she is qualified and/or has engaged a qualified manager able to grow plantation trees, and that he or she can furnish available and suitable production farmland. After being certified to the satisfaction of DSI, the Grower and DSI sign a contract called the “Ply Log Production Agreement”. The Ply Log Production Agreement states that DSI will purchase the Grower’s timber once it reaches “harvestable maturity”. Harvestable maturity is (a) 8 feet, 9 inches in length and 20 inches in diameter, or (b) 10 years of age, whichever comes first. The timber is expected to reach harvestable maturity in 8 to 10 years.

   DSI publishes the current, TimberLot Contractor board foot quotation on its Web Site at www.dickeyseed.com/market/market.htm Also within the Ply Log Production Agreement, DSI offers a forward pricing mechanism to give growers the ability to take advantage of market volatility. The forward pricing mechanism is much like the commodity futures market