PURCHASE AND SALE AGREEMENT

Exhibit 10.27

PURCHASE AND SALE AGREEMENT

THIS AGREEMENT (this “Agreement”), made as of the Effective Date (as defined in paragraph 26 below), by and among HAWTHORN TIMBERLANDS, LLC, a Delaware limited liability company (hereinafter referred to as “Seller”), DELTIC TIMBER CORPORATION, a Delaware corporation (hereinafter referred to as “Purchaser”) and FIRST AMERICAN TITLE INSURANCE COMPANY (hereinafter referred to as “Escrow Agent”);

W I T N E S S E T H:

WHEREAS, Seller is the owner of those certain tracts or parcels of land in Perry and Yell Counties, State of Arkansas, containing approximately ± 41,363 acres, which tracts or parcels are more fully described in Exhibit A attached hereto and hereby made a part hereof (hereinafter referred to collectively as the “Property”); and

WHEREAS, Purchaser desires to purchase and Seller desires to sell the Property;

NOW, THEREFORE, the parties have agreed and do hereby agree as follows:

1. Agreement of Purchase and Sale. Subject to the provisions of this Agreement, and for the consideration herein stated, Seller agrees to sell the Property to Purchaser and Purchaser agrees to buy the Property from Seller.

2. Purchase Price. The purchase price (hereinafter referred to as the “Purchase Price”) to be paid by Purchaser for the Property shall be SEVENTY MILLION SIX HUNDRED THREE THOUSAND FIFTY-FOUR AND 79/100 DOLLARS ($70,603,054.79), less a credit for the Xxxxxxx Money, and shall be payable to Seller by wire transfer of immediately available funds at the date of Closing to an account designated by Seller. The purchase and sale pursuant to this Agreement is not based on a per-acre price and the Purchase Price shall not be subject to adjustment if the acres within the Property are more or less than the above-stated numbers of acres.

3. Xxxxxxx Money. Within two (2) business days after the Effective Date of this Agreement, Purchaser shall deliver to Escrow Agent the sum of $3,530,153.00 (said amount is hereinafter referred to as the “Xxxxxxx Money”). Escrow Agent agrees to hold the Xxxxxxx Money in a non-interest bearing account and disburse the Xxxxxxx Money in accordance with the terms hereof. At the Closing the Xxxxxxx Money shall be applied as a credit against the Purchase Price under paragraph 2 hereof.

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4. Closing.

(a) The execution and delivery of the documents and instruments for the consummation of the purchase and sale pursuant hereto (herein referred to as the “Closing”) shall take place on March 27, 2014, at 10:00 a.m. through the escrow services of Escrow Agent (original deeds shall be delivered to Escrow Agent’s agent Garland County Title Company, having an office at 000 Xxxxxxxx Xxxxxx, Xxx Xxxxxxx, Xxxxxxxx 71901), or such earlier date and time, and/or such other location, as may be mutually agreeable to Seller and Purchaser (the “Closing Date”).

(b) At the Closing, Seller shall execute the following:

(i) one or more special warranty deeds (warranting only against the claims of persons claiming by, through or under Seller) in form(s) appropriate for the state(s) in which the Property is located and reasonably satisfactory in all respects to Seller and Purchaser, conveying the Property to Purchaser subject to the Unrecorded Encumbrances and the Permitted Encumbrances (both as hereinafter defined) (collectively, the “Deed”). The legal description of the Property to be contained in Deed shall be the legal description of the Property as set forth on Exhibit A attached hereto and hereby made a part hereof;

(ii) an affidavit as to the non-foreign status of Seller in form reasonably satisfactory to Seller and Purchaser;

(iii) an assignment and assumption of any Unrecorded Encumbrances (as hereinafter defined) which have not been terminated at or before Closing in form reasonably satisfactory to Seller and Purchaser (the “Unrecorded Encumbrances Assignment”);

(iv) an assignment and assumption of that certain Timber Cutting Agreement described on Exhibit D as Cont.

#000-00-00 (the “Green Bay Agreement”) in form reasonably satisfactory to Seller and Purchaser (the “Timber Cutting Assignment”);

(v) an owner’s affidavit in form reasonably satisfactory to Seller and Purchaser and reasonably satisfactory to cause the Escrow Agent (as hereinafter defined) to issue an owner’s title insurance policy without exception for materialmen’s and mechanic’s liens;

(vi) a Closing statement; and

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(vii) Seller hereby agrees to execute such other certificates and affidavits, and do such other acts as may be reasonably necessary to consummate the purchase and sale contemplated hereby and to enable Purchaser to obtain the title insurance policy in accordance with this Agreement. The owner’s affidavit and any other affidavits or certificates executed by or on behalf of Seller at the Closing shall be given to the actual knowledge of the person or entity executing the same, without independent investigation or inquiry.

(c) At the Closing, Purchaser shall execute the following:

(i) the Unrecorded Encumbrances Assignment, if applicable;

(ii) the Timber Cutting Assignment, if applicable;

(iii) a Closing statement; and

(iv) Purchaser hereby agrees to execute such other certificates and affidavits, and do such other acts as may be reasonably necessary to consummate the purchase and sale contemplated hereby and to obtain the title insurance policy in accordance with this Agreement.

5. Title.

(a) Seller agrees to convey to Purchaser fee simple title to the Property by the Deed, free and clear of all liens, encumbrances, mortgages, deeds of trust, deeds to secure debt, assessments, agreements, options and covenants, except for such matters as are set forth on Exhibit B attached hereto and for such matters as are set forth on Exhibit C attached hereto (those items set forth on Exhibit B and Exhibit C, together, constitute the “Permitted Encumbrances” for this Agreement); provided, however, Seller shall terminate at or before Closing those hunting lease agreements described on Exhibit C which are terminable during such period, at no cost to Seller, in accordance with their terms. If any such agreement is not terminable in accordance with its terms at or before Closing, Seller shall use diligent efforts to cause the parties to cancel, void or otherwise rescind the terms of such agreement.

(b) Purchaser shall have a period of twenty (20) days after the Effective Date of this Agreement to review Seller’s title to the Property (the “Title Review Period”) and provide Seller with written notice (the “Title Objection Notice”) of Purchaser’s objections to Seller’s title (each, a “Title Objection”), but only to the extent that such exceptions are not Permitted Encumbrances pursuant to Exhibit B attached hereto. Purchaser shall have the right to object to any new title exceptions created or suffered between the expiration of the Title Review Period and the Closing Date, but only to the extent that such new exceptions are not Permitted Encumbrances pursuant to Exhibit B attached hereto.

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(c) If Purchaser timely delivers the Title Objection Notice, then Seller may, at its sole option, (i) cure any Title Objection or (ii) not cure any Title Objection; provided, however, that to the extent a Title Objection consists of a lien, mortgage, deed of trust or deed to secure debt securing a monetary obligation which was created or suffered by Seller or any party claiming by, through or under Seller, Seller shall be required to use the cash portion of the Purchase Price to cure any such objection at Closing. If any Title Objection Seller elects to cure is not cured by Closing, Seller may elect (ii) in the preceding sentence. If Seller elects not to cure any Title Objection set forth in the Title Objection Notice, Purchaser shall have the right, as Purchaser’s sole and exclusive remedy, to: (A) cancel this Agreement by providing written notice to Seller on or before 11:00 a.m. (Central Time) on the day before the Closing Date, whereupon this Agreement will terminate, Escrow Agent shall deliver the Xxxxxxx Money to Purchaser, and neither party will have any further rights, duties or obligations hereunder other than those which expressly survive a termination hereof, or (B) waive all objections and elect to accept title to the Property in its existing condition without any adjustment in the Purchase Price, in which event such Title Objection shall become a Permitted Encumbrance.

(d) Except for Permitted Encumbrances, so long as this Agreement remains in force, Seller shall not lease, encumber or convey all or part of the Property or any interest therein, or enter into any agreement granting to any person any right with respect to the Property or any portion thereof, without the prior written consent of Purchaser.

6. Inspection.

(a) Purchaser and its agents, representatives, employees, engineers and contractors shall have the right at any time during the term of this Agreement to enter upon the Property to inspect, examine, survey and make timber cruises and other engineering tests or surveys, including a Phase I environmental site assessment (collectively, the “Tests”) which it may deem necessary or advisable, all at Purchaser’s sole cost and expense. Upon completion of the Tests, Purchaser shall repair, at its sole cost and expense, any physical damage caused to the Property by Purchaser’s inspection of the Property and the Tests, and shall remove all debris and materials placed on the Property in connection with Purchaser’s inspection of the Property and the Tests.

(b) Purchaser hereby agrees to indemnify and hold Seller harmless from and against any and all causes, claims, demands, losses, liabilities, costs, damages, expenses and fees (including, but not limited to, reasonable attorney’s fees) incurred or suffered by or asserted against Seller caused by or related to Purchaser’s inspection of the Property or the Tests, with the exception of any causes, claims, demands, losses, liabilities, costs, damages, expenses and fees directly caused by the gross negligence of Seller. The foregoing indemnification shall survive any termination, cancellation or expiration of this Agreement or the Closing of the purchase and sale contemplated hereby.

7. Environmental.

(a) Purchaser shall have a period of twenty (20) days after the Effective Date of this Agreement to obtain, at Purchaser’s sole cost and expense, a new or

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updated Phase I environmental site assessment or environmental audit of the Property from a licensed environmental consultant (the “Environmental Due Diligence Period”). With regard to the Tests, without Seller’s prior written consent, no secondary environmental reports, soil borings, groundwater samples, or other invasive or subsurface environmental investigations may be made of the Property and neither Purchaser nor its agents, representatives, employees, engineers or contractors may contact any federal, state, or local governmental agency or authority regarding the results of the Tests. In the event that disclosure of the results of any Tests is required by applicable law, regulation or court order, Purchaser shall notify Seller promptly in writing so that Seller may seek a protective order (at its own cost and expense) or other appropriate remedy. In the event that no such protective order or other appropriate remedy is obtained, or Seller waives compliance with the terms of this Section 7, Purchaser shall give Seller written notice of the information to be disclosed as far in advance of its disclosure as practicable. In the event any such assessment or audit reveals that, in the commercially reasonable opinion of Purchaser’s environmental consultant, any portion of the Property is impaired by an Environmental Condition or there is a reportable violation of Environmental Laws, Purchaser shall have until the expiration of the Environmental Due Diligence Period to deliver to Seller written notice of such impairment or such reportable violation (the “Environmental Notice”). Purchaser shall not have the right to deliver an Environmental Notice for any household garbage area which is 0.25 acres or less. The Environmental Notice shall include a copy of any report, notice, or correspondence by which Purchaser was made aware of the impairment or reportable violation. If Purchaser timely delivers the Environmental Notice, then Seller may, at its sole option, (i) conduct testing at Seller’s sole cost and expense to establish that the Property is not impaired by such Environmental Condition or there is no such reportable violation of Environmental Laws and furnish Purchaser and Purchaser’s environmental consultant with the results of the test, whereupon the Closing of this transaction shall proceed as set forth in this Agreement without adjustment in the Purchase Price, or (ii) conduct remediation in accordance with all applicable Environmental Laws to correct such Environmental Condition or reportable violation of Environmental Laws, whereupon the Closing of this transaction shall proceed as set forth in this Agreement without adjustment in the Purchase Price. The Closing Date may be extended by Seller by written notice to Purchaser to allow for the testing and/or remediation provided for in (i) and (ii) above.

(b) As used herein, “Environmental Condition” shall mean the presence of Hazardous Substances in a concentration which would require remedial action pursuant to Environmental Laws or would require reporting pursuant to Environmental Laws; “Hazardous Substances” shall mean any hazardous materials including any hazardous, toxic or dangerous waste, substance or material in quantity or concentration defined as such in (or for purposes of) or regulated under in quantities above those established by applicable Environmental Laws in effect at this time or any time between now and Closing; “Environmental Laws” shall mean any applicable federal, state or local laws and the regulations promulgated thereunder relating to pollution or protection of the environment, including laws relating to emissions, discharges, disseminations, releases or threatened releases of Hazardous Substances into the environment (including ambient air, surface water, ground water, soil, land surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use,

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treatment, storage, disposal, transport or handling of Hazardous Substances and (i) the Comprehensive Environmental Response, Compensation and Liability Act (as amended by the Superfund Amendments and Reauthorization Act), 42 U.S.C. § 9601 et seq.; (ii) the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq.; (iii) the Hazardous Materials Xxxxxxxxxxxxxx Xxx, 00 X.X.X. §0000 et seq.; (iv) the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.’, (v) the Clean Xxxxx Xxx, 00 X.X.X. §0000 et seq.; and (vi) with respect to the Property, all applicable laws of the State of Arkansas based on, or substantially similar to, the federal statutes listed in parts (i) through (v) of the foregoing.

8. Condition of Property; Damage; Condemnation.

(a) Seller agrees that at the Closing the Property shall be in the same condition as exists on the date hereof, subject to natural wear and tear, condemnation and casualties beyond Seller’s control and the Permitted Encumbrances. During the term of this Agreement, Seller shall neither cut or remove nor permit the cutting or removal of any timber or trees which are included as part of the Property, subject to the Permitted Encumbrances and the Timber Cutting Agreements.

(b) If at any time prior to the Closing, the Property or any part thereof (including, but not limited to, any timber or trees which are included as part of the Property) is destroyed or damaged by fire, earthquake, flood, or other casualty whether natural or manmade (such destruction or damage, the “Casualty Loss”) and the fair market value of the timber lost as the result of such Casualty Loss as estimated by Seller in good faith (the “Fair Market Value”) exceeds two percent (2%) of the Purchase Price, then at Closing the Purchase Price shall be reduced by an amount equal to the Fair Market Value less the fair market salvage value of such timber to be received by Purchaser after deducting the estimated cost of harvesting and delivering such timber.

(c) If at any time prior to the Closing, any action or proceeding is filed or threatened under which the Property or any part thereof may be taken pursuant to any law, ordinance or regulation by condemnation or the right of eminent domain, then Seller shall provide Purchaser with notice of such action and any proceeds received by Seller as a result of such action shall be transferred or assigned to Purchaser.

9. Warranties and Representations.

(a) Seller hereby warrants and represents to Purchaser that Seller has the full right, power, and authority to enter into and perform this Agreement; and no consent, approval, order or authorization of any court or other governmental entity is required to be obtained by Seller in connection with the execution and delivery of this Agreement or the performance hereof by Seller.

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(b) Seller hereby warrants and represents to Purchaser that attached hereto as Exhibit C is a true and accurate summary of all unrecorded encumbrances created by Seller and currently affecting the Property (the “Unrecorded Encumbrances”). The Unrecorded Encumbrances remain in full force and effect and have not been modified or amended, except as indicated. To Seller’s actual knowledge, no event or condition exists or has occurred which with notice, the passage of time or otherwise would constitute a default or event of default under any of the Unrecorded Encumbrances.

(c) Seller hereby warrants and represents to Purchaser that attached hereto as Exhibit D is a true and accurate summary of all timber cutting agreements currently affecting the Property (the “Timber Cutting Agreements”). To Seller’s actual knowledge, no event or condition exists or has occurred which with notice, the passage of time or otherwise would constitute a default or event of default under any of the Timber Cutting Agreements. Seller shall work with Purchaser to cause the termination of each of the Timber Cutting Agreements to which Purchaser (or an affiliate of Purchaser) is a party at or before Closing subject to the provisions of Section 11(f). Seller shall assign to Purchaser at Closing the Green Bay Agreement. Seller warrants and represents to Purchaser that the deposit held by Seller, or Seller’s consultant, in connection with the Green Bay Agreement has been fully earned as income to Seller as of the date hereof.

(d) Purchaser hereby warrants and represents to Seller that Purchaser has the full right, power and authority to enter into and perform this Agreement; and no consent, approval, order or authorization of any court or other governmental entity is required to be obtained by Purchaser in connection with the execution and delivery of this Agreement or the performance hereof by Purchaser.

(e) Purchaser hereby warrants and represents to Seller that Purchaser has available or has binding subscriptions for, and will at the Closing have available, sufficient funds to pay the Purchase Price and to pay all other amounts payable by Purchaser pursuant to this Agreement.

(f) Purchaser hereby warrants and represents to Seller that Purchaser, or an affiliate of Purchaser, is a party to each of the Timber Cutting Agreements noted on Exhibit D which describe “Buyer” as “Deltic”. To Purchaser’s actual knowledge, no event or condition exists or has occurred which with notice, the passage of time or otherwise would constitute a default or event of default under any of the Timber Cutting Agreements to which Purchaser, or an affiliate of Purchaser is a party. Furthermore, Purchaser represents and warrants that neither Purchaser nor any affiliate of Purchaser shall cut, harvest, remove or otherwise exercise its rights to the timber located on the Property under any of the Timber Cutting Agreements to which it is a party. Purchaser shall work with Seller to cause the termination of the Timber Cutting Agreements to which Purchaser, or an affiliate of Purchaser, is a party at or before Closing subject to the provisions of Section 11(f).

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10. Brokerage Commission. Seller and Purchaser warrant each to the other that they have not dealt with any real estate broker or salesperson with regards to this transaction. Seller shall indemnify and hold Purchaser harmless from all claims, losses, liabilities and expenses (including but not limited to reasonable attorneys’ fees and court costs actually incurred) which Purchaser may incur on account of any claim which may be asserted against Purchaser, whether or not meritorious, by any broker or other person on the basis of any agreements made or alleged to have been made by or on behalf of Seller. Purchaser shall indemnify and hold Seller harmless from all claims, losses, liabilities and expenses (including but not limited to reasonable attorneys’ fees and court costs actually incurred) which Seller may incur on account of any claim which may be asserted against Seller, whether or not meritorious, by any broker or other person on the basis of any agreements made or alleged to have been made by or on behalf of Purchaser. This paragraph 10 shall survive for a period of five (5) years following the Closing or any termination, cancellation or expiration of this Agreement.

11. Taxes; Expenses.

(a) All ad valorem real property taxes and any special assessments on the Property for the year 2013 shall be paid by Seller when due. Ad valorem real property taxes and special assessments for the year 2014 shall be prorated as of the Closing Date. If actual tax bills for the calendar year of Closing are not available, said taxes shall be prorated based on tax bills for the previous calendar year and the parties hereto agree to cause a reproration of said taxes upon the receipt of tax bills for the calendar year of Closing. This obligation to reprorate shall survive the closing of the purchase and sale contemplated hereby. If the Property is not designated a separate tax parcel, said taxes shall be adjusted to an amount bearing the same relationship to the total tax xxxx which the acreage contained within the Property bears to the acreage contained within the property included within said tax xxxx. In the event any of the Unrecorded Encumbrances have not been terminated at or before Closing, any payments and amounts due, payable or paid to or collected by Seller pursuant to such Unrecorded Encumbrances, shall be prorated as of the Closing Date.

(b) Purchaser and Seller shall each pay one-half of all transfer taxes, documentary stamp taxes and other taxes, fees, costs and expenses in connection with the sale of the Property and the recordation of the Deed.

(c) Purchaser shall pay any and all fees, costs and expenses for title searches and examinations and other title-related charges and all title insurance premiums in connection with Purchaser’s title insurance policy.

(d) Each party shall pay its respective costs and expenses of legal representation.

(e) Purchaser shall be solely responsible and liable for any deferred, rollback, recapture or other tax or assessment imposed or charged with respect to the Property or any part thereof for or relating to any periods prior to or subsequent to the Closing based on any change of use of the Property or due to the sale of the Property to Purchaser. The provisions of this subparagraph (e) shall survive the Closing.

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(f) With respect to those certain Timber Cutting Agreements described on Exhibit D as (i) Cont. #000-00-00 and (ii) Cont. #000-00-00, Seller shall return to Purchaser (or its affiliate) any funds held on deposit by Seller and by Seller’s consultant under such Timber Cutting Agreements. With respect to the Green Bay Agreement, Seller shall be entitled to all income earned for any harvest conducted prior to Closing, including, without limitation, any deposits held by Seller and Seller’s consultant, in connection with the terms of the Green Bay Agreement.

12. Xxxxxxx Money; Default; Remedies.

(a) If the purchase and sale of the Property contemplated hereby is not consummated because of a default by Purchaser under this Agreement, then Seller shall have the right (i) to require Escrow Agent to pay the Xxxxxxx Money to Seller as full liquidated damages and not as a penalty (the parties hereto acknowledging that Seller’s damages as a result of such default are not capable of exact ascertainment and that said liquidated damages are fair and reasonable), or (ii) to seek specific performance of this Agreement, in which event Escrow Agent shall continue to hold the Xxxxxxx Money until the final disposition of the action for specific performance, whereupon the Xxxxxxx Money shall be applied to the Purchase Price, or, if specific performance is not finally, after disposition of all appeals which may have been taken, decreed to Seller, then Escrow Agent shall pay the Xxxxxxx Money to Seller as full liquidated damages as aforesaid. At any time before the entry of such a final decree and the final disposition of all appeals which may be taken, Seller may discontinue the action and direct Escrow Agent to pay the Xxxxxxx Money to Seller as full liquidated damages.

(b) If the purchase and sale of the Property contemplated hereby is not consummated because of a default by Seller under this Agreement, then Purchaser shall have the right (i) to require Escrow Agent return the Xxxxxxx Money to Purchaser and in no event shall Purchaser be entitled to xxx Seller for damages, or (ii) to seek specific performance of this Agreement, in which event Escrow Agent shall continue to hold the Xxxxxxx Money until the final disposition of the action for specific performance, whereupon the Xxxxxxx Money shall be applied to the Purchase Price, or, if specific performance is not finally, after disposition of all appeals which may have been taken, decreed to Purchaser, then Escrow Agent shall pay the Xxxxxxx Money to Purchaser as full liquidated damages as aforesaid. At any time before the entry of such a final decree and the final disposition of all appeals which may be taken, Purchaser may discontinue the action and direct Escrow Agent to refund the Xxxxxxx Money to Purchaser as full liquidated damages.

(c) The duties of Escrow Agent shall be as follows:

(i) During the term of this Agreement, Escrow Agent shall hold and deliver the Xxxxxxx Money in accordance with the terms and provisions of this Agreement.

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(ii) If this Agreement shall be terminated by the mutual written agreement of Seller and Purchaser, or if Escrow Agent shall be unable to determine at any time to whom the Xxxxxxx Money should be delivered, or if a dispute shall develop between Seller and Purchaser concerning to whom the Xxxxxxx Money should be delivered, then in any such event, Escrow Agent may request joint written instructions from Seller and Purchaser and shall deliver the Xxxxxxx Money in accordance with such joint written instructions. In the event that such written instructions shall not be received by Escrow Agent within ten (10) days after Escrow Agent has served a written request for instructions upon Seller and Purchaser, Escrow Agent shall have the right to pay the Xxxxxxx Money into a court of competent jurisdiction and interplead Seller and Purchaser in respect thereof, and thereafter Escrow Agent shall be discharged of any obligations in connection with this Agreement.

(iii) If costs or expenses are incurred by Escrow Agent because of litigation or a dispute between Seller and Purchaser arising out of the holding of the Xxxxxxx Money in escrow, Seller and Purchaser shall each pay Escrow Agent one-half of such costs and expenses. Except for such costs and expenses, no fee or charge shall be due or payable to Escrow Agent for its services as escrow holder.

(iv) By joining herein, Escrow Agent undertakes only to perform the duties and obligations imposed upon it under the terms of this Agreement and expressly does not undertake to perform any of the other covenants, terms and provisions incumbent upon Seller and Purchaser hereunder.

(v) Purchaser and Seller hereby agree and acknowledge that Escrow Agent assumes no liability in connection herewith except for any loss, costs or damage arising out of Escrow Agent’s own gross negligence or willful misconduct; that Escrow Agent shall never be responsible for the validity, correctness or genuineness of any document or notice referred to under this Agreement; that Escrow Agent shall not be liable or responsible for any loss occurring which arises from bank failure or error, insolvency or suspension, or a situation or event which falls under the Federal Deposit Insurance Corporation (FDIC) coverage (Seller and Purchaser are aware that FDIC coverage applies to a maximum amount of $250,000 per depositor, as may be modified by the FDIC from time to time); and that Escrow Agent may seek advice from its own counsel and shall be fully protected in any action taken by it or omitted to be taken by it in good faith in accordance with the opinion of its counsel.

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13. Assignment. Neither party hereto shall assign its rights or obligations hereunder, in whole or in part, without the prior written consent of the other party.

14. No Waiver. No action or failure to act by any party hereto shall constitute a waiver of any right or duty afforded to such party under this Agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach of this Agreement except as may be specifically agreed in writing.

15. Governing Law. This Agreement shall be governed by the laws of the State of Arkansas.

16. Notice. Any and all notices, elections and communications required or permitted by this Agreement shall be made or given in writing and shall be delivered (i) in person, (ii) sent next day delivery by a nationally recognized overnight courier such as FedEx or UPS, or (iii) sent by postage prepaid United States mail, certified or registered, return receipt requested, to the other parties at the addresses set forth below, or such other address as may be furnished by notice in accordance with this paragraph. The date of notice given by personal delivery shall be the date of such delivery. The effective date of notice by overnight courier or mail will be one (1) day after the date such notice is deposited with a nationally recognized overnight courier, or two (2) days after the date such notice is deposited with the United States Postal Service.

Seller:		Hawthorn Timberlands, LLC
		c/o Forest Investment Associates L.P.
		00 Xxxxxxxx Xxxxxx Xxxxx 0000
		Xxxxxxx, Xxxxxxx 00000 Attention: Xxxxxxx X. XxxXxxx
with a copy to:		Xxxxxxxxxx Xxxxxx & Xxxxxxx LLP
		000 Xxxxxxxxx Xxxxxx, X.X.
		Xxxxx 0000
		Xxxxxxx, Xxxxxxx 00000-0000
		Attention: Xxxxx Xxxxxx, Esq.
Purchaser:		Deltic Timber Corporation
		000 Xxxx Xxx Xxxxxx Xx Xxxxxx, Xxxxxxxx 00000 Phone: 000-000-0000 Fax: 000-000-0000 Attention: Xxx X. Xxxxxx

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with a copy to:		Xxx Xxxxxxx
		000 Xxxx Xxx Xxxxxx Xx Xxxxxx, Xxxxxxxx 00000 Phone: 000-000-0000 Fax: 000-000-0000
Escrow Agent:		First American Title Insurance Company
		0 Xxxxxxxxx Xxxxxxx Xxxxx 0000 Xxxxxxx, Xxxxxxx 00000 Attention: Xxxxx Xxxx Phone: (000) 000-0000 Fax: (000) 000-0000

17. Entire Agreement. This Agreement contains the entire agreement among the parties hereto with respect to the subject matter hereof and cannot be amended or supplemented except by a written agreement signed by all parties.

18. Captions. The captions of paragraphs in this Agreement are for convenience and reference only and are not part of the substance hereof.

19. Severability. In the event that any one or more of the provisions, paragraphs, words, clauses, phrases or sentences contained in this Agreement, or the application thereof in any circumstance is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision, paragraph, word, clause, phrase or sentence in every other respect and of the remaining provisions, paragraphs, words, clauses, phrases or sentences of this Agreement, shall not be in any way impaired, it being the intention of the parties that this Agreement shall be enforceable to the fullest extent permitted by the laws of the State of Arkansas.

20. Counterparts. This Agreement may be executed in multiple counterparts which shall be construed together as one instrument. This Agreement, including any amendments thereto, may be executed and delivered by facsimile transmission, with the intention that such facsimile signature and delivery shall have the same effect as an original signature and actual delivery.

21. Binding Effect. This Agreement shall bind the parties hereto and their respective heirs, legal representatives, successors and assigns.

22. Time; Business Day.

(a) Time is of the essence of this Agreement.

(b) As used in this Agreement, the term “business day” shall mean any day that is not a Saturday, a Sunday, a legal holiday in the United States of America, or a legal holiday in the State of Arkansas.

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23. Resolution of Disputes. If Seller and Purchaser dispute the fair market valuation called for in Section 8(b) of this Agreement, Seller and Purchaser will each promptly appoint an independent forestry consultant, each of which may be a consultant previously engaged by the appointing party with respect to the Property, and such two consultants will in turn promptly select a third independent forestry consultant (which third consultant may not be a consultant previously engaged by either party) to act with them in a panel to determine the appropriate fair market valuation. The panel of consultants will reach a binding decision within thirty (30) days of the selection of the third consultant, and the decision of the panel of consultants as to the fair market valuation in dispute will be final. Seller shall pay the cost of its appointed consultant; Purchaser shall pay the cost of its appointed consultant; and Seller and Purchaser shall each pay one-half (1/2) of the cost of the third consultant. The Closing Date shall be extended to the extent necessary for such consultants to reach such decision.

24. Public Announcements. Seller and Purchaser hereby agree that prior to the Closing, except as required by applicable laws or any applicable stock exchange rules, all press releases and other public announcements with respect to the transactions contemplated by this Agreement, including the time, form and content of such release or announcement, shall be made only with the mutual written agreement of Purchaser and Seller; provided, however, that any disclosure required to be made under applicable law may be made only if a party required to make such disclosure has determined in good faith that it is necessary to do so and has used reasonable efforts, prior to the issuance of the disclosure, to provide the other party with a copy of the proposed disclosure and to discuss the proposed disclosure with the other party.

25. Patriot Act Compliance. Purchaser represents that neither Purchaser nor any of Purchaser’s affiliates, nor any of their respective partners, or members, and none of their respective employees, officers, directors, representatives or agents is, nor will they become, a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and will not attempt to assign this contract to, contract with or otherwise engage in any dealings or transactions or be otherwise associated with such persons or entities. Any assignee of this contract is deemed to make this representation upon acceptance of an assignment of this contract. Purchaser’s primary address is as set forth in the notice section of this Agreement. Purchaser hereby covenants and agrees that if Purchaser obtains knowledge that Purchaser or any owner of any controlling interest in Purchaser becomes listed on the foregoing or is indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Purchaser will immediately notify Seller in writing, and in such event, Seller will have the right to terminate this Agreement without penalty or liability to Seller immediately upon delivery of written notice thereof to Purchaser, in which event the Xxxxxxx Money will be returned to Purchaser and neither party will have any further rights or obligations under this Agreement, except for such as specifically survive termination.

13

26. Effective Date. The “Effective Date” of this Agreement will be the date the later of Seller and Purchaser has executed this Agreement, as indicated on the signature page(s) below.

27. Incorporation of Exhibits. All exhibits referred to herein are hereby incorporated in this Agreement by this reference.

28. As Is. PURCHASER ACKNOWLEDGES THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 9: (I) NO REPRESENTATIONS, WARRANTIES OR PROMISES, EXPRESS OR IMPLIED, HAVE BEEN OR ARE BEING MADE BY OR ON BEHALF OF SELLER OR ANY OTHER PERSON, INCLUDING WITH RESPECT TO THE CONDITION OR VALUE OF THE PROPERTY, AND SELLER HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES RELATING TO THE PROPERTY, EITHER EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND SUITABILITY FOR ITS INTENDED USE, AND (II) IN ENTERING INTO THIS AGREEMENT, PURCHASER HAS NOT RELIED ON AND DOES NOT RELY ON ANY SUCH REPRESENTATIONS, WARRANTIES OR PROMISES, EXPRESS OR IMPLIED, BY OR ON BEHALF OF SELLER OR ANY OTHER PERSON. PURCHASER SHALL ACQUIRE THE PROPERTY IN “AS IS, WHERE IS, AND WITH ALL FAULTS” CONDITION ON THE CLOSING DATE, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT.

29. Property Data and Materials; Confidentiality Agreement. Purchaser acknowledges that any information or materials provided or made available to Purchaser or its representatives in hard copy, by facsimile or electronic transmission or via the online data room managed by Forest Investment Associates, including, without limitation, any cost or other estimates, projections, acreage, and timber information, Offering Memorandum, environmental reports, title commitments, and other title policies, are not and shall not be deemed representations or warranties by or on behalf of Seller. Purchaser acknowledges and agrees that Purchaser is and will remain subject to and bound by all of the prohibitions, requirements, restrictions and other provisions of that certain Confidentiality Agreement, by and between Forest Investment Associates L.P. and Purchaser and reaffirms all of its obligations and liabilities thereunder.

30. No Survival. Except as may otherwise expressly be provided herein, the provisions of this Agreement shall not survive the closing of the purchase and sale contemplated hereby and shall be merged into the delivery of the Deed and other documents and the payment of all monies pursuant hereto.

14

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

15

IN WITNESS WHEREOF, this Agreement has been duly executed, sealed and delivered by the parties hereto the day and year first above written.

Date of Seller’s Execution:				SELLER:
March 4, 2014				HAWTHORN TIMBERLANDS, LLC, a
				Delaware limited liability company
				By:		Forest Investment Associates L.P., a Delaware limited partnership, its Manager
				By:		Forest Investment Associates, LLC,
						a Delaware limited liability company, its General Partner
				By:		Forest Investment Associates, Inc., a Georgia corporation, its manager
						By:		/s/ Xxxxxxx X. XxxXxxx
						Name:		Xxxxxxx X. XxxXxxx
						Title:		Vice President
Date of Purchaser’s Execution:				PURCHASER:
March 6, 2014				DELTIC TIMBER CORPORATION, a
				Delaware corporation
				By:		/s/ Xxx X. Xxxxxx
						Name:		Xxx X. Xxxxxx
						Title:		President and CEO

SIGNATURES CONTINUED ON FOLLOWING PAGE

16

ESCROW AGENT:
FIRST AMERICAN TITLE INSURANCE COMPANY
By:		/s/ Xxxxx X. Xxxx
		Xxxxx X. Xxxx
		VP Counsel

17

Schedule of Exhibits
Exhibit A		—		Property Descriptions
Exhibit B		—		Permitted Encumbrances
Exhibit C		—		Schedule of Unrecorded Encumbrances
Exhibit D		—		Timber Cutting Agreements

18

EXHIBIT A

Property Descriptions

EXHIBIT A

Perry County, Arkansas

Township 3 North. Range 20 West

Section 31: E ¹⁄₂

Lot 1 of NW¹/4

Xxx 0 xx XX ⁰x₀ xxxxx Xxxxx xx Xxxxxxx XxXxxx River

Xxx 0 xx XX ⁰x₀ xxxxx Xxxxx xx Xxxxxxx XxXxxx River

Xxx 0 xx XX ⁰x₀

Xxx 0 xx XX ¹⁄₄

Lot 1 of SW ¹⁄₄

Lot 2 of SW ¹⁄₄

Lot 3 of SW ¹⁄₄

Lot 4 of SW ¹⁄₄

Lot 5 of SW ¹⁄₄

Section 32; NW ¹⁄₄NW ¹⁄₄ lying North of South Fourche River and West 12.50 chains of NW ¹⁄₄NW ¹⁄₄ lying South of South Fourche River.

West 17.50 chains of SW ¹⁄₄NW ¹⁄₄

A  tract of land in the S ¹⁄₂NE ¹⁄₄SW ¹⁄₄, more particularly described as follows; Beginning at the Southeast corner of the NE ¹⁄₄SW ¹⁄₄, run West 20.00 chains to the Southwest corner of said NE ¹⁄₄SW ¹⁄₄; .Thence North 7,50 chains to a point on the West line of said NE ¹⁄₄SW ¹⁄₄;

Thence East and parallel with the South line of said NE ¹⁄₄SW ¹⁄₄ 14.91 chains to a point on the South bank of South Fourche River;

Thence meander with said river to a point on the East line of said NE ¹⁄₄SW ¹⁄₄;

Thence South 3.24 chains to the Point of Beginning, containing 13.84 acres, more or less.

NW ¹⁄₄SW  ¹⁄₄

S ¹⁄₂SW ¹⁄₄

S ¹⁄₂SE ¹⁄₄

Section 33: S ¹⁄₂NE ¹⁄₄

SE ¹⁄₄NW ¹⁄₄ lying South & East of South Fourche River

NE ¹⁄₄SW ¹⁄₄

S ¹⁄₂SW ¹⁄₄

SE ¹⁄₄

A-1

EXHIBIT A

Perry County, Arkansas

Township 3 North, Range 20 West (Continued)

Section 34: S¹/₂NW ¹⁄₄NE ¹⁄₄

SW ¹⁄₄NE ¹⁄₄

S ¹/₂NE ¹⁄₄NW ¹⁄₄

s^j/₂NW ¹/₄

S ¹/₂

Section 35: SW¹/₄NW¹/₄ lying Xxxxx xxx Xxxx xx X.X. Xxxxxxx Xx. 0

X⁰/₀ lying South and West of U.S. Highway No. 7 LESS & EXCEPT a tract of land sold to USA as described in Record Number 002118 of the deed records of Perry County, Arkansas.

Township 3 North, Range 21 West

Section 33: SE¹/₄SE¹/4

Section 34: SW¹/₄SW¹/₄

Township 2 North, Range 20 West

Section 2:. Frl. N¹/₂NW¹/₄ LESS & EXCEPT a tract of land in the Frl. NW¹/₄ sold to USA as described in Record Number 002118 of the deed records of Perry County, Arlcansas.

Section 3: All Frl. Section

Section 4: All Frl. Section

Section 5: All Frl. Section

Section 6: All Frl. Section

Section 7: All Frl. Section

Section 8: All Frl. Section

Section 9: All Section

Section 10: NE¹/₄

N¹/₂NW¹/₄

Section 16: All Section

A-2

EXHIBIT A

Perry County, Arkansas

Township 2 North, Range 20 West (Continued)

Section 17: All Frl. Section

Section 18: All Frl. Section

Township 2 North. Range 21 West

Section 1: S ¹⁄₂NE¹/₄

SW¹/₄NW¹/₄ SW¹/₄NW¹/₄

SW¹/₄SW¹/₄ NW¹/₄

SW¹/₄SE¹/₄ SW¹/₄NW¹/₄

SE ¹⁄₄NW ^1⁄₄

S ¹⁄₂

Section 2: Frl. NE¹/₄NE¹/₄ LESS & EXCEPT 3.33 acres, more particularly described as follows: Commencing at the Northeast corner of said NE¹/₄NE¹/₄, run South 00° 18’ East 10.36 chains to the Point of Beginning;

Thence South 51° 03’ West 3.952 chains;

Thence South 77° 33’ West 2.375 chains;

Thence North 83° 54’ West 3.783 chains;

Thence North 79° 23’ West 2.331 chains;

Thence North 82° 09’ West 2.661 chains;

Thence South 43° 51’ West 2.793 chains;

Thence North 66° 39’ West 2.046 chains;

Thence South 16° 16’ West 0.566 chains;

Thence South 66° 31’ East 2.95 chains;

Thence North 55° 35’ East 2.908 chains;

Thence South 72° 42’ East 1.79 chains;

Thence South 46° 47’ East 1.90 chains;

Thence North 88° 51’ East 1.952 chains;

Thence North 87° 45’ East 4.675 chains;

Thence North 69° 17’ East 2.049 chains;

Thence North 54° 55’ East 1.63 chains;

Thence North 00° 18’ West 3.02 chains to the Point of Beginning.

Frl. NW¹/₄NE¹/₄

A-3

EXHIBIT A

Perry County, Arkansas

Township 2 North, Range 21 West (Continued)

Section 2: (Continued)

SW^1/₄NE¹/ ₄ LESS & EXCEPT 9.10 acres, more particularly described as follows: Beginning 189 yards South of the Northwest corner of said SW¹/₄NE¹/₄, run East 220,44 yards;

Thence South 200 yards;

Thence West 220.44 yards;

Thence North 200 yards to the Point of Beginning.

E¹/₂SE¹/₄ NE¹/₄

Frl. NE¹/₄NW¹/₄ lying North of Dry Fork Creek

Frl. NW¹/₄NW¹/₄ lying North of foot of mountain and as described in Book X, Page 299 of the deed records of Perry County, Arkansas.

E¹/₂SW¹/₄

SW¹/₄SW¹/₄

NE¹/₄SE¹/₄

S¹/₂NW¹/₄ NW¹/₄SE¹/₄

S¹/₂ NW¹/₄SE¹/₄

S¹/₂SE¹/₄

Section 3: S¹/₂NE¹/₄

Frl. NW¹/₄NW¹/₄

S¹/₂NW¹/₄

S¹/₂

Section 4: All Frl. Section

Section 5: Frl. NE¹/₄NE¹/₄

S¹/₂ Frl.NW¹/₄NE¹/₄

S¹/₂NE¹/₄

S¹/₂ Frl. NE¹/₄NW¹/₄

S¹/₂ Frl. NW¹/₄NW¹/₄

E¹/₂SW¹/₄ NW¹/₄

SW¹/₄SW¹/₄ NW¹/₄

SE¹/₄NW¹/₄

S¹/₂

A-4

EXHIBIT A

Perry County, Arkansas

Township 2 North, Range 21 West (Continued)

Section 6: S¹/₂ Frl. NW¹/₄NE ¹⁄₄

S¹/₂NE¹/₄

S¹/₂Frl. NE¹/₄NW¹/₄

S¹/₂ Frl. NW¹/₄NW¹/₄

Frl. SW ¹⁄₄NW ¹⁄₄

SE ¹⁄₄NW ¹⁄₄

E ¹⁄₂SW ¹⁄₄

Frl. W ¹⁄₂SW ¹⁄₄

SE ¹⁄₄

Section 7: NE ¹⁄₄

Frl. NW ¹⁄₄

Frl. SW ¹⁄₄ lying East of centerline of Centerpoint natural gas pipeline

SE ¹⁄₄

Section 8: All Section

Section 9: All Section LESS & EXCEPT a 2.27 acre tract of land in the SW ¹⁄₄SE ¹⁄₄ as described in Record Number 031030 of the deed records of Perry County, Arkansas.

Section 10: N ¹⁄₂

SW ¹⁄₄

N ¹⁄₂SE ¹⁄₄

Section 11: N ¹⁄₂

N ¹⁄₂SW ¹⁄₄

E ¹⁄₂SE ¹⁄₄SW ¹⁄₄

SE ¹⁄₄

Section 12: All Section LESS & EXCEPT one (1) acre square in Northwest corner of the SW ¹⁄₄SW ¹⁄₄

Section 13: E ¹⁄₂

N ¹⁄₂NW ¹⁄₄

SE ¹⁄₄NW ¹⁄₄

S ¹⁄₂SW ¹⁄₄

A-5

EXHIBIT A

Perry County, Arkansas

Township 2 North, Range 20 West (Continued)

Section 14: All Section LESS & EXCEPT NE ¹⁄₄SE ¹⁄₄

Section 15: All Section

Section 16: NE ¹⁄₄NE ¹⁄₄ LESS & EXCEPT 2.75 acres, more particularly described as follows: Beginning at the Northeast corner of said NE ¹⁄₄ NE ¹⁄₄, run South 9.91 chains;

Thence West 5.87 chains to a stone set for the Point of Beginning;

Thence West 6.66 chains;

Thence South 4.14 chains;

Thence East 6.66 chains;

Thence North 4.14 chains to the Point of Beginning.

W ¹⁄₂NE  ¹⁄₄ LESS & EXCEPT a tract of land described in Record Number 031030 of the deed records of Perry County, Arkansas. SE ¹⁄₄NE ¹⁄₄ LESS & EXCEPT a tract of land described in Record Number 031030 of the deed records of Perry County, Arkansas.

NE ¹⁄₄NW  ¹⁄₄ LESS & EXCEPT a tract of land described in Record Number 031030 of the deed records of Perry County, Arkansas.

NW ¹⁄₄NW  ¹⁄₄

N ¹⁄₂SW ¹⁄₄ LESS & EXCEPT a tract of land described in Record Number 031030 of the deed records of Perry County, Arkansas. S ¹⁄₂SW ¹⁄₄

NE ¹⁄₄SE  ¹⁄₄ LESS & EXCEPT a tract of land described in Record Number 031030 of the deed records of Perry County, Arkansas.

S ¹⁄₂SE  ¹⁄₄

Section 17: N ¹⁄₄

NE ¹⁄₄SW ¹⁄₄

W ¹⁄₂SW ¹⁄₄ lying East of centerline of Centerpoint natural gas pipeline LESS AND EXCEPT that portion of the E ¹⁄₄SW ¹⁄₄SW ¹⁄₄ lying East of centerline of pipeline

SE ¹⁄₄

Section 18: All Section lying East of centerline of Centerpoint natural gas pipeline

A-6

EXHIBIT A

Perry County, Arkansas

Township 2 North, Range 21 West (Continued)

Section 20: E ¹⁄₂ lying East of centerline of Centerpoint natural gas pipeline

Section 21: NE ¹⁄₄

NW ¹⁄₄ LESS & EXCEPT a square containing 5.09 acres in the Northeast corner

SW ¹⁄₄ lying East of centerline of Centerpoint natural gas pipeline

SE ¹⁄₄

Section 22: All Section

Section 23: All Section

Section 27: N ¹⁄₂

SW ¹⁄₄ lying East of centerline of Centerpoint natural gas pipeline

SE ¹⁄₄

Section 28: All Section lying East of centerline of Centeipoint natural gas pipeline

Yell County, Arkansas

Township 2 North, Range 22 West

Section 1: SE ¹⁄₄NE ¹⁄₄

S ¹⁄₄NW ¹⁄₄

SW ¹⁄₄ lying East of centerline of Centerpoint natural gas pipeline

SE ¹⁄₄

Section 2: S ¹⁄₂ SE ¹⁄₄NE ¹⁄₄ lying East of centerline of Centerpoint natural gas pipeline

NE ¹⁄₄ SE ¹⁄₄ lying East of centerline of Centerpoint natural gas pipeline

Section 12: All Section lying East of centerline of Centeipoint natural gas pipeline

A-7

EXHIBIT A

Perry County, Arkansas

Township 2 North, Range 21 West

Section 17: W3/4SW ¹⁄₄SW ¹⁄₄ lying South of the centerline of Road #45

Section 18: Frl. S ¹⁄₂ lying South of the centerline of Road #45

Section 19: All Frl. Section

Section 20: NE ¹⁄₄ lying West of the centerline of Centerpoint natural gas pipeline

A tract of land described as beginning at the Northwest corner of the

NE ¹⁄₄NW ¹⁄₄; thence East 2 chains, thence South 24° East 8 chains, thence

South 12,60 chains to a point on the South line of said NE ¹⁄₄NW ¹⁄₄, thence

West 5.60 chains to the Southwest corner of said NE ¹⁄₄NW ¹⁄₄, thence North 20

chains to the point of Beginning.

NW ¹⁄₄NW ¹⁄₄

S ¹⁄₂NW ¹⁄₄

SW ¹⁄₄

SE ¹⁄₄ lying West of the centerline of Centerpoint natural gas pipeline

Section 21: SW ¹⁄₄ lying West of the centerline of Centerpoint natural gas pipeline

Section 27: SW ¹⁄₄ lying West of the centerline of Centerpoint natural gas pipeline

Section 28: All Section lying West of the centerline of Centerpoint natural gas pipeline

Section 29: N ¹⁄₂

E ¹⁄₂SE ¹⁄₄

Section 30: NE ¹⁄₄

Frl. NW ¹⁄₄

A-8

EXHIBIT A

Yell County, Arkansas

Township 2 North, Range 22 West

Section 7: Frl. SW ¹⁄₄NW ¹⁄₄ lying South of the centerline of Road #45

Frl. W ¹⁄₂SW ¹⁄₄

SE ¹⁄₄SW ¹⁄₄

SE ¹⁄₄ lying South of the centerline of Road #45

Section 13: S ¹⁄₂ lying South of the centerline of Road #45

Section 14: S ¹⁄₂S ¹⁄₂ lying South of the centerline of Road #45

Section 15: S ¹⁄₂S ¹⁄₂ lying South of the centerline of Road #45

Section 16: N ¹⁄₂SW ¹⁄₄ lying South of the centerline of Road #45

SW ¹⁄₄SW ¹⁄₄

SE ¹⁄₄SE ¹⁄₄ lying South of the centerline of Road #45

Section 17: SW ¹⁄₄NW ¹⁄₄ lying South of the centerline of Road #45

NW ¹⁄₄SW ¹⁄₄ lying South of the centerline of Road #45

S ¹⁄₂S ¹⁄₂

Section 18: NE ¹⁄₄ lying South of the centerline of Road #45

Frl. W ¹⁄₂

SE ¹⁄₄

Section 19: All Frl. Section LESS & EXCEPT .50 acre for cemetery described as follows:

Beginning at a point 100 yards South of the Northeast corner of the SE ¹⁄₄NE ¹⁄₄,

run West 49.2 yards; thence South 49.2 yards; thence East 49.2 yards; thence

North 49.2 yards to the Point of Beginning.

Section 20: N ¹⁄₂

SW ¹⁄₄

NW ¹⁄₄SE ¹⁄₄ LESS & EXCEPT 3.49 acres described as beginning at the Southeast corner of said NW ¹⁄₄SE ¹⁄₄; thence North 7.75 chains; thence West 4.50 chains; thence South 7.75 chains; thence East 4.50 chains to the Point of Beginning.

A-9

EXHIBIT A

Yell County, Arkansas

Township 2 North, Range 22 West (Continued)

Section 20: (Continued)

SW ¹⁄₄SE ¹⁄₄ LESS & EXCEPT 8.50 acres described as beginning at the Northeast corner of said SW ¹⁄₄SE ¹⁄₄; thence West 4.50 chains; thence South 6 chains to a creek; thence Southwesterly along creek to the South line of said SW ¹⁄₄SE ¹⁄₄; thence East to the Southeast corner of said SW ¹⁄₄SE ¹⁄₄; thence North 20 chains to the Point of Beginning.

Section 21: All Section

Section 22: All Section

Section 23: All Section

Section 24: All Section

Section 25: All Section

Section 26: All Section

Section 27: All Section

Section 28: All Section LESS & EXCEPT 2.75 acres in NE ¹⁄₄NE ¹⁄₄ described as beginning at the Northwest corner of said NE ¹⁄₄NE ¹⁄₄; thence South 5.40 chains to bank of branch; thence Northeasterly along foot of hill or high xxxx to the North line of said NE ¹⁄₄NE ¹⁄₄; thence West to the Point of Beginning.

Section 29: All Section

Section 34: N ¹⁄₂NE ¹⁄₄

    NE ¹⁄₄NW ¹⁄₄

Township 2 North, Range 23 West

Section 11: E ¹⁄₂SE  ¹⁄₄ lying East of the centerline of Arkansas Xxxxx Xxxxxxx Xx. 00

A-10

EXHIBIT A

Yell County, Arkansas

Township 2 North, Range 23 West (Continued)

Section 12: NE ¹⁄₄ lying South of the centerline of Road #45

NE ¹⁄₄NW  ¹⁄₄ lying South of the centerline of Road #45 LESS & EXCEPT 17.31 acres more particularly described as follows: Beginning at a pine knot and rock mound set for the Southwest corner of said NE ¹⁄₄NW ¹⁄₄; run North 0° 23’10” East 1329.68 feet along the West line of said NE ¹⁄₄NW ¹⁄₄ to a subsurface 60d nail set for the Northwest corner of said NE ¹⁄₄NW ¹⁄₄; thence North 87° 51’ 56” East 909.61 feet along the North line of said NE ¹⁄₄NW ¹⁄₄ to a capped 1” rebar; thence South 28° 46’ 42” East 204.97 feet to a capped 1” rebar; thence South 40° 39’ 13” West 1560.47 feet to the Point of Beginning.

SE ¹⁄₄NW  ¹⁄₄

S ¹⁄₂

Section 13: All Section

Section 14: All Section lying East of the centerline of Arkansas State Highway No. 27

Section 15: All Section lying East of the centerline of Arkansas Xxxxx Xxxxxxx Xx. 00

Section 16: SE ¹⁄₄ lying East of the centerline of Arkansas Xxxxx Xxxxxxx Xx. 00

Section 20: SE ¹⁄₄SE ¹⁄₄ lying East of the centerline of Arkansas State Highway No. 27

Section 21: All Section lying East of the centerline of Arkansas State Highway No. 27

Section 22: All Section

Section 23: All Section

Section 24: All Section

Section 25: All Section

Section 26: All Section

A-11

EXHIBIT A

Yell County, Arkansas

Township 2 North, Range 23 West (Continued)

Section 27: All Section

Section 28: All Section

Section 29: A tract of land in the NE ¹⁄₄NE ¹⁄₄ described as beginning at the Northeast corner of said NE ¹⁄₄NE ¹⁄₄, thence

West 20 chains to the Northwest corner of said NE ¹⁄₄NE ¹⁄₄, thence South 20 links to road, thence Southeasterly with road to East line of said NE ¹⁄₄NE ¹⁄₄, thence North 8.50 chains to the Point of Beginning; AND

A tract of land in the NE ¹⁄₄NE ¹⁄₄ described as follows: Beginning at the Southeast corner of said NE ¹⁄₄NE ¹⁄₄, thence North 11.15 chains to a point on the East line of said NE ¹⁄₄NE ¹⁄₄, thence West .45 chains to a point, thence South 79° West .67 chains to a point, thence North 64° West 1.50 chains to a point, thence North 64° 30’ West 2.00 chains to a point, thence North 83° 30’ West 1.80 chains to a point, thence North 68° West 2.00 chains to a point, thence North 63° 30’ West 2.00 chains to a point, thence North 59° 30’ West 5.50 chains to a point, thence North 46° 30’ West 1.90 chains to a point; thence North 66° West 1.15 chains to a point, thence North 69° West 4.00 chains more or less to a point in the West line of said NE ¹⁄₄NE ¹⁄₄, thence South to the Southwest corner of said NE ¹⁄₄NE ¹⁄₄, thence East to the Point of Beginning.

SE ¹⁄₄NE ¹⁄₄ LESS & EXCEPT 13.34 acres described as beginning at the Northwest corner of said SE ¹⁄₄NE ¹⁄₄, thence South 13.33 chains, thence East 10 chains, thence North 13.33 chains, thence West 10 chains to the Point of Beginning.

NE ¹⁄₄SW ¹⁄₄

S ¹⁄₂SW ¹⁄₄

SE ¹⁄₄

Section 31: S ¹⁄₂NE ¹⁄₄NE ¹⁄₄

S ¹⁄₂NW ¹⁄₄NE ¹⁄₄ lying East of centerline of Arkansas State Highway No. 27

S ¹⁄₂NE ¹⁄₄ lying East of centerline of Arkansas State Highway No. 27

E ¹⁄₂SE ¹⁄₄ lying East of centerline of Arkansas Xxxxx Xxxxxxx Xx. 00

A-12

EXHIBIT A

Yell County, Arkansas

Township 2 North, Range 23 West (Continued)

Section 32: N ¹⁄₂

Section 33: NW ¹⁄₄NW ¹⁄₄

Section 34: N ¹⁄₂NE ¹⁄₄

N ¹⁄₂/NW ¹⁄₄

Section 35: N ¹⁄₂NW ¹⁄₄

A-13

EXHIBIT B

Permitted Encumbrances

1. Ad valorem taxes not yet due and payable.

2. All previous reservations, exceptions and conveyances of record of oil, gas, associated hydrocarbons, minerals and mineral substances, and royalty and other minerals rights and interests.

3. All matters that would be revealed by a current, accurate survey or inspection of the Property.

4. Existing zoning and land use restrictions.

5. Rights of parties in possession pursuant to the Unrecorded Encumbrances.

6. Riparian rights of others in and to any creeks, rivers, lakes or streams located on or adjoining the Property.

7. All matters set forth in Seller’s vesting deed to the Property.

8. Existing road rights of way and the right of the public to use such roads.

9. Existing railroad rights of way and easements.

10. Existing utility easements and rights of way.

11. All other matters appearing of record which do not materially and adversely affect the use of the Property as commercial timberlands.

B-1

EXHIBIT C

Schedule of Unrecorded Encumbrances

Seller shall terminate at or before Closing those hunting lease agreements described on this Exhibit C which are terminable during such period, at no cost to Seller, in accordance with their terms; provided, however, in the event any such agreement is not terminable in accordance with its terms at or before Closing, Seller shall use diligent efforts to cause the parties to cancel, void or otherwise rescind the terms of such agreement.

1. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Xxxxx Xxxxxxxxx, Little Brushy Hunting Club

2. Hunting Lease Agreement, dated September 1, 2011, between Hawthorne Timberlands, LLC and Xxxxxx Xxxxx, Mountain Man Hunting Club

3. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Xxx Xxxxxxx, Spring Mountain Hunting Club

4. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Loaen X. Xxxxxx, Tater Hill Hunting Club

5. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Xxxxxxx Xxxxxxx, Xx., Xxxxxx Creek Hunting Club

6. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Xxxxxx Xxxxx, Big Rock Hunting Club

7. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Xxxx Xxxxxxxxx, Xxxxxx Trail Hunting Club

8. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Xxxxxx Xxxxx, Marble Hill Hunting Club

9. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Loaen X. Xxxxxx, Tater Hill Hunting Club

10. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Xxxxx Xxxxxxxxx, Little Brushy Hunting Club

11. Hunting Lease Agreement, dated September 1, 2011, between Hawthorn Timberlands, LLC and Xxx XxXxxx, South Fourche Hunting Club

C-1

EXHIBIT D

Timber Cutting Agreements

SALE DATE

CONT. #

MU

BUYER

TRACT

EXP. DATE

STATUS

% COMP.

12/2/13

471-13-12

Dry Fork

DELTIC

DRY FORK

12/2/14

NOT STARTED

0%

12/2/213

472-13-10

Irons Fork

DELTIC

IRONS FORK

12/2/14

NOT STARTED

0%

12/2/14

000-00-00

Xxx Xxxx

XXXXX XXX PKG

DRY FORK

12/2/14

PULLED OFF

50%

D-1