FORM OF MORTGAGE
FORM
OF
THIS
MORTGAGE, dated on this 25th day of August, 2008, by and between
CONSOLIDATION SERVICES, INC., a Delaware corporation,
of 0000 Xxxxx Xxxxx Xxxxxx Xxxxxxx, Xxxxx 000, Xxxxxxxxx,
Xxxxxx 00000, hereinafter referred to as “Mortgagor”, and XXXXX XXXXX HERALD, of
Xxxxx 0, Xxx 000, Xxxxxxxxxx, Xxxxxxxx 00000, hereinafter referred to as
“Mortgagee”;
WHEREAS,
CONSOLIDATION SERVICES, INC., is justly indebted to XXXXX XXXXX HERALD,
Mortgagee, in the sum of Five Hundred Thousand ($500,00.00) dollars, which
indebtedness is evidenced by the Mortgagors’ negotiable promissory note of even
date, and for the purpose of securing the payment of said sum, hereby grant,
mortgage, and convey unto the said Mortgagee those Nine (9) certain tracts or
parcels of land more fully described in Exhibit “A” which is attached hereto and
incorporated herein by reference.
The
Mortgagor shall promptly pay the principal of the indebtedness evidenced by the
promissory note at the times and in manner therein provided. In the
event the Mortgagor should fail to make the payment set forth in the promissory
note, or should fail to fulfill covenants and agreements herein contained, or
should file a petition in bankruptcy or should have an involuntary petition in
bankruptcy filed against it, or should make an assignment for the benefit of
creditors, then the Mortgagee may immediately declare the entire unpaid balance
of the promissory note secured hereby immediately due and payable and proceed to
enforce the collection of same without further notice or demand, to the extent
allowed by applicable law, and may enforce this Mortgage by judicial
proceeding.
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Mortgagor
agrees to assume the risk of loss and hold Mortgagee harmless from any and all
liability in connection with said property.
In the
event any proceeding shall be instituted to condemn the mortgaged property, or
any part thereof, and take the same for public use under the power of eminent
domain or to enforce any lien upon or interest in the mortgaged property,
Mortgagee may, without notice, at his option, declare the entire unpaid balance
of the promissory note immediately due and payable and proceed to enforce the
collection of the same. Mortgagor hereby waives all rights of
valuation and appraisement laws.
The
Mortgagor shall keep the mortgaged property in good order and condition,
reasonable wear and tear excepted, and will not commit or permit any waste of
the mortgaged property. The Mortgagor agrees that during the term of
this mortgage that it will not remove any trees, timber or minerals, disturb the
property in any way, or otherwise perform any act which would diminish the fair
market value of the property. However, the foregoing notwithstanding,
the Mortgagor, and/or its agents, servants and employees shall be allowed to
core drill to determine any coal reserves located upon or within said
property. The Mortgagor agrees that it will not explore for oil
and/or gas reserves upon or within the said property during the term of this
mortgage.
This
mortgage shall be binding upon and inure to the benefit of the respective heirs,
successors, and assigns of the parties hereto.
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TO HAVE
AND TO HOLD the said property unto the said Xxxxx Xxxxx Herald, his heirs and
assigns forever; PROVIDED, HOWEVER, that if the aforesaid Consolidation
Services, Inc. pays to Xxxxx Xxxxx Herald the total sum of Five Hundred Thousand
($500,000.00) dollars on or before the 15th day of October, 2008, then this
mortgage and such other writings as may exist as evidence of said indebtedness
shall be null and void and the Mortgagee shall immediately release the said
mortgage.
IN
TESTIMONY WHEREOF, witness its signature, the day and date first herein
appearing.
CONSOLIDATION
SERVICES, INC.
By: ______________________________
XXXXXX
X. XXXXXX, PRESIDENT
ATTEST:
___________________________________
SECRETARY
STATE OF
NEVADA
COUNTY OF
________________________
On this
_____ day of August, 2008, personally appeared before me, a Notary Public,
XXXXXX X. XXXXXX, President of CONSOLIDATION SERVICES, INC., a Delaware
Corporation, who acknowledged that he executed the above mortgage to XXXXX XXXXX
HERALD, and said mortgage was attested by XXXXX X. XXXXXX, Secretary of said
corporation.
Given
under my hand this _____ day of August, 2008.
_____________________________________
NOTARY
PUBLIC
(Seal) My
commission expires _____________
THIS
INSTRUMENT PREPARED BY:
Xxxxxxx
X. Herald
Attorney
at Law
Xxxxxxx,
Xxxxxxxx 00000
________________________________________
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STATE OF
KENTUCKY
COUNTY OF
XXXXXX
I, Xxx
Xxxxxxx, Clerk of the aforesaid County Court, certify that the foregoing
Mortgage was, on the _____ day of ___________________, 2008, lodged for record;
whereupon the same, with the foregoing and this certificate have been duly
recorded in my said office in Mortgage Book No. _____, at page no.
______.
Witness
my hand this _____ day of ________________________, 2008.
XXX
XXXXXXX
BY:______________________________D.C.
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