48 TIMBER BONDS 



torney of the bonds and the mortgage and for all other 

 legal services in connection therewith. 



(11) That the Mortgage or Trust Deed shall be in form 

 approved by our counsel and that among other things the 

 Mortgage shall provide that the Mortgagor may secure the 

 release of the timber under the mortgage upon the payment 

 to the Trustee for the benefit of the bondholders the sum of 



per thousand feet stumpage on the estimates as made 



by as above provided herein. 



That the Mortgagor may secure the release of the cut- 

 over lands from the Hen of the Mortgage provided such 

 lands are sold for cash and the cash is paid over to the 

 Trustee for the benefit of the bondholders and that such sale 

 has the written approval of 



That in case the timber on the land above described or 

 any portion thereof shall be damaged by fire or other ele- 

 ments, the Mortgagor shall within sixty days after the ex- 

 tent of such loss shall be determined pay to the Trustee for 

 the benefit of the bondholders the sum of per thou- 

 sand feet stumpage on the estimates furnished by 



as above provided herein; the salvage of such timber to 

 remain subject to the lien of the Mortgage and when re- 

 moved, if removed, in accordance with the above pro- 

 visions, the Mortgagor to pay to the Trustee for the benefit 



of the bondholders an additional per thousand feet 



stumpage. 



That in case of default in the payment of either principal 

 or interest, the Trustee may and upon demand of the hold- 

 ers of 10% of the bonds then outstanding shall declare all 

 the bonds then outstanding due and payable, and the Trus- 

 tee shall have the same right and duty should there be any 

 failure upon the part of the Mortgagor to make the pay- 

 ment provided for in case of damage or destruction to the 

 timber by fire or other elements; 



That you will furnish us with semi-annual statement of 

 the financial condition of together with an- 

 nual audit of your books and accounts made by auditors 

 approved by us and also with such other information bear- 

 ing upon the security of the bonds as we may desire at 

 such times as we may deem it necessary, all of such ex- 

 aminations and audits to be made at your expense, and that 

 for the purpose of gathering and verifying such informa- 

 tion you will give us free access to the books of record and 

 account of the 



(12) That in addition to the payment of the cruising 

 and legal expenses previously mentioned herein, you agree 

 to pay the cost of engraving the bonds, printing of the mort- 



