Document:

Exhibit 10.16 Schedule 5.17 to 5.23

Schedule 5.17

Liens

1.Hudson Technologies Company

A.Mortgages:Commercial Mortgage dated May 27, 2005 against premises located at 3402 North Mattis Ave., Champaign, Illinois, in favor of Busey Bank, recorded on June 2, 2005, as Instrument No. 2005R14874, in the Office of the Champaign County Recorder.  See Schedule 5.18.

B.Financed - Equipment Loans/Capital Leases (as of 3/31/06)

	
Item
	
Lien Holder
	
Balance
	
Payment
	
Expire

	 	 	 	 	 
	
Ford LCF Truck (NY)
	
Ford Credit
	
36,307
	
$906.04/mo.
	
March 2011

	
Ford Truck  ( WA)
	
Ford Credit
	
37909
	
914.73/mo
	
June 2011

	
Ford Truck (IL)
	
Ford Credit
	
36,871
	
889.68/mo
	
June 2011

	
Ford Truck (NY)
	
Ford Credit
	
37,508
	
905.06/mo
	
June 2011

	
Ford Truck (NC)
	
Ford Credit
	
35,687
	
861.12  /mo
	
June 2011

	
Ford Truck (LA)
	
Ford Credit
	
38,493
	
913.83/mo
	
June 2011

	
Ford Truck (NY)
	
Ford Credit
	
32,649
	
643.13 /mo
	
Aug 2011

	
Load Scales (IL)
	
GE Capital/Fairbanks Scales
	
$16,259
	
$110150/mo.
	
August 2008

	
Forklift (IL)
	
DeLage Landen
	
$13,595
	
$524.84
	
November 2009

	
Phone System
	
Wells Fargo
	
$,2,050
	
$304.62
	
December 2007

 

C.Operating Leases

	
Item
	
Lessee
	
Payments (incl. tax)
	
Expire

	 	 	 	 
	
Chassis for ISO containers
	
Matlack Leasing
	
$10/day/chassis
	
month to month

	
Mail Machine(NY)
	
Pitney Bowes
	
$199.58/quarter
	
7/10/07

	
Mail Machine(Orangeburg)
	
Pitney Bowes
	
$183.60/quarter
	
12/10/11

	
Mail Machine(IL)
	
Pitney Bowes
	
$105.00/quarter
	
2/20/09

	
Mail Machine(NC
	
Pitney Bowes
	
$64.32/quarter
	
month to month

	
Mail Machine(NH)
	
Neopost
	
$166.86/quarter
	
3/18/08

	
Copier (NY)
	
Konica/Minolta
	
$781.60/mo.
	
4/30/07 - will be purchased at lease end

Schedule 5.18

Indebtedness

1.Obligations of Parent, Hudson Technologies, Inc.

B.Other Debt:

i.Premium Finance Agreement with A.I. Credit Corp. in the amount of $61,690.17, representing financed premium on Directors and Officers liability policy, covering period 11/1/06 through 11/1/07, requiring 9 equal payments of principal and interest, in the amount of $6,854.49, through 4/1/06

ii.Premium Finance Agreement with Bank Direct Capital Finance in the amount of $282,951.90, representing financed premiums on the Company's  general liability, pollution, contractor's pollution, workers compensation and umbrella insurance policies, covering the period  4/27/07 through 4/27/08, and requiring 11 equal monthly payments of principal and interest in the amount of $25,722.90 through 3/27/08.  

iii.Premium Finance Agreement with Euler Hermes ACI in the amount of $21,881.25, representing financed premiums on the A/R Credit Indemnity Policy, covering the period 6/1/07 through 6/1/08, and requiring 3 quarterly payments of principal and interest in the following amounts:  $7,440.82 on 9/1/07; $7,586.30 on 12/1/07; and $7,731.77 on 3/1/08.    

 

2.Obligations of Borrower, Hudson Technologies Company

A.Unsecured Obligations - None

 

B.Additional Secured Debt/Equipment financing (excluding outstanding Keltic debt):

	
Item
	
Lien Holder
	
Balance
	
Payment
	
Expire

	 	 	 	 	 
	
Mortgage on Champaign, IL
	
Busey Bank
	
$877,426
	
$8,495/mo
	
June 2020

	
Ford LCF Truck (NY)
	
Ford Credit
	
36,307
	
$906.04/mo.
	
March 2011

	
Ford Truck  ( WA)
	
Ford Credit
	
37909
	
914.73/mo
	
June 2011

	
Ford Truck (IL)
	
Ford Credit
	
36,871
	
889.68/mo
	
June 2011

	
Ford Truck (NY)
	
Ford Credit
	
37,508
	
905.06/mo
	
June 2011

	
Ford Truck (NC)
	
Ford Credit
	
35,687
	
861.12  /mo
	
June 2011

	
Ford Truck (LA)
	
Ford Credit
	
38,493
	
913.83/mo
	
June 2011

	
Ford Truck (NY)
	
Ford Credit
	
32,649
	
643.13 /mo
	
Aug 2011

	
Load Scales (IL)
	
GE Capital/Fairbanks Scales
	
$16,259
	
$110150/mo.
	
August 2008

	
Forklift (IL)
	
DeLage Landen
	
$13,595
	
$524.84
	
November 2009

	
Phone System
	
Wells Fargo
	
$,2,050
	
$304.62
	
December 2007

 

Schedule 5.21

Environmental Matters

 

(a)(i)The Borrower is a refrigerant services company providing innovative solutions to recurring problems within the refrigeration industry.  The Borrower's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, including (i) refrigerant sales, (ii) RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants and (iii) reclamation of refrigerants.  The Company's products and services are centered around refrigerants of all types, including, without limitation, Chlorofluorocarbons (CFC's), Hydrochlorofluorocarbons (HCFC's), Hydrofluorocarbons (HFC's), and Anhydrous Ammonia.  A listing of materials currently designated as "refrigerants" are set forth in Tables I and II of ASHRAE Standard 34. Most refrigerants handled, processed or sold by the Borrower are classified as hazardous materials and some are classified as hazardous substances. 

(ii)  All of the Borrower's facilities, except for the Pearl River, New York and Fremont, New  Hampshire facilities, are used for the transportation. Storage and handling of various refrigerants at the facilities, including Chlorofluorocarbons (CFC's), Hydrochlorofluorocarbons (HCFC's), Hydrofluorocarbons (HFC's).  Most refrigerants handled, processed or sold by the Borrower are classified as hazardous materials and some are classified as hazardous substances.  Additionally, the Borrower's facility located at Champaign, Illinois is classified as a small waste generator and generates and stores small amounts of hazardous waste representing, primarily, spent laboratory chemicals used in the Borrower's refrigerant testing laboratories.  The Borrower's refrigerant reclamation activities are performed our of its Champaign, Illinois facility.  The Borrower also operates the following activities out of the Champaign, Illinois facility, all of which are related to, and/or ancillary to, its refrigerant reclamation and refrigerant sales business:  a refrigerant testing laboratory, a USDOT hydrostatic testing facility for the recertification of refrigerant containers of various sizes, and a refrigerant separation facility for the separation of cross-contaminated (mixed) refrigerants.  Each of these operations utilize materials that are classified as hazardous materials and/or hazardous substances. 
(c)(i)On April 1, 1999, the Company reported a release at the Company's former facility located at Hillburn, New York facility (the "Hillburn Facility"), of approximately 7,800 lbs. of R-11 refrigerant (the "1999 Release"), as a result of a failed hose connection to one of the Company's outdoor storage tanks allowing liquid R-11 to discharge from the tank into the concrete secondary containment area in which the subject tank was located.

Between April 1999 and May 1999, with the approval of the New York State Department of Environmental Conservation ("DEC"), the Company constructed and put into operation a remediation system at the Company's Hillburn facility to remove R-11 levels in the groundwater under and around the Company's facility.

In September 2000, the Company signed an Order on Consent with the DEC, which was amended in May 2001, whereby the Company agreed to operate the remediation system and perform monthly testing at its Hillburn facility, until remaining groundwater contamination has been effectively abated.  In July 2005, the DEC approved a modification of the Order on Consent to reduce the frequency of testing from monthly to quarterly.  The Company is continuing to operate the remediation system pursuant to the approved modifications to that Order on Consent and, as of December 31, 2006, the Company has accrued, as an expense in its consolidated financial statements, the costs that the Company believes it will incur in connection with its compliance with the Order on Consent through December 31, 2009.  There can be no assurance that additional testing will not be required or that the Company will not incur additional costs and as such, costs in excess of the Company's estimate may have a material adverse effect on the Company financial condition or results of operations. 

In May 2000, the Company's Hillburn facility was nominated by the EPA for listing on the National Priorities List ("NPL"), pursuant to CERCLA.  The Company submitted opposition to the listing within the sixty-day comment period.  In September 2003, the EPA advised the Company that it has no current plans to finalize the process for listing the Hillburn facility on the NPL and that the EPA will not withdraw the proposal of the Hillburn facility on the NPL.

In October 2001, the Company learned that trace levels of R-11 were detected in one of the wells operated by United Water of New York, Inc. ("United") that is in the closest proximity to the Village of Suffern's ("Village") well system.  No contamination of R-11 has ever been detected in any of the Village's wells and, since October 2002, the level of R-11 in the United well closest to the Village has been below 1 ppb.  In September 2004, the Village advised that it intends to continue performing additional sampling of its wells at a cost of approximately $5,000 per year, and has requested that the Company reimburse the Village for the costs for such sampling.  In November 2005, the Village requested reimbursement from the Company of approximately $3,200 for sampling costs through September 2005. 

(ii)On July 15, 2004, the Borrower reported the release at it Champaign, Illinois facility of approximately 12,000 lbs. of Refrigerant 500 ("R500") which occurred on July 15, 2004 as a result of a failed hose and fitting.  The release was made to the atmosphere with no involvement with land or water.  No remedial or cleanup efforts were required.

(iii)Normal operation of the Borrower's equipment results in de minimis releases of refrigerants.  EPA regulations permit a loss of up to 1.5% of refrigerant processed during reclamation procedures.  

(d) The Borrower has above ground bulk storage tanks used for the storage of refrigerant at the Champaign, Illinois facility.   Additionally, the Company stores refrigerants at each of its facilities in cylinders and tanks ranging in size from 30 lbs to 1,000 lbs.  

(f) All of the Borrower's facilities, except for the Pearl River, New York and Fremont, New Hampshire facilities, have various refrigerants at the facilities, including Chlorofluorocarbons (CFC's), Hydrochlorofluorocarbons (HCFC's), Hydrofluorocarbons (HFC's).  Most refrigerants handled, processed or sold by the Borrower are classified as hazardous materials and some are classified as hazardous substances. 

Schedule 5.23

List of Bank and Securities Accounts

 

1.JP Morgan Chase Bank NA

	
	
	
	
	
	
Balance per GL

	
HUDSON TECNOLOGIES INC.
	
	
	
As of  5/31/07

	
	
	
	

	
Insurance Account #6802090267
	
	
$1,743.16 

	
	
	
	
	
	

	
HUDSON TECNOLOGIES COMPANY
	
	

	
Operating Account   # 6800828269 (a)
	
	
$3,147.73 

	
Payroll Account         # 6800828668
	
	
 $73,214.68

	
Co Pay Difference Account  #6803703033

	
	
	
 $8,633.48

	
HUDSON TECNOLOGIES HOLDINGS  INC.
	
	
	

	
 Account   # 6800827378
	
	
	
	
$42.00 

	
	
	
	
	
	

2. Keltic Financial F/B/O Hudson Technologies Company #9429286268 $443,577.83

3.M & T Bank - Hudson Technologies, Inc. 401k account - to date, this account has been non contributory by Hudson Technologies, Inc. /Hudson Technologies Company, and all sums on deposit in this account came from payroll deductions from employee participants, except that in December 2006, the Company made a matching contribution of 20% of each participant's contributions up to a maximum of $600, in the total amount of $25,788.52.WARRANT REPURCHASE AGREEMENT

This Warrant Repurchase Agreement (this "Agreement") is entered into as of March 4, 2011 by and between HUDSON TECHNOLOGIES, INC., a New York corporation (the "Company"), and SONAR PARTNERS FUND, LP ("Seller").
RECITALS

WHEREAS, Seller owns a warrant issued on July 7, 2010 (the "Warrant") issued by the Company pursuant to a subscription agreement dated as of June 30, 2010 entitling Seller to purchase up to 300,313 shares of the Company's common stock, $.01 par value (the "Warrant Shares"); and

WHEREAS, on the terms and subject to the conditions of this Agreement, the Company desires to repurchase from Seller, and Seller desires to have repurchased by the Company, a portion of the Warrant representing the right to purchase an aggregate of 137,813 Warrant Shares (the "Assigned Warrant") for the consideration set forth below.

NOW, THEREFORE, the Company and Seller, intending to be legally bound, and for good and valuable consideration, the receipt of which is hereby acknowledged, hereby agree as follows:

1.Repurchase.  At the Closing (as hereinafter defined), upon the terms and subject to the conditions of this Agreement, Seller will sell, transfer, convey, assign and deliver to the Company, and the Company will purchase, acquire and accept from Seller, the Assigned Warrant, free and clear of any and all Liens (as hereinafter defined).  Seller acknowledges and agrees that, at the Closing, the Assigned Warrant shall be cancelled immediately (and, for the avoidance of doubt, Seller shall have no further rights under and shall not be able to exercise the Assigned Warrant, which shall be deemed cancelled).

2.Closing.  The closing of the repurchase of the Warrant under this Agreement (the "Closing") shall take place simultaneously with the signing of this Agreement at the offices of Blank Rome LLP, 405 Lexington Avenue, New York, NY or at such other location as the parties agree.  At the Closing, (i) the Company shall pay to Seller for the Assigned Warrant, an amount equal to $82,687.80 and (ii) Seller shall deliver to the Company for cancellation the original certificate representing the Assigned Warrant being purchased hereunder duly endorsed for transfer or accompanied by an appropriate transfer instrument, duly endorsed in blank, in the form of Annex A.  Upon surrender of the Warrant certificate in accordance herewith, the Company shall execute and deliver a new Warrant of Seller, identical to the Warrant certificate being surrendered, evidencing the portion of the Warrant not assigned hereunder.

3.Representations, Warranties and Covenants of Seller.  As of the date hereof, Seller represents and warrants to, and agrees with, the Company as follows:  
(i)Seller is the sole record, legal and beneficial owner of the Warrant. The Warrant has not been exercised, in whole or in part nor has the Seller transferred any of its rights under the Warrant (other than pursuant hereto).  To the seller's knowledge, except as set forth herein, there are no (a) securities convertible into or exchangeable for the Warrant (other than pursuant to the exercise of the Warrant itself) or any of the Warrant Shares; (b) options, warrants or other rights to purchase or subscribe for the Warrant or any of the Warrant Shares; or (c) contracts, commitments, agreements, understandings or arrangements of any kind (contingent or otherwise) relating to the issuance, sale or transfer of the Warrant or any of the Warrant Shares.  

(ii)Seller has, and the Company will receive, good and marketable title to the Assigned Warrant, free and clear of any and all liens, security interests, mortgages, rights of first refusal, agreements, limitation on voting rights, restrictions, levies, claims, pledges, equities, options, contracts assessments, conditional sale agreements, charges and other encumbrances or interests of any nature whatsoever, including, without limitation, voting trusts or agreements or proxies (collectively, "Liens") excluding any Liens created by the Company.  

(iii)Seller has the absolute and unrestricted right, power, capacity (legal or otherwise) and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate or other action by Seller and no other corporate or other actions on the part of Seller are necessary to authorize, execute and deliver this Agreement or to consummate the transactions contemplated hereby.  The execution, delivery and performance by Seller of this Agreement does not, and the consummation of the transactions contemplated hereby will not, (a) violate or conflict with any provision of Seller's certificate of incorporation, by-laws or any other organizational documents; (b) violate any provision of any laws of or by governmental or regulatory entity applicable to Seller or any of its properties or assets; or (c) violate, conflict with, result in a breach of or the loss of any benefit under, constitute (with due notice or lapse of time or both) a default under, result in the termination of or a right of termination or cancellation under, accelerate the performance required by or rights or obligations under, any of the terms, conditions or provisions of any contract, note, bond, lease, loan agreement, mortgage, security agreement, indenture, deed or trust, license, agreement or instrument to which Seller or any of its affiliates is a party or by which it or any of its affiliates is bound or to which any of its or its affiliates' properties, assets or business is subject.  No consents, authorizations, waivers, filings, registrations or approvals are required in connection with the execution and delivery of this Agreement by Seller, or the performance by Seller of its obligations hereunder.  

(iv)Seller has had the opportunity to (i) review the Company's latest Annual Report on Form 10-K ("Annual Report") and all periodic reports filed by the Company with the Securities and Exchange Commission since the date of the Annual Report (the "SEC Filings") and (ii)  discuss the plans, operations and financial condition of the Company with its officers, and has received all information requested by Seller relating to the Company to enable Seller to evaluate its decision to sell the Warrant (collectively together with the SEC Filings, the "Provided Information")  hereunder.   It is understood and agreed that neither the Company nor Seller makes any representation or warranty to the other whatsoever with respect to the business, condition (financial or otherwise), properties, prospects, creditworthiness, status or affairs of the Company, or with respect to the value of the Assigned Warrant.

4.Miscellaneous.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of New York without giving effect to the conflict of laws principles thereof.  All agreements in this Agreement binding upon the Company or Seller shall bind and inure to the benefit of the successors and assigns of the Company and Seller, respectively, whether so expressed or not.  This Agreement may be executed in two or more counterparts, which when so executed shall constitute one and the same agreement.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof.  This Agreement may not be changed, waived, discharged, or terminated orally but, rather, only by a statement in writing signed by the party or parties against which enforcement or the change, waiver, discharge or termination is sought.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date hereof.  

	
HUDSON TECHNOLOGIES, INC.

	 
	
By: /s/ Kevin J. Zugibe

	
Name:  Kevin J. Zugibe

	
Title:  Chairman, Chief Executive Officer

	 
	
SONAR PARTNERS FUND, LP

	 
	
By:_/s/ Neil Druker

	
Name: Neil Druker

	
Title: Managing Member of its General Partner

 
Annex A

Form of Endorsement

For value received, the undersigned hereby sells, assigns, and transfers unto the person named below under the heading "Transferee" the right contained in the attached Warrant to purchase the number of shares of common stock of HUDSON TECHNOLOGIES, INC. specified under the heading "Number Transferred" opposite the name(s) of such person and appoints each such person Attorney to transfer its right on the books of HUDSON TECHNOLOGIES, INC. with full power of substitution in the premises.

	
Transferee
	
Number Transferred

	
HUDSON TECHNOLOGIES, INC.:
	
137,813

	 	 
	
Dated:  March 4, 2011
	
SONAR PARTNERS FUND, LP

 

By:____________________________

      Name: Neil Druker

      Title: Managing Member of its General Partner

	 	
(Signature must conform to name of holder as specified on the face of the Warrant)

	
Accepted and Agreed:

HUDSON TECHNOLOGIES, INC.

(Transferee)

By:_____________________________________

     Name:

     Title:

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