Document:

Exhibit 10.1

 

NOTE AND OTHER LOAN DOCUMENTS MODIFICATION AGREEMENT NO. 2

THIS NOTE AND OTHER LOAN DOCUMENTS MODIFICATION AGREEMENT No. 2 (this "Agreement") made effective as of the 22nd day of January, 2016 (the "Effective Date"), among REVERE HIGH YIELD FUND, LP, a Delaware limited partnership having an address of 2000 McKinney Avenue, Suite 2125, Dallas, Texas 75201 (the "Lender"), RANOR, INC., a Delaware corporation having an address of 1 Bella Drive, Westminster, Massachusetts 01473 (the "Borrower") and TECHPRECISION CORPORATION, a Delaware corporation having an address of 992 Old Eagle School Road, Suite 909, Wayne, PA 19087 (the "Guarantor").

W I T N E S S E T H:

WHEREAS, Lender made a loan to Borrower (the "Note A Loan") in the original principal amount of ONE MILLION FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($1,500,000.00), which Note A Loan is evidenced by a Term Note in the amount of ONE MILLION FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($1,500,000.00) from Borrower to Lender dated as of December 22, 2014 (the "Note A");

WHEREAS, Lender made a loan to Borrower (the "Note B Loan"; the Note B Loan and the Note A Loan are collectively referred to herein as the "Loan") in the original principal amount of SEVEN HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($750,000.00), which Note B Loan is evidenced by a Term Note in the amount of SEVEN HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($750,000.00) from Borrower to Lender dated as of December 22, 2014 (the "Note B"; Note B and Note A are collectively referred to herein as the "Note");

WHEREAS, the Note was executed in connection with and secured by, among other things, (i) that certain Term Loan and Security Agreement dated as of December 22, 2014 by and between Borrower and Lender (the "Loan Agreement"); (ii) the Guaranty; (iii) the Mortgage; (iv) the Assignment of Leases and Rents; (v) the Environmental Indemnity; and (vi) all other loan documents executed by Borrower in favor of Lender in connection with the Loan (all of the foregoing subparagraphs (i) through (vi), collectively, the "Loan Documents");

WHEREAS, on December 31, 2015, the Lender, Borrower and Guarantor entered into that certain Note and Other Documents Modification Agreement to extend the Maturity Date to January 22, 2016;

WHEREAS, all terms defined in the Loan Agreement are used herein with their defined meanings unless otherwise provided;

WHEREAS, Borrower and Lender are mutually desirous of, among other things, modifying and amending the terms of the Loan Agreement and amending and restating the Note as set forth herein; and

 

 

 

  

 

NOW, THEREFORE, in consideration of One Dollar ($1.00) and other valuable consideration, each to the other in hand paid, receipt thereof being hereby acknowledged, and in consideration of the mutual covenants herein contained, the parties hereto hereby agree as follows:

	1.	Simultaneously with this Agreement, Borrower has executed and delivered to Lender, (i) that certain Amended and Restated Term Note dated as of the date hereof in the amount of ONE MILLION FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($1,500,000.00) ("New Note A") which New Note A amends and restates Note A in its entirety and copy of which is attached hereto as Exhibit A; and (ii) that certain Amended and Restated Term Note dated as of the date hereof in the original principal amount of SEVEN HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($750,000.00) ("New Note B"; New Note B and New Note A are collectively referred to herein as the "New Note") which New Note B amends and restates Note B in its entirety and  a copy of which is attached hereto as Exhibit B.

	2.	From and after the Effective Date, the Loan Agreement is hereby modified as follows:

		a.	All references to the term "Note", "Note A," and "Note B" shall be deemed to mean the "New Note", "New Note A," and "New Note B", respectively.

		b.	The term "Loan Documents" shall be deemed to mean and include New Note A, New Note B, the Mortgage as modified by the Mortgage Modification (as hereinafter defined), and all other Loan Documents as modified by this Agreement.

		c.	The Note A Loan is deemed to be evidenced by the New Note A and the Note B Loan is deemed to be evidenced by the New Note B.

	 	
d.

	
All references to the term "Mortgage" shall be deemed to mean the Mortgage as modified by the Mortgage Modification (as defined below), and all references to the "Guaranty" shall be deemed to mean the Guaranty as modified hereby.

 

	 	e.	The definition of "Default Rate" set forth in Section 1.01 (Definitions) of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

"Default Rate" shall mean the lesser of twenty percent (20%) per annum, or (ii) the highest rate of interest permitted under the laws of the State of Massachusetts."

2

 

	 	
f.

	
The definition of "Interest Rate" set forth in Section 1.01 (Definitions) of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

"Interest Rate" shall mean a rate equal to ten percent (10%) per annum computed on the basis of the actual days elapsed on the assumption that each month contains thirty (30) days and each year contains three hundred sixty (360) days."

	 	
g.

	
The definition of "Minimum Guaranteed Interest" set forth in Section 1.01 (Definitions) of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

"Minimum Guaranteed Interest" shall mean an amount equal to the greater of (i) twelve (12) months interest at the Interest Rate on the amount outstanding on the Loan, or (ii) interest due on any amount Advanced under this agreement at the Interest Rate."

 

	 	
h.

	
The following definitions of "Anniversary Fee" and "Effective Date" are hereby added to Section 1.01 (Definitions) of the Loan Agreement in the appropriate alphabetical order:

 

"Anniversary Fee" shall mean a fee of five percent (5%) of the principal amount of the Loan outstanding on January 22, 2017."

 

"Effective Date" shall mean January 22, 2016."

 

	 	
i.

	
The definition of "Note A Exit Fee" and of "Note B Exit Fee" set forth in Section 1.01 (Definitions) of the Loan Agreement are hereby deleted in their entirety and replaced with the following:

"Note A Exit Fee" means $75,000.00."

"Note B Exit Fee" means $37,500.00."

	 	
j.

	
Section 2.01 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

SECTION 2.01. Term Loan. The Lender agreed, upon the terms and subject to the conditions hereof, to make to Borrower the Note A Loan and the Note B Loan, each of which had a twelve (12) month term, which terms were subsequently extended pursuant to that certain Note and Other Loan Documents Modification Agreement among the Borrower, Lender and Guarantor, dated as of December 31, 2015, to January 22, 2016, and were  further extended pursuant to that certain Note and Other Documents Modification Agreement No. 2 among the Borrower, Lender and Guarantor, dated as of the Effective Date ("Modification Agreement No. 2"), for an additional twenty-four (24) month term with a Maturity Date of January 22, 2018. The Note A Loan and the Note B Loan shall be collectively referred to herein as the "Term Loan" or the "Loan". The Term Loan was fully advanced to Borrower on the Closing Date.

 

 

 

  

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k.

	
Section 2.02 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

	 		
SECTION 2.02. The Note. The Term Loan was evidenced by Note A and Note B, in the forms attached hereto as Exhibit A-1 and Exhibit A-2,  respectively, appropriately completed, payable to the order of the Lender, duly executed and delivered on behalf of the Borrower, and dated as of December 22,2014, which Note A and Note B were amended and restated in the forms attached as Exhibit A and Exhibit B to the Modification Agreement No.2, appropriately completed, payable to the order of the Lender, duly executed and delivered on behalf of the Borrower, dated as of the Effective Date The Note shall be with interest accruing at the Interest Rate and payable on the first day of each month (a "Payment Date"), commencing on March 1, 2016 until and including the Maturity Date with a final payment of the principal balance plus accrued and unpaid interest due and payable on the Maturity Date.  Note A shall be secured by the Mortgage on the Property and a perfected security interest in Borrower's Equipment, subject only to the Permitted Liens.  Note B shall be secured by a perfected first priority UCC-1 security interest in Borrower's Accounts and Inventory and by a perfected security interest in Borrower's Equipment, subject only to the Permitted Liens.

	 	
l.

	
Section 2.03 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

	 		
"SECTION 2.03.  Maturity Date. The maturity date of the Term Loan is January 22, 2018 (the "Maturity Date")."

	 	
m.

	
Section 2.04 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

	 		
"SECTION 2.04.  Interest and Principal Payments on the Term Loan. On each Payment Date, commencing on March 1, 2016 until and including the Maturity Date, Borrower shall pay interest in arrears on the principal balance of the Loan from time to time outstanding at a per annum rate equal to the Interest Rate.  Further, on each Payment Date commencing on February 1, 2017 until and including the Maturity Date, Borrower shall make principal payments of $6,250.00 on Note A and principal payments of $3,125.00 on Note B.  The outstanding principal balance of the Loan plus accrued and unpaid interest shall be due and payable on the Maturity Date. In addition to such monthly payments of interest and principal, on the earlier to occur of (i) prepayment of the Loan in accordance with Section 2.05 below or otherwise, and (ii) the Maturity Date, Borrower shall pay to Lender the Minimum Guaranteed Interest net of the monthly interest payments made by Borrower pursuant to this section."

 

 

 

 

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n.

	
Section 2.05 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

			
"SECTION 2.05.  Prepayment of the Term Loan.  Borrower may prepay the Term Loan in whole but not in part, at any time, but only after advance written notice to Lender of at least forty-five (45) days provided that no Default or Event of Default shall have occurred and be continuing. If the Loan is prepaid anytime during the term of the Loan, Borrower shall pay to Lender the Minimum Guaranteed Interest net of any interest payments made by Borrower pursuant to Section 2.04.  Lender's acceptance of any prepayment under this Section 2.05 shall not waive any of Lender's rights and remedies under the Loan Documents arising pursuant to an Event of Default."

		
o.

	
Section 2.11 is hereby added to the Loan Agreement as follows:

	 		

"SECTION 2.11. Anniversary Fee.

On January 22, 2017, Borrower shall pay the Anniversary Fee to Lender."

	 	
p.

	
Section 2.12 is hereby added to the Loan Agreement as follows:

 

 

	 		
SECTION 2.12.  Collateral Monitoring Fee.  On each Payment Date, the Borrower shall pay to Lender a Collateral Monitoring Fee equal to the greater of (a) $350.00 per month or (b) the quotient of one-quarter percent (.25%) of the outstanding principal balance of the Loan divided by twelve (12).

	 	
q.

	
Section 5.06 is hereby amended by deleting "and" at the end of clause (iv), replacing "." with "; and" at the end of clause (v), and adding the following new clause (vi):

(vi) on each Payment Date, a report of the Borrower's cash balance compared to the minimum required cash balance in accordance with Section 5.16.

 

	 	
r.

	
Section 5.16 is hereby added to the Loan Agreement as follows:

"SECTION 5.16. Cash Balance Covenant. Borrower shall maintain monthly minimum cash balances as set forth on Exhibit C hereto."

 

	 	
s.

	
Section 10.01 (a) and Section 10.01(b), respectively, of the Loan Agreement are hereby deleted in their entirety and replaced with the following:

	
 

	
"(a) if to Lender, at

	
 

	
 

	 	 	 	 
	
 

	

c/o Revere High Yield Fund, LP

2000 McKinney Avenue, Suite 2125

Dallas, Texas 75201

Attention: Clark Briner

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
with a copy to:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Rogin Nassau LLC

CityPlace I

185 Asylum Street

 Hartford, Connecticut 06103

Attention: Katherine F. Troy

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

" (b) if to the Borrower, in the name of Borrower at:

	
 

	
 

	
 

	
 

	
 

	
 

	

Ranor, Inc.

1 Bella Drive

Westminster, MA 01473

Attention: Tom Sammons, CFO

	
 

	
 

	
 

	
 

	
 

	
 

	
with a copy to:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pepper Hamilton LLP

301 Carnegie Center, Suite 400

Princeton, NJ 08543-5276

Attention: Delia C. Donahue"

	
 

	
 

 

 

5

 

	 	
t.

	
Exhibits A-1 and A-2 are hereby deleted in their entirety and replaced with the forms attached hereto as Exhibits A and B, respectively.

 

	 	
u.

	
Exhibit C is hereby added to the Loan Agreement in the form attached hereto as Exhibit C.

	3.	From and after the Effective Date, the other Loan Documents are hereby modified as follows:

		a.	All references to the term "Note", "Note A," and "Note B" shall be deemed to mean the "New Note", "New Note A," and "New Note B", respectively.

		b.	The term "Loan Documents" shall be deemed to mean and include the Note, the Mortgage as modified by the Mortgage Modification, and all other Loan Documents as modified by this Agreement.

 

 

 

6

 

		c.	The Mortgage is hereby modified in the form attached hereto as Exhibit D (the "Mortgage Modification"), and all references to the term "Mortgage" shall be deemed to mean the Mortgage as modified by the Mortgage Modification.

		d.	The Guaranty is hereby modified by deleting the notice address of the Guarantor set forth in Section 4.9 thereof in its entirety and replacing such address as follows:

 

 

	
"Address:

	 	
TechPrecision Corporation

	 	 	
992 Old Eagle School Road, Suite 909

	 	 	
Wayne, PA 19087

	 	 	
Attention: Tom Sammons, CFO

	 	 	
Telephone: 978-883-5109

	 	 	
Fax: 978-874-2748

	 	 	
Email: sammonst@ranor.com

	 	 	 
	
with a copy to:

	 	
Pepper Hamilton LLP

	 	 	
301 Carnegie Center, Suite 400

	 	 	
Princeton, NJ  08543-5276

	 	 	
Attention: Delia C. Donahue

	 	 	
Telephone: 609.951.4149

	 	 	
Fax: 609.228.6141

	 	 	
Email: donahudc@pepperlaw.com"

and all references to the term "Guaranty" shall be deemed to mean the Guaranty as modified hereby.

  

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	4.	All of the other terms and conditions of the Loan Documents shall remain the same and in full force and effect, except as specifically amended herein. Borrower hereby reaffirms the Note, the Mortgage, the Loan Agreement and the other Loan Documents, and acknowledges that Borrower has no setoffs, counterclaims or defenses to any of the Loan Documents.

	5.	Any default by Borrower in any of the covenants herein made shall, at the option of Lender, or its successors and assigns, constitute an Event of Default under the Loan Documents entitling Lender, or its successors or assigns, to any or all of the other remedies it or they may have thereunder.

	6.	All of the Borrower Collateral (as defined in the Loan Agreement) and the Collateral (as defined in the Mortgage) shall remain in all respects subject to the lien, charge and encumbrance of the Loan Agreement and Mortgage, as the case may be, and nothing herein contained and nothing done pursuant hereto, shall affect or be construed to affect the lien, charge or encumbrance of the Loan Agreement and Mortgage, as the case may be or the priority thereof over all liens, charges or encumbrances, except as expressly provided herein.

	7.	This Agreement shall be binding upon Borrower and any subsequent owner of the Collateral or any part thereof (provided, however, that any provisions against sale or transfer contained in the Mortgage shall remain in full force and effect) and shall be binding and inure to the benefit of Lender, its successors and assigns, including any subsequent holder of the Mortgage.

	8.	BORROWER, AND ANY SUBSEQUENT ENDORSER, GUARANTOR OR OTHER ACCOMMODATION MAKER, EACH HEREBY WAIVE PRESENTMENT, DEMAND FOR PAYMENT AND NOTICE OF DISHONOR, TOGETHER WITH ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION WITH RESPECT TO THE NOTE, THE MORTGAGE, THE OTHER LOAN DOCUMENTS OR THIS AGREEMENT AND AS TO ANY ISSUES ARISING RELATING TO THE NOTE, THE MORTGAGE, THE OTHER LOAN DOCUMENTS OR THIS AGREEMENT.

	9.	Guarantor hereby consents to the terms of this Agreement and reaffirms its obligations under Guaranty and the Indemnity, agrees that such Guaranty and such Indemnity continue to be binding and enforceable obligations of the Guarantor, and acknowledges that Borrower has no setoffs, counterclaims or defenses to any of the Guaranty or the Indemnity.

	10.	This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same Agreement.

	11.	This Agreement shall be governed and construed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts, without regard to conflict of law provisions thereof.

	12.	As a material inducement to Lender to enter into this Agreement, Borrower and Guarantor hereby acknowledge, admit, and agree that, as of the date hereof, there exist no rights of offset, defense, counterclaim, claim, or objection in favor of Borrower or Guarantor against Lender with respect to the Note, the Loan Agreement or any of the other Loan Documents, or alternatively, that any and all such rights of offset, defense, counterclaim, claim, or objection which they may have or claim, of any nature whatsoever, whether known or unknown, are hereby expressly and irrevocably waived and released.  Borrower and Guarantor hereby release and forever discharge Lender, its directors, officers, employees, administrators, subsidiaries, affiliates, attorneys, agents, successors, and assigns from any and all rights, claims, demands, actions, causes of action, suits, proceedings, agreements, contracts, judgments, damages, debts, costs, expenses, promises, agreements, duties, liabilities, or obligations, whether in law or in equity, known or unknown, choate or inchoate, which they had, now have, or hereafter may have, arising under or in any manner relating to, whether directly or indirectly, the Note, the Loan Agreement, any other Loan Document or any transaction contemplated by any Loan Document or this Agreement, from the beginning of time until the date of full execution and delivery hereof.

[Remainder of Page Intentionally Left Blank]

 

 

 

 

8

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed, sealed and delivered the day and year first above written.

	 	 	
LENDER:

	 	 	 
	 	 	
REVERE HIGH YIELD FUND, LP,

	 	 	
a Delaware limited partnership

	 	 	 
	 	 	
By:  Revere GP, LLC, its General Partner

	 	 	 
	 	 	
By: Revere Capital, LLC

	 	 	
Its: Manager

	 	 	 
	 	 	
By:   /s/ Clark Briner

	 	 	
Name:  Clark Briner

	 	 	
Its:  Manager

	 	 	 
	 	 	
BORROWER:

	 	 	 
	 	 	 
	 	 	
RANOR, INC.,

	 	 	
a Delaware corporation

	 	 	 
	 	 	 
	 	 	
By: /s/ Alexander Shen

	 	 	
Name: Alexander Shen

	 	 	
Its: President

	 	 	 
	 	 	 
	 	 	 
	 	 	
GUARANTOR:

	 	 	 
	 	 	 
	 	 	
TECHPRECISION CORPORATION

	 	 	
a Delaware corporation

	 	 	 
	 	 	 
	 	 	
By:  /s/ Tom Sammons

	 	 	
Name:Tom Sammons

	 	 	
Its:Chief Financial Officer

	 	 	 
	 	 	 

SIGNATURE PAGE TO NOTE AND OTHER LOAN DOCUMENTS MODIFICATION NO. 2 AGREEMENT

 

9Exhibit 10.2

 

AMENDED AND RESTATED TERM NOTE

	
$1,500,000.00

	
  January 22, 2016

FOR VALUE RECEIVED, the undersigned, RANOR, INC., a Delaware corporation with an address of Bella Drive, Westminster, Massachusetts 01473 (the "Borrower"), DOES HEREBY PROMISE to pay to the order of REVERE HIGH YIELD FUND, LP, a Delaware limited partnership (the "Lender"), at the office of the Lender at 2000 McKinney Avenue, Suite 2125, Dallas, Texas 75201, in lawful money of the United States of America, in immediately available funds, the maximum principal amount of ONE MILLION FIVE HUNDRED THOUSAND 00/100 DOLLARS ($1,500,000.00) or so much thereof as may be advanced to Borrower pursuant to this Amended and Restated Term Note (this "Term Note") and the Agreement (as hereinafter defined) payable as follows:  (i) payments of interest only on advanced principal on the first day of each month (a "Payment Date"), commencing March 1, 2016 until and including January 1, 2017; (ii) payments of interest together with principal payments of $6,250.00 on each Payment Date commencing February 1, 2017 until and including the Payment Date immediately prior to the Maturity Date; and (iii) a balloon payment of the then outstanding principal balance plus any accrued and unpaid interest on January 22, 2018 (the "Maturity Date").  Interest hereunder shall accrue from the date hereof on the unpaid principal amount  at a rate equal to ten percent (10%) per annum on the basis of the actual days elapsed on the assumption that each month contains thirty (30) days and each year contains three hundred sixty (360) days, multiplied by the actual number of days elapsed, in like money, at said office, as more specifically set forth in Article II of that certain Term Loan and Security Agreement dated as of December 22, 2014, as amended pursuant to the Note and Other Loan Documents Modification Agreement dated as of December 31, 2015, and as further amended pursuant to the Note and Other Documents Modification Agreement No. 2 dated the date hereof (as so amended, and as may be further amended, restated supplemented and/or modified from time to time, the "Agreement") and, upon a default, at a rate of the lesser of: (A) twenty percent (20%) per annum, or (B) the highest rate of interest permitted under the laws of the Commonwealth of Massachusetts.

This Term Note amends and restates in its entirety that certain Term Note dated December 22, 2014 made by the Borrower in the original principal amount of $1,500,000.00 payable to the order of Lender (the "Original Note"). Borrower intends, and Lender, by its acceptance of this Term Note agrees, that the indebtedness previously evidenced by the Original Note remains outstanding, but such indebtedness shall henceforth be evidenced by this Term Note, and the terms and conditions of Borrower's obligations to repay said indebtedness and interest thereon shall be governed by the terms of this Term Note. Neither the execution, delivery or acceptance of this Term Note, nor any of the terms and provisions set forth in this Term Note, shall be deemed or construed to effect a novation or to cause all or any part of the aforesaid indebtedness, or the liability of any person with respect therefor, to be, or to be deemed to have been, paid, satisfied or discharged.

 

 

This Term Note is given to evidence an actual loan (the "Loan") in the maximum principal amount of $1,500,000.00, and is the Term Note referred to as "Note A" in Section 2.02 of the Agreement, and is subject to prepayment and acceleration of maturity as set forth in the Agreement. This Term Note is secured by, among other things, the Mortgage (the "Security Instrument").  All terms defined in the Agreement are used herein with their defined meanings unless otherwise provided.

This Term Note shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts and any applicable laws of the United States of America.

The Lender shall have the absolute right to sell and/or assign this Term Note and the Security Instrument, in whole or in part, and/or to enter into one or more participation agreements concerning this Term Note and the Security Instrument.  If Lender gives written notice of any such sale(s), assignment(s) and/or participation(s) to Borrower, Borrower shall make, or cause to be made, payments to such subsequent holder(s) or participant(s), as the case may be.

If any term of this Term Note, or the applications hereof to any person or set of circumstances, shall to any extent be invalid, illegal, or unenforceable, the remainder of this Term Note, or the application of such provision or part thereof to persons or circumstances other than those as to which it is invalid, illegal, or unenforceable, shall not be affected thereby, and each term of this Term Note shall be valid and enforceable to the fullest extent consistent with applicable law and this Term Note shall be interpreted and construed as though such invalid, illegal, or unenforceable term or provision (or any portion thereof) were not contained in this Term Note.

Borrower and all other parties liable hereunder, whether as principal, endorser or otherwise, hereby severally waive presentment, demand for payment, protest and notice of dishonor and waive recourse to defenses generally, including extensions of time, release of security or other indulgences that may be granted by Lender to Borrower or any other party liable hereon, and also agree to pay all costs of collection, including reasonable attorneys' fees incurred by Lender in connection with enforcement of any of Lender's rights hereunder or under any other document in connection with, securing or evidencing this Term Note.

BORROWER AND ANY SUBSEQUENT ENDORSER, GUARANTOR OR OTHER ACCOMMODATION BORROWER WAIVE PRESENTMENT, DEMAND FOR PAYMENT AND NOTICE OF DISHONOR, TOGETHER WITH ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS TERM NOTE OR UNDER ANY AGREEMENT, INSTRUMENT OR OTHER DOCUMENT CONTEMPLATED HEREBY OR RELATED HERETO AND IN ANY ACTION DIRECTLY OR INDIRECTLY RELATED TO OR CONNECTED WITH THE OBLIGATIONS PROVIDED FOR HEREIN, OR ANY CONDUCT RELATING TO THE ADMINISTRATION OR ENFORCEMENT OF SUCH OBLIGATIONS OR ARISING FROM THE DEBTOR/CREDITOR RELATIONSHIP OF THE PARTIES HERETO.  BORROWER ACKNOWLEDGES THAT THIS WAIVER MAY DEPRIVE IT OF AN IMPORTANT RIGHT AND THAT SUCH WAIVER HAS WILLINGLY, KNOWINGLY AND VOLUNTARILY BEEN AGREED TO BY BORROWER.

 

 

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BORROWER HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COMMONWEALTH OF MASSACHUSETTS AND WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON BORROWER, AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED TO BORROWER AT THE ADDRESS AS SET FORTH IN THIS TERM NOTE AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF.  BORROWER WAIVES ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER AND WILLINGLY, KNOWINGLY AND VOLUNTARILY CONSENTS TO THE GRANTING OF ANY SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

BORROWER ACKNOWLEDGES AND REPRESENTS THAT THE LOAN EVIDENCED BY THIS TERM NOTE IS A COMMERCIAL TRANSACTION AND THAT THE PROCEEDS OF THE LOAN SHALL NOT BE USED FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES.  BORROWER AND ANY SUBSEQUENT ENDORSER, GUARANTOR OR OTHER ACCOMMODATION BORROWER HEREBY WILLINGLY, KNOWINGLY AND VOLUNTARILY WAIVE (TO THE MAXIMUM EXTENT PERMITTED BY LAW) ANY RIGHTS TO NOTICE OR HEARING OR AS OTHERWISE REQUIRED BY ANY LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER MAY ELECT TO USE OR WHICH IT MAY AVAIL ITSELF.  BORROWER FURTHER WAIVES, TO THE GREATEST EXTENT PERMITTED BY LAW, THE BENEFITS OF ALL PRESENT AND FUTURE VALUATION, APPRAISEMENT, EXEMPTION, STAY, REDEMPTION AND MORATORIUM LAWS.  BORROWER FURTHER WAIVES ANY REQUIREMENTS THAT HOLDER OBTAIN A BOND OR ANY SIMILAR DEVICE IN CONNECTION WITH THE EXERCISE OF ANY REMEDY OR THE ENFORCEMENT OF ANY RIGHT HEREUNDER OR PERTAINING TO THE LOAN.

BORROWER HEREBY EXPRESSLY AND UNCONDITIONALLY, WILLINGLY, KNOWINGLY AND VOLUNTARILY WAIVES, IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING BROUGHT BY OR ON BEHALF OF LENDER ON THIS TERM NOTE, ANY AND EVERY RIGHT BORROWER MAY HAVE TO (I) INJUNCTIVE RELIEF, (II) INTERPOSE ANY COUNTERCLAIM THEREIN (OTHER THAN COMPULSORY COUNTERCLAIMS), AND (III) HAVE THE SAME CONSOLIDATED WITH ANY OTHER OR SEPARATE SUIT, ACTION OR PROCEEDING.  NOTHING HEREIN CONTAINED SHALL PREVENT OR PROHIBIT BORROWER FROM INSTITUTING OR MAINTAINING A SEPARATE ACTION AGAINST LENDER WITH RESPECT TO ANY ASSERTED CLAIM.

 

 

3

  

EXCEPT AS PROHIBITED BY LAW, BORROWER HEREBY WILLINGLY, KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES.  BORROWER CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF PAYEE HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT PAYEE WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.  THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR PAYEE TO ACCEPT THIS TERM NOTE AND MAKE THE LOAN.

It is the intention of Borrower and Lender to conform strictly to the usury laws now or hereafter in force in the Commonwealth of Massachusetts, and any interest payable under this Term Note or any other documents evidencing or securing the Loan (the "Loan Documents") shall be subject to reduction to an amount not to exceed the maximum non-usurious amount for commercial loans allowed under the usury laws of the state or commonwealth in which the Property is located as now or hereafter construed by the courts having jurisdiction over such matters.  In the event such interest (whether designated as interest, service charges, points, or otherwise) does exceed the maximum legal rate, it shall be (i) cancelled automatically to the extent that such interest exceeds the maximum legal rate; (ii) if already paid, at the option of the Lender, either be rebated to Borrower or credited on the principal amount of the Term Note; or (iii) if the Term Note has been prepaid in full, then such excess shall be rebated to Borrower.

It is further agreed, without limitation of the foregoing, that all calculations of the rate of interest (whether designed as interest, service charges, points, or otherwise) contracted for, charged, or received under this Term Note, or under any instrument evidencing or securing the loan evidenced hereby, that are made for the purpose of determining whether such rate exceeds the maximum legal rate, shall be made, to the extent permitted by applicable law, by amortizing, prorating, allocating, and spreading throughout the full stated term of this Term Note (and any extensions of the term hereof that may be hereafter granted) all such interest at any time contracted for, charged, or received from the Borrower or otherwise by the Lender so that the rate of interest on account of the indebtedness evidenced by this Term Note, as so calculated, is uniform throughout the term hereof.  If the Borrower is exempt or hereafter becomes exempt from applicable usury statutes or for any other reason the rate of interest to be charged on this Term Note is not limited by law, none of the provisions of this paragraph shall be construed so as to limit or reduce the interest or other consideration payable under this Term Note or any other Loan Documents.  The terms and provisions of this paragraph 

 

 

 

4

 

 

shall control and supersede every other provision of all agreements between the parties hereto.

[Remainder of Page Intentionally Left Blank; Signature Page to Follow]

5

IN WITNESS WHEREOF, the Borrower has executed this Term Note as of the day and year first above written.

	 	
BORROWER:

	 	 	 	 
	 	
RANOR, INC.,

	 	
a Delaware corporation

	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Alexander Shen

	 	 	
Name:

	
Alexander Shen

	 	 	
Its:

	
President

 

[Signature Page to Term Note A]

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