Document:

Exhibit 10.3

 

 

REPLACEMENT DAILY ADJUSTING LIBOR REVOLVING LINE NOTE

New York

 

	
December 24,   2012
    	
 
    	
$25,000,000.00
    

 

 

BORROWER (Name):  Hardinge Inc.

(Organizational Structure):  Corporation

(State Law organized under):  New York

(Address of residence/chief executive office):  One Hardinge Drive, Elmira, New York 14902

 

BANK:       M&T BANK, a New York banking corporation with its principal banking office at One M&T Plaza, Buffalo, NY 14203.  Attention: Office of General Counsel

 

1.              DEFINITIONS.  Each capitalized term shall have the meaning specified herein and the following terms shall have the indicated meanings:

 

a.              “Authorized Person” shall mean, each individually, Edward J. Gaio, as Vice President and CFO and Doug Malone, as Corporate Controller, or any other officer, employee or representative of Borrower who is authorized or designated as a signer of loan documents under the provisions of Borrower’s most recent resolutions or similar documents on file with the Bank.  Notwithstanding that individual names of Authorized Persons may have been provided to the Bank, the Bank shall be permitted at any time to rely solely on an individual’s title to ascertain whether that individual is an Authorized Person.

b.              “Base Rate” shall mean a rate per annum equal to  1.0 percentage point(s) above the rate of interest announced by the Bank from time to time as its prime rate of interest (“Prime Rate”).  If the prior blank is not completed, the Base Rate shall be two (2) percentage points above the Prime Rate.

c.               “Base Rate Loan” shall mean a Loan that accrues interest at the Base Rate.

d.              “Draw Date” shall mean, in relation to each Loan, the date that such Loan is made or deemed to be made to Borrower pursuant to this Note.

e.               “Expiration Date” shall mean March 31, 2014.

f.                “LIBOR” shall mean the rate per annum (rounded upward, if necessary, to the nearest 1/16th of 1%) obtained by dividing (i) the applicable  London Interbank Offered Rate (see LIBOR Rate definition below), as fixed by the British Bankers Association for United States dollar deposits in the London interbank market at approximately 11:00 a.m. London, England time (or as soon thereafter as practicable) on the appropriate day in accordance with the terms of this Note, as determined by the Bank from any broker, quoting service or commonly available source utilized by the Bank, by (ii) a percentage equal to 100% minus the stated maximum rate of all reserves required to be maintained against “Eurocurrency Liabilities” as specified in Regulation D (or against any other category of liabilities, which includes deposits by reference to which the interest rate on LIBOR Rate Loan(s) is determined, or any category of extensions of credit or other assets which includes loans by a non-United States’ office of a bank to United States’ residents) on such date to any member bank of the Federal Reserve System.  Notwithstanding any provision above, the practice of rounding to determine LIBOR may be discontinued at any time in the Bank’s sole discretion.

g.              “LIBOR Rate” shall mean the rate per annum equal to:

·      2.75  percentage point(s) above one-month LIBOR, adjusting daily.

 

h.              “LIBOR Rate Loan” shall mean any Loan that accrues interest at a LIBOR Rate, as determined by the Bank.

i.                 “Loan” shall mean any advance of funds made to Borrower by the Bank pursuant to this Note.

j.                 “London Business Day” shall mean any day on which dealings in United States dollar deposits are carried on by banking institutions in the London interbank market.

k.              “Maximum Principal Amount” shall mean Twenty-Five Million and 00/100 Dollars ($25,000,000.00).

l.                 “New York Business Day” shall mean any day other than Saturday, Sunday or other day on which commercial banking institutions in New York, New York are authorized or required by law or other governmental action to remain closed for business.

m.          “Outstanding Principal Amount” shall mean, at any point in time, the aggregate outstanding principal amount of all Loans made pursuant to this Note.

 

2.              PAYMENT OF PRINCIPAL, INTEREST AND EXPENSES.

 

a.              Promise to Pay.  For value received, and intending to be legally bound, Borrower promises to pay to the order of the Bank, on the Expiration Date, the Maximum Principal Amount or the Outstanding Principal Amount, if less, plus interest as set forth below and all fees and costs (including without limitation the Bank’s attorneys’ fees and disbursements, whether for internal or outside counsel) the Bank incurs in order to collect any amount due under this Note, to negotiate or document a workout or restructuring, or to preserve its rights or realize upon any guaranty or other security for the payment of this Note (“Expenses”).

 

b.              Interest.  Each Loan shall earn interest on the Outstanding Principal Amount thereof calculated on the basis of a 360-day year for the actual number of days of each year (365 or 366), as follows:

 

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i.                                         LIBOR Rate Loans.  Interest shall accrue each day on any LIBOR Rate Loan, from and including the Draw Date to, but not including, the date such LIBOR Rate Loan is paid in full (or converts to a Base Rate Loan), at the LIBOR Rate in effect for that day.  The applicable LIBOR Rate shall be determined each day using LIBOR in effect for that day, which, if such day is not a London Business Day, shall have been fixed on the nearest preceding London Business Day.

 

ii.                                     Base Rate Loans.  Interest shall accrue each day on any Base Rate Loan, from and including the first day a Loan becomes a Base Rate Loan to, but not including, the day such Base Rate Loan is paid in full, at a rate per annum equal to the Base Rate in effect each day.  Any change in the Base Rate resulting from a change in the Prime Rate shall be effective on the date of such change.

 

c.               Maximum Legal Rate.  It is the intent of the Bank and Borrower that in no event shall interest be payable at a rate in excess of the maximum rate permitted by applicable law (the “Maximum Legal Rate”).  Solely to the extent necessary to prevent interest under this Note from exceeding the Maximum Legal Rate, any amount that would be treated as excessive under a final judicial interpretation of applicable law shall be deemed to have been a mistake and automatically canceled, and, if received by the Bank, shall be refunded to Borrower.

 

d.              Intentionally omitted.

 

e.               Payments.  Payments shall be made in immediately available United States funds at any banking office of the Bank.

 

f.                Preauthorized Transfers from Deposit Account.  If a deposit account number is provided in the following blank, Borrower hereby authorizes the Bank to debit Borrower’s deposit account #                                             with the Bank automatically for any amount which becomes due under this Note.

 

g.              Late Charge.  If Borrower fails to pay, within five (5) days of its due date, any amount due and owing pursuant to this Note or any other agreement executed and delivered to the Bank in connection with this Note, Borrower shall immediately pay to the Bank a late charge equal to the greatest of (a) $50.00, (b) five percent (5%) of the delinquent amount, or (c) the Bank’s then current late charge as announced by the Bank from time to time. Notwithstanding the above, if this Note is secured by a one- to six-family owner-occupied residence, the late charge shall equal 2% of the delinquent amount and shall be payable if payment is not received within fifteen days of its due date.

 

h.              Default Rate.  If the Borrower fails to make any payment when due under this Note, the interest rate on the Outstanding Principal Amount shall immediately and automatically increase to five (5) percentage points per year above the otherwise applicable rate per year, and any judgment entered hereon or otherwise in connection with any suit to collect amounts due hereunder shall bear interest at such default rate.

 

i.                 Interest Accrual; Application of Payments.  Interest will continue to accrue on the Outstanding Principal Amount until the Outstanding Principal Amount is paid in full.  All installment payments (excluding voluntary prepayments of principal) will be applied as of the date each payment is received and processed.  Payments may be applied in any order in the sole discretion of the Bank, but, prior to demand for payment in full, may be applied chronologically (i.e., oldest invoice first) to unpaid amounts due and owing, in the following order: first to accrued interest, then to principal, then to late charges and other fees, and then to all other Expenses.

 

3.              CREDIT AVAILABILITY.

 

a.              General.  This Note is issued by Borrower to the Bank in connection with a certain line of credit or loan limit made available by the Bank to Borrower (the “Credit”).  Except as otherwise provided herein, each Loan advanced hereunder shall be in the form of a LIBOR Rate Loan.

 

b.              Authorized Representatives.  The Bank may make any Loan pursuant to the Credit in reliance upon any oral, telephonic, written, teletransmitted or other request (the “Request(s)”) that the Bank in good faith believes to be valid and to have been made by Borrower or on behalf of Borrower by an Authorized Person.  The Bank may act on the Request of any Authorized Person until the Bank shall have received from Borrower, and had a reasonable time to act on, written notice revoking the authority of such Authorized Person.  Borrower acknowledges that the transmission between Borrower and Bank of any Request or other instructions with respect to the Credit involves the possibility of errors, omissions, misinterpretations, fraud and mistakes, and agrees to adopt such internal measures and operational procedures as may be necessary to prevent such occurrences.  By reason thereof, Borrower hereby assumes all risk of loss and responsibility for, and releases and discharges the Bank from any and all responsibility or liability for, and agrees to indemnify, reimburse on demand and hold Bank harmless from, any and all claims, actions, damages, losses, liability and expenses by reason of, arising out of, or in any way connected with or related to: (i) Bank’s accepting, relying on and acting upon any Request or other instructions with respect to the Credit; or (ii) any such error, omission, misinterpretation, fraud or mistake, provided such error, omission, misinterpretation, fraud or mistake is not directly caused by the Bank’s gross negligence or willful misconduct.  The Bank shall incur no liability to Borrower or to any other person as a direct or indirect result of making any Loan pursuant to this paragraph.

 

c.               Lending Limit.  Any Request for a Loan hereunder shall be limited in amount, such that the sum of (i) the principal amount of such Request; (ii) the Outstanding Principal Amount under this Note; and (iii) the aggregate face amounts of (or, if greater, Borrower’s aggregate reimbursement obligations to the Bank (or any of its affiliates) in connection with) any letters of credit issued by the Bank (or any of its affiliates) at the request (or for the benefit) of Borrower, pursuant to this Credit; does not exceed the Maximum Principal Amount under this Note.

 

d.              Revolving Credit.  This Note evidences a revolving Credit.  Subject to all applicable provisions in this Note and in any and all other agreements between the Borrower and the Bank related hereto, the Borrower may borrow, pay, prepay and reborrow hereunder at any time prior to the Expiration Date.  Notwithstanding that, from time to time, there may be no amounts outstanding respecting this Note, this Note shall continue in full force and effect until all obligations and liabilities evidenced by this Note are paid in full and the Credit evidenced by this Note has been terminated by the Bank.

 

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e.               Request for LIBOR Rate Loans.  In making any Request for a Loan, Borrower shall specify the aggregate amount of such Loan and the Draw Date; provided, however, if a Request is received by the Bank after 2:00 p.m. (Eastern Standard Time) on any given day, the earliest possible Draw Date will be the next New York Business Day; and

 

f.                Delivery of Requests.  Delivery of a Request for a LIBOR Rate Loan shall be made to the Bank at the following address, or such other address designated by the Bank from time to time:

 

M&T Bank

68 Exchange Street

2nd Floor

Binghamton, New York  13901

Attn: Susan A. Burtis

 

Fax No.  (607) 779-2346

Telephone No.  (607) 779-5902

 

4.              CONVERSION UPON DEFAULT.  Unless the Bank shall otherwise consent in writing, if (i) Borrower fails to pay when due, in whole or in part, the indebtedness under the Note (whether by demand or otherwise), or (ii) there exists a condition or event which, with the passage of time, the giving of notice or both, shall constitute an event of default under any of Borrower’s agreement with the Bank, if any, the Bank, in its sole discretion, may convert any LIBOR Rate Loan to a Base Rate Loan.  Nothing herein shall be construed to be a waiver by the Bank to have any Loan accrue interest at the Default Rate of interest (which shall be calculated from the higher of the LIBOR Rate or the Base Rate, as described above).

 

5.              RIGHT OF SETOFF.  The Bank shall have the right to set off against the amounts owing under this Note any property held in a deposit or other account with the Bank or any of its affiliates or otherwise owing by the Bank or any of its affiliates in any capacity to Borrower or any guarantor or endorser of this Note.  Such setoff shall be deemed to have been exercised immediately at the time the Bank or such affiliate elects to do so.

 

6.              BANK RECORDS CONCLUSIVE.  The Bank shall set forth on a schedule attached to this Note or maintained on computer, the date and original principal amount of each Loan and the date and amount of each payment to be applied to the Outstanding Principal Amount of this Note.  The Outstanding Principal Amount set forth on any such schedule shall be presumptive evidence of the Outstanding Principal Amount of this Note and of all Loans.  No failure by the Bank to make, and no error by the Bank in making, any annotation on any such schedule shall affect the Borrower’s obligation to pay the principal and interest of each Loan or any other obligation of Borrower to the Bank pursuant to this Note.

 

7.              PURPOSE.  Borrower certifies (a) that no Loan will be used to purchase margin stock except with the Bank’s express prior written consent for each such purchase and (b) that all Loans shall be used for a business purpose, and not for any personal, family or household purpose.

 

8.              AUTHORIZATION.  Borrower, if a corporation, partnership, limited liability company, trust or other entity, represents that it is duly organized and in good standing or duly constituted in the state of its organization and is duly authorized to do business in all jurisdictions material to the conduct of its business; that the execution, delivery and performance of this Note have been duly authorized by all necessary regulatory and corporate or partnership action or by its governing instrument; that this Note has been duly executed by an authorized officer, partner or trustee and constitutes a binding obligation enforceable against Borrower and not in violation of any law, court order or agreement by which Borrower is bound; and that Borrower’s performance is not threatened by any pending or threatened litigation.

 

9.              INABILITY TO DETERMINE LIBOR RATES, INCREASED COSTS, ILLEGALITY.

 

a.              Increased Costs.  If the Bank shall determine that, due to either (a) the introduction of any change in law (other than any change by way of imposition of or increase in reserve requirements included in the calculation of the LIBOR) or in the interpretation of any requirement of law, or (b) the compliance requirements for any guideline or request from any central bank or other governmental authority (whether or not having the force of law), there shall be any increase in the cost to the Bank of agreeing to make or making, funding or maintaining any LIBOR Rate Loans, then Borrower shall be liable for, and shall from time to time, upon demand therefor by the Bank, pay to the Bank such additional amounts as are sufficient to compensate the Bank for such increased costs.

 

b.              Inability to Determine Rates.  If the Bank shall determine that for any reason adequate and reasonable means do not exist for ascertaining LIBOR with respect to a proposed LIBOR Rate Loan, the Bank will give notice of such determination to Borrower.  Thereafter, the Bank may not make or maintain, as the case may be, LIBOR Rate Loans hereunder until the Bank revokes such notice in writing.  Upon receipt of such notice, the Bank may convert any LIBOR Rate Loans to Base Rate Loans, and Borrower may revoke any pending Request that Borrower previously made for a LIBOR Rate Loan.  If Borrower does not revoke any such Request, the Bank may make the Loans, as proposed by Borrower, in the amount specified in the applicable Request submitted by Borrower, but such Loans shall be made as Base Rate Loans instead of LIBOR Rate Loans.

 

c.               Illegality.  If the Bank shall determine that the introduction of any law (statutory or common), treaty, rule, regulation, guideline or determination of an arbitrator or of a governmental authority or in the interpretation or administration thereof, has made it unlawful, or that any central bank or other governmental authority has asserted that it is unlawful for the Bank to make LIBOR Rate Loans, then, on notice thereof by the Bank to Borrower, the Bank may suspend the making of LIBOR Rate Loans until the Bank shall have notified Borrower that the circumstances giving rise to such determination shall no longer exist.  If the Bank shall determine that it is unlawful to maintain any LIBOR Rate Loans, Borrower shall immediately pay to the Bank the aggregate principal amount of all LIBOR Rate Loans then outstanding, together with accrued interest and related Expenses.  If Borrower is required to pay off any LIBOR Rate Loan as set forth in this subsection, then concurrently with such payment, Borrower may borrow from the Bank, in the amount of such payment, a Base Rate Loan.

 

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10.       MISCELLANEOUS.  This Note, together with any related loan and security agreements and guaranties, contains the entire agreement between the Bank and Borrower with respect to the Note, and supersedes every course of dealing, other conduct, oral agreement and representation previously made by the Bank.  All rights and remedies of the Bank under applicable law and this Note or amendment of any provision of this Note are cumulative and not exclusive.  No single, partial or delayed exercise by the Bank of any right or remedy shall preclude the subsequent exercise by the Bank at any time of any right or remedy of the Bank without notice.  No waiver or amendment of any provision of this Note shall be effective unless made specifically in writing by the Bank.  No course of dealing or other conduct, no oral agreement or representation made by the Bank, and no usage of trade, shall operate as a waiver of any right or remedy of the Bank.  No waiver of any right or remedy of the Bank shall be effective unless made specifically in writing by the Bank.  Borrower agrees that in any legal proceeding, a copy of this Note kept in the Bank’s course of business may be admitted into evidence as an original.  This Note is a binding obligation enforceable against Borrower and its successors and assigns and shall inure to the benefit of the Bank and its successors and assigns.  If a court deems any provision of this Note invalid, the remainder of the Note shall remain in effect.  Section headings are for convenience only.  Singular number includes plural and neuter gender includes masculine and feminine as appropriate.

 

11.       NOTICES.  Any demand or notice hereunder or under any applicable law pertaining hereto shall be in writing and duly given if delivered to Borrower (at its address on the Bank’s records) or to the Bank (at the address on page one and separately to the Bank officer responsible for Borrower’s relationship with the Bank).  Such notice or demand shall be deemed sufficiently given for all purposes when delivered (i) by personal delivery and shall be deemed effective when delivered, or (ii) by mail or courier and shall be deemed effective three (3) New York Business Days after deposit in an official depository maintained by the United States Post Office for the collection of mail or one (1) New York Business Day after delivery to a nationally recognized overnight courier service (e.g., Federal Express).  Notice by e-mail is not valid notice under this or any other agreement between Borrower and the Bank.

 

12.       JOINT AND SEVERAL.  If there is more than one Borrower, each of them shall be jointly and severally liable for all amounts which become due under this Note and the term “Borrower” shall include each as well as all of them.

 

13.       GOVERNING LAW; JURISDICTION.  This Note has been delivered to and accepted by the Bank and will be deemed to be made in the State of New York.  Except as provided under federal law, this Note will be interpreted in accordance with the laws of the State of New York excluding its conflict of laws rules.  BORROWER HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN THE STATE OF NEW YORK IN A COUNTY OR JUDICIAL DISTRICT WHERE THE BANK MAINTAINS A BRANCH, AND CONSENTS THAT THE BANK MAY EFFECT ANY SERVICE OF PROCESS IN THE MANNER AND AT BORROWER’S ADDRESS SET FORTH ABOVE FOR PROVIDING NOTICE OR DEMAND; PROVIDED THAT NOTHING CONTAINED IN THIS NOTE WILL PREVENT THE BANK FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST BORROWER INDIVIDUALLY, AGAINST ANY SECURITY OR AGAINST ANY PROPERTY OF BORROWER WITHIN ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR DOMESTIC JURISDICTION.  Borrower acknowledges and agrees that the venue provided above is the most convenient forum for both the Bank and Borrower.  Borrower waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note.

 

14.       WAIVER OF JURY TRIAL.  BORROWER AND THE BANK HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY BORROWER AND THE BANK MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS NOTE OR THE TRANSACTIONS RELATED HERETO.  BORROWER REPRESENTS AND WARRANTS THAT NO REPRESENTATIVE OR AGENT OF THE BANK HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS JURY TRIAL WAIVER.  BORROWER ACKNOWLEDGES THAT THE BANK HAS BEEN INDUCED TO ENTER INTO THIS NOTE BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS SECTION.

 

x         Amended and Restated Note.  The Borrower acknowledges, agrees and understands that this Note is given in replacement of and in substitution for, but not in payment of, a prior Replacement Daily Adjusting Libor Revolving Line Note dated on or about December 16, 2011, in the original principal amount of $25,000,000.00, given by Borrower in favor of the Bank, as the same may have been amended or modified from time to time (“Prior Note”),, and further, that: (a) the obligations of the Borrower as evidenced by the Prior Note shall continue in full force and effect, as amended and restated by this Note, all of such obligations being hereby ratified and confirmed by the Borrower; (b) any and all liens, pledges, assignments and security interests securing the Borrower’s obligations under the Prior Note shall continue in full force and effect, are hereby ratified and confirmed by the Borrower, and are hereby acknowledged by the Borrower to secure, among other things, all of the Borrower’s obligations to the Bank under this Note, with the same priority, operation and effect as that relating to the obligations under the Prior Note; and (c) nothing herein contained shall be construed to extinguish, release, or discharge, or constitute, create, or effect a novation of, or an agreement to extinguish, the obligations of the Borrower with respect to the indebtedness originally described in the Prior Note or any of the liens, pledges, assignments and security interests securing such obligations.

 

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Acknowledgment.  Borrower acknowledges that it has read and understands all the provisions of this Note, including the Governing Law, Jurisdiction and Waiver of Jury Trial, and has been advised by counsel as necessary or appropriate.

 

 

	
 
    	
 
    	
HARDINGE   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/S/   Edward J. Gaio
    
	
 
    	
 
    	
Name:
    	
Edward   J. Gaio
    
	
/S/   Douglas J. Malone
    	
 
    	
Title:
    	
Vice   President and CFO
    
	
Signature   of Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Douglas   J. Malone
    	
 
    	
 
    
	
Typed   Name of Witness
    	
 
    	
 
    

 

ACKNOWLEDGMENT

 

	
STATE OF NEW YORK
    	
 
    	
)
    
	
 
    	
 
    	
:SS.
    
	
COUNTY   OF CHEMUNG
    	
 
    	
)
    

 

On 20th day of December, in the year 2012, before me, the undersigned, a Notary Public in and for said State, personally appeared EDWARD J. GAIO, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

 

 

	
 
    	
 
    	
/S/   Nancy L. Curren
    
	
 
    	
 
    	
Notary Public
    

 

FOR BANK USE ONLY

 

Authorization Confirmed:

Product Code: 11900

Disbursement of Funds:

	
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5Exhibit 10.19

 

(Translation; for Reference Only)

 

December 20, 2012

 

between

 

HARDINGE PRECISION MACHINERY (JIAXING) CO., LTD.

 

as Mortgagor

 

and

 

CHINA CONSTRUCTION BANK JIAXING  BRANCH

 

as Mortgagee

 

 

MAXIMUM-AMOUNT MORTGAGE CONTRACT

 

 

1

 

THIS MAXIMUM-AMOUNT MORTGAGE CONTRACT is made on the contract by and between:

 

(i)                                     HARDINGE PRECISION MACHINERY (JIAXING) CO., LTD., a company located at No.2676, Wanguo Road, Jiaxing City, China,314000 with Richard Leigh Simons  as its legal representative (or principal officer), and fax number +86-573-82601998 and telephone number +86-573-82601088 as Mortgagor (“Party A”); and

 

(ii)                                  CHINA CONSTRUCTION BANK JIAXING BRANCH, a company located at No.208, Ziyang Street, Jiaxing City, China, 314000 with Chen Qiang as its principal officer, and fax number +86-573-82032605 and telephone number +86-573-82065591  as Mortgagee (“Party B”).

 

Party A and Party B hereinafter are collectively referred to as the “Parties” and individually as a “Party”.

 

WHEREAS:

 

(1)                                                       Party B will enter into and/or has entered into with _Hardinge Precision Machinery (Jiaxing) Co., Ltd.    (the “Debtor”) RMB loan agreement(s), foreign currency loan agreement(s), bank acceptance agreement(s), letter of credit (the “L/C”) issuance agreement(s),  letter of guarantee (the “L/G”) issuance agreement(s) and/or other legal documents during the period commencing from _20/12/2012_(d/m/y) and ending on _20/12/2014    (d/m/y)(the “Period for Determining the Secured Indebtedness”) (such contracts, agreements and/or other legal documents entered into during the Period for Determining the Secured Indebtedness  are referred to as the “Master  Agreement” hereinafter) in order to provide the credit services listed in below items:

 

(i)                                  RMB/Foreign Currency loans;

 

(ii)                               acceptance of commercial bills;

 

(iii)                            issuance of L/C;

 

(iv)                           issuance of L/G;

 

(v)                              other credit services:                      .

 

(2)                                                       Party A has agreed to create a mortgage (this “Mortgage”) to secure all the debts incurred by the Debtor under the Master Agreement up to a maximum amount specified in Article 2.

 

In accordance with the relevant laws and regulations, Party A and Party B have entered into this Contract after consultation.

 

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IT IS AGREED as follows:

 

1.                                      MORTGAGED PROPERTIES

 

1.1                               Party A shall create the Mortgage over the properties set out in the “List of Mortgaged Properties” (this “Mortgaged Properties”) set out in Article 12.

 

1.2                               In case the ownership certificate or other title document of the Mortgaged Properties is reissued/renewed, Party A shall not refuse to fulfill its duties and obligations under this Mortgage on the grounds that, details of the Mortgaged Properties recorded on the reissued/renewed ownership certificate or other title document or on the registration book maintained by the registration authority are inconsistent with those set out in (i) the “List of Mortgaged Properties”, or (ii) Certificate of Non-ownership Proprietary Rights or other mortgage certificates kept by Party B.

 

1.3                               Unless otherwise agreed by the Parties or stipulated under the applicable laws, any object or article newly added onto the Mortgaged Properties by attachments, mix-up, processing, conversion or alteration shall be deemed to be part of the Mortgaged Properties.  Party A shall complete the required registration of these newly added objects or articles upon Party B’s request.

 

1.4                               If the value of the Mortgaged Properties has decreased or may possibly decrease, which may prejudice Party B’s security interest under this Contract, Party A shall provide new security upon Party B’s request.

 

2.1                               SECURED INDEBTEDNESS AND MAXIMUM SECURED AMOUNT

 

2.1                               The secured indebtedness hereunder shall cover all the indebtedness of the Debtor under the Master Agreement, including without limitation the principal, interest accrued thereon (including  compound and default interest), damages, compensation, other amounts payable by the Debtor to Party B (including without limitation the expenses such as the handling fees, communication fees, miscellaneous fees and the bank charges that the beneficiary refuses to pay), as well as all costs and expenses that Party B may incur in connection with the realization of its creditor’s rights and  security interests, including without limitation any fees relating to litigation, arbitration, property preservation, travel and accommodation, enforcement, appraisal and evaluation, auction, notarization, service of documentation, public announcements and attorney’s fees. (the “Secured Indebtedness”).

 

2.2                               The maximum amount secured by this Mortgage shall be RMB 34,189,000.00 (the “Maximum Secured Amount”). If Party A performs its security obligations under this Mortgage, the Maximum Secured Amount shall be reduced in accordance with the actual amount paid by Party A.

 

2.3                               Notwithstanding the foregoing, all loans, interest, fees, expenses, or any other rights of Party B under the Master Agreement shall be covered by this Mortgage even though any of the same occurs outside the Period for Determining the Secured Indebtedness, or the maturity date of any of the same comes after the expiration of the Period for Determining the Secured Indebtedness.

 

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3.                                      REGISTRATION OF MORTGAGED PROPERTIES

 

3.1                               The Parties shall complete the registration of the Mortgaged Properties with the competent registration authority within three working days after the execution of this Contract. On the date of the completion of the registration, Party A shall deliver to Party B all the originals of the Certificate of Non-ownership Proprietary Rights, the mortgage registration documents and other title documents.

 

4.                                      AMENDMENT TO THE MASTER AGREEMENT

 

4.1                               Party A agrees that Party B and the Debtor are not obligated to notify Party A of any amendment to the Master Agreement made by Party B and the Debtor, including without limitation any extension of the term of the indebtedness and any increase of the principal. Party A shall remain liable within the Maximum Secured Amount.

 

4.2                               Changes to the Parties.  Party A’s  liability hereunder shall not be reduced or discharged upon occurrence of any of the following events:

 

(i)                                     any restructuring, merger, acquisition, division, capital increase/decrease, entering into joint venture or joint operation, change of name etc. of Party B or the Debtor; or

 

(ii)                                  any entrust to third parties by Party B to perform Party B’s obligation under the Master Agreement.

 

4.3                               Where the rights under the Master Agreement have been or will be assigned or transferred by Party B, the Mortgage hereunder shall be assigned or transferred concurrently. Party A shall assist Party B or such third party on the registration of such changes as required under the applicable laws.

 

4.4                               If the assignment or transfer of the rights or debts under the Master Agreement becomes ineffective or invalid, or is revoked or cancelled, Party A shall remain liable to Party B in accordance with this Contract.

 

5.                                      CUSTODY OF THE MORTGAGED PROPERTIES

 

5.1                               Party A shall duly possess, take good care and custody of, reasonably utilize and maintain the Mortgaged Properties in good condition and pay any and all relevant taxes and charges imposed on the Mortgaged Properties in a timely manner.  Party B is entitled to inspect the Mortgaged Properties and may request Party A to deliver the originals of the ownership or other title documents of the Mortgaged Properties to Party B for custody.

 

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5.2                               If Party A entrusts or gives consent to a third party to possess, take care and custody of and/or utilize the Mortgaged Properties, it shall notify such third party of the existence of this Mortgage and Party B’s security interest herein, and shall request such third party to maintain the Mortgaged Properties in good condition, permit Party B to inspect the Mortgaged Properties and not to hinder Party B from realizing its security interest under this Mortgage.  Notwithstanding any provision in this Article 5.2, Party A shall not be released from its obligations under Article 5.1 and shall be held responsible for such third party’s acts.

 

5.3                               If the Mortgaged Properties cause body injuries to any person or damage to any property, Party A shall be solely liable for any and all consequences arising there from.  If any claim has been raised against Party B as a result of the abovementioned injury or damage, which results in Party B being held liable or paying any damages or compensations, it is entitled to request Party A for full indemnification.

 

6.                                      INSURANCE OF MORTGAGED PROPERTIES

 

6.1                               Unless otherwise agreed by the Parties, Party A shall insure the Mortgaged Properties in accordance with the applicable laws and Party B’s requirements on insurance type, term and amount to be insured.  The insurer shall have the required statutory qualifications to provide insurance and a good market reputation.

 

6.2                               The contents of the insurance policy shall satisfy the requirements of Party B and contain no restrictive conditions which may adversely affect Party B’s rights and interests.

 

The insurance policy shall specify the following:  (i) Party B is the preferred payee (first beneficiary) of any insurance proceeds payable by the insurer; (ii) no amendment shall be made to the insurance policy without Party B’s prior written consent; and (iii) upon occurrence of any insured event, the insurer shall pay the insurance proceeds payable upon such occasion directly into the account designated by Party B.

 

If the Mortgaged Properties are covered by an existing insurance on the execution date of this Contract but the insurance policy does not contain those details required by Party B as set out in this Article 6.2, Party A shall cause the insurance policy to be amended or annotated correspondingly.

 

6.3                               Party A shall ensure that the insurance remains valid at all times and shall not cause the same to be discontinued or suspended, revoked, invalidated, or cause the insurer’s obligations to be reduced or waived, or make amendment to the insurance policy without Party B’s prior consent.  If any of the secured indebtedness remains outstanding upon the expiration of the insurance, Party A shall renew the insurance for an extended period correspondingly.

 

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6.4                               Party A shall deliver the original insurance policy of the Mortgaged Properties to Party B within _five_ working days from the execution date of this Contract, or in case of a renewed insurance policy, from the date of the renewal.  In addition, Party A shall deliver to Party B all the documents required for making insurance claims or for an assignment of the insurance claims.

 

6.5                               Party B may at its sole discretion choose to dispose of the insurance proceeds in any of the following methods and Party A shall assist Party B in facilitating such disposal:

 

(i)                                     To repair the Mortgaged Properties so as to restore their value;

 

(ii)                                  To repay or prepay the principal amount and the interest accrued under the Master Agreement and related costs;

 

(iii)                               To set up a pledge over the insurance proceeds to secure the debts under the Master Agreement; or

 

(iv)                              To be disposed of by Party A after Party A has provided new security satisfying Party B’s requirements.

 

7.                                      RESTRICTIONS ON DISPOSAL OF THE MORTGAGED PROPERTIES BY PARTY A

 

7.1                               Without Party B’s written consent, Party A shall not dispose of the Mortgaged Properties in any manner, including without limitation, abandonment, lease (including renewal of an expired lease), giving away as gifts, assignment or transfer, using the Mortgaged Properties as capital contribution, offering the Mortgaged Properties as security for any other debts, relocation, and change to public purpose, or accretion to other objects, or alteration or division.

 

7.2                               Subject to Party B’s written consent, the sales proceeds from Party A’s disposal of the Mortgaged Properties shall be deposited into the account designated by Party B.  Party B is entitled to elect any method set out in Article 6.5 (ii) to (iv) to dispose of the sales proceeds, and Party A shall assist Party B on the relevant procedures.

 

8.                                      INTERFERENCE OF THIRD PARTIES

 

8.1                               If the Mortgaged Properties are subject to any eminent domain or requisition, or are demolished, confiscated, revoked without compensation by the government, or seized, impounded, frozen, subject to custody of authorities or lien, sold by auction, dispossessed by force, destroyed or otherwise disposed of by a third party, Party A shall promptly notify Party B thereof and take measures in a timely manner to curb, preclude or remedy the circumstances so as to prevent the damage from escalating.  Upon Party B’s request, Party A shall provide new security satisfying Party B’s requirements.

 

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8.2                               After occurrence of any of the events stipulated in Article 8.1, any residual portion of the Mortgaged Properties shall remain as collateral under this Mortgage.  Compensation proceeds received in connection with Article 8.1 events shall be deposited into the account designated by Party B.  Party B is entitled to elect any method set out in Article 6.5 (i) to (iv) to dispose of the compensation proceeds, and Party A shall assist Party B on the relevant procedures.

 

9.                                      REALIZATION OF MORTGAGE

 

9.1                               If the Debtor fails to repay any amount in full upon maturity date or upon such accelerated maturity date as determined by Party B in accordance with the Master Agreement or applicable laws and regulations, or commits any other breach under the Master Agreement, Party B is entitled to dispose of the Mortgaged Properties at its discretion.

 

9.2                               The value of the Mortgaged Properties stipulated in the “List of Mortgaged Properties” as set out in Article 12 or as otherwise agreed by the Parties (the “Interim Value”), irrespective whether recorded in the registration authority’s registration book, shall not be deemed as the definitive value of the Mortgaged Properties.  The definitive value thereof shall be the net amounts of the proceeds after deducting all taxes , fees and expenses.

 

If the Mortgaged Properties are used to offset the Secured Indebtedness, the Interim Value shall not be the basis for making the offset. The value of the Mortgaged Properties shall ultimately be determined by an agreement of the Parties through consultation or by a fair and equitable valuation conducted in accordance with applicable laws.

 

9.3                               The proceeds from Party B’s disposal of the Mortgaged Properties, after deducting all costs and expenses incurred during the sale or auction thereof (including without limitation the fees for custody, evaluation, auction, transfer, taxation, government levies for granting of state-owned land use rights), shall be used first to pay off the debts under the Master Agreement. The balance of the proceeds shall be returned to Party A.

 

9.4                               If Party A and the Debtor are one and the same entity/person, Party B may choose to enforce its creditor’s rights against Party A’s other properties and/or to dispose of the Mortgaged Properties in the order it deems appropriate without having to waive its mortgagee’s rights hereunder.

 

9.5                               Party A shall not interfere in any manner (including any action or omission) with the realization by Party B of its security rights under this Mortgage.

 

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9.6                               The Mortgage shall be in addition to, and shall not be affected by, any other security which Party B may hold now or at any time in the future for the indebtedness under the Master Agreement (including without limitation guarantee, mortgage, pledge, letter of guarantee and standby letter of credit, referred to as “Other Security”) irrespective whether such Other Security is provided by the Debtor. Nor shall this Mortgage be affected by the invalidity or time of effectiveness of such Other Security, nor by any third party’s consent to perform part or all of the indebtedness, nor by Party B not taking any action against any other security provider. Party A hereby waives in advance any objection when and if Party B directly demands Party A to fulfill its obligations in accordance with this Mortgage.

 

9.7                               If the Maximum Secured Amount hereunder is less than the outstanding amount of the indebtedness under the Master Agreement, Party A undertakes that it shall not harm Party B’s interests during its exercise (including exercise in advance) of the subrogation right or recovery right against the Debtor or other security providers.  Party A further agrees that the realization of Party A’s subrogation right or recovery right shall be subordinated to the repayment of the debt under the Master Agreement.  In particular, prior to full repayment of the debt under the Master Agreement:

 

(i)                                     Party A agrees not to claim the subrogation right or the recovery right against the Debtor or other security providers.  If Party A has realized such rights for any reason, it shall apply in priority any of the proceeds so recovered to repay the outstanding debts under the Master Agreement;

 

(ii)                                  If there exists any security in rem for the indebtedness under the Master Agreement, Party A agrees not to claim any right to such collateral or the proceeds obtained from the auction or sale thereof on the grounds of its exercising the subrogation right. Such collateral or the proceeds shall be applied in priority to repay outstanding debts under the Master Agreement;

 

(iii)                               If the Debtor or any other security providers provides any counter-security in favor of Party A, the proceeds obtained from such counter-security shall be applied in priority to repay the outstanding debts under the Master Agreement.

 

9.8                               If the Master Agreement is not legally formed,   ineffective, or null and void, partially invalid, or is cancelled or terminated, and if Party A and the Debtor are NOT the same entity/person Party A and the Debtor shall be severally and jointly liable for the indebtedness of the Debtor arising from the return of property or compensation for losses within the Maximum Secured Amount.

 

9.9                               Party A is fully aware of the risk of interest rate fluctuation. In the event that the interest, the default interest or the compound interest payable by the Debtor is increased due to Party B’s adjustment of interest rates, interest calculation or settlement methods in accordance with the Master Agreement or the interest rate policies promulgated by governmental authorities, Party A shall remain liable for such increased portion.

 

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9.10                        If the Debtor owes Party B any other due and payable debts in addition to the debts under the Master Agreement, Party B is entitled to debit any of the Debtor’s account in RMB or other currencies at China Construction Bank and may choose to repay any of the due and payable debts in the order it deems appropriate. Party A’s obligations hereunder shall not be reduced or discharged in any way.

 

10.                               EVENTS OF  DEFAULT

 

10.1                                    Party A’s Events of Default:

 

If Party A breaches any provision hereunder, or any of the representations and warranties it has made proves to be false, inaccurate or incomplete, Party B is entitled to take any one or more of the following actions:

 

(i)           To request  Party A to rectify the breaches within the prescribed period;

 

(ii)          To request Party A to provide new security;

 

(iii)         To request Party A to compensate Party B for the losses suffered;

 

(iv)         To dispose of the Mortgaged Properties;

 

(v)          Other remedial measures available under the applicable laws.

 

Party B is entitled to elect any of the methods agreed in (ii) to (iv) of Article 6.5 hereunder to apply the sales proceeds from disposal of the Mortgaged Properties, and Party A shall assist Party B on the relevant procedures.

 

If for any reason attributed to Party A, this Mortgage has not been effected, or the value of the Mortgaged Properties decreases, or Party B fails to realize its rights hereunder in a timely manner or to the  full extent, and if Party A and the Debtor are NOT one and the same entity/person, Party B is entitled to hold Party A and the Debtor jointly and severally liable for the debts under the Master Agreement up to the Maximum Secured Amount.

 

10.2                        Party B’s Events of Default:

 

If the ownership/title documents of the Mortgaged Properties retained by Party B is missing as a result of Party B’s fault or after the debts under the Master Agreement have been paid in full, Party B  fails to return the ownership/title documents to Party A in a timely manner or fails to assist Party A upon Party A’s request to deregister this Mortgage in accordance with the applicable laws, Party A is entitled to take any one or more of the following actions:

 

(i)                  To request  Party B to bear the costs incurred by Party A in obtaining reissued ownership/title documents of the Mortgaged Properties;

 

(ii)               To request  Party B to return the ownership/title documents of the Mortgaged Properties within a prescribed period, or to assist in deregistering this Mortgage.

 

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11.                               MISCELLANEOUS

 

11.1                                    Cost Allocation

 

Unless otherwise agreed by the Parties, all the expenses (including without limitation the expenses in connection with possession, management, disposal, registration, notarization, insurance, transportation, storage, custody, valuation/appraisal, repair, maintenance, auction and transfer) in association with this Contract or the Mortgaged Properties hereunder shall be borne by Party A.

 

11.2                                    Direct Debit Right

 

Party B is entitled to debit, without prior notice to Party A, any bank account of Party A at China Construction Bank in RMB or other currencies to pay all amounts payable under this Contract. Party A shall assist Party B to complete any procedures for foreign exchange settlement or sale, and Party A shall bear the risk of exchange rate fluctuation.

 

11.3                                    Use of Party A’s Information

 

Party A agrees that Party B is entitled to inquire about Party A’s creditworthiness with the Credit Database or relevant authorities established or approved by the People’s Bank of China and the Credit Reference Agency, and that Party B is entitled to provide Party A’s information to such Credit Database.  Party A further agrees that Party B may reasonably use and disclose Party A’s information for business purpose.

 

11.4                                    Collection by Public Announcement

 

In the event of Party A’s default, Party B is entitled to report to relevant authorities and claim payments by means of public announcement via press.

 

11.5                                    Party B’s Record as Evidence

 

Unless there is reliable and definitive evidence to the contrary, Party B’s internal records of principal, interest, expenses and repayments, receipts, vouchers made or retained by Party B during the course of any drawdown, repayment, interest payment, and records and vouchers relating to collections by Party B shall constitute valid evidence of the creditor-debtor relationship under the Master Agreement. Party A shall not raise any objection merely because the above records, receipts, vouchers are made or retained by Party B.

 

11.6                                    No Waivers

 

Party B’s rights hereunder shall not prejudice or exclude any other rights Party B is entitled to under applicable laws, regulations and other contracts.  No forbearance, extension of time limit, preferential treatment or delay in exercising any right hereunder shall be deemed to constitute a waiver of rights and interests hereunder or permit or recognition of any breach of this Contract.  Nor shall it restrict, prevent or interfere with the continuous

 

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exercise of such right at a later time or any other right, nor shall the foregoing cause Party B to be liable in any way to Party A.

 

If Party B fails to exercise or delays in exercising any right hereunder, or fails to exhaust the remedies available under the Master Agreement, Party A’s liability under this Contract shall not be reduced or discharged; provided that, if Party B reduces or waives the debts under the Master Agreement, Party A’s liability hereunder shall be reduced or discharged correspondingly.

 

11.7                                    Party A shall promptly notify Party B in writing in the event of (i) division, dissolution, subjecting to insolvency, cancellation of registration, revocation of business license, or (ii)  damage to, destruction or infringement of the Mortgaged Properties as a result of any natural course or a third party’s acts, or (iii) the Mortgaged Properties ceasing to be controlled by Party A as a result of any natural course or a third party’s acts, or (iv) any dispute arising in connection with the ownership of the Mortgaged Properties, or (v) the ownership/title documents of the Mortgaged Properties being cancelled.

 

11.8                                    Dissolution or Bankruptcy of the Debtor

 

If Party A is aware that the Debtor is in the proceeding of dissolution or bankruptcy, it shall promptly notify and remind Party B to declare rights, and shall participate in the dissolution or bankruptcy proceeding to exercise preventive recourse right.  Party A shall be held liable for the loss caused as a result of its failure to timely exercise the preventive recourse right if it is or should be aware of the Debtor’s dissolution or bankruptcy proceeding.

 

Notwithstanding the provision of Article 11.6, if Party B and the Debtor agree on settlement agreement or restructuring plan in the process of bankruptcy proceeding, any such settlement agreement or restructuring plan shall not prejudice Party B’s rights hereunder and Party A’s liability shall not be reduced or discharged.  Party A shall not object to any claim made by Party B hereunder by invoking the settlement agreement or the restructuring plan.  Party B is entitled to demand Party A for repayment of any outstanding debts in relation to which it may have made concession in the settlement agreement or the restructuring plan.

 

11.9                                    Dissolution or Bankruptcy of Party A

 

In the event of dissolution or bankruptcy of Party A, Party B is entitled to participate in the dissolution or bankruptcy proceeding to declare rights even if the indebtedness under the Master Agreement is not yet due.

 

11.10                             In the event of any change to its address or other contact information, Party A shall promptly notify Party B of such change in writing.  Party A shall be liable for any loss caused by its failure of giving prompt notice of such change.

 

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11.11                 Other Provisions

 

(1)                                      If the Debtor fails to comply with all applicable laws, regulations or rules on environmental protection, energy saving and emission/pollution reduction, or if there is any potential risk of energy dissipation or pollution, Party B is  entitled to accelerate the exercise of its rights hereunder and adopt other remedial measures provided hereunder or permitted by laws.

 

11.12                 Dispute Resolution

 

Any dispute arising from the performance of this Contract may be settled by consultation.  If the dispute can not be resolved through consultation, such dispute shall be submitted to _(i)_ [Please select from below]:

 

(i)                         the People’s court within the jurisdiction where Party B is located; or

 

(ii)                      _Here’s empty     [name of the arbitration committee] for arbitration at _here’s empty_ [place of arbitration] in accordance with the then prevailing arbitration rules.  The arbitration award shall be final and binding on both Party A and Party B.

 

The provisions hereunder not subject to the dispute shall remain enforceable during the process of litigation or arbitration.

 

11.13                             Effectiveness of this Contract

 

This Contract shall become effective upon:

 

(i)                                     duly execution by the legal representative/(principal officer) or authorized representative of Party A (or this Contract being affixed with the company chop of Party A); and

 

(ii)                                  duly execution by the principal officer or authorized representative of Party B (or this Contract being affixed with the company chop of Party B).

 

11.14                             This Contract shall be executed in _five_ counterparts.

 

12.                               LIST OF MORTGAGED PROPERTIES

 

	
Name of
   the
   Mortgaged
   Properties
    	
 
    	
Serial No.
   of
   Ownership
   Certificate
   or Other
   Title
   Certificate
    	
 
    	
Address/
    Location
    	
 
    	
[ Area]/[Number
   of Properties]
    	
 
    	
Value of
   the
   Mortgaged
   Properties
    	
 
    	
Amounts of
   Other
   Indebtedness
   Secured by the
   Mortgaged
   Properties
    	
 
    	
Remarks
    
	
Building and land use right
    	
 
    	
2012-525577
    	
 
    	
No.2676, Wagnguo Road, Jiaxing City
    	
 
    	
30081.5M2
    	
 
    	
RMB 59,189,000
    	
 
    	
 
    	
 
    	
 
    

 

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13.                               REPRESENTATIONS AND WARRANTIES BY PARTY A

 

13.1                                    Party A clearly understands the business scope and authorization limit of Party B.

 

13.2                                    Party A has read this Contract and the Master Agreement.  Party B, upon Party A’s request, has explained the terms under this Contract and the Master Agreement. Party A fully understands their meanings and corresponding legal consequences of this Contract and the Master Agreement.

 

13.3                                    Party A is qualified to act as a mortgagor, and the security hereunder is in accordance with laws, regulations, rules, Party A’s articles of association or other internal constitutional documents and has been approved by its internal authority and/or competent state authorities. Party A shall be liable for any and all consequences resulting from its incapability or lack of qualifications or authority to execute this Contract, including without limitation full compensations for any and all losses of Party B.

 

13.4                                    Party A acknowledges that it fully understands the Debtor’s situation including without limitation assets, debts, operation, creditworthiness and reputation, and its qualification and authority for execution of the Master Agreement, as well as all provisions thereunder.

 

13.5                                    Party A owns or has the right to dispose of the Mortgaged Properties in accordance with the applicable laws.  The Mortgaged Properties are neither public facilities nor properties prohibited from being sold or transferred.  No ownership or title disputes are subsisting with respect to the Mortgaged Properties.

 

13.6                                    The Mortgaged Properties are not co-owned by Party A with others, or if there are other co-owner(s), such co-owner(s) have given their written consent to the grant and creation of this Mortgage.

 

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13.7                                    Other than those notified to Party B in writing, the Mortgaged Properties are free of any flaw or encumbrance, including without limitation,  (i) the transfer of the Mortgaged Properties is restricted; or (ii) the Mortgaged Properties have been seized, impounded or subjected to custody of authorities, lease or lien; or (iii) there exist unpaid debts in relation to the Mortgaged Properties, including purchasing price, maintenance expenses, construction costs, tax, government levies for the granting of state-owned land use rights or compensation payments etc., which are due and unpaid; or (iv) the Mortgaged Properties have been used as security for the benefit of a third party.

 

13.8                                    All the data and information pertaining to the Mortgaged Properties provided by Party A to Party B are authentic, legitimate, accurate and complete.

 

13.9                                    The grant of this Mortgage by Party A does not prejudice any third party’s legal interests or violate any statutory or contractual obligations of Party A.

 

IN WITNESS whereof this Contract has been executed on the date set out at the beginning of this Contract by:

 

Party A: Hardinge Precision Machinery (Jiaxing) Co., Ltd

(company seal)

Legal Representative: RICHARD LEIGH SIMONS

Authorized representative: Zhang Shuxin

Date: 20th Dec 2012

 

Party B: CHINA CONSTRUCTION BANK JIAXING BRANCH

(company seal)

Vice President: Zhu Jinming

Date: 20th Dec 2012

 

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