Document:

ex10-5.htm

Exhibit 10.5

UNSECURED VARIABLE RATE LOAN CONTRACT

(proposed by the Bank)

ITP Impianti e Tecnologie

Di Processo SpA

Via Federico Zuccari, 4

00153 Rome

Unicredit Corporate Banking SpA

Treviglio premises – Bergamo branch

Treviglio, 7th April 2010

With regard to your request, we inform you that we are willing to grant you a loan with an overall value of Euro 1,500,000.00 (one million five-hundred thousand, hereinafter the “Reference Sum”) to be used for the acquisition of a stake in the company “BENELLI OIL AND GAS SRL” with headquarters in Bologna, Via del Tappezziere n. 4, fiscal code and VAT number 02928451208 at the terms and conditions envisaged by the present contract and “Summary document” which, once signed by the parties, will be attached to the present proposal to form an integral part thereof.

The parties acknowledge that the attached “Summary document” contains the economic conditions relating to the contract.

Art 1 – Purpose of the loan

For the purpose of the issuing of the loan “ITP IMPIANTI E TECNOLOGIE DI PROCESSO SPA”, with headquarters in Rome Via Federico Zuccari 4, fiscal code 06640441009 (hereinafter defined “Company”)  will present to “Unicredit Corporate Banking SpA” (hereinafter defined “Bank”) the complete documentation of the investment programme that is to be financed.

Art 2 – Issuing

The loan sum, net of the charges specified in the letter given to the Company, and in conformity with its instructions, is credited to the current account n. 0658 / 30105415 at the Treviglio premises- Bergamo branch of the bank, made out to the company, which provides confirmation of the receipt of this payment upon the conclusion of the present contract. The Company commits to keeping in place this current account until the repayment of the loan and will ensure that the necessary funds are present within it for the payment of the instalments and everything else that is due at the specified expiry dates, in accordance with the present contract.

Art 3 – Terms and means of repayment

The duration of the loan is fixed at 36 months (as well as a pre-amortisation period from the 7/4/2010 to the 30/4/2010).

The Company commits to repaying the loan sum within 36 months of the 1/5/2010 (start date of the repayment schedule of the loan) through (quarterly) instalments in arrears, to be paid without interruption, without the need for express requests by the Bank, in accordance with the above mentioned repayment schedule agreed between the parties, which will be signed by the parties and attached under the letter “A” of the present contract to form and integral and substantive part thereof.

  

  

  

The Bank may at its own discretion agree to modifications of the repayment plan.

The above mentioned (quarterly) instalments include the capital sum that is required to repay the entire sum with interest within the agreed period of 36 months.

From the 7/4/2010 until the 30/4/2010 (the day prior to the start of the repayment schedule) the Company will on a quarterly basis pay the pre-amortisation interest calculated as per art 4 below.

Art. 4 – Interest

For both the pre-amortisation period and repayment schedule, on the loan a variable interest rate will be applied quarterly at an initial rate of 2.90% nominal per annum, equal to the Euribor three month quotation multiplied by the coefficient of 365/360 - rounded up by 0.05% - that is in place for the value date 7/4/2010, with an annual interest rate increase of 225 basis points.

The above nominal interest rate which is payable quarterly corresponds to an actual annual interest rate of 2.93169%.

Please note that the value of the above parameter for today’s value date is equal to 0.635%.

As a result the Company acknowledges that the TAEG (annual percentage rate) relating to the present loan is equal to 3.86206%.

In the absence of the Euribor being reported by the EURIBOR PANEL STEETING COMMITTEE, the Euro LIBOR rate in London will be used.

In the case of delayed payment of any sum due for whatever reason to the Bank with regard to the present loan, even in the case of the operation of the acceleration clause or the termination of the contract, interest on late payment will accrue in favour of the Bank at the contractual rate increased by 200 basis points per annum.

No periodic capitalization will be applied on these interest charges.

Art 5 – Obligations

The Company is obliged to:

a) use the loan for the declared purposes;

b) reimburse the Bank for all taxes, duties and expenses of all types sustained or paid on its behalf, including the sums that the Bank has paid or has to pay for consultancy and assistance provided to it, including for court and out of court proceedings, with all guarantees acquired on the basis of the present loan remaining in place;

c) promptly report to the Bank any change to the legal or corporate composition (e.g. form, share capital, directors, statutory auditors, shareholders, as well as mergers, including by incorporation, demergers, break-ups, transfers) or the company’s administrative, economic and financial situation (e.g. issuing of bonds) as well as the economic and technical situation, as appears in the material and documents provided at the time the loan was requested, or any other facts which could modify the company’s current structure and organisation.

  

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d) inform the Bank in advance of its intention to ask for other medium-long term financing from credit institutions or private individuals and in any case to not grant to third parties, following the date of the present contract, mortgages on its assets, on the basis of other financing, unless the Bank provides its prior written approval.

e) allow any type of administrative-technical enquiry or control and to provide the Bank with the documents specified in art 1 above and any others that it may ask for (financial statements, assembly minutes, etc).

f) ensure that for the duration of the contract the following economic and financial parameters are respected:

- official statutory financial statement at the 31/12/2009: minimum shareholders’ equity not less that Euro 4,500,000= (four-million five-hundred thousand=);

- official statutory financial statement at the 31/12/2010: minimum shareholders’ equity not less that Euro 5,500,000= (five-million five-hundred thousand=);

- official statutory financial statement at the 31/12/2011: minimum shareholders’ equity not less that Euro 6,500,000= (six-million five-hundred thousand=)

Art 6 – Acceleration clause – termination of the contract

The Bank will have the right to operate the acceleration clause where the circumstances in art 1186 of the Civil Code exist and may terminate the contract in accordance with art 1456 of the Civil Code if :

a) the Company used, even partially, the loan for purposes other than that for which it was granted;

b) the Company and any successors or assigns fail to promptly pay even one repayment instalment of the loan and anything else due to the Bank on the basis of the loan for whatever reason (e.g. capital, interest, commission, expenses, including legal expenses, taxes, duties, etc);

c) the documentation specified in art 1 is not produced;

d) any preventive or enforcement measures are promoted against the Company or the latter is declared insolvent or, for whatever reason or event (e.g. protested bills, commencement of insolvency proceedings, any change of the legal and company composition – for and share capital, directors, statutory auditors, shareholders, as well as mergers, including by incorporation, demergers, break-ups, transfers) or the company’s administrative, economic and financial situation) at the Bank’s discretion there is any type of danger for the credit or any other guarantees;

e) it appears that the situations, data and accounts shown or declared by the Company to the Bank, at the time of the issuing of the loan or subsequently, are not true;

f) the claim to the sums paid for whatever reason on behalf of the Company is prevented by the law;

g) from the periodic financial and economic data for the Company it appear that the  parameters and obligations in article 5 letter f are not respected;

h) the Company is in breach of even one of the obligations in article 5 above.

  

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In these cases the Bank will have the right to demand the immediate repayment of all its receivables and to act without the need for any prior formality in the manner and with the procedures that it deems most suitable.

Any guarantees that have been acquired will remain in place in any case.

Art 7 – commission and expenses

The following commissions and expenses will be applied to the loan:

a) Organisation/Issuing commission: 1.00 % flat on the Reference Sum (payment at time of issuing), equal to Euro 15,000.00 = (fifteen thousand=);

b) Investigation costs: 0.50 % flat on the Reference Sum (payment at time of issuing), equal to Euro 7,500.00 = (seven thousand five-hundred=);

c) Waiver Fee: Euro 5,000.00 = (five thousand=) flat for each Waiver.

The charges relating to the loan during its entire duration will be paid by the Company in the measure specified in the attached Summary Document.

Art 8 – Unilateral modification of the economic conditions

If a valid reason exists the Bank may modify – including in a manner that is unfavourable to the Company – the commissions and charges that are to be paid during the entire duration of the loan and which are shown in the attached “Summary document”, providing notice to the Company with an advance warning of thirty days.

The notice which must contain in a highlighted manner the wording “Proposal for the unilateral modification of the contract” is validly made in a written form. Alternatively, and as agreed with the Company, the notice can be made via another durable support using distance communication techniques.

The Company specifically approves - in accordance with art 117 fifth paragraph of the Banking Consolidation Act – this faculty for the Bank.

If the Company does not withdraw from the contract within sixty days, the modification is understood to be approved. The withdrawal will not be charged and at the time the relationship is resolved the lender has the right to have the previous conditions applied.

The above conditions are governed by art. 118 of Legislative Decree 385/1993. In the case of the variation of the law referred to in the present article the rules that are in force instead of it will be applied.

Art 9. – Advanced repayment

The Company, as well as its successors or assigns, have the faculty to repay in advance all or part of the loan, the capital loan plus interest – including any late payment interest – on condition that:

  

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a) the arrears that were due for whatever reason have been paid, any legal expenses documented, including those for court proceedings, that were sustained by the Bank in relation to appointments granted for the recovery of unpaid receivables and any other sum owed to the Bank;

b) an all-inclusive commission is paid equal to 1.00% of the capital that is repaid in advance.

For example

Capita repaid in advance Euro 1,000.00 = (one thousand=) and commission of 1.00%

Euro1,000.00= x 1.00%     =   Euro 10.00

100

Art 10 – Allocation of payments

The Bank may allocate any sum paid to it by the Company, or on its behalf, with preference, to the payment of the expenses and charges of any nature, including also non-claimable expenses for court proceedings, as well as anything else that was paid by the Bank on behalf of the Company, then for the payment of the late payment interest and the arrears and finally for the payment of the standard interest and capital, unless a different order is decided.

Art 11 – Payments made by third parties

The Bank will have the right to refuse payments made by third parties in its name.

Art 12 – Transfer

The Company cannot transfer any part of the loan without the Bank’s express authorisation.

Art 13 – Domicile

For all legal effects the bank elects as its domicile the Treviglio premises – Bergamo branch.

The Company (and any guarantors) elect theirs in Rome Via Federico Zuccari n. 4, or if not specified here, at the Town Hall of Rome; at the above elected domicile or at the Company’s real address the Bank may make all notifications including those relating to enforcement proceedings.

Art 14 – Bank’s non involvement in relations between the Company and third parties

Unless it explicitly declares otherwise, the Bank must always be considered extraneous to the relations between the Company and third parties and as such the latter may not advance any right or claim towards it.

Art 15 – Complaints

If a dispute should arise between the Client and the Bank in relation to the interpretation and application of the present contract the Client – before referring to the ordinary legal channels – has the right to use the instruments for the resolution of disputes envisaged below.

  

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The Client can present a complaint to the Bank by registered letter with return receipt, by telefax to UniCredit Corporate Banking SpA – Direzione Generale – Ufficio Reclami, Via Garibaldi 1, 37121 Verona – fax 045 8679766. The Bank must respond within 30 days from receipt of the complaint.

If the Client is not satisfied or has not received any response it can refer the matter to the Banking Mediator (“Arbitro Bancario Finanziario”). For details on how to contact the Mediator please consult the site www.arbitrobancariofinanziario.it, ask at branches of the Bank of Italy, or ask the Bank. The possibility for the Client and Bank to refer to the ordinary legal channels remains unprejudiced.

The Client can – independently or jointly with the Bank –activate a conciliation procedure to try to reach an agreement. This attempt will be made at the Banking Conciliation Body (“Organismo Conciliazione Bancaria”) set up by the “Conciliatore Bancario Finanziario” – association for the resolution of banking, financial and corporate disputes – ADR (www.conciliatorebancario.it). The possibility to refer to the ordinary legal channels remains unprejudiced if an agreement is not reached during the conciliation procedure.

Art 16 – Competent court

For any dispute that may arise in relation to the present contract, the competent court for the actions promoted by the Client (and its guarantors) is exclusively that of the legal headquarters of the Bank – i.e. Verona. The Bank, on the other hand, will have the right to act against the Client (and its guarantors), at its discretion, in any of the courts envisaged by the law or in the court that falls within the jurisdiction of the branch where the loan contract was established.

Art 17 – Final details

All of the obligations deriving from the present contract are taken on by the Company even on behalf of its successors or assigns with the restrictions of solidarity and indivisibility.

The present deed and the respective formalities are discounted from the procedures envisaged by art 15 and following of D.P.R. n. 601 of the 29th September 1973 (exemption from registration fee, stamp duty, mortgage and cadastral duties and taxes on governmental concessions, in place of which the Bank pays a substitute tax on the overall sum of the loans issued in each financial year).

As well as the sum of the substitute tax due to the Bank and withheld by the latter on the sum issued, in the measure in force at the moment the sum is issued, the party commits to paying to the Bank any increases of this tax which, for subsequent legal conditions, the Bank was required to pay in relation to the present deed.

We ask that you express your approval of the above with the acceptance of the present conditions and agreements.

Yours sincerely,

Unicredit Corporate Banking SpA

Treviglio premises – Bergamo branch

  

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UniCredit

Corporate Banking

	
Summary document n. ML003

	
Date 7/04/2010

Regulations for the transparency of banking and financial transactions and services in accordance with articles 115 and following of the Banking Consolidation Act

Summary Document

UNSECURED VARAIBALE/FIXED RATE LOANCURRENT ACCOUNT OVERDRAFTS

ECONOMIC CONDITIONS

 

 

	
TAEG (annual percentage rate)

	  	
3.86206%

	  	  	  
	  	  	
Conditions

	  	  	  
	
Sum

	  	
Euro 1,500,000 (one-million five hundred thousand) issued as lump sum

	  	  	  
	
Duration

	  	
36 months

	  	  	  
	
Nominal annual interest rate

	  	
2.90% (initial rate, variable quarterly)

	  	  	  
	
Indexation parameter

	  	
Euribor 3 months base 365 (variable rate)

	  	  	  
	
Spread

	  	
2.25%

	  	  	  
	
Pre-amortisation interest rate

	  	
2.90%

	  	  	  
	
Late payment interest rate

	  	
2.00% more than rate in force

	  	  	  
	
Organisation/Issuing commission

	  	
1.00% flat on sum (Euro 15,000.00 paid on issuing)

	  	  	  
	
Investigation commission

	  	
0.50% flat on sum (Euro 7,500.00 paid on issuing)

	  	  	  
	
Waiver Fee

	  	
Euro 5,000.00 for each Waiver/renegotiation

  

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Penalty for partial advance repayment (on the sum of the capital repaid in advance, due even in the case of termination)

	  	
1.00%

	  	  	  
	 Penalty for total advance repayment (on the sum of the capital repaid in advance, due even in the case of termination)	 	 1.00%
	 	 	 
	
Commission on instalment

	  	
Euro 3.00

	  	  	  
	
Receipt expenses

	  	
Euro 2.00

	  	  	  
	
Expenses sending expiry notice

	  	
Euro 2.00

	  	  	  
	
Expenses sending of receipt

	  	
Euro 3.00

	  	  	  
	
Expenses for release of fiscal certification

	  	
Euro 15.00

	  	  	  
	 Expenses issuing legal correspondence, per item of correspondence	 	 Euro 3.00
	 	 	 
	
1st and 2nd payment reminder

	  	
Euro 5.00

	  	  	  
	
Expenses sending payment warning

	  	
Euro 10.00

	  	  	  
	
Payment certification/declaration interest paid

	  	
Euro 15.00

	 	 	 
	 Release of miscellaneous for client copy or general reproduction of documents	 	 Minimum Euro 25.00, Maximum Euro 75.00
	  	  	  
	
Commission for declaration of existence of credit/debt

	  	
Euro 75.00

	  	  	  
	
Commission for waiving agreed loan

	  	
0.20% flat on sum (equal to Euro 3,000,000, after sending of letter granting loan)

	  	  	  
	
Type of amortisation

	  	
French

	  	  	  
	
Type of instalment

	  	
Quarterly

	  	  	  
	
Frequency of instalment

	  	
Quarterly

	  	  	  
	
OTHER EXPENSES

	  	  
	  	  	  
	
Substitute tax

	  	
0.25% of the sum of the loan issued

	  	  	  

Attached: amortisation plan

Client signature

_______________

  

8ex10-6.htm

EXHIBIT 10.6

[in left-hand margin:]

GIUSEPPE TEDONE NOTARY PUBLIC

MILAN – VIA MORONE 8 – phone (02) 7601.3077 – fax (02) 7601.6388 - LAVENO M. – VIALE PORRO. 17 – phone (0332) 66.68.11 – fax (0332) 62.6366

[in right-hand margin:]

REGISTERED IN GAVIRATE

on 27 December '07

no. 6113 Series 1T

Collected € / of which € /

for registration

[in right-hand margin of recto pages:]

round stamp of Notary Public Tedone Giuseppe, initialled

[stamp:]

NOTARY PUBLIC

LAVENO MOMBELLO – Via Porro, 17

phone (0332) 666 811

MILAN Via Morone, 8 Phone (02)76013077

On unstamped paper in pursuance of presidential decree D.P.R no. 601 of 29.9.1973

and subsequent amendments and additions

MORTGAGE LOAN

(in accordance with article 38 and following)

of Legislative Decree no. 385 of 1 September 1993)

	
Index no. 40256

	
Volume no. 15924

REPUBLIC OF ITALY

On the twelfth of December two thousand and seven

in Milan, in an office of "Banca Italease S.p.A." in Piazzale Cadorno no. 1

The following persons appear personally before me, Giuseppe Tedone, Notary Public resident in Laveno Mombello, enrolled with the Association of Notaries of Milan,

- Villa Giancarlo, born in Pessano con Bornago on 30 June 1951, domiciled for the office in Lodi, Via Garibaldi no. 5, at the registered office, who is participating on behalf of the bank  "BANCA DI CREDITO COOPERATIVO LAUDENSE LODI Soc. Cooperativa", with headquarters in Lodi, Via Garibaldi no. 5, registration number on the Lodi Register of Companies and tax code 09900240152 (which will hereinafter be referred to as "Bank"), authorised for this action in pursuance of the powers granted to him by the Minutes of the meeting of the Board of Directors on 26 April 2007, of which a true copy is attached hereto as annex "A"';

- SPRECA SIMONA, born in Rome on 28 December 1967, resident in Rome, Via Gargano no. 34, who states that she is participating as Proxy of the company "ITP IMPIANTI E TECNOLOGIE DI PROCESSO – Società a responsabilità limitata", with headquarters in Rome, Via Federico Zuccari no. 4, with share capital of Euro 100,000.00 (one hundred and thousand and zero cents), fully paid up, registration number on the Rome Register of Companies and tax code 06640441009 (which will hereinafter be referred to as the "borrower"), endowed with the necessary powers in virtue of a Special Proxy received from Notary Public Giulio Majo of Rome on 4 December 2007 with Index no. 24482, the original of which is attached hereto as annex "B".

  

  

  

I, the Notary Public, am certain of the personal identity of the persons appearing.

W H E R E A S

- the "borrower" has asked the "Bank" for a loan of Euro 2,000,000.00 (two million and zero cents) intended for the purchase of a firm, offering as security a mortgage on real estate owned by it, the "borrower", in accordance with article 38 and following of Legislative Decree no. 385 of 1 September 1993 and presidential decree D.P.R. no. 601 of 29 September 1973 and subsequent amendments and additions;

- the "Bank" has approved granting of the loan requested for the capital sum of Euro 2,000,000.00 (two million and zero cents), accepting the security offered;

- there is a "Summary Document" attached to this contract, in pursuance of the resolution by the C.I.C.R. (interministerial committee for credit and savings) of 4 March 2003, which, signed by the parties and by me the Notary Public, is attached hereto as annex "C", and which the "borrower", as represented above, states it knows well because it previously received a copy from the "Bank".

NOW THEREFORE

the foregoing being considered an integral and essential part of this deed, the parties agree as follows:

Article 1) The "Bank", as represented above, grants as a landed-property loan, in accordance with art. 38 and following of Legislative Decree no. 385 of 1 September 1993, to the "borrower" which, as represented above, accepts, the sum of Euro 2,000,000.00 (two million and zero cents).

The "borrower" has received the sum of Euro 2,000,000.00 (two million and zero cents) here and now from the "Bank" by crediting to the account current in the name of the "borrower" and acknowledges receipt if it to the "Bank".

On the amount of money lent, the "borrower" promises to pay interest to the lending "Bank" at an annual rate that is presently 6.75% (six point seventy-five percent), fixed by Euribor at three months 365 days average month of September 2007, equal to 4.802% (four point eight hundred and two per cent), rounded up to the  higher 0.05, increased by 1.90 (one point ninety) percentage points.

The rate will vary quarterly on the first of every month of January. April, July, and October on the basis of the following parameters: Euribor at 3 (three) months calculated on 365 days rounded up to the 0.05 (zero point zero five) above, average month of December for instalments falling due between 1 January and 31 March, average of March for instalments falling due between 1 April and 30 June, average June for instalments falling due between 1 July and 30 September, average September for instalments falling due between 1 October and 31 December, increased by 1.90 (one point ninety) percentage points.

  

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Alterations in the amount of the rate of interest will mean that the repayment schedule must be adapted to the new rate conditions, on the basis of the remaining debt and duration, with recalculation of the new fixed repayment rate.

The "borrower", as represented above, also promises to pay the "Bank" on all the amounts not paid on their due dates, with effect from the date due until that of actual payment, default interest at the current contract rate, increased by two points, and in any case in compliance with law 108/96, as well as a penalty of 1.50% (one point fifty per cent) of the amount of the instalment paid in arrears with a minimum of Euro 15.00 (fifteen and zero cents) and a maximum of Euro 60.00 (sixty and zero cents).

Periodic capitalisation on default interest is not permitted.

The Summary Document, which shows the rates related to the financial charges and conditions to be borne by the "borrower" as a result of this deed, signed by the parties and by me the Notary Public, is attached to this deed as annex "C" and forms an integral and essential part of it

According to the procedures and the notice period foreseen by art. 118 of Leg. Dec. 385/93 and with the option to withdraw within a period of 60 (sixty) days from receipt of a proposal for unilateral amendment, the "borrower", as represented above, specifically grants the "Bank" the power to change, at any time, any price and financial condition governing this loan, except that the rate of interest and the rate of default interest may change but such change must be compliant with the parameters agreed above, complying, in the case of variation to the disadvantage of the client, with the regulations regarding transparency.

Within sixty days from receipt of the notification of such changes, the "borrower" has the right to withdraw from the contract without costs, obtaining, when settlement is taking place, application of the conditions previously applied, in accordance with the regulations in force (art. 118 of Leg. Dec. no. 385/1993, as amended by art. 10 of Decree Law no. 223 of 4 July 2006. converted into Law no. 248 of 4 August 2006.

The "borrower" , as represented above, also acknowledges that financial operations at a variable rate and those related to indexation mechanisms are risky since they are subject to fluctuations that cannot be foreseen.

If the indexation parameter agreed on disappears and/or becomes no. longer relevant for any reason, the "Bank" will find an equivalent parameter, along lines deducible from the market and from any national or Community measures issued on the subject.

As a result of the financial conditions agreed on (capital repayment and payment of interest, preliminary fees, instalment collection fees) and the tax charges imposed on the borrower (substitute tax equal to Euro 5,000.00), the synthetic cost index (ISC), which represents the total cost of the loan for the borrower, expressed in an annual percentage of the loan granted, is 7.06900% (seven point zero six thousand nine hundred per cent).

  

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Article 2) the "borrower", as represented above, promises, for itself and for its successors in title on whatsoever grounds, to repay the amount received to the lending "Bank" within a period of 8 (eight) years, by paying 96 (ninety-six) consecutive monthly instalments, starting on 31 December 2007, in an amount of Euro 27,025.12 (twenty-seven thousand and twenty-five and 12 cents) each, except for the first instalment, which will be Euro 22,586.76 (twenty-two thousand five hundred and eighty-six and seventy-six cents), all including capital part and interest, the latter calculated at the rate fixed in art. 1, that is to say, 6.75% (six point seventy-five per cent) per year, as per the repayment schedule attached hereto as Annex "E".

Article 3) The "borrower" has the right to pay off the loan in advance by paying the entire remaining capital debt, the instalments due and any default interest due, the interest accrued up to the date of settlement, and an all-inclusive commission of 1% (one per cent), except in the cases foreseen by Law no. 40 of 2 April 2007 converting Law Decree no. 7 of 31 January 2007 into Law, in which the penalty is not applied, calculated on the capital paid in advance, and applying the following illustrative formula: capital amount repaid in advance Euro 1,000.00 (one thousand and zero cents) x 1% (one per cent) equal to Euro 10.00 (ten and zero cents).

Subject to the same conditions the borrower may request partial repayment of the loan for amounts not less than 20% (twenty per cent) of the initial debt.

Following partial repayment, the "borrower" may request reduction of the duration of the period of repayment of the remaining debt or of the amount of the remaining instalments.

Article 4) As security for total payment of everything due to the Bank as a result of the loan granted, and even if the Bank itself grants delays of payments or extensions at any time and in any form, the "borrower", as represented above, gives a mortgage on the properties described hereunder, as well as on all their environs, appurtenances, accessions, new constructions, extensions, additional floors and on everything that is in any case deemed liable by law and is added later, without any exclusions or exceptions.

The "borrower", as represented above, guarantees that the assets in question are its sole property and are free of mortgages, constraints and encumbrances in favour of third parties or liens, even for taxes, as well as adverse entries.

Any erroneous and incomplete description of the aforementioned assets will not give the mortgage provider  grounds for challenging the validity of the mortgage itself

The mortgage is granted for the amount of Euro 4,000,000.00 (four million and zero cents), which includes and guarantees: the amount of capital lent, interest, even on pre-repayment, the amount of any unpaid instalments, default interest in the amount fixed in art. 3 above, any sums due to the "Bank" for legal costs, litigation and other disposal costs (including those mentioned in the first paragraph of art. 2855 civil code), as well as out-of-Court costs, insurance premiums, tax refunds, taxes and duties of any kind owed to the State or to other Bodies and anything established by contract for any case of repayment or advance settlement of the loan, voluntarily or due to non-fulfilment, and anything else owed as a consequence of the law and of the loan contract

  

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The "borrower", as represented above, agrees that the mortgage be registered at the request of the "Bank", specifically exonerating the competent Real Estate Registrar from any personal responsibility concerning the formalities to be observed.

Article 5) The "Bank" shall have the right to cancel the contract immediately if:

a) it happens at any time, that without the written consent of the "Bank"  earnings or income in general on the real estate mortgaged that are not declared in this contract have been transferred, encumbered or collected in advance, except for normal short-term maturities, or that the legal status of the real estate has been altered, even by establishment of passive easements or by changing or increasing existing ones;

b) the "borrower" has not revealed the existence of debts, charges, constraints and causes of pre-emption related to the real estate mortgaged;

c) it turns out that any time the "borrower" has not insured the mortgaged real estate or has not kept it insured according to the manner and terms fixed in art. 6 of the Contract;

d) the mortgage procedures for executing the guarantees given are not carried out within a period of 90 (ninety) days from the date this deed is made;

The "Bank" shall also have the right to cancel the contract in the event foreseen in the second paragraph of art. 40 of legislative decree no. 385 of 1 September 1993, and also  if the "borrower" makes payment, of even a single repayment instalment, 180 (one hundred and eighty) days after the due date of that instalment.

Likewise the "Bank" may cancel the contract if the "borrower" does not pay the instalment after 180 (one hundred and eighty) days after it has fallen due.

It is understood that the "borrower" shall forfeit the benefit of the time limit if the cases foreseen in art. 1186 of the Civil Code occur.

It is agreed that, either in the case of cancellation or forfeiture of the benefit of the time limit, the "Bank" shall have the right to demand immediate repayment of the capital owed, the interest, the ancillaries and any costs, without need for warning or formal notice of default, or any other action, if necessary taking action for enforcement by means of the executive copy of this deed.

All the costs incurred by the "Bank" for recovering the credits arising from the loan granted by this deed, whether in or out of court, repeatable or not, shall be entirely borne by the "borrower", as well as any other cost that the "Bank", by its final decision, incurs for protecting and safeguarding its rights.

Article 6) Whenever the "borrower" has settled the fifth part of the original debt it may request a proportional reduction in the amount of the mortgage.

Article 7) The costs of this deed and all other costs arising from it, including those related to the executive copy for the "Bank" and the copy that the latter is to supply to the "borrower", as well as those for taxes and duties, even of a supplementary nature or of whatsoever kind, shall be borne by the "borrower".

  

5

  

For the sole purpose of application of the rate of the substitute tax referred to in articles 15 and following of presidential decree D.P.R. no. 601/73, the "borrower"  states that the loan referred to in this contract is destined for the purchase of a firm for which the conditions referred to in note II bis to art. 1 of the Tariff, part one, annexed to the Consolidation Act of the regulations concerning the registration tax, approved by presidential decree D.P.R. no. 131 of 26 April 1986, exist and that therefore that loan is subject to the substitute tax, applying the rate of 0.25% (zero point twenty-five percent). In any case, the "borrower", as represented above, promises to refund to the "Bank" any other amounts due to the Treasury (for example by way of adjustments,  surtaxes, penalties, costs etc.), authorising the "Bank" to debit those amounts to its current account.

Article 8) For all the purposes of this contract, and also for notifications of any  claim and action, as well as warning, even non-judicial, the parties elect domicile, with regard to the Bank, at its headquarters, as shown in the caption, and the borrower at the domicile declared in this contract.

Article 9) For any dispute concerning the application and interpretation of this contract the competent court is the one in the jurisdiction of which the headquarters of the "Bank" are located, except for any limitations foreseen by law.

Article 10) The "borrower", as represented above, states that, because it already received a copy, it is familiar with the "Schedule of agreements and conditions"  which, signed by the persons appearing and by me the Notary Public, is attached to this deed as annex "D". It also states that it accepts all the conditions and, in particular, those contained in the following articles: art. 1 (payment of instalments), art. 2 (probative value of records), art. 3 (obligations related to the real estate mortgaged), art. 5 (reduction of guarantee), art. 6 (Insurance), art. 8 (right of the Bank to take out insurance on the real estate), art. 9 (non-fulfilment of insurance requirement), art. 10 (solidarity and indivisibility of the obligations).

The "borrower", as represented above, states that it did not make use, during the pre-contract phase of the mortgage loan, of the right to receive from the "Bank" a copy of the text of the contract, with the exception of the summary document, of which it states that it already received a copy from the "Bank".

DESCRIPTION OF THE ASSETS TO BE MORTGAGED

In the Municipality of Moscazzano, District Vignola no. 14:

- industrial complex, with adjoining pertaining unroofed area on which there is an ENEL substation, consisting of a shed with a vestibule, washroom and cupboard, with adjoining changing room and washroom on the ground floor; above them, rooms for office use,  lumber room, penthouse, boiler room and compressor room on the first floor, accessible by an internal staircase, as well as a flat, used as caretaker's house, accessible from the ground floor, consisting of two rooms as well as bathroom and balcony on the first floor, with a staircase to the ground floor.

These real estate portions are registered with the Buildings Register of the Municipality of Moscazzano on folio 3 (three), as follows:

  

6

  

- map 468 (four hundred and sixty-eight), subordinate 502 (five hundred and two), District Vignola no. 14, floors G-1, category D8, Cadastral Income Euro 13,278.11 (thirteen thousand two hundred and seventy-eight point eleven cents) – shed and appurtenances;

- map 468 (four hundred and sixty-eight). subordinate 501 (five hundred and one), District Vignola no. 14, floors T-1, category A3, class 1, rooms 3 (three), Cadastral Income Euro 145.64 (one hundred and forty-five point sixty-four cents) – dwelling.

Boundaries in a single unit (starting from North and continuing clockwise): Via Vignola and properties of third parties on the remaining sides.

The persons here present dispense me from reading the attachments.

I have read this document, partly written with electronic equipment by a person trusted by me and partly written by hand by me, the Notary Public, on four folios with fifteen pages, to the persons here present who approve it and sign it at twelve twenty p.m.

SGD. VILLA GIANCARLO

SGD. SIMONA SPRECA

SGD. GIUSEPPE TEDONE NOTARY PUBLIC

  

7

  

[stamp] Annex "A"

to deed no. 40256/15924

of the Index

Extract from the Minutes of Board of Directors Meeting no. 581 BCC Laudense s.c.  26 April 2007

EXTRACT FROM THE MINUTES of the meeting of the Board of Directors of the Banca di Credito Cooperativa Laudense – Lodi – Cooperative Company with Headquarters in Lodi Via Garibaldi no. 5 – Tax Code 09900240152 – Lodi CCIAA (chamber of commerce) Registration no. 1324029 – Reg. of Cos. no. 7532 Court of Lodi.

On 26th April 2007, at 5 p.m. in Lodi, at the Headquarters in Via Garibaldi no. 5 of the Banca di Credito Cooperative Laudense – Lodi, S.c., after proper convening by the Chairperson, the Board of Directors met to deliberate on the following:

Agenda

Item 6. Assigning Powers of Signature

...omission...

Present:

Cerri Gaetano – Chairman

Geroni Giancarlo – Vice Chairman

Degiacomi Franco, Chiodi Stefania, Zanaboni Ernesto, Buonsante Nicola, Guarnieri Ludovico, Malta Fabrizio, Moroni Natale – Directors;

Dallera Maurizio Giovanni – Chairman of the Board of Auditors

Carabelli Pierluigi and Meazza Luigi Mario – Regular Auditors

Also present:

Periti Fabrizio (Deputy Vice Director-General); absent Moroni Natale; absent on leave Villa Giancarlo (Director-General).

The Chairman of the board meeting, Cerri Gaetano, noting that the meeting was validly constituted, invited Periti Fabrizio to act as Secretary and declared the session open.

...omitted...

Following that amendment the Regulations of the Powers of Signature are expressed as follows:

[round stamp of the Notary, initialled]

  

8

  

"I – POWERS OF SIGNATURE AND OF REPRESENTATION.

For execution of all the resolutions adopted by the Board of Directors, including deeds of loans or financing in whatsoever technical form or duration, to be executed publicly and/or privately, whether for opening them or for closing them when payment is completed, also as part of operations in Pool with other Credit Institutions and/or on their behalf, the Board of Directors confers the following powers:

a) on the Chairman of the Board of Directors Cerri Gaetano born in Lodivecchio on 18.10.1954, and, as his replacement or in his stead, on the Vice-Chairman of the Board of Directors  Geroni Giancarlo born in Corte Palasio on 14.02.1957 to represent the Bank, and all with promise of ratification and approval as of now, in order for him to:

	
  

	
·

	
Sign long-term loans already approved in the form of a loan and/or of opening a credit line in a current account and/or any other technical form up to a maximum capital amount of €4,000.00 (four million) for each operation, against establishment in favour of the Bank of real or collateral security in general and/or special liens on the immovable and/or moveable property of third parties, with the right, by way of example, to agree on all their pacts, interest rates, terms, procedures and conditions, to accept mortgages, collateral security and liens, to indicate and accept the amount and level of mortgage registrations and the assets to be subjected to a mortgage and/or lien, to state and do everything necessary or useful for granting those loans and the acquisition of the collateral and personal security so that nobody can challenge lack or indeterminateness of powers;

	
  

	
·

	
Give receipts in full discharge, carry out splitting, consent to the cancellation of any kind of mortgage and lien entered and registered anywhere in favour of the bank, regardless of their amount and kind, and from anybody, and in any way acquired by the bank, and to their restriction and/or reduction and to any extension of the duration of the loans;

	
  

	
·

	
Have the power to exonerate, for everything in any way related to the operations referred to in this resolution, the competent Registrars of the Public Registries and any other competent Authority from any responsibility in relation to the procedures to be followed.

	
  

	
·

	
Sign letters of surety/unsecured loans, already approved up to a maximum capital amount of €3,000,000 (three million) for each operation.

a-bis) With joint signature between them or with one of them plus the Director-General, they are empowered for the operations referred to in point a) for any amount.

b) on the Director-General Villa Giancarlo born in Pessano con Bornago on 30.06.1951, and, if he is absent or unable to act, on the Vice-Director-General, Periti Fabrizio born in Piacenza on 29.09.1968, representing the Bank, and all with promise of ratification and approval as of now, in order for him to:

  

9

  

	
  

	
·

	
Sign long-term loans already approved in the form of a loan and/or of opening a credit line in a current account and/or any other technical form up to a maximum capital amount of €3,000.00 (three million) for each operation, against establishment in favour of the Bank of real or collateral security in general and/or special liens on the immovable and/or moveable property of third parties, with the right, by way of example, to agree on all their pacts, interest rates, terms, procedures and conditions, to accept mortgages, collateral security and liens, to indicate and accept the amount and level of mortgage registrations and the assets to be subjected to a mortgage and/or lien, to state and do everything necessary or useful for granting those loans and the acquisition of the collateral and personal security so that nobody can challenge lack or indeterminateness of powers;

	
  

	
·

	
Give receipts in full discharge, carry out splitting, consent to the cancellation of any kind of mortgage and lien entered and registered anywhere in favour of the bank, regardless of their amount and kind, and from anybody, and in any way, acquired by the bank, and to their restriction and/or reduction and to any extension of the duration of the loans;

	
  

	
·

	
Have the power to exonerate, for everything in any way related to the operations referred to in this resolution, the competent Registrars of the Public Registries and any other competent Authority from any responsibility in relation to the procedures to be followed.

	
  

	
·

	
Sign letters of surety/unsecured loans, already approved up to a maximum capital amount of €2,000,000 (two million) for each operation.

c) On the Manager of the Credits Area Montani Luca born in Crema on 5.11.1971, on the Internal Accounts Manager Tolasi Cesare born in Izano on  15.7.1955, on Accountant Negron Pietro born in Ossago Lodigiano on 25.5.1951, Morandi Diego Enrico born in San Colombano al Lambro on 28.7.1961

Representing the Bank, and all with promise of ratification and approval as of now, in order for them  to:

	
  

	
·

	
Sign long-term loans already approved in the form of a loan and/or of opening a credit line in a current account and/or any other technical form up to a maximum capital amount of €1,500.00 (one million five hundred) for each operation, against establishment in favour of the Bank of real or collateral security in general and/or special liens on the immovable and/or moveable property of third parties, with the right, by way of example, to agree on all their pacts, interest rates, terms, procedures and conditions, to accept mortgages, collateral security and liens, to indicate and accept the amount and level of mortgage registrations and the assets to be subjected to a mortgage and/or lien, to state and do everything necessary or useful for granting those loans and the acquisition of the collateral and personal security so that nobody can challenge lack or indeterminateness of powers;

  

10

  

	
  

	
·

	
Give receipts in full discharge, carry out splitting, consent to the cancellation of any kind of mortgage and lien entered and registered anywhere in favour of the bank, regardless of their amount and kind, and from anybody, and in any way, acquired by the bank, and to their restriction and/or reduction and to any extension of the duration of the loans;

	
  

	
·

	
Have the power to exonerate, for everything in any way related to the operations referred to in this resolution, the competent Registrars of the Public Registries and any other competent Authority from any responsibility in relation to the procedures to be followed.

	
  

	
·

	
Sign letters of surety/unsecured loans, already approved up to a maximum capital amount of €1,000,000 (one million) for each operation.

d) On Branch Managers:

	
  

	
·

	
Cremascoli Roberto born in Lodi 19.8.1957,

	
  

	
·

	
Curti Pierfrancesco born in Lodi 03.01.1959,

	
  

	
·

	
Cagni Gianmario born in Cavenago d'Adda on 5.5.1963,

	
  

	
·

	
Rossi Arnaldo born in Castelleone on 24.03.1967,

	
  

	
·

	
Corbari Fabio born in Cremona on 18.07.1970,

	
  

	
·

	
Ferrarini Flavio born in Cotogno on 3.11.1969,

	
  

	
·

	
Mazzola Mauro born in Graffignana on 15.6.1961,

	
  

	
·

	
Caimi Enrico Pietro, born in S. Angelo Lodigiano on 11.31.954,

representing the Bank, and all with promise of ratification and approval as of now, in order for them to:

	
  

	
·

	
Sign long-term loans already approved in the form of a loan and/or of opening a credit line in a current account and/or any other technical form up to a maximum capital amount of €1,000.00 (one million) for each operation, against establishment in favour of the Bank of real or collateral security in general and/or special liens on the immovable and/or moveable property of third parties, with the right, by way of example, to agree on all their pacts, interest rates, terms, procedures and conditions, to accept mortgages, collateral security and liens, to indicate and accept the amount and level of mortgage registrations and the assets to be subjected to a mortgage and/or lien, to state and do everything necessary or useful for granting those loans and the acquisition of the collateral and personal security so that nobody can challenge lack or indeterminateness of powers;

  

11

  

	
  

	
·

	
Give receipts in full discharge, carry out splitting, consent to the cancellation of any kind of mortgage and lien entered and registered anywhere in favour of the bank, regardless of their amount and kind, and from anybody, and in any way, acquired by the bank, and to their restriction and/or reduction and to any extension of the duration of the loans;

	
  

	
·

	
Have the power to exonerate, for everything in any way related to the operations referred to in this resolution, the competent Registrars of the Public Registries and any other competent Authority from any responsibility in relation to the procedures to be followed.

	
  

	
·

	
Sign letters of surety/unsecured loans, already approved up to a maximum capital amount of €500,000 (five hundred thousand) for each operation.

e) On the Branch Managers or Assistant Branch Managers:

1.           Vacchini Luisa born in Lodi on 4.6.1965,

2.           Pagani Anna born in Lodi on 14 June 1957,

3.           Garlaschi Carlo born in Sant'Angelo Lodigiano on 16.5.1961,

4.           Baldrighi Achille born in Lodi on 8 October 1948.

representing the Bank, and all with promise of ratification and approval as of now, in order for them to:

	
  

	
·

	
Sign long-term loans already approved in the form of a loan and/or of opening a credit line in a current account and/or any other technical form up to a maximum capital amount of €250,000 (two hundred and fifty thousand) for each operation, against establishment in favour of the Bank of real or collateral security in general and/or special liens on the immovable and/or moveable property of third parties, with the right, by way of example, to agree on all their pacts, interest rates, terms, procedures and conditions, to accept mortgages, collateral security and liens, to indicate and accept the amount and level of mortgage registrations and the assets to be subjected to a mortgage and/or lien, to state and do everything necessary or useful for granting those loans and the acquisition of the collateral and personal security so that nobody can challenge lack or indeterminateness of powers;

	
  

	
·

	
Give receipts in full discharge, carry out splitting, consent to the cancellation of any kind of mortgage and lien entered and registered anywhere in favour of the bank, regardless of their amount and kind, and from anybody, and in any way, acquired by the bank, and to their restriction and/or reduction and to any extension of the duration of the loans;

  

12

  

	
  

	
·

	
Have the power to exonerate, for everything in any way related to the operations referred to in this resolution, the competent Registrars of the Public Registries and any other competent Authority from any responsibility in relation to the procedures to be followed.

POWER OF ATTORNEY IN LAWSUITS

For the purpose of direct participation by the Bank in hearings fixed as part of judicial proceedings in progress, with particular but not exclusive regard to the provisions of art. 183 of the C.C.P. (code of civil procedure), the BOD, taking advantage of the provisions of articles 35 and 47 of the Articles of Incorporation, resolve to confer severally:

	
  

	
·

	
on Director Giancarlo Villa, born in Pessano con Bornago (MI) on 30/6/1951,

	
  

	
·

	
on Deputy Assistant Director, Periti Fabrizio born in Piacenza 29.09.1968,

	
  

	
·

	
on Tolasi Cesare born in Izano on 15.7.1955,

Powers of attorney for the Bank needed for participating in hearings.

They are also granted the power to reconcile or settle the dispute, all with promise of ratification and approval.

If necessary the Chairman may, in accordance with this resolution, grant special powers of attorney, for public deeds or authenticated private agreements, to the abovementioned persons."

...omitted...

At 8.15 p.m. since none of those present had asked for the floor, the Chairman closed the meeting.

Drafted, read, confirmed, signed.

	
The Chairman

	
The Secretary

	  	  
	
sgd. Cerri Gaetano

	
sgd. Periti Fabrizio

	  	  

I certify that this extract is a true copy from the Minutes Book of the Board of Directors duly stamped and certified and that the parts omitted do not alter its  contents.

	  	
Banca di Credito Cooperativo

	  	  
	  	
Laudense – Lodi

	  	
The Chairman

	  	
Gaetano Cerri

	  	  

  

13

  

Index no. 24455

CERTIFICATE OF CONFORMITY

I, the undersigned Vincenzo Rozza, Notary Public, resident in Lodi and enrolled with the Association of Notaries of Milan, certify that this extract, consisting of two half folios, was taken from the original book of minutes and resolutions of the Board of Directors of the: "Banca di Credito Cooperativo Laudense – Lodi Soc. Coop." with headquarters in Lodi, Via Garibaldi no. 5,  kept in accordance with the law, shown to me the Notary Public, with warning that the omitted parts do not alter or modify the parts shown above.

Lodi, Via San Martino no. 11, 25 October 2007

 [two round stamps]

[signature]

[revenue stamp €14.62]

  

14

  

 [stamp] Annex "B"

to deed no. 40256/15924

of the Index

[in right-hand margin:]  oval stamp of Notary Public Giulio Majo

[in right-hand margin of recto pages:] round stamp of Notary Public  Giuseppe Tedone

Index no. 2??82

SPECIAL POWER OF ATTORNEY

REPUBLIC OF ITALY

In the year two thousand and seven on the fourth day of the month of December in Rome, in my Office

4 December 2007

Before me GIULIO MAJO, Notary Public in Rome, with Office in Via Giambattista Vico no. 40, enrolled on the List of the United Notarial Districts of Rome, Velletri and Civitavecchia.

The following person is present:

- Prof. Manlio MAZZIOTTI di CELSO, born in Rome on 15 January 1919, tax code MZZMNL19A15H501X, resident in Rome, Via Raimondo da Capua no. 5, who is participating in this deed in the capacity of Sole Director of the Company:

- "ITP Impianti e Tecnologie di Processo S.r.l." based in Rome, Via Federico Zuccari no. 4, tax code, VAT number and Rome companies register no. 06640441009, share capital Euro 100,000.00 fully paid up.

That person, of whose personal identity, qualifications and powers I a Notary Public am certain, asks me to receive this deed, by which he appoints and nominates as "special proxy" for him and therefore for the abovementioned Company "ITP Impianti e Tecnologie di Processo S.r.l.", Mrs.:

- Simona Spreca, born in Rome on 28 December 1967, resident there in Via Gargano 34, Tax Code SPR SMN 67T68 H5011J, for her to, in the stead and on behalf of the abovementioned Company "ITP Impianti e Tecnologie di Processo S.r.l." make a loan contract with the Banca di Credito Cooperativo Laudense, up to a maximum amount of Euro 2,000,000.00 (two million/00 Euro) agreeing on the most suitable terms and conditions and offering as mortgage security the premises located in Moscazzano, District Vignola no. 2 and registered on folio no. 3 map 468 sub 501 and map 468 sub 502.

The proxy may thus fix the number of years in which the loan must be repaid, by payment of instalments to be decided at the interest agreed with the Bank at the time the contract is made and accepting any variations in the rate, including for default, at the time the contract is made, on the conditions decided by the abovementioned Bank, as well as according to the laws in force on the subject and in pursuance of both national and regional laws, as well as any other general conditions and standards in use at the Bank itself, and referred to in any schedule known to the party present and which will be attached to the loan contract.

  

15

  

The proxy appointed is therefore authorised to complete the loan operation, signing in the abovementioned capacity, and thus to grant a mortgage (if necessary in concurrence with other successors in title) on the premises referred to in the purchase operation for the amount (even higher than the capital lent) requested by the Bank, by making the aforementioned contract, in the form used by the lending institution, in acceptance of and in compliance with the practices and rules referred to in the laws on credit as well as the practices and rules of the system and regulations of the Bank itself, particularly with the specific power to indicate, correct and supplement, where necessary, the description of the premises offered as surety, and especially to specify in the deed the boundaries and cadastral particulars, even if different or supplementary, of the premises offered as security, to approve plans and splitting, to proceed with any deeds of correction; she may also collect the amount of the loan or its net earnings, granting a receipt, also consenting for it to be paid directly to the seller, signing the related authority, return it in whole or in part, where necessary, to the lending Bank for any deposits to guarantee costs and  obligations, to give statements and discharges, to elect domicile for all the purposes of the applicable special law on credit.

To put it briefly, the proxy is entitled to carry out and sign every operation, even if not specifically mentioned here. Purely by way of example and not of limitation the proxy may: - agree  on the rate, the effective date, the duration of the loan and all the repayment procedures; "agree on terms and procedures of payment"; - elect domicile; - request tax benefits; indicate the amount of any surety guarantee; - approve all the clauses of the loan contract and of any annexes to that contract; - if necessary insure and keep insured the assets being mortgaged against risks of fire, lightening, explosion and other additional risks for their rebuilding value and with an encumbrance in favour of the Bank, complying with the agreement made to this end by the Bank with a leading Insurance Company and to insure the premises mortgaged as long as the loan remains in force and until every claim of the Bank has been met, authorising the Bank to pay the insurance premium due in the name and on behalf of the person appearing; - settle directly the notary's fees related to the loan contract and the resulting deeds and formalities; - to repay any sums that the Bank is required to pay for any tax charges imposed as a result of the loan.

To but it briefly, the proxy is empowered to carry out and sign any related or additional transaction, even if not specified herein.

This authority is free, with the obligation to report, and it is valid and effective immediately for action by the proxy appointed, with no obligation for ratification or confirmation in accordance with legal obligations.

  

16

  

I, the Notary Public, have read this deed to the person present, who has confirmed it all and signed it at 12.18 p.m.

Typed by a person trusted by me and completed in my hand, it occupies 3 pages and part of this [illegible] folio

[2 signatures and an illegible stamp]

  

17

  

[stamp] Annex "C"

to deed no. 40256/[illegible]

[illegible]

of the Index

 [halfway down and at foot of the page:]

round stamp of Notary Public  Giuseppe Tedone

SUMMARY DOCUMENT related to the MORTGAGE LOAN contract

between the Banca di Credito Cooperativo LAUDENSE LODI

and  ITP IMPIANTI E TECNOLOGIE DI PROCESSO S.R.L.

SUMMARY DOCUMENT

In pursuance to the resolution of the C.I.C.R. (interministerial committee for credit and savings) of 4 March 2003

Most important financial terms and conditions

Index-linked annual pre-repayment and pre-repayment rate

Euribor 3 months average SEPTEMBER 2007, presently equal to 4.802%, rounded up to the  higher 0.05, increased by 1.90 percentage Points, equal to a rate of 6.75% (the rate will vary quarterly on the first of every month of January. April, July, and October on the basis of the following parameter: Euribor at 3  months calculated on 365 days rounded up to the higher 0.05, average month of December for instalments falling due between 1 January and 31 March, average month of March for instalments falling due between 1 April and 30 June, average month of  June for instalments falling due between 1 July and 30 September, average month of September for instalments falling due between 1 October and 31 December, increased by 1.90 percentage points.

Annual default interest rate: 2 points higher than the contract rate in force at the time of the arrears, and in any case compliant with Law 108/96, as well as a penalty of 1.50% of the amount of the instalment paid late with a minimum of Euro 15.00 and a maximum of Euro 60.00.

AMOUNTS OF COSTS AND COMMISSIONS

- for preliminary investigations: euro 2,000.00; partial mortgage redemptions: 0.05% of the amount redeemed with a minimum of euro 50.00 and a maximum of euro 300.00

- satisfaction of mortgages: euro 200.00

- for making contracts for mortgages, redemptions and total satisfaction outside the municipality of the headquarters or the branch: euro 200.00 (except as laid down in Law no. 40 of 2/04/2007)

  

18

  

- for communications (including periodic communications as per art. 119 Leg. Dec. 385/93): euro  2.00, as well as reimbursement of postal costs.

- for appraisal of the value of the premises or building to be erected; euro ---

- Duties and taxes (payable by the client): reimbursement of the substitute tax as per art. 15 presidential decree d.p.r. 601/73 euro 5,000.00 (currently 0.250% on the amount disbursed)

- for collection of instalments: euro 4

- for issuing certificates of interest payable: euro 10.00

- all-in payment for early redemption or partial repayment: 1.00% for loans at a variable rate,  ?% for loans at a fixed rate, calculated on the capital paid in advance except for the cases foreseen by law no. 40 of 02/04/2007 converting Law Decree no. 7 of 31.01.2007 into Law, in which the penalty is not applied (no other cost can be charged to the borrower)

- ISC (synthetic cost index): 7.06900%

Summary of the most important contract conditions

Actual times when the sums disbursed are made available: Right after mortgage registration and, where foreseen, production of the insurance policy against damage related to the premises mortgaged.

Repayment: by instalments, without the need for prior written notice by the bank, in accordance with the agreed repayment schedule.

Value of the assets mortgaged: if there should be a reduction in the value of the premises mortgage due to general or local depreciation of the real estate or for any other reason, the bank may request dissolution of the contract or, if appropriate, an addition to the mortgage security, or other suitable security.

Insurance: for the whole duration of the mortgage loan the premises given as security must be insured – against damage by fire, lightning and explosion and with a company acceptable to the bank – for a value of not less than that estimated by the bank itself. The payment of the insurance premium is chargeable to the client.

Partial repayment or early redemption: payment to the bank of a commission calculated on the principal repaid early, except for the cases foreseen by law no. 40 of 02/04/2007 converting Law Decree no. 7 of 31.01.2007 into Law, in which the penalty is not applied,

  

19

  

Express termination clause and acceleration clause: in certain cases (e.g.: non-payment of the instalments; alteration of the legal status of the premises mortgaged; discovery of encumbrances on the premises mortgaged), the contract is dissolved, automatically or at the request of the bank, which, consequently may demand immediate payment of everything due to it

Change in financial conditions: With the procedures and the notice laid down in art. 118 of Leg. Dec. 385/93 and with the possibility of withdrawal within 60 days of receipt of a unilateral proposal for change, the bank has the right to change unilaterally, to the disadvantage of the client, every price and financial condition applied, without prejudice to the obligation to notify such changes and the right of the client to withdraw from the contract without costs, obtaining during settlement of the relationship  application of the conditions previously applied, in accordance with the regulations in force (art. 118 of Leg Dec no. 385/1993, as amended by art. 10 of Law Decree no. 223 of 4 July 2006 converted into Law 4/08/2006 no. 248), without prejudice to the fact that the rate of interest and the rate of default interest may vary, but within the agreed parameters.

Competent court and any disputes: the court falling within the jurisdiction in which the bank's headquarters is located, where the client undertakes the loan as consumer, the competent court is the one foreseen by the current rules of law.

For anything not specified, please refer to the information leaflets on transparency on display to the public in pursuance of Leg. Dec. no. 385 of 1 September 1993

  

20

  

 [stamp] Annex "D

to deed no. 40256/15924

of the Index [illegible]

 [halfway down and at foot of the page:]

round stamps of Notary Public Giuseppe Tedone

ANNEX

TERMS AND CONDITIONS OF THE CONTRACT

1.   REPAYMENT

The loan must be paid - during the agreed period – in instalments, without the need for written notice by the Bank, according to the repayment schedule agreed between the parties.

	
2.

	
PROBATIVE VALUE OF THE RECORDS

The Bank's accounting records shall constitute full proof, whether against the Borrower or against third parties – including any mortgage giver – before any court or tribunal for establishing the debt to the bank.

	
3.

	
OBLIGATIONS RELATED TO THE REAL ESTATE MORTGAGED

The Borrower, any mortgage giver and their successors in title are obliged to keep the premises mortgaged in good condition with the diligence of a reasonable and prudent person, and therefore to do everything necessary for preserving and improving them according to their kind and to carry out regularly and vouch, if requested, the timely payment of any tax or duty due on those premises and not to do anything that could impair their value. They are also obliged to notify the Bank, without delay, of any change made to the premises, whether due to an attack on ownership or an accident or any other cause, including cases of demolition, even partial, of the mortgaged buildings or of their rebuilding.

	
4.

	
INSPECTION OF THE MORTGAGED PREMISES

The Bank may inspect the mortgaged premises at any time by a trusted person.

	
5.

	
REDUCTION OF GUARANTEE

If the surety value of the premises is reduced as the result of general or local depreciation of the immovable property or for any other reason whatsoever, without any exclusions or exceptions, the Bank shall have, at its discretion, the right to request cancellation of the contract or, if necessary, a adequate increase  in the mortgage or another suitable guarantee.

  

21

  

6.  INSURANCE

The Borrower, any third mortgage giver and their successors in title shall also be obliged to insure against the danger of fire, lightning, explosion and for the whole duration of the loan with a company acceptable to the Bank, the building included in the mortgage guarantee for an adequate value established in agreement with the bank. A copy of the policy must be produced to the Bank, and the related binding appendix  in its favour, in the original, must be given to it.

7.  INFORMATION ABOUT HARMFUL EVENTS

If any of the events covered by the insurance as mentioned in the preceding point occurs, the Borrower, any third party mortgage giver and their successors in title must, under pain of cancellation of the contract, inform the Bank within three days, which shall have the right to participate in the damage assessment actions or even to start them, if it deems this to be to its advantage, at the expense of the Borrower

The amounts that the company shall be required to pay to the Bank for compensation for loss or deterioration shall be used, by a separate deed, to guarantee everything owed by the Borrower to the Bank in relation to the loan granted.

8.  PAYMENT OF PREMIUMS

The Borrower, any third mortgage giver and their successors in title are also required to pay the insurance premiums due, to give proof of such payment without delay, Failing that, the Bank may take action directly with right to recovery from the debtors of the principal, interest and costs. The Bank is also entitled to take out insurance itself, at the expense of the Borrower, with a company of its choice if, not considering itself adequately guaranteed by the insurance company, it has asked the Borrower to replace it and the latter has not complied with the request.

9.  NON-FULFILMENT OF INSURANCE REQUIREMENT

The Bank reserves the right to consider the contract cancelled automatically and to request the immediate repayment of everything owed to it without the need for warning, or formal notice of default or legal petition, if the insurance contract against the damage referred to in point 6 is in whatever way cancelled and it is not possible, for whatsoever reason, to take it out with another company acceptable to the Bank.

10. SOLIDARITY AND INDIVISIBILITY

All the obligations arising from the loan contract with a mortgage guarantee and those arising from these "Terms and Conditions" are undertaken by the Borrower with the solidarity and indivisibility clause with regard to its successors in title on any grounds.

Signature [3 signatures and an illegible round stamp]

  

22

  

 [stamp] Annex "E"

to deed no. 40256/15924

of Index

[halfway down and at foot of the page:]

round stamps of Notary Public Giuseppe Tedone

B.C.C. LAUDENSE – LODI

BCC LAUDENSE – LODI

Via Garibaldi 5

26900   LODI   ( LO )

REPAYMENT SCHEDULE

Date:  Fri. 30 November 2007    Nag (surety register): 02015138                                                                                                               Nag Type: SRL (Ltd.Co.)

Heading: ITP IMPIANTI E TECNOLOGIE DI P

[round stamp of Notary Giuseppe Tedone – initialled]

	
REPAYMENT

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
Amount loaned

	  	
2,000,000.00

	  	
Currency

	  	
EURO

	
Starting Date

	  	
12/12/2007

	  	  	  	  
	
First Due Date

	  	
31/12/2007

	  	  	  	  
	
Type of Schedule

	  	
Kost (P) Instalment

	  	  	  	  
	
Nominal rate

	  	
6.75000

	  	  	  	  
	
Actual Rate Repymt.

	  	
N

	  	  	  	  
	
T.A.E.G. (actual annual global rate)

	  	
7.06900

	  	
T.E.G. (annual global rate)

	  	
6.99600

	
Number of instalments

	  	
96

	  	  	  	  
	
Frequency

	  	
Monthly

	  	  	  	  
	
Amount of Rpymt. rate

	  	
22,586.76

	  	  	  	  
	  	  	  	  	  	  	  
	
Tax charges

	  	
5,000.00

	  	  	  	  
	
Other charges

	  	
0.00

	  	  	  	  
	
Initial costs

	  	
2,000.00

	  	  	  	  
	
Costs Code

	  	
504

	  	
Description

	  	
over 200.00

	  	  	  	  	  	  	  
	
Amount of Interest

	  	
594,411.52

	  	  	  	  
	
Interest Pre-repayment

	  	
0.00

	  	  	  	  
	
Interest Difference

	  	
(4,438.36)

	  	  	  	  
	
Total Interest

	  	
589,973.16

	  	  	  	  

[three signatures and round stamp of Notary Giuseppe Tedone]

 

	
Instalment

	
Amount

	
Interest

	
Principal

	
Res. Debt

	
Debt Paid

	
Due Date

Signatures and illegible round stamp

  

23

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