Mortgage Agreement
Exhibit
10.14
Parties:
Jinzhou
Halla Electronic Equipment Co., Ltd. (the “Mortgagor”)
Jinzhou
Commercial Bank (Linghe Branch) (the “Mortgagee”)
1. Mortgage
Property
1.1
Mortgagor agrees to secure the loan with the properties listed in the appendix.
1.2
Mortgagor represents and warrants that it has full authority and power to
dispose the property, clear and free of any encumbrance.
2. Underlying
Loan
2.1
The
loan secured by the mortgage is the revolving loan in a maximum amount of
RMB40,000,000 from September 28, 2005 to September 22, 2008.
2.2
At
any time during the term of the loan, Mortgagor can request loans from Mortgagee
on conditions that the outstanding balance of the loan does not exceed
RMB40,000,000.
3. Enforceability
of the Agreement: this agreement is an independent from the loan agreement.
The
invalidity of the loan agreement shall not affect the enforceability of this
agreement
4. Duration
of the Mortgage
4.1
Duration of the Mortgage is two years, commencing after the Statute of
Limitation regarding the underlying loan runs.
5. Amendment
of the Agreement for the Underlying Loan
5.1
Mortgagee can adjust the interest rate of the underlying loan according to
the
change of the interest rate promulgated by the People’s Bank of China.
6. Possession
of the Properties
6.1
During the term of mortgage, the Properties shall be under Mortgagor’s
possession. Mortgagor shall be responsible for the maintenance and repairs
of
the properties.
7. Insurance
for the Properties
7.1
Mortgagor shall purchase property insurance for the mortgage properties, subject
to Mortgagee’s approval.
1
7.2
Mortgagor shall manifest in the insurance agreement that Mortgagee is entitled
to first priority lien regarding the properties.
8. Damages
caused by the third party
8.1
Any
damages payment incurred by loss caused by a third party shall be allocated
to
the account assigned by Mortgagee.
9. Disposition
of the Property
9.1
Mortgagor shall not dispose the Property during the term of the mortgage without
Mortgagee’s written consent.
9.2
Mortgagee can opt for the following regarding the proceeds derived from the
disposition of the properties approved by Mortgagee.
| i. |
Pay
or prepay the loan and accrued interest
|
| ii. |
Treat
the proceeds as deposit and secure the loan by the
deposit certificate
|
10. Foreclosure
10.1
In
the event of any of the following, the Mortgagee is entitled to foreclose the
properties
| i. |
Mortgagor
defaults in payment of the unpaid principal
or accrued interest when due.
|
| ii. |
Mortgagee
unreasonably dispose the properties and cause diminishment of their
value.
|
10.2
Morgagee is entitled to the following remedies
| i. |
Foreclosure
|
| ii. |
Auction
sale of the properties
|
| iii. |
Initiate
a law suit in court
|
11. Remedies
for breaches of contract
11.1
Morgagee is entitled to the following at the time of breaches on the part of
Mortgagor
| i. |
Require
the Mortgagor to remedy its breaches
|
| ii. |
Require
the Mortgagor to provide additional
mortgage
|
2
| iii. |
Require
for damages paid by Mortgagor
|
12. Record
and Remove the Mortgage: Parties shall record the lien within 15 days.
Jinzhou
Halla Electronic Equipment Co., Ltd.
Seal
/s/
Yuncong
Ma
/s/
Xxxxxxx
Xxxx
Seal
Jinzhou
Commercial Bank (Linghe Branch)
Seal
Appendix
The
List of the Mortgage Property
28th,
September, 2005
|
Mortgagor
|
Jinzhou
Halla electrical equipment Xx.Xxx.
|
Nature
of business
|
Invested
by foreigner
|
|||
|
Account
Number
|
000000000000000
|
The
phone
|
0000000
|
|||
|
The
sums of the loans
|
10.000.000
|
The
term of the loans
|
28th,September,2005
to 27th,September,2008
|
|||
|
The
name of the pledge
|
unit
|
amount
|
address
|
The
value of the property
|
Record
number of the properties
|
|
|
The
land
|
Square
meters
|
42169
|
3500
|
000106
|
||
|
The
house property
|
Square
meters
|
9712
|
2525
|
0007854
|
||
|
Square
meters
|
823.7
|
164
|
000196908
|
|||
|
Square
meters
|
2714.4
|
705
|
000234108
|
|||
|
Square
meters
|
1275
|
255
|
00181316
|
|||
|
total
|
||||||
3
|
Jinzhou
Halla electrical equipment Co. Ltd.
/s/
Xxxxxxx
Xxxx
/s/
Yuncong
Ma
Jinzhou
Commercial Bank (Linghe Branch)(Linghe Branch)
Seal
|
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