Contract
Summary
of Loan Agreement entered
into by and between Shenzhen BAK
Battery Co., Ltd. (“the Company”) and Shenzhen Hi-tech Industrial Park
Branch, Industrial Bank Co., Ltd (“the Creditor”) dated March 25, 2008
Battery Co., Ltd. (“the Company”) and Shenzhen Hi-tech Industrial Park
Branch, Industrial Bank Co., Ltd (“the Creditor”) dated March 25, 2008
Main
contents
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Contract
number: Xingyinshen gaoxinqu (shouxin) duanjiezi
NO.20080325001;
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Loan
principal: XXX 00 xxxxxxx;
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X
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Xxxx
xxxx: one year starting from the date the loan is
provided;
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Interest
rate: fixed at 7.47%;
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n
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Penalty
interest rate for delayed repayment: 7.47% plus 30%
*7.47%;
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n
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Penalty
interest rate for embezzlement of loan proceeds: 7.47% plus 50%
*7.47%;
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Purpose
of the loan is to provide working capital for the Company;
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Advanced
repayment of loan needs to be approved by Industrial Bank and Industrial
Bank is entitled to charge the interest based on the agreed date
in this
contract;
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In
the event of occurrence of the any of the following during the term
of
loan, Industrial Bank is entitled to demand repayment of loan principal
before maturity and withdraw directly from any accounts of the Company
for
the repayment:
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Delay
in repayment of interest for the
loan;
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The
Company suffers operation loss or sharp decline in
operation;
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Being
involved in or threatened to be involved in lawsuit, arbitration
or other
legal disputes;
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Providing
untrue financial statements or
information;
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Embezzling
loan (i.e. using loan proceeds for purposes other than what is agreed
in
the contract without the consent of the
Creditor);
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Refusing
the examination or supervision of the Creditor on the Company’s
operational and financial conditions, and refuse to provide relevant
financial statements and
information;
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Great
changes in management;
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Occurrence
of other instances which endanger the safety of the loan provided
by the
Creditor;
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Breach
of contract penalties: correct the breach of contract in time limit;
suspension of loan unprovided; terminate the loan agreement, demand
prepayment of loan principal and interest before maturity; imposition
of
punitive interest incurred due to delayed loan; imposition of punitive
interest for embezzlement of loan; imposition of plural interest
for
unpaid interest; withdraw from any accounts of the Company the loan
principal and interest, if currency in the accounts is different
from loan
currency, the Creditor is entitled to withdraw from the accounts
of the
Company the amount of equivalent to the loan according to the current
foreign exchange rate; indemnification for the Creditor’s expenses
incurred due to demanding the loan principal and interest in case
of
litigation, etc.
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Headlines
of the articles omitted:
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Loan
arrangement
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Interest
clearing of the loan
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Payment
of the loan
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Interest
penalty of loan
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Guarantee
of the loan agreement
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Rights
and obligation of the Company
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Rights
and obligations of the Creditor
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Breach
of contract responsibility
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Validity
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Text
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Supplemental
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