Contract
Summary of Loan Agreement
Entered into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”) and
Longgang Branch, Shenzhen Development Bank Co., Ltd (the “Creditor”) on March
9th, 2009
Main
contents:
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Contract
number: Shenfa Longgang Daizi
20090309001;
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Main
Contract: Comprehensive Credit Facility
Agreement;
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Main
Contract number: Shenfa Longgang Zongzi
20081203001;
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Loan
principal: RMB20 million;
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Loan
term: from March 9th,
2009 to March 9th
, 2010;
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Floating
interest rate: Interest rate of loan shall be the benchmark rate announced
by the People’s Bank of China, and be adjusted every
3 months;
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Interest
accrued and settled per month, interest settlement day is the 20th day
of each month;
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Penalty
interest rate for delayed repayment: current interest rate plus 50%
* current interest rate;
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Penalty
interest rate for embezzlement of loan proceeds: current interest rate
*1;
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Purpose
of the loan is to provide working capital for the
Company;
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If
any of the following occurs, the Creditor is entitled to demand prepayment
of loan principal and interest before maturity and cancel all loans
unprovided ;
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The Company
terminates operation or is stopped from
operation;
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The
Company provides untrue documents or hide important financial
information about its operation;
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The
Company intentionally evades bank debts by way of related party
transaction or other means;
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The
Company uses loan proceeds for purposes other than what is agreed without
the consent of the Creditor;
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Occurrence
of other instances which endangers or may endanger the safety of the
loan provided by the Creditor;
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Headlines
of the articles omitted:
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Interest
clearing of the loan
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Payment
of the loan
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Rights
and obligation of the Company
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Rights
and obligations of the Creditor
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Disputation
settlement and Validity
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Fees
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Breach
of contract penalties
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Announcement
and Guaranty of the Company
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Others
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Text
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