Ø Contract number: (2008) Shenyinsun daizi NO.015; Ø Loan principal: RMB 40 million; Ø Loan term: from October 15th, 2008 to January 15th, 2009; Ø Interest rate: fixed at 6.12%; n Penalty interest rate for delayed repayment: 6.12% plus 50% *6.12%;
Summary of Loan Agreement
Entered into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”) and
Shenzhen Branch, China CITIC Bank Co., Ltd (“the Creditor”) dated October
15th, 2008
Main
contents
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Contract
number: (2008) Shenyinsun daizi
NO.015;
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Loan
principal:
RMB 40 million;
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Loan
term: from October 15th,
2008 to January 15th,
2009;
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Interest
rate: fixed at 6.12%;
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n
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Penalty
interest rate for delayed repayment: 6.12% plus 50%
*6.12%;
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n
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Penalty
interest rate for embezzlement of loan proceeds: 6.12%
*1;
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n
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Interest
accrued and settled per month, interest settlement day is 20th
of each month;
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Purpose
of the loan is to provide working capital and purchasing raw materials and
equipments for the Company;
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In
the event of occurrence of the any of the following during the term of
loan, The Creditor 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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n
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Delay
in repayment of interest for the
loan;
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n
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The
Company suffers operation loss or sharp decline in
operation;
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n
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Being
involved in or threatened to be involved in lawsuit, arbitration or other
legal disputes;
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n
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Providing
untrue financial statements or
information;
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n
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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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n
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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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n
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Great
changes in management;
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n
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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;
indemnification for the Creditor’s expenses incurred due to demanding the
loan principal and interest in case of litigation,
etc.
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The
Company guaranteed not to use the loan borrowed from the bank to invest in
purchasing securities or real estates. Otherwise, the Company shall
be liable for any loss incurred to the
Creditor.
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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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Announcement
and guarantee of the Company
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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
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Validity
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Notarization
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Text
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Supplemental
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