Short-term Loan AgreementLoan Agreement • May 12th, 2010 • China TMK Battery Systems Inc. • Miscellaneous electrical machinery, equipment & supplies
The Lender will lend RMB 8 million to the Borrower and the proceeds will be used as flowing capital for production. The term of the loan is from August 24, 2009 to August 23, 2010 at the rate of 5.31‰ per month. The interest will be paid on a quarterly basis. 30% of the principal of the loan shall be repaid within six month since the draw of the fund, and the Borrower shall deposit at the Lender in its settlement account no less than 30% of the revenue of the Borrower.
Loan Agreement (Mid/Long Term) No. (2009) Zhen Zhongyin Small/Medium Enterprise Jie Zi No.10035Loan Agreement • May 12th, 2010 • China TMK Battery Systems Inc. • Miscellaneous electrical machinery, equipment & supplies
The Lender will lend RMB40 million to the Borrower and the proceeds will be used for cash flow and fixed assets. The term of the loan is 36 months commencing from the actual drawdown date. The interest rate is floating 10% above the interest rate for one to three years loan promulgated the People’s Bank of China and determined every three months. The interest will be paid on a monthly basis. The Borrower needs to repay the loan in installments, which are RMB 1 million each month from August 15th, 2011 to July 15th, 2012, and then RMB 8 million on and before August 5th, 2012, and RMB20 million will be repaid upon the expiration of the loan. If the Borrower wishes to repay the loan early, it needs to notify the Lender in writing 30 days in advance, and the Lender has the right to charge 2% of the early repaid amount to cover the loss of the interest.
