Loan Agreement between BAK International (Tianjin) Limited and Agricultural Bank of China, Tianjin Branch (May 26, 2008)
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Summary
BAK International (Tianjin) Limited entered into a loan agreement with the Tianjin Branch of the Agricultural Bank of China for RMB 160 million to fund the construction of its Li-ion Power Tool Cell Automated Line Project. The loan runs from May 26, 2008, to May 26, 2012, with a floating interest rate set by the People’s Bank of China and quarterly payments. Repayment is scheduled in installments over four years. Early repayment or withdrawal requires bank approval. Penalty interest applies for late payments or misuse of funds. The agreement also covers supervision, insurance, confidentiality, and dispute resolution.
EX-10.2 3 v122300_ex10-2.htm
Summary of Loan Agreement by and between BAK International (Tianjin) Limited and Tianjin Branch, Agricultural Bank of China dated May 26, 2008
Main contents
| Ø | Contract number: Nong Yin Gu Ji Jie Zi 12101200800001538; |
| Ø | Loan principal: RMB160 million; |
| Ø | Loan term: May 26, 2008~May 26, 2012; |
| Ø | Interest rate: Float rate according to the basic rate announced by the People’s Bank of China, adjusted every three months, the interest should be paid by quarter; |
| n | Penalty interest rate for delayed repayment: 1.5*the above rate; |
| n | Penalty interest rate for embezzlement of loan proceeds: 2* the above rate; |
| Ø | Purpose of the loan is to provide fund for the Company to construct its first phase of Li-ion Power Tool Cell Automated Line Project; |
| Ø | Advanced repayment and advanced withdrawal of loan needs to be approved by Agriculture Bank of China; |
| Ø | Loan withdrawal and repayment: The Company shall repay the principals as follows: |
| n | Repay RMB 30 million between May 26, 2009 and December 26, 2009; |
| n | Repay RMB 30 million between May 26, 2010 and December 26, 2010; |
| n | Repay RMB 50 million between May 26, 2011 and December 26, 2011; |
| n | Repay RMB 30 million on May 26, 2012 |
Headlines of the articles omitted:
| Ø Definition and explanation |
| Ø The borrower’s statement and guaranty |
| Ø Condition required to withdraw the loan |
| Ø Supervision of the account |
| Ø Check on the use of the loan and supervision of the project |
| Ø Guaranty |
| Ø Rights and obligation of the borrower |
| Ø Rights and obligations of the lender |
| Ø Insurance |
| Ø Confidentiality |
| Ø Breach of contract penalty |
| Ø Miscellaneous |
| Ø Dispute settlement |
| Ø Validity of the contract |
| Ø Note |
