Loan Agreement Summary between Shenzhen BAK Battery Co., Ltd. and Agricultural Bank of China (Shenzhen East Branch) dated May 20, 2008
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Summary
Shenzhen BAK Battery Co., Ltd. entered into a loan agreement with the Shenzhen East Branch of the Agricultural Bank of China for RMB 175 million at a fixed interest rate of 6.57%. The loan term is four months, and the funds are to be used as working capital to purchase raw materials. Early repayment requires lender approval. Penalties apply for late payment or misuse of funds, and the lender may demand early repayment or compensation for breach-related expenses. Additional terms cover conditions for drawing the loan, rights and obligations, guarantees, and dispute resolution.
EX-10.3 4 v122300_ex10-3.htm
Summary of Loan Agreement entered into by and between Shenzhen BAK Battery Co., Ltd. and Shenzhen East Branch, Agricultural Bank of China dated May 20, 2008
Summary of the main articles
Ø | Contract number: NO.81101200800000816. |
Ø | Loan Principal: RMB 175 million; |
Ø | Loan term: four months starting from the date loan is actually provided to the Company. |
Ø | Interest rate: fixed rate of 6.57%; |
n Penalty interest rate for delayed repayment: 6.57% plus 50% *6.57%;
n Penalty interest rate for embezzlement of loan proceeds: 6.57% * 2;
Ø | Purpose of the loan is to provide working capital for the Company to buy raw material; |
Ø | Advanced repayment of loan needs to be approved by the Lender; |
Ø | Breach of contract penalties: suspension of loan unprovided, demand prepayment of loan principal and interest before maturity; imposition of punitive interest; compensation for the Lender’s expenses incurred due to the Company’s breach of contract such as lawyer’s fee, travel cost in case of litigation, etc. |
Summary of the articles omitted
Ø Condition precedent to drawing of the loan |
Ø Rights and obligations of the lender |
Ø Rights and obligations of the borrower |
Ø Punishment of default |
Ø Guarantee of the loan |
Ø Dispute settlement |
Ø Miscellaneous |
Ø Effectiveness |
Ø Notes |