Comprehensive Credit Facility Agreement between Shenzhen BAK Battery Co., Ltd. and Shuibei Branch, Shenzhen Commercial Bank

Contract Categories: Business Finance › Credit Agreements
Summary

Shenzhen BAK Battery Co., Ltd. and Shuibei Branch of Shenzhen Commercial Bank entered into a credit facility agreement on April 21, 2006. The bank will provide up to RMB 50 million in credit to the company for one year, with an interest rate set at 10% below the base rate of the People’s Bank of China. The funds can only be used for technical innovation, equipment improvement, and purchasing equipment or raw materials. The bank may adjust or cancel the credit if the company’s financial condition worsens or other specified risks arise.

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EX-10.6 9 dex106.htm COMPREHENSIVE CREDIT FACILITY AGREEMENT Comprehensive Credit Facility Agreement

Exhibit 10.6

Summary of Comprehensive Credit Facility Agreement between Shenzhen BAK Battery Co., Ltd. and Shuibei Branch, Shenzhen Commercial Bank (“Commercial Bank”) dated April 21, 2006.

 

•   Contract number: Shen Shangyin (Shuibei) Shouxinzi (2006) A110020600006

 

•   Maximum amount for credit facilities to be provided: RMB50 million;

 

•   Term: from April 21, 2006 to April 21, 2007;

 

•   Interest rate of loan shall be the base rate announced by the People’s Bank of China less 10%;

 

•   Adjustment of credit can be made by the Commercial Bank under the any of the following:

 

  •   The Company suffers severe operational risk or its financial situation severely deteriorates;

 

  •   The Guarantor’s payment ability is obviously weakened or value of pledged collaterals decreases obviously;

 

  •   Occurrence of other instances which make the Commercial Bank think adjustment of credit facility is necessary;

 

•   Breach of contract penalty: adjustment of credit, cancellation of unused credit, imposition of punitive interest, demand prepayment of loan and other measures;

 

•   Special term:

 

  •   Credit facilities under the Comprehensive Agreement can only be used for technical innovation, production equipments improvement and purchase of equipments and raw materials.

Summary of the articles omitted

 

•   Types of line of credit

 

•   The use of the line of credit

 

•   Repayment of the loan under the line of credit

 

•   Representation and warranty of the lender

 

•   Miscellaneous

 

•   Applicable law

 

•   Validity