Loan Agreement Summary between Shenzhen BAK Battery Co., Ltd. and Agricultural Bank of China (Eastern Branch) dated June 22, 2007

Summary

Shenzhen BAK Battery Co., Ltd. entered into a loan agreement with the Eastern Branch of the Agricultural Bank of China for a principal amount of RMB 60 million, effective from June 22, 2007 to June 22, 2008. The loan carries an annual interest rate of 6.57%, with monthly payments due on the 20th. The funds are to be used as working capital. 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.

EX-10.3 4 v082897_ex10-3.htm Unassociated Document

Summary of Loan Agreement by and between Shenzhen BAK Battery Co., Ltd. and Eastern Branch, Agricultural Bank of China dated June 22, 2007.

Summary of the main articles

Ø	Contract number: NO.81101200700001153

Ø	Loan Principal: RMB 60 million;

Ø	Loan term: from June 22, 2007 to June 22, 2008

Ø	Interest rate: annually 6.57%, payable on the 20^th of each month;

n Penalty interest rate for delayed repayment: 5.022% plus 50% *5.022%;

n Penalty interest rate for embezzlement of loan proceeds: 5.022% * 2;

Ø	Purpose of the loan is to provide working capital for the Company;

Ø	Advanced repayment of loan needs to be approved by the Lender;

Breach of contract penalties: suspension of loan un-provided, 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	Types of the loan

Ø	Clearing of the loan interest

Ø	Condition precedent to the drawing of the loan

Ø	Rights and obligations of the borrower

Ø	Rights and obligations of the lender

Ø	Guarantee of the loan

Ø	Dispute settlement

Ø	Miscellaneous

Validity

Notes