Comprehensive Credit Facility Agreement between Shenzhen BAK Battery Co., Ltd. and Shuibei Branch, Shenzhen Commercial Bank (May 15, 2007)
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Summary
Shenzhen BAK Battery Co., Ltd. and the Shuibei Branch of Shenzhen Commercial Bank entered into a credit facility agreement on May 15, 2007. The bank will provide up to RMB 200 million in credit for one year, with interest rates set in individual loan agreements. 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. Penalties for breach include cancellation of unused credit and punitive interest.
EX-10.8 9 v082897_ex10-8.htm Unassociated Document
Summary of Comprehensive Credit Facility Agreement between Shenzhen BAK Battery Co., Ltd. and Shuibei Branch, Shenzhen Commercial Bank (“Commercial Bank”) dated May 15, 2007.
Summary of the articles omitted:
Ø | Contract number: Shen Shangyin (Shuibei) Shouxinzi (2007) A110020700007 |
Ø | Maximum amount for credit facilities to be provided: RMB200 million; |
Ø | Term: a year starting from May 15, 2007; |
Ø | Interest rate of loan: to be determined by each loan agreement/contract to be signed under this credit facility agreement; |
Ø | Adjustment of credit can be made by the Commercial Bank under the any of the following: |
n | The Company suffers severe operational risk or its financial situation severely deteriorates; |
n | The Guarantor’s payment ability is obviously weakened or value of pledged collaterals decreases obviously; |
n | Occurrence of other instances which make the Commercial Bank think adjustment of credit facility is necessary; |
n | Breach of contract penalty: adjustment of credit, cancellation of unused credit, imposition of punitive interest, demand prepayment of loan and other measures; |
Ø | Special term: |
n | Credit facilities under the Comprehensive Agreement can only be used for technical innovation, production equipments improvement and purchase of equipments and raw materials. |
Ø | Types of line of credit |
Ø | The use of the line of credit |
Ø | Repayment of the loan under the line of credit |
Ø | Representation and warranty of the lender |
Ø | Miscellaneous |
Ø | Applicable law |
Ø | Validity |