Comprehensive Credit Facility Agreement Summary between Shenzhen BAK Battery Co., Ltd and China Construction Bank (Shenzhen Branch)
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Summary
Shenzhen BAK Battery Co., Ltd entered into a credit facility agreement with the Shenzhen Branch of China Construction Bank on February 14, 2007. The agreement provides up to RMB 150 million in credit for a term of twelve months, with interest based on the benchmark rate set by the People’s Bank of China. The bank may adjust or terminate the credit if certain financial conditions are not met or in case of breach. Special terms apply for foreign business transactions, and the agreement includes standard provisions on repayment, guaranty, and dispute resolution.
EX-10.4 5 v073753_ex10-4.htm
Exhibit 10.4
Summary of Comprehensive Credit Facility Agreement entered into between Shenzhen BAK Battery Co., Ltd and Shenzhen Branch, China Construction Bank on February 14, 2007.
Summary of main contents:
| · | Contract number: No. Jie 2006 Zong 1279042 |
| · | Maximum amount for credit facilities to be provided: RMB 150 million; |
| · | Loan term: tweleve months after the signature of the agreement; |
| · | Interest rate of loan equals to the benchmark rate issued by the People’s Bank of China at the time each loan agreement/contract is signed; the interest shall be calculated on a daily basis, and is payable on the expiry date of the principal; |
| · | Adjustment of credit can be made by the Creditor under the any of the following: |
| · | Breach of contract penalty: cancellation or reduction of unused credit and loan term; demand prepayment of principal and interest before maturity; publicize the breach of the Company; deduct the loan payment from the Company’s other accounts at the Creditor and its affiliates; demand additional guaranty, or take other measures that is necessary to secure the Creditor’s rights; enforcement of guaranty right; termination of the contract; compensation for the Creditor’s expenses incurred due to the Company’s breach of the contract; other measures. |
| · | Special terms: During the term of this agreement, the Creditor is eligible to terminate the contract if the Company’s liabilities exceed 65% of its assets or its current ratio is less than 1; in the event the company uses the trust receipt facility to transact the foreign business, the applicable interest rate should be LIBOR +60BPS of the same period. |
Headlines of articles omitted:
| · | Definition |
| · | Use of Credit |
| · | Guaranty |
| · | Repayment |
| · | Rights and Obligations of the contractor |
| · | Engaging bank |
| · | Reserve of the Creditor’s Right |
| · | Notice |
| · | Applicable law and disputes settlement |
| · | Effectiveness |
| · | Miscellaneous |
| · | Statement |
