Summary of Loan Agreement between Shenzhen BAK Battery Co., Ltd. and Shenzhen Development Bank (April 1, 2004)

Summary

Shenzhen BAK Battery Co., Ltd. and Shenzhen Development Bank entered into a loan agreement effective from April 1, 2004, to April 1, 2005, for a credit amount of RMB 100,000,000. The agreement requires the execution of a related credit facilities agreement. If the Company breaches the terms, the Bank may suspend unused credit, demand early repayment, and impose penalties. The loan cannot be used for profit distribution, and the Company is prohibited from mortgaging certain properties to third parties. Violating these terms causes the loan to become immediately due.

EX-10.19 21 medina8kex1019011805.txt SUMMARY OF LOAN AGREEMENT EXHIBIT 10.19 Summary of Loan Agreement by and between Shenzhen BAK Battery Co., Ltd. (the "Company") and Longgang Division, Shenzhen Development Bank ("Shenzhen Development Bank") dated as of April 1, 2004. The contract number for this agreement is Shenfa Longgang Daizi NO. 200403055. The contract term is April 1, 2004 to April 1, 2005, and the amount of credit to be extended by Shenzhen Development Bank is RMB 100,000,000 Yuan. This agreement is conditioned upon the execution of the Comprehensive Credit Facilities Agreement as summarized in Exhibit 10.12. Remedies in the event of breach of contract include the suspension of unused credit, the calling back of the loan principal in whole or part before maturity, the imposition of penalty interest and compound interest and compensation for loss. The agreement provides that the loan shall not be used by the Company for the distribution of profits and that the Company cannot mortgage its new factory and dormitory buildings to a third party. In the event that any of the foregoing should occur, the loan becomes mature immediately.