Loan Agreement Summary between Shenzhen BAK Battery Co., Ltd. and Agricultural Bank of China (Shenzhen Eastern Branch) dated July 22, 2009

Contract Categories: Business Finance › Loan Agreements
Summary

Shenzhen BAK Battery Co., Ltd. entered into a loan agreement with the Shenzhen Eastern Branch of the Agricultural Bank of China on July 22, 2009. The agreement provides the Company with a RMB 50 million loan at a floating annual interest rate of 4.617%, adjustable every three months, for the purpose of purchasing raw materials. The loan term runs from July 22, 2009, to January 21, 2010. Early repayment requires the bank's approval and incurs a handling fee. Penalties apply for late payment or misuse of funds, and the bank has rights to demand early repayment and recover costs if the Company breaches the agreement.

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EX-10.90 3 cbak121109exh1090.htm EXHIBIT 10.90 China BAK Battery, Inc. Exhibit - Prepared by TNT Filings Inc.

Exhibit 10.90

Summary of Loan Agreement Entered into by and between Shenzhen
BAK Battery Co., Ltd. (“the Company”) and Shenzhen Eastern Branch, Agricultural
Bank of China (“the Creditor”) dated July 22, 2009

Main contents

  • Contract number: 81101200900001661;
  • Loan principal: RMB 50 million;
  • Loan term: from July 22, 2009 to January 21, 2010;
  • Floating interest rate: annually 4.617%, rate adjustment in a 3-month cycle;

  • Interest accrued and settled per month, interest settlement day is the 20th day of each month;

  • Penalty interest rate for delayed repayment: 4.617% plus 30% *4.617%;

  • Penalty interest rate for embezzlement of loan proceeds: 4.617% plus 50% *4.617%;

  • Purpose of the loan is to provide working capital for purchasing raw material of the Company;
  • Advanced repayment of loan needs to be approved by the Creditor;
  • Breach of contract penalties: correct the breach of contract in time limit; suspension of loan unprovided; release loan agreement, demand prepayment of loan principal and interest before maturity; imposition of punitive interest incurred due to delayed loan; imposition of punitive interest for embezzlement of loan; imposition of plural interest for unpaid interest; withdraw from any accounts of the Company the loan principal, interest and other fees; compensation for the Creditor’s expenses incurred due to demanding the loan principal and interest in case of litigation, etc.
  • Supplemental: in the event that the Company repaid the loan in advance, it has to pay extra handling fee: advanced repaid amount * share months * 1%.

Headlines of the articles omitted:

  • Loan arrangement
  • Interest clearing of the loan
  • Payment of the loan
  • Rights and obligation of the Creditor
  • Rights and obligations of the Company
  • Interest penalty of loan
  • Guarantee of the loan agreement
  • Disputation settlement
  • Validity
  • Text
  • Notification