Loan Agreement between Shenzhen BAK Battery Co., Ltd. and Bank of China, Shenzhen Branch (June 2, 2009)
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Summary
Shenzhen BAK Battery Co., Ltd. entered into a loan agreement with the Shenzhen Branch of Bank of China for a principal amount of RMB 50 million, effective from June 2, 2009 to June 2, 2010, at a fixed interest rate of 4.779%. The loan is intended for working capital. Monthly interest payments are required, and penalties apply for late payments or misuse of funds. The bank may demand early repayment if the company breaches key terms. Early repayment requires the bank's approval, and breach of contract may result in additional penalties and legal costs.
EX-10.5 6 v156642_ex10-5.htm
Summary of Loan Agreement Entered into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”) and Shenzhen Branch, Bank of China (the “Creditor”) Dated June 2, 2009
Main articles:
| Ø | Contract number: (2009)Zhenzhongyin Sijiezi 60312; |
| Ø | Loan principal: RMB 50 million; |
| Ø | Loan Term: from June 2, 2009 to June 2, 2010; |
| Ø | Interest rate: fixed at 4.779%; |
| | n | Interest accrued and settled per month, interest settlement day is the 20th day of each month; |
| | n | Penalty interest rate for delayed repayment: 4.779% plus 50% *4.779%; |
| | n | Penalty interest rate for embezzlement of loan proceeds: 4.779% *1; |
| Ø | If any of the following occurs, the Creditor is entitled to demand prepayment of loan principal and interest before maturity and cancel all loans unprovided: |
| | n | Delay in repayment of loan interest and the loan principal; |
n The Company uses loan proceeds for purposes other than what is agreed without the consent of the Creditor;
n The Company provides untrue declaration or hide important financial information about its operation;
| | n | The Company terminates operation or is stopped from operation; |
| Ø | Purpose of the loan is to provide working capital for the Company; |
| Ø | This Loan Agreement is in compliance with the Comprehensive Credit Facility Agreement of Maximum Amount (No. Zhenzhongyin Exiezi 000024). |
| Ø | Advanced repayment of loan needs to be approved by the Creditor; |
| Ø | 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. |
Headlines of the articles omitted
| Ø | Loan arrangement |
| Ø | Interest clearing of the loan |
| Ø | Payment of the loan |
| Ø | Guarantee |
| Ø | Declaration and Promise |
| Ø | Rights reserved |
| Ø | Modification, Amendment and Termination of Contract |
| Ø | Disputation settlement |
| Ø | Fee |
| Ø | Attachment |
| Ø | Other agreements |
| Ø | Validity |
