Guaranty Agreement of Maximum Amount between Mr. Li Xiangqian and Shenzhen Development Bank (Longgang Branch)

Contract Categories: Business Finance › Guaranty Agreements
Summary

This agreement, dated December 3, 2008, is between Mr. Li Xiangqian and the Longgang Branch of Shenzhen Development Bank. Mr. Li acts as guarantor for Shenzhen BAK Battery Co., Ltd., agreeing to cover up to RMB 150 million of the company's debts under a credit facility if the company cannot pay. The guaranty covers principal, interest, penalties, and related costs, and lasts until two years after the credit facility ends. Mr. Li is jointly and severally liable, meaning the bank can demand payment from him if the company defaults.

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EX-10.6 7 v139009_ex10-6.htm
 
Summary of Guaranty Contract of Maximum Amount (the “Contract”) Entered into by and between Mr. Li Xiangqian and Longgang Branch, Shenzhen Development Bank (the “Creditor”) on December 3rd, 2008

Main contents:
Ø  Guaranty Contract number: Shenfa Longgang Ebaozi 20081203001-3;
Ø  As guarantor, Mr. Li Xiangqian undertakes to assume joint and several liabilities for Shenzhen BAK Battery Co., Ltd (the “Obligor”)’s indebtedness towards Shenzhen Development Bank under the Comprehensive Credit Facility Agreement of Maximum Amount (reference no.: Shenfa Longgang Zongzi 20081203001) from December 8th, 2008 to December 8th, 2009, and the maximum amount secured is RMB150 million.
Ø  Guaranty Responsibility: The guaranty under this Contract shall be guaranty with joint and several liabilities. The guarantor is obligated to pay off the debt in the event the Obligor is unable to pay off the debt (including the creditor declares the debt becomes mature in advance to its original expiry date due to default of the Obligor or the guarantor).
Ø  Scope of Guaranty: The guaranty shall cover all of the loan principal, interest, penalty interest, breach of contract compensation, damages, undertaking fee and all the expenses such as litigation cost, lawyer’s fee, notification cost and public notice cost etc. which is incurred to the Creditor in realizing its creditor’s right.
Ø  Guaranty period: The guaranty period is from the effective date of this Contract to two years after the expiry of the term of the Credit Facility Agreement and relevant agreement entered into under the Credit Facility Agreement.

Headlines of the articles omitted:
Ø  Termination and explanation
Ø  Payment on demand
Ø  Declaration and guaranty
Ø  Independent guaranty
Ø  Fulfillment of the responsibility and giving up of the right
Ø  Amendment of the Contract
Ø  Effectiveness and Disputation settlement
Ø  Contract period
Ø  Supplement articles