Loan Agreement between Shenzhen BAK Battery Co., Ltd. and Agricultural Bank of China (Shenzhen Eastern Branch) dated December 18, 2008

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 for a principal amount of RMB 100 million. The loan, intended for purchasing raw materials, runs from December 18, 2008, to June 15, 2009, with a floating annual interest rate of 5.04%, adjusted every three months. Early repayment requires the bank's approval. Penalties apply for late payments or misuse of funds. The agreement is subject to a broader credit facility and outlines both parties' rights and obligations, as well as remedies for breach.

EX-10.10 11 v139009_ex10-10.htm
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 December 18th, 2008.

Main contents
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Contract number: 81101200800001933;
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Loan principal: RMB 100 million;
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Loan term: from December 18th, 2008 to June 15th, 2009;
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Floating interest rate: annually 5.04%, rate adjustment in a 3-month cycle;
 
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Interest accrued and settled per month, interest settlement day is the 20th day of each month;
 
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Penalty interest rate for delayed repayment: 5.04% plus 50% *5.04%;
 
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Penalty interest rate for embezzlement of loan proceeds: 5.04% *1;

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Purpose of the loan is to provide working capital for purchasing raw material of the Company;
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Advanced repayment of loan needs to be approved by the Creditor;
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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; publicize the breach of contract, etc.
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Supplemental: This Loan Agreement is in compliance with the Comprehensive Credit Facility Agreement of Maximum Amount (No.81001200813170001).

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