Loan Agreement between Shenzhen BAK Battery Co., Ltd. and China CITIC Bank Co., Ltd. (Shenzhen Branch) dated October 31, 2008
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Summary
Shenzhen BAK Battery Co., Ltd. entered into a loan agreement with the Shenzhen Branch of China CITIC Bank Co., Ltd. on October 31, 2008, for a principal amount of RMB 21 million at a fixed interest rate of 6.03%. The loan term runs from October 31, 2008, to February 1, 2009, and is intended to provide working capital for the company. The agreement includes penalties for late payment or misuse of funds, and allows the bank to demand early repayment under certain conditions. The company is prohibited from using the loan to invest in securities or real estate.
EX-10.18 14 v139009_ex10-18.htm
Summary of Loan Agreement Entered into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”) and Shenzhen Branch, China CITIC Bank Co., Ltd (“the Creditor”) dated October 31st, 2008
Main contents
| Ø | Contract number: (2008) Shenyinsun daizi NO.018; |
| Ø | Loan principal: RMB 21 million; |
| Ø | Loan term: from October 31st, 2008 to February 1st, 2009; |
| Ø | Interest rate: fixed at 6.03%; |
| | n | Penalty interest rate for delayed repayment: 6.03% plus 50% *6.03%; |
| | n | Penalty interest rate for embezzlement of loan proceeds: 6.03% *1; |
| | n | Interest accrued and settled per month, interest settlement day is 20th of each month; |
| Ø | Purpose of the loan is to provide working capital for the Company; |
| Ø | In the event of occurrence of the any of the following during the term of loan, The Creditor is entitled to demand repayment of loan principal before maturity and withdraw directly from any accounts of the Company for the repayment: |
| | n | Delay in repayment of interest for the loan; |
| | n | The Company suffers operation loss or sharp decline in operation; |
| | n | Being involved in or threatened to be involved in lawsuit, arbitration or other legal disputes; |
| | n | Providing untrue financial statements or information; |
| | n | Embezzling loan (i.e. using loan proceeds for purposes other than what is agreed in the contract without the consent of the Creditor); |
| | n | Refusing the examination or supervision of the Creditor on the Company’s operational and financial conditions, and refuse to provide relevant financial statements and information; |
| | n | Great changes in management; |
| | n | Occurrence of other instances which endanger the safety of the loan provided by the Creditor; |
| Ø | Breach of contract penalties: correct the breach of contract in time limit; suspension of loan unprovided; terminate the 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 and interest; indemnification for the Creditor’s expenses incurred due to demanding the loan principal and interest in case of litigation, etc. |
| Ø | The Company guaranteed not to use the loan borrowed from the bank to invest in purchasing securities or real estates. Otherwise, the Company shall be liable for any loss incurred to the Creditor. |
Headlines of the articles omitted:
| Ø | Loan arrangement |
| Ø | Interest clearing of the loan |
| Ø | Payment of the loan |
| Ø | Interest penalty of loan |
| Ø | Guarantee of the loan agreement |
| Ø | Renew of obligation |
| Ø | Announcement and guarantee of the Company |
| Ø | Rights and obligation of the Company |
| Ø | Rights and obligations of the Creditor |
| Ø | Disputation settlement |
| Ø | Validity |
| Ø | Notarization |
| Ø | Text |
| Ø | Supplemental |
