Loan Agreement between Shenzhen BAK Battery Co., Ltd. and Agricultural Bank of China (East Branch) dated August 27, 2007
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Summary
Shenzhen BAK Battery Co., Ltd. entered into a loan agreement with the East Branch of the Agricultural Bank of China for a principal amount of RMB 40 million, to be used as working capital. The loan term is twelve months from the date the funds are provided, with a floating annual interest rate of 7.722%. Early repayment requires lender approval. Penalties apply for late payment or misuse of funds, and the lender may demand early repayment or compensation for breach. Additional terms cover loan types, guarantees, and dispute resolution.
EX-10.42 9 v097140_ex10-42.htm
Exhibit 10.42
Summary of Loan Agreement by and between Shenzhen BAK Battery Co., Ltd. and East Branch, Agricultural Bank of China dated August 27 , 2007.
Summary of the main articles
| · | Contract number: NO.81101200700001547 |
| · | Loan Principal: RMB 40 million; |
| · | Loan term: twelve months starting from the date loan is actually provided to the Company. |
| · | Floating interest rate: annually 7.722%, 110% of the benchmark rate announced by the People’s Bank of China; |
| | · | Penalty interest rate for delayed repayment: 5.022% plus 50% *5.022%; |
| · | Penalty interest rate for embezzlement of loan proceeds: 5.022% * 2; |
| · | Purpose of the loan is to provide working capital for the Company; |
| · | Advanced repayment of loan needs to be approved by the Lender; |
| · | Breach of contract penalties: suspension of loan un-provided, demand prepayment of loan principal and interest before maturity; imposition of punitive interest; compensation for the Lender’s expenses incurred due to the Company’s breach of contract such as lawyer’s fee, travel cost in case of litigation, etc. |
Summary of the articles omitted
| · | Types of the loan |
| · | Clearing of the loan interest |
| · | Condition precedent to the drawing of the loan |
| · | Rights and obligations of the borrower |
| · | Rights and obligations of the lender |
| · | Guarantee of the loan |
| · | Dispute settlement |
| · | Miscellaneous |
| · | Validity |
| · | Notes |
