Application Letter for Drawing of Bank Loan Facility
Exhibit 10.50
Application Letter for Drawing of Bank Loan Facility
No. Jie 2005 Zong 1145042R-10
To: Shenzhen Branch, China Construction Bank
In accordance with the Comprehensive Credit Facility Agreement (No. Jie 2005 Zong 1145042R, hereinafter referred to as “Agreement”) entered into between your company and us, namely, Shenzhen BAK Battery Co., Ltd., we would like to apply for the drawing of the loan facility under the Agreement.
I. We would like to apply for the bank loan of RMB Twenty Million Yuan (RMB 20,000,000 yuan).
II. The term of this bank loan shall be six months.
III. The purpose of this bank loan is for production working capital.
IV. Interest Rate and Interest
| (1) | Loan in RMB |
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| 1. | Interest Rate |
The interest rate for the bank loan is 4.725% per month fixed for the whole bank loan term.
| 2. | Penalty Interest Rate |
The penalty interest rate is fixed at 9.45% per month in case that we use the bank loan for purpose other than that stated in this application letter;
The penalty interest rate is fixed at 7.0875% per month in case that we delayed in repayment of the loan.
3. The interest will be calculated from the date of transfer of the loan into the account of the Borrower. The interest will be calculated by the day and the daily interest = monthly interest/30 = annual interest/360. In case that we fail to pay the interest on time, compound interest will be imposed from the next day.
4. Payment of Interest
The interest will be paid monthly at the 20th day of each month.
(2) Loan in Foreign Currency
N/A
V. Repayment Plan
We will repay the principal of the loan according to the following schedule:
Date: 13 February 2007, Amount: RMB 20,000,000.00 yuan
VI. This letter shall come into effect once it is signed by the legal representative (or authorized representative) of us and stamped with our company chop. This letter is an appendix and an integral part to the Agreement. This letter is irrevocable. We will perform our obligations strictly in accordance with the Agreement and its appendix. Please review and approve our application.
VII. This letter has three counterparts.
Applicant: Shenzhen BAK Battery Co., Ltd. (stamped)
Legal Representative (person in charge): Xiangqian Li (signed)
Date: 14 August 2006
After examination, we approved the above application.
Shenzhen Branch, China Construction Bank (stamped)
Person in charge or authorized representative: (signature): /s/
Date: 14 August 2006
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