Loan Agreement between Shenzhen BAK Battery Co., Ltd. and Agricultural Bank of China (Shenzhen Eastern Branch) dated September 27, 2006
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 20 million. The loan is for six months at a fixed interest rate of 5.58%, with higher penalty rates for late repayment or misuse of funds. The loan is intended to provide working capital. Early repayment requires lender approval. If the company breaches the contract, the lender may suspend undisbursed funds, demand early repayment, impose penalties, and recover related expenses.
Exhibit 10.60
Summary of Loan Agreement by and between Shenzhen BAK Battery Co., Ltd. and Shenzhen Eastern Branch, Agricultural Bank of China dated September 27, 2006.
| Summary of the main articles | ||
| • | Contract number: No. 81101200600001651 | |
| • | Loan Principal: RMB 20 million; | |
| • | Loan term: six months starting from the date loan is actually provided to the Company. | |
| • | Interest rate: fixed rate of 5.58%; | |
|
| • | Penalty interest rate for delayed repayment: 5.58% plus 50% *5.58%; |
|
| • | Penalty interest rate for embezzlement of loan proceeds: 5.58% * 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 not yet 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 | |
| • | Conditions 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 | |
