Loan Agreement, dated November 16, 2009, between Shenzhen TMK Power Industries Ltd. and DBS Bank (China) Limited Shenzhen Branch (English Translation)
Exhibit 10.13
(English Translation)
Bank Loan Agreement
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Bank | DBS Bank (China) Limited Shenzhen Branch (Bank) |
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Borrower | Shenzhen TMK Power Industries Ltd. (深圳市三俊电池有限公司) (Borrower) |
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Execution date | November 16, 2009 |
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Principal | The Bank will grant the Borrower a loan credit of RMB 15,300,000. The loan will be paid to the Borrower in 36 monthly installments. The Bank can change, revoke the credit at any time upon its discretion. |
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Purpose | Purchasing equipment and business operation (RMB 11,318,500 for equipment purchase and RMB 3,981,500 for business operation). |
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Interest | The interest shall be 30% higher than the legal loan rate published by The Peoples Bank of China on the date when the loan is paid to Borrower. The bank is entitled to adjust the loan rate if the legal loan rate changes from time to time. |
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Repayment and Repayment in advance | The Borrower shall repay the loan on a monthly basis. Repayment in advance shall be approved by the Bank with at least one month notice in advance. The fee for prepayment in advance is fund cost loss of the Bank or 3% of the amount repaid in advance, whichever is higher. |
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Preconditions of Loan | Unless otherwise agreed by the Bank, the Borrower shall satisfy all the preconditions before applying for the loan credit, including:
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Representation by Borrower | The Borrower shall:
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Security | Borrower shall provide RMB 3,000,000 as deposit with the Bank which will be released to Borrower if the first 6 repayments by the Borrower are duly made. Individual guarantee is also required. |
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Period of Credit | 3 years commencing from the date the loan is paid to the Borrower. |
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Liability for Breach | If the Borrower fails to observe the agreement, which causes damages or losses to the Bank, the Borrower shall compensate such damages or losses. The amount of compensation shall be equal to losses suffered by the Bank due to the Borrower's breach. |
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Governing law and Jurisdiction | PRC Law governs to the contract. The parties accept the non-exclusive jurisdiction of PRC court in the place where the Borrower is located. |