Document:

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 March
6th, 2009

    

    Main
contents

    
      	
              Ø

            	
              Contract
      number:  (2009) Shenyinsun daizi
003;

            

    

    
      	
              Ø

            	
              Loan
      principal:
RMB 50 million;

            

    

    
      	
              Ø

            	
              Loan
      term: from March 6th,
      2009 to March 6th,
      2010;

            

    

    
      	
              Ø

            	
              Interest
      rate: fixed at 5.31%;

            

    

    
      	
               
      

            	
              n

            	
              Penalty
      interest rate for delayed repayment: 5.31% plus 50%
  *5.31%;

            

    

    
      	
               
      

            	
              n

            	
              Penalty
      interest rate for embezzlement of loan proceeds: 5.31%
  *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 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

            	
              SupplementalSummary of Guaranty Contract
of Maximum Amount ( the “Contract”) Entered into by and between Xiangqian Li and
Shenzhen Branch, China Citic Bank (the “Creditor”) on February 13th, 2009

      

      Main
contents:

      Ø          Guaranty
Contract number: 2009Shenyinsun Ebaozi 001;

      Ø          Main
Contract number: 2009Shenyinsun ZongEzi 001

      Ø          Xiangqian
Li undertakes to assume joint and several liabilities for Shenzhen BAK
Battery Co., Ltd (the “Obligor”)’s indebtedness towards China
Citic Bank, and the maximum amount secured is RMB 150
million.

      Ø          Guaranty Responsibility: The guaranty
under this Contract shall be guaranty with joint and several liabilities. The
guarantor is obligated to pay off the debt in the event the obligor is unable to
pay off the debt (including the creditor declares the debt becomes mature in
advance to its original expiry date due to default of the obligor or the
guarantor).

      Ø          Scope of Guaranty: The guaranty shall cover
all of the loan principal, interest, penalty interest, breach of contract
compensation, damages, undertaking fee and all the expenses such as litigation
cost, lawyer’s fee, notification cost and public notice cost etc. which is
incurred to the Creditor in realizing its creditor’s right.

      Ø          Guaranty period: The
guaranty period is from the effective date of this Contract to two years after
the expiry of the term of the Credit Facility Agreement and relevant agreement
entered into under the Credit Facility Agreement.

      

      Headlines
of the articles omitted:

      Ø          Termination
and explanation

      Ø          Payment
on demand

      Ø          Declaration
and guaranty

      Ø          Independent
guaranty

      Ø          Fulfillment
of the responsibility and giving up of the right

      Ø          Amendment
of Contract

      Ø          Effectiveness
and Disputation settlement

      Ø          Contract
period

      Ø          Supplement
articlesSummary of Guaranty Contract
of Maximum Amount ( the “Contract”) Entered into by and between BAK
International Limited and Shenzhen Branch, China Citic Bank (the “Creditor”) in
February 2009

      

      Main
contents:

      Ø Guaranty Contract
number: 2009Shenyinsun Zuibaozi 001;

      Ø BAK International
Limited undertakes to assume joint and several liabilities for Shenzhen BAK
Battery Co., Ltd (the “Obligor”)’s indebtedness towards China
Citic Bank, and the maximum amount secured is RMB 150
million.

      Ø    Guaranty Responsibility: The guaranty
under this Contract shall be guaranty with joint and several liabilities. The
guarantor is obligated to pay off the debt in the event the obligor is unable to
pay off the debt (including the creditor declares the debt becomes mature in
advance to its original expiry date due to default of the obligor or the
guarantor).

      Ø    Scope of Guaranty: The guaranty shall cover
all of the loan principal, interest, penalty interest, breach of contract
compensation, damages, undertaking fee and all the expenses such as litigation
cost, lawyer’s fee, notification cost and public notice cost etc. which is
incurred to the Creditor in realizing its creditor’s right.

      Ø   Guaranty period: The
guaranty period is from the effective date of this Contract to two years after
the expiry of the term of the Credit Facility Agreement and relevant agreement
entered into under the Credit Facility Agreement.

      

      Headlines
of the articles omitted:

      Ø Termination and
explanation

      Ø Payment on
demand

      Ø   
Declaration and guaranty

      Ø Independent
guaranty

      Ø Fulfillment of the
responsibility and giving up of the right

      Ø Amendment of
Contract

      Ø Effectiveness and
Disputation settlement

      Ø Contract
period

      Ø Supplement
articles

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