Contract
Guaranty Contract of Maximum
Amount Entered Between BAK International (Tianjin) Limited, BAK International
Limited, ▇▇▇▇▇▇▇▇▇ ▇▇ and Shenzhen Eastern Branch, Agricultural Bank of China
(“Agricultural Bank”) on September 17th, 2008
Summary
of the main articles
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Contract
number: 81905200800000212;
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As
guarantors, BAK Tianjin, BAK International and ▇▇▇▇▇▇▇▇▇ ▇▇ undertakes to
assume joint liabilities for Shenzhen BAK Battery Co., Ltd (“Shenzhen
BAK”)’s indebtedness under the Loan Agreement (No. 81101200600001989) and
the maximum amount secured is RMB355
million.
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Secured
items include the loan principal, interest, penalty interest, breach of
contract compensation and all the expenses incurred for Agricultural Bank
to realize its creditor’s right under the Loan Agreement
;
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The
type of the guaranty is joint liability guaranty; the guarantors undertake
joint liabilities to the creditor.
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Guaranty
period:
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Two
years from the expiry date that Shenzhen BAK should fulfill its
obligations in accordance with Loan
Agreement;
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For
the acceptance of commercial drafts, issuance of Letter of Credit and
issuance of Letter of Guarantee, the term is two years from the creditor’s
disbursement;
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For
discounted commercial drafts, the term is two years from the expiry date
of the discounted commercial
drafts;
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If
the term of the Loan Agreement is extended, guaranty period shall be two
years from the expiry date for the Company to fulfill its obligations
according to the extended
agreement;
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Breach
of contract penalties: compensation for the Guarantor’ loss incurred due
to the Creditor’s breach of contract; imposition penalties at the maximum
of 15% of the guaranteed indebtedness, and full compensation for the
Creditor’s loss incurred due to the Guarantor’s breach of
contract.
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Summary
of the articles omitted:
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Commitment
of the guarantors
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Confirmation
of the creditor’s guaranteed rights
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Undertaking
of the guaranteed liabilities
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Breach
of contract obligation
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Dispute
settlement
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Miscellaneous
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Validity
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Text
copies
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Notes
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