Exhibit 10.57
Guaranty Contract of Maximum Amount (Credit
Facility)
No. (2006) Zhen Zhong Yin Si Bao E Zi
0184
Guarantor:
(hereinafter referred to as
“Party A”) Xiangqian Li
Identification
No: 620105196808081078
Legal Representative:
Address:
Telephone No:
Creditor:
(hereinafter referred to as
“Party B”) Shenzhen Branch, Bank of China
People in Charge: Yongkuan Duan
Address: International Finance Building, 2022 Jianshe
Road, Luohu, Shenzhen
Telephone No:
0755-28922667
Upon the request of the applicant
for credit facility, namely, Shenzhen BAK Battery Co., Ltd
(hereinafter referred to as the “Applicant”), Party A
undertakes to voluntarily provide guaranty for the indebtedness
under the Credit Facility Agreement entered into by the Applicant
in order that the Applicant can obtain the credit facility from
Party B. Party A also approves all terms of the Credit Facility
Agreement for which he guarantees, including division of credit
lines within the total credit facility. In order to clarify both
party’s rights and liabilities, Party A and Party B have
reached the following agreement under the friendly
negotiation.
I. The Maximum Amount of
Guaranteed Credit Facility
This Agreement is executed to guarantee the sum
of the balance of creditor’s right of the credit facility (or
the equivalent amount in foreign currency) under the Credit
Facility Agreement (2006) Zhen Zhong Yin E Xie Zi No. 000177, which
is effective from August 31, 2006 to August 31, 2007, but such sum
shall not exceed RMB 500,000,000.00.
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II. Scope of
Guaranty
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1.
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All the balance of the
creditor’s rights in every single credit facility under the
aforesaid Credit Facility Agreement.
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2.
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All the balance of the loan
principal, interest (including the compound interest, penalty
interest), and commission fee and so on under the aforesaid Credit
Facility Agreement.
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3.
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The Applicant shall pay the total
of compensation, undertaking fee and so on for breach of
contract.
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4.
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All the related expenses borne by
the Creditor in realizing its creditor’s rights.
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III. Method of
Guaranty
Party A
shall bear joint and several liability for the indebtedness of
every single loan under the aforesaid Credit Facility Agreement
within the aforesaid scope of guaranty.
IV. Guaranty
Period
The guaranty
period under this Contract shall be from the effective date of this
Contract to two years after the expiry date of all loans under the
aforesaid Credit Facility Agreement. In case that the term of any
of Credit Facility has been extended, the guaranty period would be
extended to two years after the expiry date of the extended
period.
V. The Relationship between
this Contract and the Guaranteed Credit Facility Agreement and its
Supplementary Credit Facility Agreement.
If any of the Credit Facility
Application provided by the Applicant to Party B under the
aforesaid Credit Facility Agreement specially stipulates that the
guaranty in this Contract shall be applied for the Credit Facility
Application, Party A shall unconditionally bear the joint and
several liability for such a loan.
VI. Continuity of
Guaranty
The
liabilities under this Contract shall persist and shall not be
affected by Party A or the Applicant’s division, merge,
restructuring, alterations, shareholding reform and the change of
subordination relationships.
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VII. Undertaking of
Guaranty
In case of
any breach of this Contract or the Credit Facility Agreement
guaranteed by this Contract, Party B has the right to require Party
A to undertake his guaranty liability under this Contract and it
can deduct the fee directly from any accounts opened by Party
B.
If, for reasons of business
operation, Party B needs to authorize any institutions supervised
by Shenzhen Branch, Bank of China (including branch bank and
sub-branch bank) to perform the aforesaid Credit Facility Agreement
or division of credit lines guaranteed by this Contract, Party A
shall approve such authorizations and take it as Party B performing
its obligations. At the same time, Party A shall bear the same
joint and several liability for Party B.
VIII. Effectiveness
This Contract shall be effective independently from the Credit
Facility Agreement it guaranteed and any other legal documents. The
invalidity of the Credit Facility Agreement and its supplementary
legal documents shall not affect the validity of this
Contract.
Special statement of Party A:
Except for the purpose of increasing the principal amount of credit
facility, the modification of the Credit Facility Agreement
guaranteed by this Contract between Party B and the Applicant does
not need the approval from Party A. The aforesaid modification
shall not affect Party A’s obligation
