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Exhibit 10.47
CONFIDENTIAL
Our Ref: WBG/06/3707
Date : 5 July 2006
BAK International
Limited
BAK
Industrial Park,
Kuichong Street, Longgang District,
Shenzhen, China.
Attention: Mr. Yongbin Han,
Vice President
Dear Sirs,
Re:
Facility Letter
We, CITIC Ka Wah Bank Limited
(the “Bank”), are pleased to offer you (the
“Borrower”) the general banking facilities (the
“Facilities”) on the following terms and
conditions.
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1.
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Facilities
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1.1
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The facilities are available by
way of the following:
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Extent of Facilities
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Documentary Credit
(“L/C”) Facility plus Trust Receipt (“T/R”)
Facility (120 days inclusive of usance period) plus Negotiation of
Export Bills under L/C with discrepancies supported by Letter of
Indemnity Facility (“NEGT”) up to the extent of
USD6,000,000.00.
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[within which:
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Packing Credit Facility
(“P/L”) up to the extent of
USD3,000,000.00.]
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Remarks:
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i.
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Utilization of the above trade
facilities is subject to 20% cash margin placed with the
Bank.
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ii.
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The above trade facilities is
used for purchase of raw materials.
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iii.
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Maximum tenor of P/L is 120 days
and maximum amount is 70% of export L/C amount.
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iv.
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P/L is against lodgment of the
export L/C.
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1.2
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The Facilities will be subject to
periodic review, as the Bank deems fit at its sole and absolute
discretion. The Facilities shall expire and be repayable forthwith
as and when the Bank has given the Borrower notice of termination.
Nevertheless, the Bank reserves the right at its sole and absolute
discretion to increase, reduce, cancel and/or demand repayment of
the Facilities or any part or parts thereof at any time to be
effective forthwith by notice to the Borrower.
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CONFIDENTIAL
Our Ref: WBG/06/3707
Borrower: BAK International Limited
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2.
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Interest
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2.1
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Interest will be charged on the
Facilities, subject to fluctuation, at the following rate (the
“Contract Rate”):
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Contract Rate
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1.5% over and above Hong Kong
Inter Bank Offered Rate (“HIBOR”) per annum as quoted
by the Bank on the first day of each period, subject to market
availability.
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2.2
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Interest will accrue from day to
day and be calculated on the basis of the actual number of days
elapsed and a 365-day year for Hong Kong Dollar of 360-day year for
United States Dollar or according to the market practice for
calculation of other currencies.
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3.
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Charges and
Commissions
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3.1
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Charges and commissions will be
levied and payable as set out in the following table. Once paid,
such charges and commissions shall not be refundable under any
circumstances.
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Charges and Commissions
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i.
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Commission for Import and Export
Bills charged at 1/4% on the first USD50,000.00 or equivalent and
1/16% thereafter shall be paid per each transaction.
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ii.
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Arrangement Fee of USD3,000.00
shall be payable by the Borrower to the Bank upon acceptance of
this Facility Letter.
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3.2
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Notwithstanding anything herein
contained, the Bank reserves the right to vary the amount of the
charges and commissions set out in the aforesaid table from time to
time at the Bank’s absolute discretion by giving prior
written notice.
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3.3
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If applicable, the Borrower is
also required to pay those charges set out in the Banking Charges
Schedule published by the Bank from time to time.
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4.
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Repayment
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4.1
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Without prejudice to Clause 1.2,
the Facilities together with accrued interest shall be repaid
according to the following Repayment Schedule:
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Repayment Schedule
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Each advance together with
accrued interest shall be repaid on or before the date specified in
the relevant application.
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5.
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Default
Interest
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5.1
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The Bank reserves the right to
collect default interest on an
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