Chattel Mortgage Contract between Shenzhen BAK Battery Co., Ltd. and Agricultural Bank of China (Shenzhen Eastern Branch) dated June 22, 2009

Summary

Shenzhen BAK Battery Co., Ltd. has entered into a chattel mortgage contract with the Shenzhen Eastern Branch of the Agricultural Bank of China. Under this agreement, BAK Battery pledges RMB4.55221 million as collateral to guarantee a loan of HKD5.2363584 million. The contract covers the loan principal, interest, penalties, and related costs. If BAK Battery breaches the contract, it must pay an additional 30% of the secured amount and fully compensate the bank for any losses. The agreement is valid from June 22, 2009, to June 22, 2010.

EX-10.11 12 v156642_ex10-11.htm

Summary of Chattel Mortgage Contract (“the Contract”) Entered into by and between Shenzhen BAK Battery, Co., Ltd (“the Mortgager”) and Shenzhen Eastern Branch, Agricultural Bank of China (“the Creditor”) dated June 22, 2009

Main contents:

Contract number: 81903200900000186

In order to guarantee the indebtedness of Shenzhen BAK Battery Co., Ltd. (the “Obligor”) towards the Creditor under the Loan Agreement (reference no.: 81101200900001357) from June 22, 2009 to June 22, 2010, the Mortgager agrees to pledge its full margin of RMB4.55221 million to the Creditor.

The amount of guaranteed debt principal is HKD5 ###-###-#### million.

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.

Collateral: The Mortgager agrees to pledge its full margin of RMB4.55221 million to the Creditor.

Breach of Contract Penalties: additional 30% of the maximum amount secured in this Contract and full compensation for the Creditor’s loss due to the Mortgager’s breach of contract.

Headlines of the articles omitted:

Undertakings of the Mortgager

Validity of the Creditor’s Right

Transferring and Occupancy of Collateral

Collateral Security

Realizing of Creditor’s Right

Return of Collateral

Fee

Disputation settlement

Supplement articles

Attachment

Validity

Notification