Mortgage Contract of Maximum Amount between Shenzhen BAK Battery Co., Ltd. and Bank of China Shenzhen Branch (March 4, 2009)

Summary

Shenzhen BAK Battery Co., Ltd. and the Shenzhen Branch of Bank of China entered into a mortgage contract on March 4, 2009. Under this agreement, BAK Battery pledges its machinery and equipment as collateral to guarantee its obligations under a separate credit facility agreement with the bank. The contract covers all amounts owed, including principal, interest, penalties, and related costs, for debts incurred between March 4, 2009, and February 3, 2010. The agreement also outlines the bank’s rights to claim the collateral if BAK Battery defaults.

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Summary of Mortgage Contract of Maximum Amount ( the “Contract”) Entered into by and between Shenzhen BAK Battery, Co., Ltd (the “Mortgager”) and Shenzhen Branch, Bank of China (the “Creditor”) on March 4th, 2009

Main contents:

Contract number: 2009Zhenzhongyinsi Diezi 0011;

In order to guarantee the indebtedness of Shenzhen BAK Battery Co., Ltd. (the “Obligor”) towards the Creditor under the Comprehensive Credit Facility Agreement of Maximum Amount (reference no.: 2009Zhenzhongyin Exiezi 000024) from March 4th, 2009 to February 3rd, 2010, the Mortgager agrees to pledge its property to the Creditor.

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.

Collaterals: The Mortgager agrees to pledge its machineries and equipments to the Creditor.

Headlines of the articles omitted:

Termination and explanation

Payment on demand

Undertakings of the Mortgager

Validity of the Creditor’s Right

Occupancy of Collaterals

Mortgage Registration

Realizing of Creditor’s Right

Declaration and guaranty of the Mortgager

Amendment of the Contract

Effectiveness and Disputation settlement

Attachment

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