Mortgage Contract of Maximum Amount between Shenzhen BAK Battery Co., Ltd. and Agricultural Bank of China (Shenzhen Eastern Branch)

Summary

Shenzhen BAK Battery Co., Ltd. has entered into a mortgage agreement with the Shenzhen Eastern Branch of the Agricultural Bank of China. To secure its obligations under a separate credit facility, BAK Battery pledges its land use rights for BAK Industrial Park as collateral. The agreement covers all related debts, including principal, interest, penalties, and legal costs. If BAK Battery breaches the contract, it must pay an additional 20% of the secured amount and fully compensate the bank for any losses. The contract includes terms on collateral management, insurance, registration, and dispute resolution.

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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 Eastern Branch, Agricultural Bank of China( the “Creditor”) on Nov. 27th, 2008

Main contents:

Contract number: No. 81906200800002148;

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 (No. 81001200813170001), the Mortgager agrees to pledge its land use rights certificate of BAK Industrial Park 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 land use right certificate of BAK Industrial Park to the Creditor.

Breach of Contract Penalties: additional 20% 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:

Termination and explanation

Payment on demand

Undertakings of the Mortgager

Validity of the Creditor’s Right

Occupancy of Collaterals

Insurance of Collaterals

Mortgage Registration

Realizing of Creditor’s Right

Fees

Dispute settlement

Effectiveness

Notification

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