Summary of Mortgage Contract
of Maximum Amount ( the “Contract”) Entered into by and between Shenzhen BAK
Battery, Co., Ltd (the “Mortgager”) and Longgang Branch, Shenzhen Development
Bank Co., Ltd (the “Creditor”) on December 3rd, 2008

      


      Main
contents:

      
        	
                 
      

              	
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                Contract number: Shenfa Longgang Edizi
      20081203001-1;

              


      

      
        	
                 
      

              	
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                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.: Shenfa Longgang
      Zongzi 20081203001) from December 8th,
      2008 to December 8th,
      2009, the Mortgager agrees to pledge its property to the
      Creditor.

              


      

      
        	
                 
      

              	
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                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.

              


      

      
        	
                 
      

              	
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                Collaterals: The
      Mortgager agrees to pledge its 2,554 machineries and equipments with an
      aggregate value of RMB 138.04 million to the
  Creditor.

              


      

      


      
        	
                 
      

              	
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                Headlines of the articles
      omitted:

              


      

      
        	
                 
      

              	
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                Termination
      and explanation

              


      

      
        	
                 
      

              	
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                Payment
      on demand

              


      

      
        	
                 
      

              	
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                Undertakings
      of the Mortgager

              


      

      
        	
                 
      

              	
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                Validity
      of the Creditor’s Right

              


      

      
        	
                 
      

              	
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                Occupancy
      of Collaterals

              


      

      
        	
                 
      

              	
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                Insurance
      of Collaterals

              


      

      
        	
                 
      

              	
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                Mortgage
      Registration

              


      

      
        	
                 
      

              	
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                Realizing
      of Creditor’s Right

              


      

      
        	
                 
      

              	
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                Declaration
      and guaranty of the Mortgager

              


      

      
        	
                 
      

              	
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                Amendment
      of the Contract

              


      

      
        	
                 
      

              	
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                Effectiveness
      and Disputation settlement

              


      

      
        	
                 
      

              	
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                Supplement
      articles