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:

    
      	
               
      

            	
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              Contract number: No.
      81906200800002148;

            


    

    
      	
               
      

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

            


    

    
      	
               
      

            	
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              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;

            


    

    


    
      	
               
      

            	
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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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              Fees

            


    

    
      	
               
      

            	
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              Dispute
      settlement

            


    

    
      	
               
      

            	
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              Effectiveness

            


    

    
      	
               
      

            	
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              Notification

            


    

    
      	
               
      

            	
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              Supplement
      articles

            


    

     

    
      
         


      

      
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