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 May 26, 2009

    


    Main
contents:

    
      	
               
      

            	
              Ø

            	
              Contract
      number: 81903200900000096

            


    

    
      	
               
      

            	
              Ø

            	
              In
      order to guarantee the indebtedness of Shenzhen BAK Battery Co., Ltd.
      (the “Obligor”) towards the Creditor under the Loan
      Agreement (reference no.: 81101200900001026) from May 26, 2009
      to May 26, 2010, the Mortgager agrees to pledge
      its full margin of RMB2.163360 million to the
      Creditor.

            


    

    
      	
               
      

            	
              Ø

            	
              The
      amount of guaranteed debt principal is HKD2.499609
  million.

            


    

    
      	
               
      

            	
              Ø

            	
              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.

            


    

    
      	
               
      

            	
              Ø

            	
              Collateral: The
      Mortgager agrees to pledge its full margin of RMB2.163360 million to the
      Creditor.

            


    

    
      	
               
      

            	
              Ø

            	
              Breach of Contract Penalties: additional 50% 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:

    
      	
               
      

            	
              Ø

            	
              Undertakings
      of the Mortgager

            


    

    
      	
               
      

            	
              Ø

            	
              Validity
      of the Creditor’s Right

            


    

    
      	
               
      

            	
              Ø

            	
              Transferring
      and Occupancy of Collateral

            


    

    
      	
               
      

            	
              Ø

            	
              Collateral
      Security

            


    

    
      	
               
      

            	
              Ø

            	
              Realizing
      of Creditor’s Right

            


    

    
      	
               
      

            	
              Ø

            	
              Return
      of Collateral

            


    

    
      	
               
      

            	
              Ø

            	
              Fee

            


    

    
      	
               
      

            	
              Ø

            	
              Disputation
      settlement

            


    

    
      	
               
      

            	
              Ø

            	
              Supplement
      articles

            


    

    
      	
               
      

            	
              Ø

            	
              Attachment

            


    

    
      	
               
      

            	
              Ø

            	
              Validity

            


    

    
      	
               
      

            	
              Ø

            	
              Notification