Document:

Exhibit 10.3

Summary of Loan Agreement entered into by and between Shenzhen BAK Battery Co., Ltd. and Shenzhen Eastern Branch, Agricultural Bank of China dated November 15, 2006.

Summary of the main articles 

	
  
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Contract   number:   NO.81101200600001925
  
	
  
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Loan Principal: RMB 16 million;
  
	
  
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Loan term: from November 15, 2006 to May 14, 2007;
  
	
  
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Interest rate: fixed rate of 5.58%;
  
	
  
 
  	
  
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Penalty interest rate for delayed repayment: 5.58% plus 50% *5.58%;
  
	
   
  	
  
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Penalty interest rate for embezzlement of loan proceeds: 5.58% * 2;
  
	
  
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Purpose of the loan is to provide working capital for the Company;
  
	
  
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Advanced repayment of loan needs to be approved by the Lender;
  
	
  
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Breach of contract penalties: suspension of loan un-provided, demand prepayment of loan principal and interest before   maturity; imposition of punitive   interest; compensation for   the Lender’s expenses incurred due to the Company’s breach of contract such   as lawyer’s fee, travel   cost in case of litigation, etc.
  

Summary of the articles omitted 

	
  
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Types of the   loan
  
	
  
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Clearing of   the loan interest
  
	
  •
  	
  Condition   precedent to the drawing of the loan
  
	
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  Rights and   obligations of the borrower
  
	
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  Rights and   obligations of the lender
  
	
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  Guarantee of   the loan
  
	
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  Dispute   settlement
  
	
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  Miscellaneous
  
	
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  Validity
  
	
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  NotesExhibit 10.4

Summary of Loan Agreement entered into by and between Shenzhen BAK Battery Co., Ltd. and Shenzhen Eastern Branch, Agricultural Bank of China dated November 23, 2006.

Summary of the main articles 

	
  
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Contract   number:   NO.81101200600001987
  
	
  
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Loan Principal: RMB 15 million;
  
	
  
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Loan term: from November 23, 2006 to May 22, 2007;
  
	
  
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Interest rate: fixed rate of 5.40%;
  
	
  
 
  	
  
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Penalty interest rate for delayed repayment: 5.58% plus 50% *5.58%;
  
	
  
 
  	
  
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Penalty interest rate for embezzlement of loan proceeds: 5.58% * 2;
  
	
  •
  	
  
Purpose of the loan is to provide working capital for the Company;
  
	
  
•
  	
  
Advanced repayment of loan needs to be approved by the Lender;
  
	
  
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Breach of contract penalties: suspension of loan un-provided, demand prepayment of loan principal and interest before   maturity; imposition of punitive   interest; compensation for   the Lender’s expenses incurred due to the Company’s breach of contract such   as lawyer’s fee, travel   cost in case of litigation, etc.
  

Summary of the articles omitted 

	
  
•
  	
  
Types of the   loan
  
	
  
•
  	
  
Clearing of   the loan interest
  
	
  
•
  	
  
Condition   precedent to the drawing of the loan
  
	
  
•
  	
  
Rights and   obligations of the borrower
  
	
  •
  	
  Rights and   obligations of the lender
  
	
  •
  	
  Guarantee of   the loan
  
	
  •
  	
  Dispute   settlement
  
	
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  Miscellaneous
  
	
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  Validity
  
	
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  NotesExhibit 10.5

Mortgage Contract

No. 81902200600005528

Creditor (full name): Agricultural Bank of China, Shenzhen Eastern Branch

Mortgager (full name): Shenzhen BAK Battery Co., Ltd. 

For the purpose of guaranteeing the performance of the loan contract (Reference No. 8110120060001989, hereinafter referred to as “Master Agreement”) entered into by the Creditor and Shenzhen BAK Battery Co., Ltd. (hereinafter referred to as Obligor), the Mortgager agrees to mortgage its assets to the Creditor for the indebtedness of the obligor under the Master Agreement. Through friendly negotiation, both parties agree to enter into this Contract in accordance with relevant PRC laws and regulations:

	
  
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Category of Guaranteed Creditor’s Right and Amount of Loan Principal
  

The guaranteed creditor’s right belongs to general fix-assets loan. The amount of the principal is RMB 200 Million Yuan.

	
  
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Scope of Guaranty
  

The scope of guaranty covers all principal, interest, penalty interest, compound interest, penalty, litigation fees, legal fees, fees for disposing of and transferring the mortgage and all the expenses under this contract incurred to the Creditor in realizing its creditor’s right.

	
  
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Collaterals
  

	
  
(1)
  	
  
The   Mortgager agrees to mortgage the machinery equipments (detailed information   is described in the List of Collaterals numbered 0237061123001) and the   aforesaid List is a part of this Contract.
  
	
  
 
  	
  
 
  
	
  
(2)
  	
  
The price of   the aforesaid collaterals is temperately evaluated as RMB 115,350,588 Yuan.   The final value of the collaterals shall be calculated according to the net   income of the disposal of such collaterals when the creditor’s right is   actualized.
  

	
  
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Undertakings of the Mortgager
  
	
  
 
  	
  
 
  
	
  
(1)
  	
  
The   Mortgager has lawful and undisputed rights to own or dispose of the   collaterals.
  
	
  
 
  	
  
 
  
	
  
(2)
  	
  
The   collaterals shall be negotiable and can be transferred in accordance with   relevant laws and regulations.
  
	
  
 
  	
  
 
  
	
  
(3)
  	
  
The   collaterals shall not be in the situation of being seized, distrained or repeatedly   mortgaged.
  
	
  
 
  	
  
 
  
	
  (4)
  	
  
The   Mortgager undertakes that no information of in default on tax, engineering   fees and etc. of such collaterals is disguised.
  
	
  
 
  	
  
 
  
	
  
(5)
  	
  
The   Mortgager has obtained the approval of the person who shares the ownership of   the collaterals on the mortgage issue under this Contract.
  
	
  
 
  	
  
 
  
	
  
(6)
  	
  
There is no   situation of violating the Creditor’s realizing of his Creditor’s right   existing in such collaterals.
  
	
  
 
  	
  
 
  
	
  
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Validity of   the Creditor’s Right
  
	
  
 
  	
  
 
  
	
  
The scope of   validity of the collaterals covers all the appendants,
dependent claims, subrogation,   things connected, hybrids, processed goods and fruits of them.
  
	
   
  	
  
 
  
	
  
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Occupancy of   Collaterals
  
	
  
 
  	
  
 
  
	
  
(1)
  	
  
The   collaterals under this Contract are occupied by the Mortgager. The Mortgager   shall bear the obligation of keeping and managing such collaterals safe. The   Creditor is entitled to supervise and check the management of such   collaterals.
  
	
  
 
  	
  
 
  
	
  
(2)
  	
  
During the   valid term of this Contract, the Mortgager shall not donate, transfer, sell,   rent, repeatedly mortgage or dispose of the collaterals in other ways to any   third party without obtaining the written approval of the Creditor. In case   that the Mortgager gains the written approval from the Creditor of  transferring, renting of selling the   collaterals, the payment received by the Mortgager from such transaction   shall be used to repay the indebtedness owed to the Creditor in advance   before expiry or be deposited in a third party designated by both parties.
  

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  (3)
  	
  
During the   valid term of this Contract, in case the collaterals are damaged, lost or   being seized, the Mortgager shall adopt effective methods to prevent the   enlarging of the damage and shall notify the Creditor in written in time. The   insurance proceeds, penalty and compensation received by the Mortgager shall   be used to repay the indebtedness owed to the Creditor under the Master   Contract in advance.
  
	
  
 
  	
  
 
  
	
  
(4)
  	
  
During the   valid term of this Contract, in case the value of the collaterals is   decreased, the Creditor has the right of requesting the Mortgager to fulfill the   original value of such collaterals or to provide the guaranty designated by   the Mortgager. If the Mortgager refuses to return the original value or fails   to provide the aforesaid guaranty, the Creditor is entitled to announce that   the indebtedness under the Master Contract shall be due in advance. The   Creditor can request for the fulfillment of the indebtedness from the   Mortgager or dispose of the guaranty in advance.
  
	
  
 
  	
  
 
  
	
  
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Insurance of Collaterals
  
	
  
 
  	
  
 
  
	
  
(1)
  	
  
The   Mortgager shall arrange the relevant insurance according to the requests of   the Creditor and the Creditor shall be the first beneficiary of the aforesaid   insurance.
  
	
   
  	
  
 
  
	
  
(2)
  	
  
The originals   of bills in respect of the aforesaid insurance shall be delivered to and kept   by the Creditor.
  
	
  
 
  	
  
 
  
	
  
(3)
  	
  
During the   valid term of this Contract, the Mortgager shall not intermit or withdraw the   aforesaid insurance for any reason. If the insurance is intermitted, the   Creditor is entitled to, on behalf of the Mortgager, arrange the insurance   for the Mortgager and all the expenses incurred during the arrangement shall   be born by the Mortgager. The Creditor shall be entitled to draw the   aforesaid expenses directly from the Mortgager’s any account.
  

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(4)
  	
  
In case any   accident under the insurance policy occurs, the insurance proceeds shall be   used to repay the indebtedness and relevant fees owed to the Creditor under   the Master Contract in advance.
  
	
  
 
  	
  
 
  
	
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Mortgage Registration
  
	
  
 
  	
  
 
  
	
  
The   Mortgager shall fulfill the mortgage registration in relevant authority   within 5 days after this Contract is executed and shall submit the originals   of all the subrogation rights certificates, registration documentations and   other right certificates to the Creditor.
  
	
  
 
  	
  
 
  
	
  
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Realizing of Creditor’s Right
  
	
  
 
  	
  
 
  
	
  
(1)
  	
  
The Creditor   is entitled to dispose of the collaterals by means of settlement of the   indebtedness in kind, auction or sale and use the payment derived from such   disposal to repay the indebtedness owed to it if the Mortgager fails to pay   its debts upon maturity of such debt under the Master Contract. The aforesaid   “maturity” covers all the maturities in advance stipulated by relevant PRC   laws and regulations or the issues under the Master Contract announced by the   Creditor.
  
	
  
 
  	
  
 
  
	
  (2)
  	
  
In case   there are two or more Mortgagers, the Creditor is entitled to dispose of the   collaterals of one or any other Mortgager.
  
	
  
 
  	
  
 
  
	
  
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Breach of Contract
  
	
  
 
  	
  
 
  
	
  
(1)
  	
  
After this   Contract becomes effective, both the Mortgager and the Creditor shall perform   the obligations stipulated in this Contract. Any party who fails to fulfill   such obligations shall bear the corresponding liabilities and compensate the   other party’s losses incurred from breaching this Contract.
  
	
  
 
  	
  
 
  
	
  
(2)
  	
  
The   Mortgager shall pay the full amount of compensation to the Creditor if any of   the following situation occurs and results in damage to the Creditor:
  
	
  
 
  	
  
 
  
	
  
(a)
  	
  
The   Mortgager hide the information that the collaterals are shared, disputed,   seized, supervised, detrained, repeatedly mortgaged, rented, in default on   tax, engineering fees and etc.
  

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(b)
  	
  
The   Mortgager disposes of the collaterals without obtaining the written approval   from the Creditor.
  
	
  
 
  	
  
 
  
	
  
(c)
  	
  
Other   behaviors acted by the Mortgager which breach this Contract or affect the   Creditor on realizing the creditor’s right.
  
	
  
 
  	
  
 
  
	
  
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Fees
  
	
  
 
  	
  
 
  
	
  
The expenses   incurred during the course of execution and performance of this Contract by   both parties such as registration fee, assessment fee, insurance fee,   testimonial fee, notarial fee or deposition fee etc. shall all be born by the   Mortgager.
  
	
  
 
  	
  
 
  
	
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Dispute Settlement
  
	
  
 
  	
  
 
  
	
  
Any dispute   occurs during the valid term of this Contract can be settled by both partied   through consultation or upon the second method of the followings:
  
	
  
 
  	
  
 
  
	
  
(1)
  	
  
Litigation,   submitted to the People’s Court located in the address of the Creditor.
  
	
  
 
  	
  
 
  
	
  
(2)
  	
  
Arbitration,   apply to Shenzhen Arbitration Committee for arbitration.
  
	
  
 
  	
  
 
  
	
  
During the   course of litigation or arbitration, the parties shall continue to perform   this Contract except for the provisions at issue.
  
	
  
 
  	
  
 
  
	
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Other Issues
  
	
  
 
  	
  
 
  
	
  
(1)
  	
  
The   Mortgager has received and read the Master Contract of Guaranty.
  
	
  
 
  	
  
 
  
	
  
(2)
  	
  
When the   Mortgager and the Creditor shall dispose of the pledged especially tax   deduction supervising goods, the Mortgager shall fulfill the procedures of   transferring, selling and tax paying of the aforesaid goods at the custom on   his own initiative.
  
	
  
 
  	
  
 
  
	
  
(3)
  	
  
In case the   Mortgager fails to pay the loan and take the pledged tax deduction   supervising goods as the repayment, he shall pay the tax first.
  
	
  
 
  	
  
 
  
	
  
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Effective of Contract
  

This Contract shall become effective when it is signed and stamped by both parties or on the registration day if the pledge shall be registered.

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This Contract has four originals and each party shall retain one   original respectively. The Creditor shall hold one more original and all the   originals have the same legal effect.
  
	
  
 
  	
  
 
  
	
  
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Statement
  

The Creditor has reminded the Mortgager of fully and accurately understanding of all the articles stipulated in this Contract. The Creditor also explains the corresponding articles upon on the requirement of the Mortgager. Both parties have the same understanding. 

	
  
Creditor (Signature or Stamped)
  	 
	
  
Agricultural Bank of China, Shenzhen   Eastern Branch
  	 
	
  
By: /s/ Yi Zhou
  	 
	
	 
	 
	 
	
  Mortgager (Signature or Stamped)
  	 
	
  Shenzhen BAK Battery Co., Ltd.
  	 
	 By: /s/ Xiangqian Li
	 
	
  
 	 
	 
	 
	
  Signed on:   November 23, 2006
  	 
	
  Signed in: ShaToujiao, Shenzhen
  	 

6

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