Document:

Pledge Contract of Maximum Amount

 Exhibit 10.9 
 Pledge Contract of Maximum Amount 
 No. Shen Shangyin (Shuibei) Shouxin Zhi Zi (2006) A110020600008

 Pledger: Shenzhen BAK Battery Co., Ltd 
 Address: BAK
Industry Zone, Kuichong, Longgang, Shenzhen 
 Creditor: Shuibei Branch, Shenzhen Commercial Bank 
 Address: No. 2028, Wenjin Bei Rd, Shenzhen 
 The Creditor and the
Pledger have reached the following agreement in accordance with the Guarantee Law of People’s Republic of China and other relevant laws and regulations: 
 Article I. Pledge 
  

	1.1	Shenzhen BAK Battery Co., Ltd. and Shuibei Division, Shenzhen Commercial Bank have entered into the Comprehensive Credit Facilities Agreement (reference no: Shen Shangyin (Shuibei)
Shouxin Zi (2006) A110020600008, hereinafter referred to as “Master Agreement”). As requested by the Creditor, the Pledger undertakes to provide certificate of fixed deposit as pledge (hereinafter referred to as “Pledged
Collateral”) for the indebtedness of the Pledger under the Master Agreement. 

  

	    	The details of the Pledged Collateral are described in the attached “Statement of Pledged Collateral” and relevant certificate, which are integral parts to this Contract.

  

	    	The co-owner (if any) agrees to provide the aforesaid guaranty for the indebtedness of the Pledger under the Master Agreement. 

	1.2	The pledge shall cover all of the loan principal, interest, penalty interest, compound interest, breach of contract compensation, damages, undertaking fee and all the expenses such
as litigation/arbitration cost, lawyer’s fee, travel cost etc. which is incurred to the Creditor in realizing its Creditor’s right. 

  

	 	The maximum loan principal shall be RMB 50 million yuan. The interest, compound interest, penalty interest and other expenses shall be determined in accordance with actual
circumstances. 

  

	1.3	The value of the Pledged Collateral shall be determined when realizing the pledge. Party A shall bear the obligation of guaranty for the indebtedness under the Master Agreement
within the limit of the value of the Pledged Collateral. In case of discrepancy between Clause 1.2 and this Clause 1.3, this Clause 1.3 shall prevail. 

  

	1.4	The guaranty of pledge provided by the Pledger is independent from other forms of guaranty. It shall not be replaced by other forms of guaranty either. 

  

	1.5	This Contract is irrevocable. This Contract shall not be influenced by any documentation or agreement entered into by the Pledger and any party, and shall not be influenced by the
misuse of the credit facilities, insolvency, bankruptcy, loss of legal person status, amendment of articles of association, cease of business operation, acquisition, division and merger etc. of the Pledger, nor any change of the profession, position
or financial capacity of the Pledger. 

  

	1.6	This Contract shall remain valid in case of invalidity of the Master Agreement or relevant agreements entered into under the Master Agreement. 

  

	1.7	 The Pledger shall deliver the Pledged Collateral, accessory of the Pledged Collateral and relevant original certificates of the Pledged Collateral to the 

 
Creditor. Once the indebtedness under the Master Agreement has been settled, the guaranty of pledge shall be automatically terminated and the Creditor shall
return the aforesaid Pledged Collateral, accessory of the Pledged Collateral and relevant original certificates of the Pledged Collateral to the Pledger. 
 Article II. Delivery of the Pledged Collateral 
  

	2.1	The Pledger should deliver the accessory of the Pledged Collateral and relevant original certificates of the Pledged Collateral to the Creditor before May 8, 2006.

  

	  	The delivery of the Pledged Collateral shall be recorded and confirmed by the statement signed by both Parties. 

  

	2.2	In case that registration of pledge or endorsement of bill is required, the Pledger shall complete all the required legal formalities and provide the original documentations to the
Creditor. 

  

	2.3	The Creditor is entitled to demand the Pledger to conduct notary with enforcement power for this Contract. 

 Article III. Insurance 
  

	3.1	The Creditor is entitled to demand the Pledger to underwrite insurance for the Pledged Collateral and the first beneficiary under such insurance shall be the Creditor. The insured
amount shall be (remaining balance of the bank loan principal + estimated interest within the credit facility term) X 110% and the insurance period shall be credit facility term + 5 months. 

  

	3.2	The Pledger shall pay the insurance fee timely and shall perform all the obligations under the insurance agreement. 

  

	3.3	The Pledger shall renew the insurance before all indebtedness under the Master Agreement has been settled. In case of Pledger’s failure to renew the insurance in time, the
Creditor is entitled to renew the insurance at the cost of the Pledger. 

	3.4	In case of loss or damage of the Pledged Collateral, the insurance compensation shall first be paid to the Creditor for the settlement of the indebtedness under the Master
Agreement. 

  

	3.5	The original insurance policy shall be kept by the Creditor before all the indebtedness under the Master Agreement has been settled. 

 Article IV. Undertakings and Representations of the Pledger 
  

	4.1	The Pledger has read the Master Agreement carefully and accepts all clauses of the Master Agreement. The Pledger agrees to sign this Contract of its own will.

  

	4.2	The execution and alteration of the relevant agreements entered into by the Creditor and the Pledger under the Master Agreement do not need the confirmation of the Pledger unless
such agreements are in conflict with the Master Agreement. The Pledger undertakes that the Pledger shall continue to assume the obligation of pledge in case of the amendment of the Master Agreement by the Creditor and the Pledger and such amendment
does not need the consent of the Pledger. Without prejudice to the above, the Pledger shall assume the obligation of pledge for the indebtedness under the Master Agreement before the amendment if such amendment increases the indebtedness of the
Pledger and such amendment has not been approved by the Pledger in writing. 

  

	4.3	The Pledger undertakes that all the documentation, materials and information provided by the Pledger to the Creditor are authentic, accurate, complete and valid.

	4.4	The Pledged Collateral is owned by the Pledger and there is no legal dispute over the ownership of the Pledged Collateral. The Pledged Collateral has not been pledged to any other
party. The Pledger has obtained all necessary authorization or approval to execute and perform this Contract. 

  

	4.5	The Pledger shall not transfer, donate, allow any other party to use or create any other security right over the Pledged Collateral or dispose of the Pledged Collateral in any other
form without written consent by the Creditor. 

  

	4.6	The Pledger agrees that the Creditor may designate a third party to keep the Pledged Collateral as deemed necessary by the Creditor. 

 Article V. Performance of Pledge 
  

	5.1	The Creditor is entitled to execute the pledge rights under one of the following circumstances: 

  

	 	(1)	the Pledger fails to pay the principal/interest or any cost under the Master Agreement upon expiry of such indebtedness (or upon expiry date as declared by the Creditor);

  

	 	(2)	The Pledger transfers, donates, allows any other party to use or creates any other security right over the Pledged Collateral or disposes of the Pledged Collateral in any other form
without written consent by the Creditor; 

  

	 	(3)	The Pledger is dissolved, terminated or declared bankruptcy; 

  

	 	(4)	The Pledged Collateral is damaged or devaluates to the detriment of the Creditor without any fault of the Creditor and the Pledger fails to provide any other security as required by
the Creditor; 

  

	 	(5)	Any other circumstances as determined by laws. 

  

	5.2	Under the abovementioned circumstances, the Creditor is entitled to sell the Pledged Collateral by auction or by any other ways or directly offset the indebtedness by agreements
with the Pledger. 

	5.3	The Pledger irrevocably authorizes the Creditor to have the interests of pledge (including but not limited to interests, dividends, charge for use) after the second month of Pledger
violates the Master Agreement and the Creditor shall assistant the Pledger to execute the above rights unconditionally. 

 Article VI Breach of Contract 
  

	6.1	In case that this Contract or the pledge under this Contract become invalid, terminated due to failure of the Pledger to perform any obligations under this Contract, and the Pledger
fails to provide any other form of guaranty as required by the Creditor, then the Pledger shall bear the following liabilities for breach of contract: 

  

	  	The Pledger shall pay all the indebtedness under the Master Agreement and pay a breach of compensation equivalent to 10% of the remaining balance of the principal under the Master
Agreement. 

  

	6.2	In case that the value of the Pledged Collateral is decreased due to failure of the Pledger to perform any obligations under this Contract, and the Pledger fails to recover the
value of the Pledged Collateral or provide any other form of guaranty as required by the Creditor, then the Pledger shall bear the following liabilities for breach of contract: 

  

	  	The Pledger shall pay all the indebtedness under the Master Agreement and pay a breach of compensation equivalent to 5% of the remaining balance of the principal under the Master
Agreement. 

 Article VII. Other Issues Agreed by Both Parties 
 N/A 
 Article VIII. Miscellaneous 
  

	8.1	The Pledger shall bear all the cost for the assessment, registration, notary, maintenance, storage, repair, insurance, transportation for the Pledged Collateral.

	8.2	Any dispute arising from this Contract shall be submitted to the People’s Court of the place of the Creditor and the laws of People’s Republic of China shall be the
governing law. 

  

	8.3	This Contract shall come into effect once it is signed by the Pledger and the legal representative/authorized representative of the Creditor and stamped with the company stamp of
the Pledger and the pledge is delivered to the Creditor by the Pledger. If the pledge is required to be registered or the relevant bill is required to be endorsed, this Contract shall come into effect once the pledge has been registered or bill
endorsement has been accomplished. The Contract shall be terminated once all indebtedness, its interests and other expenses have been fully paid off. 

  

	8.4	This Contract has five originals, the Creditor shall retain two originals, the Pledger shall retain one original, the Obligator shall retain one original and the registered bureau
shall retain one original. 

  

	
	 Pledger (Stamp): [Company chop of Shenzhen BAK Battery Co., Ltd.]

	
	 Legal Representative/Authorized Representative (Signature):
/s/                                       
 

	
	 Date: 8 May 2006

	
	 Venue: Shenzhen

	
	 Creditor (Stamp): [Company chop of Shubei Branch, Shenzhen Commercial Bank]

	
	 Legal Representative/Authorized Representative (Signature):
/s/                                       
 

	
	 Date: 8 May 2006

	
	 Venue: Shenzhen

 Appendix: Statement of Pledged Collateral 
 No. Shen Shangyin (Shuibei) Shouxin Zhi Zi (2006) A110020600008 
 May 8, 2006

 Name: Certificate of Fixed Deposit 
 No. of
Certificate: XX00004184 
 Quantity: 1 
 Unit:
RMB Yuan 
 Original Value: RMB 50,000,000 yuan 
 Assessed Gross Valuation: RMB 50,000,000 yuan 
 Delivered by : [company chop of Shenzhen BAK Battery Co., Ltd.] 
 Date: 
 Received by [company chop of Shuibei Branch, Shenzhen Commercial
Bank] 
 Date:Comprehensive Credit Facilities Agreement

 Exhibit 10.10 
 Comprehensive Credit Facilities Agreement 
 Parties 
  

	•	 	Longgang Branch, Shenzhen Development Bank 

  

	•	 	Shenzhen BAK Battery Co., Ltd. 

 Summary of the main articles

  

	•	 	Contract number: is Shenfa Longgang zongzi NO.20060329001. 

  

	•	 	Contract term: from April 29, 2006 to April 29, 2007, and the amount of credit to be extended by Development Bank is RMB 150 million. 

  

	•	 	Remedies in the event of breach of contract include adjustment of the credit amount, suspension of credit, imposition of punitive interest and overdue interest, an increase of
guarantee deposit and the call back of loan principal and interest before maturity. 

  

	•	 	Special terms: 

  

	 	•	 	The maximum amount for credit facilities will be extended to RMB150 yuan after the two new production lines are pledged as collateral for this Comprehensive Agreement;

  

	 	•	 	Credit facilities under Comprehensive Agreement can only be used for making up working capital; 

  

	 	•	 	In case the credit of the Company is rated as bad by other banks or the Company is involved in any material adverse litigation, Development Bank is entitled to declare the credit
facilities granted to the Company become mature in advance to its original expiry date; 

  

	 	•	 	The Company undertakes that after getting the land use right of the BAK Industrial Park, the Company will pledge the construction under BAK Industrial Park Phrase I in a proportion
of the credit facilities under the Comprehensive Agreement to Development Bank. And the Company will deposit 50% of its sales amount incurred during the term of the Comprehensive Agreement. The deposits will be first used for repayment of the credit
facilities, or Development Bank is entitled to declare the credit facilities granted to the Company become mature in advance to its original expiry date; 

  

	 	•	 	If the asset liability ratio of the company exceeds 70%, the current asset/current liability of the Company less than 0.8, the sales revenue or net asset of the Company declines by
10% when compared with the same period of the previous year, Development Bank is entitled to deem the credit facilities matured before expiration of their term. 

  

	 	•	 	In case that the value of the collateral determined at the lower of its market price or factory-gate price falls below 90% of the original value, the Company shall make up for the
discrepancy within 3 working days. If the Company fails to perform the above obligation within the said period, the Development Bank is entitled to declare the credit facilities granted to the Company become mature in advance to its original expiry
date; 

  

	 	•	 	 The Company shall redeem the collateral with cash within three months after the expiration of the Comprehensive Agreement, if not doing so, or in case 

	 	 
the market price of the collateral reduces materially that may have a severe negative impact upon the Development Bank’s ability to collect its credit
in due time and due amount, the Development Bank is entitle to cease the grant of credit facilities. 

 Summary of the articles omitted:

  

	•	 	Mode of the comprehensive credit 

  

	•	 	The use of the comprehensive credit 

  

	•	 	The guarantee of the comprehensive credit 

  

	•	 	Expense and fees for the comprehensive credit 

  

	•	 	Declaration and warranty of the lender 

  

	•	 	Special covenant in respect of group client credit and affiliated transaction 

  

	•	 	Applicable law and dispute settlement 

  

	•	 	Validity

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