Document:

Pledge Contract of Maximum Amount

 Exhibit 10.13 
 Pledge Contract of Maximum Amount 
 No. Shenfa Longgang E’zhi Zi 20060329001-2 
  

			
	 Party A: Longgang Branch, Shenzhen Development Bank (Creditor)

	
	 Address: A1, Xinyazhou Park, Central Town, Longgang District, Shenzhen

		
	 Telephone: 28952003
	  	Fax: 28952004
		
	 Person in charge: Yu Bo
	  	Position: President of Longgang Branch
	
	 Party B: Li Xiangqian (Pledger)

	
	 Address: 21D, Yijin’ge, Tian’an Golf Park, Futian District, Shenzhen

		
	 Telephone: 83841596
	  	Fax: 89770026

 In order to secure the indebtedness of Shenzhen BAK Battery Co., Ltd. (hereinafter referred to as Obligor) under
the Comprehensive Credit Facilities Agreement (reference no. Shenfa Longgang Zongzi 20060329001, hereinafter referred to as Master Agreement) entered into by Creditor and Obligor on 5 April 2006, the Pledger agrees to provide its assets to the
Creditor as the pledge. Through friendly negotiation, both parties agree to enter into this Contract: 
 I. Scope of Guaranty 
 The scope of guaranty covers all loan principal, interest, penalty interest and all the expenses incurred to the Creditor in realizing its creditor’s right. The
maximum loan principal shall not exceed RMB 150 Million yuan. 
 II. Pledged Collaterals 
 The detail information of the pledged collaterals is described in the Statement of Pledged Collaterals attached to this Contract. 
 After the Pledger has pledged the abovementioned collaterals, the Pledger shall not 

 
transfer such pledged collaterals or allow any third party to use such pledged collaterals without the approval of the Creditor. In case that the Creditor
and Pledger agree to transfer the pledged collaterals, the payment received by the Pledger from such transaction shall be used to settle the indebtedness owed to the Creditor in advance to expiry or be deposited in a third party designated by both
parties. 
 III. The Creditor is entitled to dispose of the pledged 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 any of the following occurs: 
  

	 	(1)	The Obligor fails to pay its debts upon maturity of such debt (as originally agreed or put forward); 

  

	 	(2)	The legal successor of the Pledger or the legatee of the Pledger refuse to perform their obligations; 

  

	 	(3)	The Obligor is declared dissolved or bankrupt; 

  

	 	(4)	The value of the pledged collaterals is likely to be obviously decreased so that the interest of the Creditor is endangered and the Pledger fails to provide additional collateral as
requested by the Creditor; 

  

	 	(5)	Other events which may have negative impact upon the realization of the Creditor’s rights under the Master Agreement. 

 IV. Undertakings and Representations of the Pledger 
 The Pledger is
legally qualified to execute and perform this Contract, and has obtained all necessary authorization by the board of directors or other competent authorities (as the case may be). 
 The Pledger undertakes that all application materials submitted by it to the Creditor are truthful, lawful, effective and with no serious errors or omissions. The Pledger has the lawful and undisputed right to pledge
the pledged collaterals under this Contract. The execution and performance of this Contract by the Pledger do not violate any other contracts entered into or being performed by the Pledger. 
 The Pledger also undertakes that all application materials submitted by the Obligor to the Creditor are truthful, lawful, effective and with no serious errors or
omissions. 

 The Pledger shall notify the Creditor in writing within 10 days after it has changed its address, contact details,
liaison telephone, business scope or legal representative etc. 
 The Pledger has fully understood all provisions of this Contract and both parties execute
this Contract of their free will. 
 V. The guaranty of pledge provided by the Pledger is independent from and shall not be replaced by any other
guaranty provided by other guarantors. 
 VI. In case that part or whole of the Master Agreement or agreement entered into under the Master Agreement
become invalid due to any reason, the Obligor shall nevertheless perform its obligation of repayment and the Pledger shall perform its obligation of guaranty for the Obligor’s obligation of repayment in accordance with this Contract.

 VII. The expenses incurred during the course of execution and performance of this Contract by both parties such as notarial or testimonial fee,
registration fee, auction or sell cost etc. shall all be born by the Pledger. 
 VIII. Amendment and Termination of Contract 
  

	2.	In case that any party intends to amend or terminate this Contract, it shall notify the other party in writing and a written agreement shall be reached by both parties. This
Contract shall remain valid until the written agreement to amend or terminate this Contract has been reached. 

  

	3.	Any waiver or tolerance of the Creditor shall not be deemed as amendment or termination of this Contract except that a written agreement has been reached in accordance with the
above provision. 

	4.	In case that the Master Agreement has been amended, the Creditor shall seek the approval of the Pledger immediately. The Pledger shall continue to bear the responsibility of
guaranty for the indebtedness of the Obligor under the Master Agreement (before and after the amendment) only after it has approved such amendment. However, the Creditor does not need to seek the approval of the Pledger for amendment of the Master
Agreement which decreases the indebtedness of the Obligor. 

 IX. Applicable Law and Dispute Settlement 
  

	1.	The execution and performance of this Contract shall be governed by the laws of People’s Republic of China; 

  

	2.	The method of dispute settlement for this Contract shall be the same with that of the Master Agreement. 

 X. This Contract shall be signed and stamped by both parties (only signature is needed for party of natural person). This Contract shall become effective upon the delivery of the pledged collaterals to the
Creditor. If the pledge shall be registered or recorded in accordance with article 78 or 79 of the Guarantee Law of People’s Republic of China, this Contract shall become effective upon the registration or record. 
 XI. Other Issues 
 XII. This Contract has four originals, the
Creditor shall retain two originals, the Obligor shall retain one original and the Guarantor shall retain one original. 

 Statement of Pledged Collaterals 
  

			
	 Name, Quality and Quantity of the Pledged Collaterals
	  	1911093 equity shares of China BAK Battery Inc., owned by Li Xiangqian
		
	 Title and Title Certificate
	  	 N/A

		
	 Place of the Pledged Collaterals
	  	 OTCBB, United States

		
	 Original Value of the Pledged Collaterals
	  	 ¥37,837,984.14

		
	 Ownership of the Pledged Collaterals
	  	 100% owned by Pledger

		
	 Other issues
	  	 N/A

		
	 Mark
	  	 N/A

 The Pledger undertakes that the above statement is truthful. The Pledger shall bear the joint and several
liability for the indebtedness of the Obligor under the Master Agreement if the pledge is invalid or the value of the pledged collaterals is not sufficient to cover the indebtedness due to false statement by the Pledger. 
  

	
	 Party A (Company Chop): [company chop of Longgang Branch, Shenzhen Development Bank]

	
	 Authorized Representative:
/s/                                       
 

	
	 Date: 5 April 2006

	
	 Party B:
/s/                                       
     

	
	 Date: 5 April 2006Mortgage Contract of Maximum Amount

 Exhibit 10.14 
 Mortgage Contract of Maximum Amount 
 Mortgage Contract of Maximum Amount signed by and between Shenzhen BAK
Battery Co., Ltd (“the Company”) and Shenzhen Development Bank (“Development Bank”) dated as of April 5, 2006. 
 Main
contents: 
  

	•	 	Contract number: Shenfa Longgang edi zi          NO.20060329001. 

  

	•	 	As guarantor, the Company has pledged all its machineries and equipments to Development Bank to secure the indebtedness of the Company under the Comprehensive Credit Facilities
Agreement (reference no.: Shenfa Longgang Zongzi 20060329001, hereinafter referred to as “Master Agreement”) which include the loan principal, interest, penalty interest, expenses for the Lender to realize its creditor’s rights, and
maximum secured amount for the loan principal is RMB150 million. Purchase price of such machineries and equipments is RMB 97.16million while its current value is RMB79.46 million. 

  

	•	 	During the term of Mortgage Contract , the pledged machineries and equipments shall be kept and maintained by the Company; If value of such pledged machineries and equipments is
reduced, Development Bank is entitled to request the Company to restore the pledged value or provide additional collateral; 

  

	•	 	Title certificates of the pledged machineries and equipments shall be kept by Development Bank; 

  

	•	 	Without Development Bank’s consent, the Company is not entitled to transfer registered pledge collaterals, but if transfer consideration is less than the pledge value,
Development Bank is entitled to request the Company to provide additional collateral for the difference; otherwise the Company should not transfer the pledged collaterals. 

  

	•	 	Proceeds for transfer of pledged collaterals shall be used in priority for advanced repayment of the debts secured or be handed over to the escrow control of a third party agreed by
Development Bank. 

  

	•	 	The Company should purchase insurance for the pledged collateral during the term of Mortgage Contract; (Insurance has been purchased as required) 

  

	•	 	Collaterals under this Contract should be registered with competent authorities; ( Registration has been done.) 

  

	•	 	Development Bank is entitled to dispose the pledge collaterals by sale at a discounted price or auction and use such proceeds to repay the loans made under Comprehensive Agreement
if any of the following occurs: 

  

	 	•	 	The debtor under Comprehensive Agreement fails to repay its debts upon maturity; 

  

	 	•	 	The debtor under Comprehensive Agreement is declared dissolved or bankrupt; 

	 	•	 	The Company or any third party disposes the pledged collaterals without getting Development Bank’s consent; 

  

	 	•	 	Behavior of the Company or any third party severely infringes the lawful rights of Development Bank and has a severe negative impact upon Development Bank’s ability to collect
its credit in due time and due amount. 

  

	 	•	 	Occurrence of other instances which might have a negative impact upon the realization of Development Bank’s creditor’s rights under Comprehensive Agreement.

  

	•	 	Guaranty Contract is irrevocable and independently effective. 

 Headlines of the articles omitted: 
  

	•	 	Undertakings and Representations 

  

	•	 	Collateral 

  

	•	 	Remedial measures and notice requirement of the pledger 

  

	•	 	Independence of the contract 

  

	•	 	Expenses and service charges 

  

	•	 	Amendment of the contract 

  

	•	 	Applicable law and dispute settlement 

  

	•	 	Effectiveness and registration requirement 

  

	•	 	Validity 

  

	•	 	Miscellaneous 

  

	•	 	Statement of the machines and equipments under pledge

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