Document:

Contract of Limit for Discount of Commercial Acceptance Draft

 Exhibit 10.15 
 Contract of Limit for Discount of Commercial Acceptance Draft 
 No. Shen Fa (Long Gang) Shang Zi
20060329001 
 Within the credit facility limit under the Contract of Overall Credit Facility Limit 
 No. Shen Fa (Long Gang) Zhong Zi 20060329001 
  

			
	Discounter (Party A): Longgang Branch, Shenzhen Development Bank
	
	Address: A1, New Asia Park, Long Gang Central Town, Shenzhen
		
	Telephone: 28952003	  	Fax: 28952004
		
	Person in Charge: Yu Bo	  	Position: Branch President
	
	Applicant (Party B): Shenzhen BAK Battery Co., Ltd
	
	Address: BAK Industry Zone, Kuichong, Longgang, Shenzhen
		
	Telephone: 89770025	  	Fax: 89770026
		
	Legal Representative: Li Xiangqian    	  	Position: Chairman of Board of Directors

 Party B wishes to apply for discount limit for commercial acceptance draft and Party A agrees to grant Party B the
discount limit for commercial acceptance draft (hereinafter referred to as “Discount Limit”). Both Parties have reached this Contract in accordance with relevant laws and regulations. 
 Article 1 Discount Limit 
  

	1.	Discount of commercial acceptance draft: Party A agrees to discount the following commercial acceptance draft after examination by Party A in accordance with its rules: commercial
acceptance draft issued and accepted by Party B. 

  

	2.	Discount Limit is RMB 50 million yuan. 

	3.	Valid period is from 29 April 2006 to 29 April 2007. Any applicant (or Party B) who holds the commercial acceptance draft issued and accepted/endorsed by Party B may apply
for discount of the draft. The Discount Limit is revolving. The applicant shall sign the Contract for Discount of Commercial Draft with the Discounter to determine the amount and term for each discount transaction. The remaining balance for discount
shall not exceed the abovementioned Discount Limit. 

 The beginning date of the discount transaction shall be within the
abovementioned valid period. The expiry date of the discount transaction shall be determined by the relevant Contract for Discount of Commercial Draft. 
  

	4.	Deposit: Party B shall pay a deposit to Party A which shall be equivalent to 30% of the Discount Limit. The interest rate for the deposit is 1.71%. This clause shall be valid in
case of invalidity of other clauses of this Contract. 

 Article 2. Commercial Acceptance Draft 
 The commercial acceptance draft under the Article 1 of this Contract shall be based upon actual and lawful commercial transaction. 
 Article 3. Discounter 
 Party A is the
discounter under this Contract. 
 Party A may designate any other branch of Shenzhen Development Bank as the discounter. 
 Article 4. Applicant for Discount (Draft Bearer) 
 The applicant for discount shall be the bearer of the commercial acceptance draft issued and accepted by Party B. 

 Article 5. Confirmation and Inquiry 
 Party B’s confirmation shall be obtained before Party A discount the abovementioned commercial draft. After Party A receives the application for discount, Party A
shall fill in and deliver in person the Letter of Inquiry for Commercial Acceptance Draft to Party B along with the photocopy of the involved commercial draft. Party B shall review the abovementioned documentation and write its opinions and stamp
its company chop, chop of its legal representative on the Letter of Inquiry for Commercial Acceptance Draft along with the signature of the responsible person and return in person the Letter of Inquiry to Party A. Party B shall provide the sample of
the company chop, chop of legal representative and signature of responsible person to Party A in advance. 
 Article 6.
Liabilities of Party B 
 For any unsettled discount money which is paid by Party A in accordance with this Contract and specific Contract for Discount of
Commercial Draft, Party B shall bear the liability for payment of such money upon expiry (in case that Party B is the applicant for discount) or bear the joint and several liability for payment of such money (in case that Party B is not the
applicant). The valid term for the abovementioned liabilities is two years after the expiry of the involved discount money. 
 Article 7. Security for the Discount Limit 
 The form of the security for the Discount Limit is pledge. Shenzhen BAK Battery Co., Ltd shall provide
the deposit as collateral for the indebtedness of Party B under this Contract and shall sign the Guaranty Contract of Pledge (No. Shen Fa Long Gang E Di/Zhi Zi 20060509001) with Party A. 
 Article 8 Early Mature 
 All indebtedness of
Party B shall be deemed as become mature under any of the following events and Party A is entitled to demand Party B to settle the indebtedness and cease to grant any credit to Party B: 
  

	 	1.	Party B violates any obligations under this Contract or Party B indicates, verbally or by act, that Party B will not perform its obligations under this Contract;

	 	2.	Party B ceases its business operation or is forced to cease its business operation; 

  

	 	3.	Party B provides false materials or conceal material operational or financial facts; 

  

	 	4.	Party B suffers financial loss; 

  

	 	5.	The project plan of Party B is cancelled or cannot be fulfilled; 

  

	 	6.	Party B conspires with its related party to deceive Party A or any other bank into granting bank loan or credit facility by means of discount or pledge of receivable bills which
have no actual commercial background; 

  

	 	7.	Party B intentionally avoids to repay the bank loan by means of related transactions or other methods; 

  

	 	8.	Party B is under administrative investigation or punishment due to its unlawful operations; 

  

	 	9.	In case of division, merger, liquidation, regroup, dissolution, bankruptcy of Party B; 

  

	 	10.	Party B use the bank loan for purpose other than agreed by Party A or use the bank loan for illegal or unlawful transaction; 

  

	 	11.	Party B violates any other similar agreements with Party A or any other third party or there is dispute, litigation or arbitration under such agreements; 

 

	 	12.	The controlling shareholder of Party B transfers Party B’s shares held by it, or some major events occurred to the controlling shareholder such as administrative investigation
or punishment due to its unlawful operation, litigation or arbitration, financial difficulty, bankruptcy or dissolution of the controlling shareholder of Party B; 

  

	 	13.	 The guarantor under relevant guaranty agreement breaches the guaranty agreement, including but not limited to provision of false materials, violation of the loan
agreement, guaranty agreement or other similar agreement by the guarantor, dispute, arbitration or litigation arising out of such agreements, 

	 	 
cease of business operation, major operational mistake, administrative investigation or punishment due to unlawful operation, evade of payment of bank loan,
merger, acquisition or regroup of the guarantor, or any other events which may impair its financial capacity etc. 

  

	 	14.	Any other events which may impair the safety of Party A’s rights and interests. 

 Article 9 Special Regulations for Group Client 
 For purpose of this Contract, group client refers to: 
  

	1.	enterprise which directly or indirectly controls the equity share or business operation of other enterprise or enterprise whose equity share or business operation is controlled by
other enterprise; 

  

	2.	two enterprises which are controlled by a third enterprise; 

  

	3.	enterprises which is controlled directly or indirectly by the similar major investor, crucial manager or their next of kin; 

  

	4.	enterprises with other relationship which may affect the fair price for asset transfer or profit distribution. 

 In case that Party B is a group client, Party B shall report in writing within 10 days any transaction with value over 10% of its net assets. 
 Article 9. Undertakings and Representatives of Party B 
 Party B has all the legal rights and power to execute and perform this Contract, and has obtained all authorization from its board of directors or shareholders (if necessary). 
 Party B undertakes that all the documentation, materials and information provided by it to Party A are authentic, accurate, complete and valid. 
 Party B shall give 10 day prior written notice to Party A for any alteration of address, contact details, telephone, business scope, legal representative of Party B.

 Party B has read this Contract carefully and accepts all clauses of this Contract. Party B agrees to sign this Contract
of its own will. 
 Article 10 
 The governing law for this Contract is the law of People’s Republic of China. Any dispute arising from this Contract shall be submitted to the People’s Court of the place of Party A. 
 Article 11 Effectiveness 
 This Contract
shall take effect once it is signed and stamped by both Parties and the relevant Guaranty Agreement has been duly signed and registered. 
 Article 12 Other Issues 
 N/A 
 Article 13 
 This Contract has 4 originals, Party A shall retain 4 originals, and Party B shall retain 1 original.

  

	
	Party A (Stamp): [company chop of Longgang Branch, Shenzhen Development Bank]
	
	Legal Representative/Authorized Representative (Signature):
/s/                                       
 
	
	Date: 29 April 2006
	
	Party B (Stamp): [company chop of Shenzhen BAK Battery Co., Ltd.]
	
	Legal Representative/Authorized Representative (Signature):
/s/                                       
 
	
	Date: 29 April 2006Pledge Contract of Maximum Amount

 Exhibit 10.16 
 Pledge Contract of Maximum Amount 
 No. Shenfa Longgang E’zhi Zi 20060509001 
  

			
	 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: Shenzhen BAK Battery Co., Ltd. (Pledger)

	
	 Address: BAK Industrial Zone, Kuichong, Longgang District, Shenzhen

		
	 Telephone: 89770025
	  	 Fax: 89770026

		
	 Legal Representative: Li Xiangqian
	  	 Position: Chairman of the Board

 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 Shangzi 20060509001, hereinafter referred to as Master Agreement) entered into by Creditor and Obligor on 29 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 50 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

  

	 	1.	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. 

  

	 	2.	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. 

	 	3.	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 
 N/A 
 XII. This Contract has four originals, the Creditor shall retain two originals, the Obligor shall retain one original and the Pledger shall retain one
original. 

 Statement of Pledged Collaterals 
  

			
	 Name, Quality and Quantity of the Pledged Collaterals
	  	Deposit 30% of the par value of the commercial acceptance that issued by the Pledger
		
	 Title and Title Certificate
	  	 N/A

		
	 Place of the Pledged Collaterals
	  	BAK Industrial Park, Kuichong Street, Longgang District, Shenzhen
		
	 Value of the Pledged Collaterals
	  	 N/A

		
	 Ownership of the Pledged Collaterals
	  	 N/A

		
	 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: 29 April 2006

	
	 Party B (Company Chop): [company chop of Shenzhen BAK Battery Co., Ltd.]

	
	 Authorized Representative:
/s/                                       
 

	
	 Date: 29 April 2006

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