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
Headlines of the articles omitted:
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
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
Ø Collateral: The Mortgager agrees to pledge its full margin of RMB2.163360 million to the Creditor.
Ø Breach of C ontract 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.
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 Disputation settlement
Ø Supplement articles