Unassociated Document


    Comprehensive
      Credit Facilities Agreement Parties

    


    Summary
      of the main articles

    Creditor:
      Longgang Branch, Shenzhen Development Bank

    Obligor:
      Shenzhen BAK Battery Co., Ltd.

    
      	
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              Contract
                number: is Shenfa Longgang zongzi
                NO.20070420002.

            


    

    
      	
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              Contract
                term: from June 20, 2007 to June 20, 2008, and the maximum amount
                of
                credit facilities to be provided is RMB 150
                million.

            


    

    
      	
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              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.

            


    

    
      	
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              Special
                terms: 

            


    

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

            


    

    
      	 	
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              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;

            


    

    
      	 	
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              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 Phase 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. 

            


    

    
      	 	
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              Development
                Bank is entitled to deem the credit facilities matured before expiration
                of the term in case any of the following event occurs: a) the asset
                liability ratio of the company exceeds 70%, b) the current asset/current
                liability of the Company less than 0.8, c) the sales revenue or net
                asset
                of the Company declines by 10% when compared with the same period
                of the
                previous year.

            


    

    
      	 	
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              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;

            


    

    
      	 	
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              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 entitled
                to
                cease the grant of credit
                facilities.

            


    

    


    Summary
      of the articles omitted:

    
      	
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              Mode
                of the comprehensive credit

            


    

    
      	
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              The
                use of the comprehensive credit

            


    

    
      	
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              The
                guarantee of the comprehensive
                credit

            


    

    
      	
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              Expense
                and fees for the comprehensive
                credit

            


    

    
      	
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              Declaration
                and warranty of the lender

            


    

    
      	
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              Special
                covenant in respect of group client credit and affiliated
                transaction

            


    

    
      	
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              Applicable
                law and dispute settlement

            


    

    
      	
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              Validity