Summary of Loan Agreement
Entered into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”) and
Shenzhen Eastern Branch, Agricultural Bank of China (“the Creditor”) dated
January 6th, 2009.

    


    Main
contents

    
      	
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              Contract number: 81101200900000019;

            


    

    
      	
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              Loan principal: RMB 75 million;

            


    

    
      	
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              Loan term: from January 6th, 2009 to January 5th, 2010;

            


    

    
      	
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              Floating interest rate:
      annually 5.31%, rate adjustment in a
      3-month
      cycle;

            


    

    
      
        	
                 
      

              	
                n

              	
                Interest accrued and settled per month,
      interest settlement day is the 20th day of each
  month;

              


      

    

    
      	
               
      

            	
              n

            	
              Penalty interest rate for delayed
      repayment: 5.31% plus 50% *5.31%;

            


    

    
      	
               
      

            	
              n

            	
              Penalty interest rate for
      embezzlement of loan proceeds: 5.31% *1;

            


    

    


    
      	
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              Purpose of the loan is to provide
      working capital for
      purchasing raw material of the
    Company;

            


    

    
      	
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              Advanced repayment of loan needs to be approved
      by the Creditor;

            


    

    
      	
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              Breach of contract penalties:
      correct the breach of
      contract in time limit; suspension of loan unprovided; release loan
      agreement, demand prepayment of loan principal and interest before
      maturity;
      imposition of punitive interest incurred due to delayed
      loan; imposition of punitive interest for embezzlement of
      loan; imposition of plural interest for unpaid
      interest; withdraw from any accounts of the Company the loan
      principal, interest and other fees; compensation for the Creditor’s expenses incurred due to
      demanding
      the loan principal and
      interest in case of
      litigation;
      publicize the
      breach of
      contract,
  etc.

            


    

    
      	
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              Supplemental: This Loan Agreement is in compliance with the
      Comprehensive Credit
      Facility Agreement of
      Maximum Amount
      (No.81001200813170001).

            


    

    


    Headlines
of the articles omitted:

    
      	
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              Loan
      arrangement

            


    

    
      	
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              Interest
      clearing of the loan

            


    

    
      	
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              Payment
      of the loan

            


    

    
      	
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              Interest
      penalty of loan

            


    

    
      	
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              Guarantee
      of the loan agreement

            


    

    
      	
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              Rights
      and obligation of the Company

            


    

    
      	
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              Rights
      and obligations of the Creditor

            


    

    
      	
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              Disputation
      settlement

            


    

    
      	
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              Validity

            


    

    
      	
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              Text

            


    

    
      	
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              Notification