**Comprehensive      Credit Facility Agreement of Maximum Amount Entered into and by Shenzhen BAK      Battery Co., Ltd (the “Company”) and Shenzhen Hi-tech Industrial Park Branch,      Industrial Bank Co., Ltd (the “Creditor”) dated March      25**
**th**

**,      2008**

**M**
**ain      contents: **

| Ø | Contract                number: xingyinshen                gaoxinqu shouxinzi 2008 001; |
|--------|----------------------------------------------------------------------------------------------|

| Ø | Maximum                amount for credit facilities to be provided: RMB62.5 million, which                can be                decomposed into the following one or several credit facilities for                use; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø | Term:                from March 25th,                2008 to March 25th,                2009; |
|--------|-----------------------------------------------------------------------------------------------|

| Ø | Adjustment                of credit can be made by Industrial Bank under the any of the                followings: |
|--------|--------------------------------------------------------------------------------------------------------------------|

|   | n | The                Company suffers severe operational risk or                difficulties; |
|--------|---|--------------------------------------------------------------------------------------------|

|  | n | Occurrence                of great changes in the Company’s operational system (including dividing,                merging, closing etc.)  |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | n | The                Company’s payment ability is obviously weakened, the risk of repayment                increased; or occurrence of delay in repaying the                loan; |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | n | Occurrence                of great changes in market; |
|--------|---|-------------------------------------------------------|

|   | n | Occurrence                of other situations that the Creditor thinks adjustment of credit                facility                is necessary. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø | Breach                of contract: providing false information for hiding the actual condition                of the Company; the Company’s credit rate deteriorates, and its ability of                repayment is obviously weakened; breach of the obligations agreed                in the                sub-contract under this contract; breach of other obligations agreed                in                the contract; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø | Breach                of contract penalty: suspension or reduction of credit facilities,                till                cancellation of all approved credit facilities; declaration of all                or part                of the credit facilities becoming mature in advance to its original                expiry                date; require the Company to compensate for all the                loss; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Headlines      of the articles **
**omitted      **

| Ø | Definition                and explanation |
|--------|-------------------------------------------|

| Ø | The                guaranty of the loan under this                Agreement |
|--------|-----------------------------------------------------------------------------|

| Ø | Other                rights and obligation |
|--------|--------------------------------------------|

| Ø | Expenses |
|--------|----------|

| Ø | Validity |
|--------|----------|

| Ø | Notification |
|--------|--------------|

| Ø | Effectiveness |
|--------|---------------|

| Ø | Text |
|--------|------|

| Ø | Supplemental |
|--------|--------------|

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