**Summary      of Loan Agreement **
**entered      into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”) and      Shenzhen Hi-tech Industrial Park Branch, Industrial Bank Co., Ltd (“the      Creditor”) dated March 25, 2008**

**M**
**ain      contents **

| Ø | Contract                number: Xingyinshen gaoxinqu (shouxin) duanjiezi                NO.20080325001; |
|--------|---------------------------------------------------------------------------------------------------------|

| Ø | Loan                principal: RMB 50 million; |
|--------|------------------------------------------------|

| Ø | Loan                term: one year starting from the date the loan is                provided; |
|--------|------------------------------------------------------------------------------------------------|

| Ø | Interest                rate: fixed at 7.47%; |
|--------|-----------------------------------------------|

|   | n | Penalty                interest rate for delayed repayment: 7.47% plus 30%                *7.47%; |
|--------|---|---------------------------------------------------------------------------------------------------|

|   | n | Penalty                interest rate for embezzlement of loan proceeds: 7.47% plus 50%                *7.47%; |
|--------|---|---------------------------------------------------------------------------------------------------------------|

| Ø | Purpose                of the loan is to provide working capital for the Company; |
|--------|-----------------------------------------------------------------------------------|

| Ø | Advanced                repayment of loan needs to be approved by Industrial Bank and Industrial                Bank is entitled to charge the interest based on the agreed date                in this                contract; |
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| Ø | In                the event of occurrence of the any of the following during the term                of                loan, Industrial Bank is entitled to demand repayment of loan principal                before maturity and withdraw directly from any accounts of the Company                for                the repayment: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | n | Delay                in repayment of interest for the                loan; |
|--|---|----------------------------------------------------------------------------|

|  | n | The                Company suffers operation loss or sharp decline in                operation; |
|--|---|-------------------------------------------------------------------------------------------------|

|  | n | Being                involved in or threatened to be involved in lawsuit, arbitration                or other                legal disputes; |
|--|---|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | n | Providing                untrue financial statements or                information; |
|--|---|-------------------------------------------------------------------------------------|

|  | n | Embezzling                loan (i.e. using loan proceeds for purposes other than what is agreed                in                the contract without the consent of the                Creditor); |
|--|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | n | Refusing                the examination or supervision of the Creditor on the Company’s                operational and financial conditions, and refuse to provide relevant                financial statements and                information; |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | n | Great                changes in management; |
|--|---|---------------------------------------------|

|  | n | Occurrence                of other instances which endanger the safety of the loan provided                by the                Creditor; |
|--|---|--------------------------------------------------------------------------------------------------------------------------------------------|

| Ø | Breach                of contract penalties: correct the breach of contract in time limit;                suspension of loan unprovided; terminate the 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 and interest, if currency in the accounts is different                from loan                currency, the Creditor is entitled to withdraw from the accounts                of the                Company the amount of equivalent to the loan according to the current                foreign exchange rate; indemnification for the Creditor’s expenses                incurred due to demanding the loan principal and interest in case                of                litigation, etc. |
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**Headlines      of the articles omitted: **

| Ø | Loan                arrangement |
|--------|---------------------------------|

| Ø | Interest                clearing of the loan |
|--------|----------------------------------------------|

| Ø | Payment                of the loan |
|--------|------------------------------------|

| Ø | Interest                penalty of loan |
|--------|-----------------------------------------|

| Ø | Guarantee                of the loan agreement |
|--------|------------------------------------------------|

| Ø | Rights                and obligation of the Company |
|--------|-----------------------------------------------------|

| Ø | Rights                and obligations of the Creditor |
|--------|-------------------------------------------------------|

| Ø | Breach                of contract responsibility |
|--------|--------------------------------------------------|

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

| Ø | Text |
|--------|------|

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

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