**Summary      of Loan Agreement by and between BAK **
**International      (Tianjin) Limited and Tianjin Branch, Agricultural Bank of China dated May      26,      2008**

**M**
**ain      contents **

| Ø | Contract                number: Nong Yin Gu Ji Jie Zi                12101200800001538; |
|--------|-----------------------------------------------------------------------------------------|

| Ø | Loan                principal: RMB160 million; |
|--------|------------------------------------------------|

| Ø | Loan                term: May 26, 2008~May 26, 2012; |
|--------|------------------------------------------------------|

| Ø | Interest                rate: Float rate according to the basic rate announced by the People’s                Bank of China, adjusted every three months, the interest should be                paid by                quarter; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | n | Penalty                interest rate for delayed repayment: 1.5*the above                rate; |
|--------|---|------------------------------------------------------------------------------------------------|

|   | n | Penalty                interest rate for embezzlement of loan proceeds: 2* the above                rate; |
|--------|---|-----------------------------------------------------------------------------------------------------------|

| Ø | Purpose                of the loan is to provide fund for the Company to construct its first                phase of Li-ion Power Tool Cell Automated Line                Project; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø | Advanced                repayment and advanced withdrawal of loan needs to be approved by                Agriculture Bank of China; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| Ø | Loan                withdrawal and repayment: The Company shall repay the principals                as                follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | n | Repay                RMB 30 million between May 26, 2009 and December 26,                2009; |
|--------|---|------------------------------------------------------------------------------------------------|

|   | n | Repay                RMB 30 million between May 26, 2010 and December 26,                2010; |
|--------|---|------------------------------------------------------------------------------------------------|

|   | n | Repay                RMB 50 million between May 26, 2011 and December 26,                2011; |
|--------|---|------------------------------------------------------------------------------------------------|

|   | n | Repay                RMB 30 million on May 26, 2012 |
|--------|---|-----------------------------------------------------|

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

| Ø  Definition                  and explanation                                  |
|------------------------------------------------------------------------------------------------|
| Ø  The                  borrower’s statement and guaranty                 |
| Ø  Condition                  required to withdraw the loan                     |
| Ø  Supervision                  of the account                                  |
| Ø  Check                  on the use of the loan and supervision of the project |
| Ø  Guaranty                                                                     |
| Ø  Rights                  and obligation of the borrower                       |
| Ø  Rights                  and obligations of the lender                        |
| Ø  Insurance                                                                    |
| Ø  Confidentiality                                                              |
| Ø  Breach                  of contract penalty                                  |
| Ø  Miscellaneous                                                                |
| Ø  Dispute                  settlement                                          |
| Ø  Validity                  of the contract                                    |
| Ø  Note                                                                         |

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