Exhibit 10.32



                             CHINA BAK BATTERY, INC.
                       NONQUALIFIED STOCK OPTION AGREEMENT

         This  Nonqualified  Stock Option Agreement (the "Agreement") is entered
into between China BAK Battery, Inc., a Nevada corporation (the "Company"),  and
(the  "Optionee")  effective  as of the  16th  day of May,  2005  (the  "Date of
Grant").  In consideration of the mutual promises and covenants made herein, the
parties hereby agree as follows:

         1. Grant of Option.  Under the terms and  conditions  of the  Company's
Stock Option Plan (the "Plan"),  which is incorporated herein by reference,  the
Company  grants to the Optionee an option (the  "Option")  to purchase  from the
Company all or any part of a total of (______)  shares of the  Company's  Common
Stock, par value $0.001 per share, at a price of $6.25 per share.

         2. Character of Option.  The Option is not an "incentive  stock option"
within the  meaning of Section  422 of the  Internal  Revenue  Code of 1986,  as
amended (the "Code").

         3. Term.  The Option  shall  expire on May 16, 2011 or, in the event of
the Optionee's  termination of service as an employee,  director,  or advisor of
the Company, on such earlier date as may be provided in the Plan.

         4.  Vesting;  Exercisability.  Subject  to any  provisions  of the Plan
concerning  exercisability and vesting of options,  the Option shall vest and be
exercisable in accordance with the following:

         The option shall become vested and exercisable  beginning July 1, 2007;
         however,  the Optionee is  prohibited  from  exercising  all of his/her
         options at once,  but instead must  exercise  his/her  options on three
         separate dates and in accordance with the Exercise Interval (as defined
         below).  The interval between each separate  exercising date must be no
         less  than  six (6)  months  (the  "Exercise  Interval").  The  initial
         exercise of  optionable  shares by the Optionee  shall not exceed forty
         percent  (40%) of his/her total shares  granted  under this  Agreement,
         including  any  amendment  to this  Agreement.  The second  exercise of
         optionable  shares plus the first  exercise  of shares by the  Optionee
         shall not exceed seventy percent (70%) of the total  optionable  shares
         granted  under  this   Agreement,   including  any  amendment  to  this
         Agreement.  The  remaining  optionable  shares  must  be  exercised  in
         accordance with the Exercise Interval.

         Notwithstanding the foregoing, in the event a Corporate Transaction (as
defined in the Plan) occurs prior to the Option  becoming  vested as provided in
the previous  sentence,  the Committee  (as defined in the Plan) will  determine
whether vesting will be accelerated.




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         The  unexercised  portion of the Option  from one period may be carried
over to a  subsequent  period  or  periods,  and the  right of the  Optionee  to
exercise the Option as to such unexercised portion shall continue for the entire
term.

         5. Procedure for Exercise.  Exercise of the Option or a portion thereof
shall be effected by the giving of written notice to the Company by the Optionee
in  accordance  with the Plan and payment of the purchase  price  prescribed  in
Section 1 above for the shares to be acquired pursuant to the exercise.

         6. Payment of Purchase  Price.  Payment of the  purchase  price for any
shares  purchased  pursuant  to the  Option  shall  be in  accordance  with  the
provisions of the Plan.

         7. Transfer of Options. The Option may not be transferred except (i) by
will or the laws of descent  and  distribution,  (ii) to  members of  Optionee's
immediate  family,  trusts for the benefit of such immediate  family members and
partnerships  in which such  immediate  family  members are the only partners or
(iii) pursuant to the terms of a qualified  domestic relations order, as defined
by the Code or Title I of the Employee  Retirement  Income Security Act of 1974,
as amended,  and, during the lifetime of the Optionee,  may be exercised only by
the Optionee or by the Optionee's legally authorized representative.

         8.  Acceptance of the Plan. The Option is granted subject to all of the
applicable  terms and  provisions of the Plan, and such terms and provisions are
incorporated by reference  herein.  The Optionee hereby accepts and agrees to be
bound by all the terns and conditions of the Plan.

         9. Amendment. This Agreement may be amended by an instrument in writing
signed by both the Company and the Optionee.

         10.  Miscellaneous.  This  Agreement  will be construed and enforced in
accordance  with the laws of the State of Nevada  and will be  binding  upon and
inure to the benefit of any successor or assign of the Company and any executor,
administrator, trustee, guarantor or other legal representative of the Optionee.

         Executed to be effective as of the date set forth above.

                                                CHINA BAK BATTERY, INC.



                                                 By:____________________________

                                                 Print:_________________________

                                                Its:____________________________






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         Optionee  acknowledges  receipt  of a copy of the Plan  (including  all
         amendments  to date) and  represents  that he/she is familiar  with the
         terms and provisions thereof, and hereby accepts this Option subject to
         all of the terms and provisions thereof. Optionee has reviewed the Plan
         and this Option in their entirety and fully  understands all provisions
         of the Option. Optionee hereby agrees to accept as binding,  conclusive
         and final all decisions or interpretations of the Committee (as defined
         in the Plan) upon any questions arising under the Plan.

         Optionee  further  agrees to notify the Company  upon any change in the
         residence address indicated below.


                                                   _____________________________

                                                   ___________________, Optionee




                                                     Address:

                                                     ___________________________

                                                     ___________________________

                                                     ___________________________




                                                     ______  Number of Optionee:

                                                     ___________________________