**Comprehensive      Credit Facilities Agreement Parties**

**Summary      of the main articles**

| l | Contract                number: is Shenfa Longgang zongzi                NO.20070420002. |
|---|------------------------------------------------------------------------------------------|

| l | Contract                term: from June 20, 2007 to June 20, 2008, and the maximum amount                of                credit facilities to be provided is RMB 150                million. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l | Remedies                in the event of breach of contract include adjustment of the credit                amount, suspension of credit, imposition of punitive interest and                overdue                interest, an increase of guarantee deposit and the call back of loan                principal and interest before                maturity. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l | Special                terms: |
|---|-------------------------------|

|   | l | Credit                facilities under Comprehensive Agreement can only be used for making                up                working capital; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | In                case the credit of the Company is rated as bad by other banks or                the                Company is involved in any material adverse litigation, Development                Bank                is entitled to declare the credit facilities granted to the Company                become                mature in advance to its original expiry                date; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | The                Company undertakes that after getting the land use right of the BAK                Industrial Park, the Company will pledge the construction under BAK                Industrial Park Phase I in a proportion of the credit facilities                under the                Comprehensive Agreement to Development Bank. And the Company will                deposit                50% of its sales amount incurred during the term of the Comprehensive                Agreement. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | Development                Bank is entitled to deem the credit facilities matured before expiration                of the term in case any of the following event occurs: a) the asset                liability ratio of the company exceeds 70%, b) the current asset/current                liability of the Company less than 0.8, c) the sales revenue or net                asset                of the Company declines by 10% when compared with the same period                of the                previous year. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | In                case that the value of the collateral determined at the lower of                its                market price or factory-gate price falls below 90% of the original                value,                the Company shall make up for the discrepancy within 3 working days.                If                the Company fails to perform the above obligation within the said                period,                the Development Bank is entitled to declare the credit facilities                granted                to the Company become mature in advance to its original expiry                date; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l | The                Company shall redeem the collateral with cash within three months                after                the expiration of the Comprehensive Agreement, if not doing so, or                in case                the market price of the collateral reduces materially that may have                a                severe negative impact upon the Development Bank’s ability to collect its                credit in due time and due amount, the Development Bank is entitled                to                cease the grant of credit                facilities. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Summary      of the articles omitted:**

| l | Mode                of the comprehensive credit |
|---|-------------------------------------------------|

| l | The                use of the comprehensive credit |
|---|----------------------------------------------------|

| l | The                guarantee of the comprehensive                credit |
|---|-------------------------------------------------------------------------|

| l | Expense                and fees for the comprehensive                credit |
|---|-----------------------------------------------------------------------------|

| l | Declaration                and warranty of the lender |
|---|-------------------------------------------------------|

| l | Special                covenant in respect of group client credit and affiliated                transaction |
|---|-------------------------------------------------------------------------------------------------------------|

| l | Applicable                law and dispute settlement |
|---|------------------------------------------------------|

| l | Validity |
|---|----------|