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Summary of Loan Agreement Entered into by and between Shenzhen BAK Battery Co., Ltd.

(the Company) and Shenzhen Hi-Tech District Branch, Industrial Bank CO. Ltd

(the Creditor) dated December 26, 2010

Main contents

| | Contract number: Xingyinshen Gaoxinqu Shouxinduanjiezi(2010)021;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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| | Loan principal: RMB 50 million;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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| | Loan term: from January 19, 2011 to December 10, 2011;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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| | Fixed interest rate: annually 6.391%;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
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| | Purpose of the loan is to provide working capital for the Company;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
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| | Advanced repayment of loan needs to be approved by the Creditor;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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| | Breach of contract penalties: correct the breach of contract in time limit; suspension of loan unprovided; release 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, interest and other fees; compensation for the
Creditors expenses incurred due to demanding the loan principal and interest in case of litigation, etc.

Headlines of the articles omitted:

- Termination and explanation
- Loan arrangement
- Interest clearing of the loan
- Payment of the loan
- Rights and obligations of both the Creditor and the Company
- Declaration and undertaking of the Company
- Interest penalty of loan
- Guarantee
- Continuity of Obligations
- Disputation settlement
- Validity
- Supplement articles

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