Summary of Loan Agreement
Entered into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”) and
Shenzhen Eastern Branch,
Agricultural Bank of China (“the Creditor”) dated December 15,
2008.

      


      Main
contents

      
        	
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                Contract
      number: 81101200800001892;

              


      

      
        	
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                Loan
      principal:
RMB 75 million;

              


      

      
        	
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                Loan
      term: from December 15th,
      2008 to December 15th,
      2009;

              


      

      
        	
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                Floating
      interest rate: annually 5.58%, rate adjustment in a 3-month
      cycle;

              


      

      
        	
                 
      

              	
                n

              	
                Interest
      accrued and settled per month, interest settlement day is the 20th day
      of each month;

              


      

      
        	
                 
      

              	
                n

              	
                Penalty
      interest rate for delayed repayment: 5.58% plus 50%
  *5.58%;

              


      

      
        	
                 
      

              	
                n

              	
                Penalty
      interest rate for embezzlement of loan proceeds: 5.58%
  *1;

              


      

      


      
        	
                Ø

              	
                Purpose
      of the loan is to provide working capital for purchasing raw material of
      the Company;

              


      

      
        	
                Ø

              	
                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; publicize the breach of contract,
  etc.

              


      

      
        	
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                Supplemental: This
      Loan Agreement is in compliance with the Comprehensive Credit Facility
      Agreement of Maximum Amount
  (No.81001200813170001).

              


      

      


      Headlines
of the articles omitted:

      
        	
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                Loan
      arrangement

              


      

      
        	
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                Interest
      clearing of the loan

              


      

      
        	
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                Payment
      of the loan

              


      

      
        	
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                Interest
      penalty of loan

              


      

      
        	
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                Guarantee
      of the loan agreement

              


      

      
        	
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                Rights
      and obligation of the Company

              


      

      
        	
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                Rights
      and obligations of the Creditor

              


      

      
        	
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                Disputation
      settlement

              


      

      
        	
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                Validity

              


      

      
        	
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                Text

              


      

      
        	
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                Notification