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 2
nd,
2008.

      


      Main
contents

      
        	
                Ø

              	
                Contract
      number: 81101200800001822;

              


      

      
        	
                Ø

              	
                Loan
      principal:
RMB 150 million;

              


      

      
        	
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                Loan
      term: from December 2nd,
      2008 to December 1st,
      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;

              


      

      
        	
                Ø

              	
                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:

      
        	
                Ø

              	
                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

              


      

      
        	
                Ø

              	
                Rights
      and obligation of the Company

              


      

      
        	
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                Rights
      and obligations of the Creditor

              


      

      
        	
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                Disputation
      settlement

              


      

      
        	
                Ø

              	
                Validity

              


      

      
        	
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                Text

              


      

      
        	
                Ø

              	
                Notification