Summary of Loan Agreement
Entered into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”) and
Shenzhen Branch, China CITIC Bank Co., Ltd (“the Creditor”) dated October
31st, 2008

        


        Main
contents

        
          	
                  Ø

                	
                  Contract
      number:  (2008) Shenyinsun daizi
  NO.018;

                


        

        
          	
                  Ø

                	
                  Loan
      principal:
RMB 21 million;

                


        

        
          	
                  Ø

                	
                  Loan
      term: from October 31st,
      2008 to February 1st,
      2009;

                


        

        
          	
                  Ø

                	
                  Interest
      rate: fixed at 6.03%;

                


        

        
          	
                   
      

                	
                  n

                	
                  Penalty
      interest rate for delayed repayment: 6.03% plus 50%
  *6.03%;

                


        

        
          	
                   
      

                	
                  n

                	
                  Penalty
      interest rate for embezzlement of loan proceeds: 6.03%
  *1;

                


        

        
          	
                   
      

                	
                  n

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

                


        

        
          	
                  Ø

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

                


        

        
          	
                  Ø

                	
                  In
      the event of occurrence of the any of the following during the term of
      loan, The Creditor is entitled to demand repayment of loan principal
      before maturity and withdraw directly from any accounts of the Company for
      the repayment:

                


        

        
          
            	
                    
                    

                  	
                    n

                  	
                    Delay
      in repayment of interest for the
loan;

                  


          

        

        
          
            	
                    
                    

                  	
                    n

                  	
                    The
      Company suffers operation loss or sharp decline in
    operation;

                  


          

        

        
          
            	
                    
                    

                  	
                    n

                  	
                    Being
      involved in or threatened to be involved in lawsuit, arbitration or other
      legal disputes;

                  


          

        

        
          
            	
                    
                    

                  	
                    n

                  	
                    Providing
      untrue financial statements or
information;

                  


          

        

        
          
            	
                    
                    

                  	
                    n

                  	
                    Embezzling
      loan (i.e. using loan proceeds for purposes other than what is agreed
      in the contract without the consent of the
  Creditor);

                  


          

        

        
          
            	
                    
                    

                  	
                    n

                  	
                    Refusing
      the examination or supervision of the Creditor on the Company’s
      operational and financial conditions, and refuse to provide relevant
      financial statements and
information;

                  


          

        

        
          
            	
                    
                    

                  	
                    n

                  	
                    Great
      changes in management;

                  


          

        

        
          
            	
                    
                    

                  	
                    n

                  	
                    Occurrence
      of other instances which endanger the safety of the loan provided by the
      Creditor;

                  


          

        

        
          	
                  Ø

                	
                  Breach
      of contract penalties: correct the breach of contract in time limit;
      suspension of loan unprovided; terminate the 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 and interest;
      indemnification for the Creditor’s expenses incurred due to demanding the
      loan principal and interest in case of litigation,
  etc.

                


        

        
          	
                  Ø

                	
                  The
      Company guaranteed not to use the loan borrowed from the bank to invest in
      purchasing securities or real estates. Otherwise, the Company shall
      be liable for any loss incurred to the
Creditor.

                


        

        


        Headlines
of the articles omitted:

        
          	
                  Ø

                	
                  Loan
      arrangement

                


        

        
          	
                  Ø

                	
                  Interest
      clearing of the loan

                


        

        
          	
                  Ø

                	
                  Payment
      of the loan

                


        

        
          	
                  Ø

                	
                  Interest
      penalty of loan

                


        

        
          	
                  Ø

                	
                  Guarantee
      of the loan agreement

                


        

        
          	
                  Ø

                	
                  Renew
      of obligation

                


        

        
          	
                  Ø

                	
                  Announcement
      and guarantee of the Company

                


        

        
          	
                  Ø

                	
                  Rights
      and obligation of the Company

                


        

        
          	
                  Ø

                	
                  Rights
      and obligations of the Creditor

                


        

        
          	
                  Ø

                	
                  Disputation
      settlement

                


        

        
          	
                  Ø

                	
                  Validity

                


        

        
          	
                  Ø

                	
                  Notarization

                


        

        
          	
                  Ø

                	
                  Text

                


        

        
          	
                  Ø

                	
                  Supplemental