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 May
26, 2009

    


    Main
contents

    
      	
              Ø

            	
              Contract
      number: 81101200900001026;

            


    

    
      	
              Ø

            	
              Loan
      principal:
HKD 2.499609 million;

            


    

    
      	
              Ø

            	
              Loan
      term: from May 26, 2009 to May 26,
2010;

            


    

    
      	
              Ø

            	
              Interest
      rate: fixed at 0.29643%;

            


    

    
      	
               
      

            	
              n

            	
              Penalty
      interest rate for delayed repayment: 0.29643% plus 30%
      *0.29643%;

            


    

    
      	
               
      

            	
              n

            	
              Penalty
      interest rate for embezzlement of loan proceeds: 0.29643% plus 50%
      *0.29643%;

            


    

    


    
      	
              Ø

            	
              Purpose
      of the loan is to provide import payments 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, etc.

            


    

    


    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

            	
              Rights
      and obligation of the Company

            


    

    
      	
              Ø

            	
              Rights
      and obligations of the Creditor

            


    

    
      	
              Ø

            	
              Guarantee
      of the loan agreement

            


    

    
      	
              Ø

            	
              Disputation
      settlement

            


    

    
      	
              Ø

            	
              Supplemental

            


    

    
      	
              Ø

            	
              Validity

            


    

    
      	
              Ø

            	
              Text

            


    

    
      	
              Ø

            	
              Notification