Summary of Loan Agreement
Entered into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”)
and Shenzhen
Branch, Bank of
China (the
“Creditor”) Dated June 2, 2009

    


    Main
articles:

    
      	
              Ø

            	
              Contract
      number: (2009)Zhenzhongyin Sijiezi
60312;

            


    

    
      	
              Ø

            	
              Loan
      principal: RMB 50 million;

            


    

    
      	
              Ø

            	
              Loan
      Term: from June 2, 2009 to June 2,
2010;

            


    

    
      	
              Ø

            	
              Interest
      rate: fixed at 4.779%;

            


    

    
      	
               
      

            	
              n

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

            


    

    
      	
               
      

            	
              n

            	
              Penalty
      interest rate for delayed repayment: 4.779% plus 50%
    *4.779%;

            


    

    
      	
               
      

            	
              n

            	
              Penalty
      interest rate for embezzlement of loan proceeds: 4.779%
  *1;

            


    

    
      	
              Ø

            	
              If
      any of the following occurs, the Creditor is entitled to demand prepayment
      of loan principal and interest before maturity and cancel all loans
      unprovided:

            


    

    
      	
               
      

            	
              n

            	
              Delay
      in repayment of loan interest and the
  loan principal;

            


    

    n        The
Company uses loan proceeds for purposes other than what is  agreed without
the consent of the Creditor;

    n        The
Company provides untrue declaration or hide important  financial
information about its operation;

    
      	
               
      

            	
              n

            	
              The
      Company terminates operation or is stopped from
  operation;

            


    

    
      	
              Ø

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

            


    

    
      	
              Ø

            	
              This
      Loan Agreement is in compliance with the Comprehensive Credit Facility
      Agreement of Maximum Amount (No. Zhenzhongyin Exiezi
    000024).

            


    

    
      	
              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

            	
              Guarantee

            


    

    
      	
              Ø

            	
              Declaration
      and Promise

            


    

    
      	
              Ø

            	
              Rights
      reserved

            


    

    
      	
              Ø

            	
              Modification,
      Amendment and Termination of
Contract

            


    

    
      	
              Ø

            	
              Disputation
      settlement

            


    

    
      	
              Ø

            	
              Fee

            


    

    
      	
              Ø

            	
              Attachment

            


    

    
      	
              Ø

            	
              Other
      agreements

            


    

    
      	
              Ø

            	
              Validity