Document:

Summary of Loan Agreement
Entered into by and between Shenzhen BAK Battery Co., Ltd. (“the Company”) and
Longgang Branch, Shenzhen Development Bank Co., Ltd (the “Creditor”) on December
16th, 2008

      

      Main
contents:

      
        	
                Ø

              	
                Contract
      number: Shenfa Longgang Daizi
20081203001;

              

      

      
        	
                Ø

              	
                Main
      Contract: Comprehensive Credit Facility
  Agreement;

              

      

      
        	
                Ø

              	
                Main
      Contract number: Shenfa Longgang Zongzidi
  20081203001;

              

      

      
        	
                Ø

              	
                Loan
      principal: RMB150 million;

              

      

      
        	
                Ø

              	
                Loan
      term: from December 16th,
      2008 to December 16th
      , 2009;

              

      

      
        	
                Ø

              	
                Floating
      interest rate: Interest rate of loan shall be 105% of the benchmark rate
      announced by the People’s Bank of China, and be adjusted every
      3 months;

              

      

      
        	
                 
      

              	
                n

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

              

      

      
        	
                 
      

              	
                n

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

              

      

      
        	
                 
      

              	
                n

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

              

      

      
        	
                Ø

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

              

      

      
        	
                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

              	
                The
      Company terminates operation or is stopped from
  operation;

              

      

      
        	
              	
                n

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

              

      

      
        	
              	
                n

              	
                The
      Company intentionally evades bank debts by way of related party
      transaction or other means;

              

      

      
        	
              	
                n

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

              

      
        	
              	
                n

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

              

      

       

      Headlines
of the articles omitted:

      
        	
                Ø

              	
                Interest
      clearing of the loan

              

      

      
        	
                Ø

              	
                Payment
      of the loan

              

      

      
        	
                Ø

              	
                Rights
      and obligation of the Company

              

      

      
        	
                Ø

              	
                Rights
      and obligations of the Creditor

              

      

      
        	
                Ø

              	
                Disputation
      settlement and Validity

              

      

      
        	
                Ø

              	
                Fees

              

      

      
        	
                Ø

              	
                Breach
      of contract penalties

              

      

      
        	
                Ø

              	
                Announcement
      and Guaranty of the Company

              

      

      
        	
                Ø

              	
                Others

              

      

      
        	
                Ø

              	
                TextSummary of Mortgage Contract
of Maximum Amount ( the “Contract”) Entered into by and between Shenzhen BAK
Battery, Co., Ltd (the “Mortgager”) and Longgang Branch, Shenzhen Development
Bank Co., Ltd (the “Creditor”) on December 3rd, 2008

    

    Main
contents:

    
      	
               
      

            	
              Ø

            	
              Contract number: Shenfa Longgang Edizi 20081203001-2;

            

    

    
      	
               
      

            	
              Ø

            	
              In
      order to guarantee the indebtedness of Shenzhen BAK Battery Co., Ltd.
      (the “Obligor”) towards the Creditor under the Comprehensive Credit
      Facility Agreement of Maximum Amount (reference no.: Shenfa Longgang
      Zongzi 20081203001) from December 8th,
      2008 to December 8th,
      2009, the Mortgager agrees to pledge its property to the
      Creditor.

            

    

    
      	
               
      

            	
              Ø

            	
              Scope of Guaranty: The
      guaranty shall cover all of the loan principal, interest, penalty
      interest, breach of contract compensation, damages, undertaking fee and
      all the expenses such as litigation cost, lawyer’s fee, notification cost
      and public notice cost etc. which is incurred to the Creditor in realizing
      its creditor’s right.

            

    

    
      	
               
      

            	
              Ø

            	
              Collaterals: The
      Mortgager agrees to pledge its finished lithium-ion cells which
      valued RMB 150 million to the
Creditor.

            

    

    

    

    
      	
               
      

            	
              Ø

            	
              Headlines of the articles
      omitted:

            

    

    
      	
               
      

            	
              Ø

            	
              Termination
      and explanation

            

    

    
      	
               
      

            	
              Ø

            	
              Payment
      on demand

            

    

    
      	
               
      

            	
              Ø

            	
              Undertakings
      of the Mortgager

            

    

    
      	
               
      

            	
              Ø

            	
              Validity
      of the Creditor’s Right

            

    

    
      	
               
      

            	
              Ø

            	
              Occupancy
      of Collaterals

            

    

    
      	
               
      

            	
              Ø

            	
              Insurance
      of Collaterals

            

    

    
      	
               
      

            	
              Ø

            	
              Mortgage
      Registration

            

    

    
      	
               
      

            	
              Ø

            	
              Realizing
      of Creditor’s Right

            

    

    
      	
               
      

            	
              Ø

            	
              Declaration
      and guaranty of the Mortgager

            

    

    
      	
               
      

            	
              Ø

            	
              Amendment
      of the Contract

            

    

    
      	
               
      

            	
              Ø

            	
              Effectiveness
      and Disputation settlementSummary of Mortgage Contract
of Maximum Amount ( the “Contract”) Entered into by and between Shenzhen BAK
Battery, Co., Ltd (the “Mortgager”) and Longgang Branch, Shenzhen Development
Bank Co., Ltd (the “Creditor”) on December 3rd, 2008

      

      Main
contents:

      
        	
                 
      

              	
                Ø

              	
                Contract number: Shenfa Longgang Edizi
      20081203001-1;

              

      

      
        	
                 
      

              	
                Ø

              	
                In
      order to guarantee the indebtedness of Shenzhen BAK Battery Co., Ltd.
      (the “Obligor”) towards the Creditor under the Comprehensive Credit
      Facility Agreement of Maximum Amount (reference no.: Shenfa Longgang
      Zongzi 20081203001) from December 8th,
      2008 to December 8th,
      2009, the Mortgager agrees to pledge its property to the
      Creditor.

              

      

      
        	
                 
      

              	
                Ø

              	
                Scope of Guaranty: The
      guaranty shall cover all of the loan principal, interest, penalty
      interest, breach of contract compensation, damages, undertaking fee and
      all the expenses such as litigation cost, lawyer’s fee, notification cost
      and public notice cost etc. which is incurred to the Creditor in realizing
      its creditor’s right.

              

      

      
        	
                 
      

              	
                Ø

              	
                Collaterals: The
      Mortgager agrees to pledge its 2,554 machineries and equipments with an
      aggregate value of RMB 138.04 million to the
  Creditor.

              

      

      

      
        	
                 
      

              	
                Ø

              	
                Headlines of the articles
      omitted:

              

      

      
        	
                 
      

              	
                Ø

              	
                Termination
      and explanation

              

      

      
        	
                 
      

              	
                Ø

              	
                Payment
      on demand

              

      

      
        	
                 
      

              	
                Ø

              	
                Undertakings
      of the Mortgager

              

      

      
        	
                 
      

              	
                Ø

              	
                Validity
      of the Creditor’s Right

              

      

      
        	
                 
      

              	
                Ø

              	
                Occupancy
      of Collaterals

              

      

      
        	
                 
      

              	
                Ø

              	
                Insurance
      of Collaterals

              

      

      
        	
                 
      

              	
                Ø

              	
                Mortgage
      Registration

              

      

      
        	
                 
      

              	
                Ø

              	
                Realizing
      of Creditor’s Right

              

      

      
        	
                 
      

              	
                Ø

              	
                Declaration
      and guaranty of the Mortgager

              

      

      
        	
                 
      

              	
                Ø

              	
                Amendment
      of the Contract

              

      

      
        	
                 
      

              	
                Ø

              	
                Effectiveness
      and Disputation settlement

              

      

      
        	
                 
      

              	
                Ø

              	
                Supplement
      articles

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