Summary of Loan Agreement Entered into by and between Shenzhen BAK Battery Co., Ltd.
(“the Company”) and Shenzhen Hi-Tech District Branch, Industrial Bank CO. Ltd
(“the Creditor”) dated December 26, 2010

Main contents

Contract number: Xingyinshen Gaoxinqu Shouxinduanjiezi(2010)021;
Loan principal: RMB 50 million;
Loan term: from January 19, 2011 to December 10, 2011;
Fixed interest rate: annually 6.391%;
	Interest accrued and settled per month, interest settlement day is the 20th day of each month;
	Penalty interest rate for delayed repayment: 6.391% plus 50% *6.391%;
	Penalty interest rate for embezzlement of loan proceeds: 6.391% plus 50% *6.391%;
Purpose of the loan is to provide working capital for the Company;
Advanced repayment of loan needs to be approved by the Creditor;
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:

• Termination and explanation

• Loan arrangement

• Interest clearing of the loan

• Payment of the loan

• Rights and obligations of both the Creditor and the Company

• Declaration and undertaking of the Company

• Interest penalty of loan

• Guarantee

• Continuity of Obligations

• Disputation settlement

• Validity

• Supplement articles