Comprehensive Credit Facility Agreement between Shenzhen BAK Battery Co., Ltd and Industrial Bank Co., Ltd (Shenzhen Hi-tech Industrial Park Branch) dated March 25, 2008

Summary

Shenzhen BAK Battery Co., Ltd entered into a credit facility agreement with the Shenzhen Hi-tech Industrial Park Branch of Industrial Bank Co., Ltd on March 25, 2008. The agreement allows the Company to access up to RMB 62.5 million in various credit forms, including short-term loans, bank acceptances, and letters of credit, until March 25, 2009. The Bank may adjust or terminate the credit if the Company's financial condition worsens or other risks arise. Breaches may result in penalties, including early repayment demands and compensation for losses.

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Comprehensive Credit Facility Agreement of Maximum Amount Entered into and by Shenzhen BAK Battery Co., Ltd (the “Company”) and Shenzhen Hi-tech Industrial Park Branch, Industrial Bank Co., Ltd (the “Creditor”) dated March 25^th, 2008

Main contents:

Ø	Contract number: xingyinshen gaoxinqu shouxinzi 2008 001;

Ø	Maximum amount for credit facilities to be provided: RMB62.5 million, which can be decomposed into the following one or several credit facilities for use;

1. short-term loans of RMB 50 million;

2. bank acceptance of commercial draft of RMB 62.5 million;

3. letter of credit of RMB 50 million

Ø	Term: from March 25^th, 2008 to March 25^th, 2009;

Ø	Adjustment of credit can be made by Industrial Bank under the any of the followings:

The Company suffers severe operational risk or difficulties;

Occurrence of great changes in the Company’s operational system (including dividing, merging, closing etc.)

The Company’s payment ability is obviously weakened, the risk of repayment increased; or occurrence of delay in repaying the loan;

Occurrence of great changes in market;

Occurrence of other situations that the Creditor thinks adjustment of credit facility is necessary.

Breach of contract: providing false information for hiding the actual condition of the Company; the Company’s credit rate deteriorates, and its ability of repayment is obviously weakened; breach of the obligations agreed in the sub-contract under this contract; breach of other obligations agreed in the contract;

Ø	Breach of contract penalty: suspension or reduction of credit facilities, till cancellation of all approved credit facilities; declaration of all or part of the credit facilities becoming mature in advance to its original expiry date; require the Company to compensate for all the loss;

Headlines of the articles omitted

Ø	Definition and explanation

Ø	The guaranty of the loan under this Agreement

Ø	Other rights and obligation

Expenses

Validity

Ø	Notification

Ø	Effectiveness

Text

Ø	Supplemental