CBAK Energy Technology (CBAT) 10-Q 2008 Q1 Quarterly report

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:

n The Company suffers severe operational risk or difficulties;

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

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

n Occurrence of great changes in market;

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

Ø 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

Ø Expenses

Ø Validity

Ø Notification

Ø Effectiveness

Ø Text

Ø Supplemental