Summary
      of Guaranty Contract of Maximum Amount Entered Between BAK International
      (Tianjin) Ltd. (“BAK Tianjin”) and Shenzhen Eastern Branch, Agricultural Bank of
      China on May 20, 2008

    


    Main
      Contents

    
      	
              Ø

            	
              Contract
                number: No.81905200800000096;

            


    

    
      	
              Ø

            	
              As
                guarantor, BAK Tianjin undertakes to assume joint and several liabilities
                for the Company’s indebtedness towards Agricultural Bank of China under
                Comprehensive Credit Facility Agreement (“Main Contract”) from May 20,
                2008 to November 20, 2008 and maximum amount secured is RMB 800 million
                principal and other secured items;

            


    

    
      	
              Ø

            	
              Secured
                items include the loan principal, interest, penalty interest, breach
                of
                contract compensation and all the expenses incurred for Agricultural
                Bank
                to realize its creditor’s right under Loan
                Agreement;

            


    

    
      	
              Ø

            	
              Guaranty
                period:

            


    

    
      	 	
              n

            	
              Two
                years from the expiry date that the Company should fulfill its obligations
                in accordance with the main
                contract;

            


    

    
      	 	
              n

            	
              For
                commercial draft acceptance, L/C Issuance Finance and Letter of Guarantee,
                the term is two years from the date on which the creditor pay the
                money;

            


    

    
      	 	
              n

            	
              For
                discounted commercial drafts, the term is two years from the expiry
                date
                of the discounted commercial
                drafts;

            


    

    
      	 	
              n

            	
              If
                term of Main contract is extended, guaranty period shall be two years
                from
                the expiry date for the Company to fulfill its obligations according
                to
                the extended agreement;

            


    

    
      	 	
              n

            	
              If
                due to the provisions of relevant PRC law or regulations or any agreement
                reached under the Main Contract, any loan becomes mature ahead of
                its
                term, guaranty period shall be two years starting from the advance
                mature
                date.

            


    

    


    
      	
              Headlines
                of the articles omitted

            
	
              Ø  Commitment
                of the guarantor

            
	
              Ø  Confirmation
                of the creditor's rights

            
	
              Ø  Undertaking
                of the guarantee responsibility

            
	
              Ø  Default
                Obligation

            
	
              Ø  Dispute
                settlement

            
	
              Ø  Miscellaneous
                

            
	
              Ø  Effectiveness

            
	
              Ø  Attention

            
	
              Ø  Notes