Summary
      of Guaranty Contract of Maximum Amount Entered into by and between BAK
      International Limited and Shenzhen Branch, China CITIC Bank Co., Ltd on May
      9th,
      2008

    


    Main
      contents

    
      	Ø	
              Contract
                number: (2008)Shen Yin Sun ZuiBaoZi
                003;

            


    

    
      	Ø	
              BAK
                International Limited undertakes to assume joint and several liabilities
                towards China CITIC Bank under the Guaranty Contract of Maximum Amount
                (reference no.: (2008) Shenyinsun zuibaozi 003) from May 9th,
                2008 to Nov. 9th,
                2008, and the maximum amount secured is RMB150
                million.

            


    

    
      	Ø	
              Guaranty
                Responsibility: The guaranty under this Contract shall be guaranty
                with
                joint and several liability. The guarantor is obligated to pay off
                the
                debt in the event the obligor is unable to pay off the debt (including
                the
                creditor declares the debt becomes mature in advance to its original
                expiry date due to default of the obligor or the
                guarantor).

            


    

    
      	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, etc, which is incurred to the Creditor in realizing
                its
                creditor’s right.

            


    

    
      	Ø	
              Guaranty
                period: The guaranty period is from the effective date of this Contract
                to
                two years after the expiry of the term of the Credit Facility Agreement
                and relevant agreement entered into under the Credit Facility
                Agreement.

            


    

    


    
      	Ø	
              Default
                of contract: 

            


    

    Occurrence
      of any of the following situation should constitute default:

    
      	 	
              1)

            	
              Fail
                in fulfilling the undertakings and guaranties as described in Item
                7 of
                this contract; 2) breach of other articles of this contract.
                

            


    

    
      	 	
              2)

            	
              In
                the event of defaults by the guarantor, the creditor is entitled
                to take
                one or more of the following actions and the guarantor irrevocably
                grants
                the Creditor to take the following sixth actions without passing
                legal
                procedures:

            


    

    a)
      requires the guarantor to correct the default in certain period; 

    
      	
            	b)	
              declare
                the agreement becomes mature in advance to its original expiry date,
                and
                require the guarantor to undertake joint and severe responsibility;
                

            


    

    c)
      require the guarantor to pay additional 10% of the debt as penalty;


    d)
      requires the guarantor to compensate the material loss which can’t be remedied
      by the penalty; 

    e)
      cancel
      the conduct that damages the interests of the Creditor;

    f)
      withdraw from any account of the guarantor to pay off the debt;

    g)
      take
      legal action against the guarantors’ breach.

    Headlines
      of the articles
      omitted:

    
      	
              Ø
                Termination
                and explanation

            
	
              Ø
                Payment
                on demand

            
	
              Ø
                Declaration
                and guaranty

            
	
              Ø
                Independent
                guaranty

            
	
              Ø
                Fulfillment
                of the responsibility and giving up of the right

            
	
              Ø
                Attention
                and notification

            
	
              Ø
                Dispute
                settlement 

            
	
              Ø
                Contract
                period

            
	
              Ø
                Text
                copies

            
	
              Ø
                Supplement
                articles