|   | Ø | Contract      number: 81903200900000096 |
|--------|--------|----------------------------------------------|

|   | Ø | In      order to guarantee the indebtedness of Shenzhen BAK Battery Co., Ltd.      (the “Obligor”) towards the Creditor under the Loan      Agreement (reference no.: 81101200900001026) from May 26, 2009      to May 26, 2010, the Mortgager agrees to pledge      its full margin of RMB2.163360 million to the      Creditor. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | The      amount of guaranteed debt principal is HKD2.499609  million. |
|--------|--------|-----------------------------------------------------------------------|

|   | 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      and public notice cost etc. which is incurred to the Creditor in realizing      its creditor’s right. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Collateral: The      Mortgager agrees to pledge its full margin of RMB2.163360 million to the      Creditor. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | Ø | Breach of Contract Penalties: additional 50% of      the maximum amount secured in this Contract and full compensation for the      Creditor’s loss due to the Mortgager’s breach of  contract. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Undertakings      of the Mortgager |
|--------|--------|------------------------------------|

|   | Ø | Validity      of the Creditor’s Right |
|--------|--------|---------------------------------------------|

|   | Ø | Transferring      and Occupancy of Collateral |
|--------|--------|-----------------------------------------------|

|   | Ø | Collateral      Security |
|--------|--------|--------------------------|

|   | Ø | Realizing      of Creditor’s Right |
|--------|--------|------------------------------------------|

|   | Ø | Return      of Collateral |
|--------|--------|---------------------------|

|   | Ø | Fee |
|--------|--------|-----|

|   | Ø | Disputation      settlement |
|--------|--------|-----------------------------|

|   | Ø | Supplement      articles |
|--------|--------|--------------------------|

|   | Ø | Attachment |
|--------|--------|------------|

|   | Ø | Validity |
|--------|--------|----------|

|   | Ø | Notification |
|--------|--------|--------------|

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