**Guaranty      Contract of Maximum Amount**

**Creditor:      **

**Guarantor:      **

**Article      I. Guaranty**

| 1.1 | Shenzhen                BAK Battery Co., Ltd. (hereinafter referred to as “Obligor”) and the                Creditor have entered into the Comprehensive Credit Facilities Agreement                (reference no.: Shen Shangyin (Shuibei) Shouxin Zi (2007) A110020700007,                hereinafter referred to as “Master Agreement”). As requested by the                Obligor, the Guarantor undertakes to provide guaranty for the indebtedness                of the Obligor under the Master Agreement based upon all personal                assets,                interests and rights, current and future income etc. which are                independently owned or jointly owned by the Guarantor. |
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| 1.2 | The                guaranty shall cover all of the loan principal, interest, penalty                interest, breach of contract compensation, damages, undertaking fee,                advances paid by the Creditor 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. The maximum                loan principal shall be RMB 200 million                yuan. |
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| 1.3 | The                guaranty period is from the effective date of this Contract to two                years                after the expiry of the term of the Master Agreement and relevant                agreement entered into under the Master Agreement. |
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| 1.4 | The                guaranty under this Contract is independent. In case that any third                party                provide guaranty to the Creditor, the Guarantor shall continue to                assume                the full obligation of guaranty for all indebtedness as stated in                clause                1.1 of this Contract. |
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| 1.5 | This                Contract is irrevocable. This Contract shall not be influenced by                any                documentation or agreement entered into by the Obligor and any party,                and                shall not be influenced by the misuse of the credit facilities,                insolvency, bankruptcy, loss of legal person status, amendment of                articles                of association, cease of business operation, acquisition, division                and                merger etc. of the Obligor, nor any change of the profession, position                or                financial capacity of the                Guarantor. |
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| 1.6 | The                effectiveness of this agreement is independent of the Master Agreement.                This agreement shall survive the invalidity of the Master Agreement                or any                of its clauses, or the relevant agreement entered into under the                Master                Agreement or any of its clauses. |
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**Article      II. Performance of Guaranty**

| 2.1 | In                case of default by the Obligor upon the expiry of the term under                the                Master Agreement (or expiry date as declared by the Creditor), the                Guarantor shall unconditionally pay the relevant amount to the Creditor                after the Creditor has notified the Guarantor in writing to do so.                Any                statement signed by the authorized representative of the Creditor                which                can prove the default of the Obligor shall be deemed as the notification                of the Creditor demanding the Guarantor to pay the relevant                amount. |
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| 2.2 | The                Guarantor irrevocably authorizes the Creditor to transfer directly                any                defaulting amount of money from the bank account of the Guarantor                to the                account of Creditor. The Creditor shall notify the Guarantor in writing                of                such transfer and is entitled to demand the Guarantor to pay for                the                unsettled indebtedness. |
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**Article      III. Undertakings and Representations of the Guarantor**

| 3.1 | The                Guarantor has read the Master Agreement carefully and accepts all                clauses                of the Master Agreement. The relevant agreements entered into by                the                Creditor and the Obligor under the Master Agreement do not need the                confirmation of the Guarantor. |
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| 3.2 | The                Guarantor undertakes that the Guarantor shall continue to assume                the                obligation of guaranty in case of the amendment of the Master Agreement                by                the Creditor and the Obligor and such amendment does not need the                consent                of the Guarantor. Without prejudice to the above, the Guarantor shall                assume the obligation of guaranty for the indebtedness under the                Master                Agreement before the amendment if such amendment increases the                indebtedness of the Obligor and such amendment has not been approved                by                the Guarantor in writing. |
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| 3.3 | The                Creditor is entitled to examine the Guarantor’s financial capacity during                the term of this Contract and the Guarantor shall give necessary                assistance. The Guarantor shall provide truthful, comprehensive and                effective financial reports and other relevant aterials and information                to                the Creditor. |
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| 3.4 | The                Guarantor shall notify the Creditor in writing within 7 days after                any of                the following events occurs or threatens to                occur; |
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|   | (1) | The                Guarantor’s income or income sources materially                changes; |
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|   | (2) | The                Guarantor’s business operation deteriorates or suffers material loss; the                Guarantor is involved in any material litigation, or its major assets                are                subject to property preservation; |
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|   | (3) | The                Guarantor changes its legal representative, address or                contact; |
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|   | (4) | Any                other material event that may materially affect its financial                status. |
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**Article      IV. Breach of Contract**

| 4.1 | The                occurrence of any of the following events may constitute the breach                of                contract: |
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|  | (1) | The                Guarantor does not perform its liability of repaying the loan in                substitution fully in time; |
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|  | (2) | The                Guarantor breaches any of the clauses of this agreement, or any of                its                undertakings and representations; |
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|  | (3) | The                Guarantor transfers its property or secretly withdrawing funds to                evade                repayment of debts; |
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|  | (4) | The                legal representative or chief officer(s) of the Guarantor is involved                in                any criminal case; |
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|  | (5) | The                Guarantor does not perform its obligations under any other contract                with                the Creditor or any other banks in due                time; |
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| 4.2 | The                Creditor is entitled to take the following actions upon the occurrence                of                the breach of contract: |
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|  | (1) | declare                the maturity of the indebtedness in advance to its original expiry                date in                accordance with the Master Agreement, and demand the Guarantor perform                its                liability of pay compensation in substitution                immediately; |
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|  | (2) | demand                the Guarantor provide additional guaranty that is acceptable to the                Creditor; |
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|  | (3) | report                to the relevant organization, and publicize it in any                media; |
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|  | (4) | take                any other remedy measures pursuant to the relevant laws and                regulations. |
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**Article      V Miscellaneous**

| 5.1 | The                Creditor is entitled to obtain relevant notarization certificate                with                compulsory enforcement effect for purpose of this                agreement; |
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| 5.2 | Any                dispute arising from this Contract shall be submitted to the People’s                Court of the place of the Creditor and the laws of People’s Republic of                China shall be the governing law. |
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| 5.3 | This                Contract shall come into effect once it is signed by the Guarantor                and the                legal representative/authorized representative of the Creditor and                stamped                with the company chop of the                Guarantor. |
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| 5.4 | This                Contract has four originals, the Creditor shall retain two originals                and                the Guarantor shall retain one                original. |
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