|   | Ø | Contract number: Shenfa Longgang Edizi 20081203001-2; |
|--------|--------|-------------------------------------------------------|

|   | Ø | In      order to guarantee the indebtedness of Shenzhen BAK Battery Co., Ltd.      (the “Obligor”) towards the Creditor under the Comprehensive Credit      Facility Agreement of Maximum Amount (reference no.: Shenfa Longgang      Zongzi 20081203001) from December 8th,      2008 to December 8th,      2009, the Mortgager agrees to pledge its property to the      Creditor. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 | Collaterals: The      Mortgager agrees to pledge its finished lithium-ion cells which      valued RMB 150 million to theCreditor. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Headlines of the articles      omitted: |
|--------|--------|-----------------------------------------|

|   | Ø | Termination      and explanation |
|--------|--------|----------------------------------|

|   | Ø | Payment      on demand |
|--------|--------|------------------------|

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

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

|   | Ø | Occupancy      of Collaterals |
|--------|--------|-------------------------------|

|   | Ø | Insurance      of Collaterals |
|--------|--------|-------------------------------|

|   | Ø | Mortgage      Registration |
|--------|--------|----------------------------|

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

|   | Ø | Declaration      and guaranty of the Mortgager |
|--------|--------|------------------------------------------------|

|   | Ø | Amendment      of the Contract |
|--------|--------|--------------------------------|

|   | Ø | Effectiveness      and Disputation settlement |
|--------|--------|-----------------------------------------------|

----