**Summary
        of Guaranty Contract of Maximum Amount Entered into by and between Mr. Li
        Xiangqian and Shenzhen Hi-tech Industrial Park Branch, Industrial Bank Co.,
        Ltd on March 24** **th** **,
        2008**
 
 **M** **ain
        contents**
 Ø  Contract
        number: Xin Yin Shen Gaoxinqu ( Shouxin ) Ge Baozheng Zi 001;
 Ø  As
        guarantor, Mr. Li Xiangqian undertakes to assume joint and several liabilities
        for Shenzhen BAK Battery Co. Ltd.’s indebtedness towards Industrial
        Bank under
        the
        Comprehensive Credit Facility Agreement of Maximum Amount (reference no.: xingyinshen
        gaoxinqu shouxinzi 2008 001 )
        from
        March 25 th ,
        2008 to
        March 25 th ,
        2009,
        and the maximum amount secured is RMB62.5 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 and public notice 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:**
 Ø  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