**Summary      of Guaranty Contract of Maximum Amount Entered Between BAK International      (Tianjin) Ltd. (“BAK Tianjin”) and Shenzhen Eastern Branch, Agricultural Bank of      China on May 20, 2008**

**Main      Contents**

| Ø | Contract                number: No.81905200800000096; |
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| Ø | As                guarantor, BAK Tianjin undertakes to assume joint and several liabilities                for the Company’s indebtedness towards Agricultural Bank of China under                Comprehensive Credit Facility Agreement (“Main Contract”) from May 20,                2008 to November 20, 2008 and maximum amount secured is RMB 800 million                principal and other secured items; |
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| Ø | Secured                items include the loan principal, interest, penalty interest, breach                of                contract compensation and all the expenses incurred for Agricultural                Bank                to realize its creditor’s right under Loan                Agreement; |
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| Ø | Guaranty                period: |
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|   | n | Two                years from the expiry date that the Company should fulfill its obligations                in accordance with the main                contract; |
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|   | n | For                commercial draft acceptance, L/C Issuance Finance and Letter of Guarantee,                the term is two years from the date on which the creditor pay the                money; |
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|   | n | For                discounted commercial drafts, the term is two years from the expiry                date                of the discounted commercial                drafts; |
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|   | n | If                term of Main contract is extended, guaranty period shall be two years                from                the expiry date for the Company to fulfill its obligations according                to                the extended agreement; |
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|   | n | If                due to the provisions of relevant PRC law or regulations or any agreement                reached under the Main Contract, any loan becomes mature ahead of                its                term, guaranty period shall be two years starting from the advance                mature                date. |
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| **Headlines                of the articles omitted**                         |
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| Ø  Commitment                of the guarantor                 |
| Ø  Confirmation                of the creditor's rights       |
| Ø  Undertaking                of the guarantee responsibility |
| Ø  Default                Obligation                          |
| Ø  Dispute                settlement                          |
| Ø  Miscellaneous                                              |
| Ø  Effectiveness                                              |
| Ø  Attention                                                  |
| Ø  Notes                                                      |

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