**Summary      of Guaranty Contract of Maximum Amount Entered into by and between BAK      International Limited and Shenzhen Branch, China CITIC Bank Co., Ltd on May      9**
**th**

**,      2008**

**M**
**ain      contents**

| Ø | Contract                number: (2008)Shen Yin Sun ZuiBaoZi                003; |
|--------|---------------------------------------------------------------------------------|

| Ø | BAK                International Limited undertakes to assume joint and several liabilities                towards China CITIC Bank under the Guaranty Contract of Maximum Amount                (reference no.: (2008) Shenyinsun zuibaozi 003) from May 9th,                2008 to Nov. 9th,                2008, and the maximum amount secured is RMB150                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). |
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| 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, 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. |
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| Ø | Default                of contract: |
|--------|-------------------------------------|

|   | 1) | Fail                in fulfilling the undertakings and guaranties as described in Item                7 of                this contract; 2) breach of other articles of this contract. |
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|   | 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: |
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|  | b) | declare                the agreement becomes mature in advance to its original expiry date,                and                require the guarantor to undertake joint and severe responsibility; |
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**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                                          |

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