Guaranty Contract of Maximum
Amount Entered Between BAK International (Tianjin) Limited, BAK International
Limited, Xiangqian Li and Shenzhen Eastern Branch, Agricultural Bank of China
(“Agricultural Bank”) on September 17th, 2008

    Summary
of the main articles

    
      	
              Ø

            	
              Contract
      number: 81905200800000212;

            


    

    
      	
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              As
      guarantors, BAK Tianjin, BAK International and Xiangqian Li undertakes to
      assume joint liabilities for Shenzhen BAK Battery Co., Ltd (“Shenzhen
      BAK”)’s indebtedness under the Loan Agreement (No. 81101200600001989) and
      the maximum amount secured is RMB355
million.

            


    

    
      	
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              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 the Loan Agreement
  ;

            


    

    
      	
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              The
      type of the guaranty is joint liability guaranty; the guarantors undertake
      joint liabilities to the creditor.

            


    

    
      	
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              Guaranty
      period:

            


    

    
      	
               
      

            	
              n

            	
              Two
      years from the expiry date that Shenzhen BAK should fulfill its
      obligations in accordance with Loan
Agreement;

            


    

    
      	
               
      

            	
              n

            	
              For
      the acceptance of commercial drafts, issuance of Letter of Credit and
      issuance of Letter of Guarantee, the term is two years from the creditor’s
      disbursement;

            


    

    
      	
               
      

            	
              n

            	
              For
      discounted commercial drafts, the term is two years from the expiry date
      of the discounted commercial
drafts;

            


    

    
      	
               
      

            	
              n

            	
              If
      the term of the Loan Agreement is extended, guaranty period shall be two
      years from the expiry date for the Company to fulfill its obligations
      according to the extended
agreement;

            


    

    
      	
              Ø

            	
              Breach
      of contract penalties: compensation for the Guarantor’ loss incurred due
      to the Creditor’s breach of contract; imposition penalties at the maximum
      of 15% of the guaranteed indebtedness, and full compensation for the
      Creditor’s loss incurred due to the Guarantor’s breach of
      contract.

            


    

    


    Summary
of the articles omitted:

    
      	
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              Commitment
      of the guarantors

            


    

    
      	
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              Confirmation
      of the creditor’s guaranteed rights

            


    

    
      	
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              Undertaking
      of the guaranteed liabilities

            


    

    
      	
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              Breach
      of contract obligation

            


    

    
      	
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              Dispute
      settlement

            


    

    
      	
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              Miscellaneous

            


    

    
      	
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              Validity

            


    

    
      	
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              Text
      copies

            


    

    
      	
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              Notes