| Ø | Contract      number: 81905200800000212; |
|--------|------------------------------------------|

| Ø | 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 RMB355million. |
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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 the Loan Agreement  ; |
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| Ø | The      type of the guaranty is joint liability guaranty; the guarantors undertake      joint liabilities to the creditor. |
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| Ø | Guaranty      period: |
|--------|-----------------------|

|   | n | Two      years from the expiry date that Shenzhen BAK should fulfill its      obligations in accordance with LoanAgreement; |
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|   | 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; |
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|   | n | For      discounted commercial drafts, the term is two years from the expiry date      of the discounted commercialdrafts; |
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|   | 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 extendedagreement; |
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| 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. |
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| Ø | Commitment      of the guarantors |
|--------|-----------------------------------|

| Ø | Confirmation      of the creditor’s guaranteed rights |
|--------|-------------------------------------------------------------|

| Ø | Undertaking      of the guaranteed liabilities |
|--------|------------------------------------------------|

| Ø | Breach      of contract obligation |
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| Ø | Dispute      settlement |
|--------|-------------------------|

| Ø | Miscellaneous |
|--------|---------------|

| Ø | Validity |
|--------|----------|

| Ø | Text      copies |
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| Ø | Notes |
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