Document:

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
      9th,
      2008

    

    Main
      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).

            

    

    
      	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.

            

    

    

    
      	Ø	
              Default
                of contract: 

            

    

    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
                articlesSummary
      of Guaranty Contract of Maximum Amount Entered into by and between Mr. Li
      Xiangqian and Shenzhen Branch, China CITIC Bank Co., Ltd on May
      9th,
      2008

    

    Main
      contents

    Ø Guaranty
      Contract number: (2008)Shen Yin Sun EBaoZi 001;

    Ø Main
      Contract number: (2008)Shen Yin Sun ZongZi 003;

    Ø As
      guarantor, Mr. Li Xiangqian undertakes to assume joint and several liabilities
      for BAK International Limited’s indebtedness towards China CITIC Bank under the
      Guaranty Contract of Maximum Amount (reference no.: (2008)shenyinsun ebaozi
      001)
      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).

    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.

    

    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
                articlesSupplemental
      Agreement

    

    Obligor:
      Shenzhen BAK Battery Co., Ltd

    

    Creditor:
      Agricultural Bank of China, Shenzhen Branch 

    

    Whereas,
      the Obligor and the Creditor have entered into a loan agreement (contract number
      is 81101200800000816) (hereinafter called “Loan Agreement”). Hereby, the parties
      agree to enter into the following supplemental agreements for amending part
      of
      the clauses of the Loan Agreement:

    

    
      	
            	1.	
              Amending
                the item 4 of Clause 9 of the Loan Agreement as follows:

              
                The
                  Obligor undertakes to obtain the Land Use Right Certificate
                  (“Certificate”) for BAK Industrial Park located at Aotou village, Kuichong
                  Street, Longgang District, Shenzhen, before September 18, 2008.
                  The
                  Certificate cannot be pledged to any third party without the Creditor’s
                  written consent.

                

                In
                  case the Obligor breaches this undertaking, the Creditor is entitled
                  to
                  demand the Obligor to bear its responsibilities for breach of Contract
                  in
                  accordance with the Clause 6 of the Loan
                  Agreement.

              

            

    

    

    
      	
            	2.	
              No
                amendment to the other clauses of the Loan
                Agreement.

            

    

    

    
      	
            	3.	
              In
                case of any difference between the Loan Agreement and this Supplemental
                Agreement, the Supplemental Agreement shall
                prevail.

            

    

    

    
      	
            	4.	
              This
                Supplemental Agreement becomes effective since it is signed and
                stamped.

            

    

    

    
      	
            	5.	
              This
                Supplemental Agreement has five originals. Each of the Obligor and
                the
                Creditor has one original, and each of the guarantors has one original,
                which has the same effect.

            

    

    

    The
      Obligor (sign and stamp): /s/ Shenzhen BAK Battery Co., Ltd

    Legal
      representative or licensed representative: /s/ Xiangqian Li

    Address:

    Postal
      number: 

    

    Creditor
      (sign and stamp): /s/ Agricultural Bank of China

    Principal
      or licensed representative:

    Address:

    Postal
      number:

    Time:

    

    Venue:
      Shatoujiao, Shenzhen

    

    Representations
      and Undertaking of the Guarantors:

    They
      have
      already received the above-mentioned “Supplemental Agreement”, and have no
      disagreement with all the clauses of the Supplement Agreement. They undertake
      to
      undertake joint and several liabilities for the indebtedness of the Obligor
      under the Loan Agreement. 

    

    Guarantors
      (sign and stamp): /s/ BAK International Limited; /s/ Xiangqian Li

    Legal
      representative or licensed representative:

    

    

    Signature
      date: Aug 6, 2008

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