Document:

Summary
        of Guaranty Contract of Maximum Amount Entered into by and 
between Mr. Li
        Xiangqian and Shenzhen Hi-tech Industrial Park Branch, 
Industrial Bank Co.,
        Ltd on March 24th,
        2008

      

      Main
        contents

      Ø 
Contract
        number: Xin Yin Shen Gaoxinqu ( Shouxin ) Ge Baozheng Zi 001;

      Ø 
As
        guarantor, Mr. Li Xiangqian undertakes to assume joint and several liabilities
        for Shenzhen BAK Battery Co. Ltd.’s indebtedness towards Industrial
        Bank under
        the
        Comprehensive Credit Facility Agreement of Maximum Amount (reference no.:
        xingyinshen
        gaoxinqu shouxinzi 2008 001)
        from
        March 25th,
        2008 to
        March 25th,
        2009,
        and the maximum amount secured is RMB62.5 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 and public notice 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
        articlesSummary
      of Loan Agreement entered
      into by and between Shenzhen BAK 
Battery Co., Ltd. (“the Company”) and
      Shenzhen Hi-tech Industrial Park 
Branch, Industrial Bank Co., Ltd (“the
      Creditor”) dated March 25, 2008

    

    Main
      contents 

    
      	
              Ø

            	
              Contract
                number: Xingyinshen gaoxinqu (shouxin) duanjiezi
                NO.20080325001;

            

    

    
      	
              Ø

            	
              Loan
                principal: RMB 50 million;

            

    

    
      	
              Ø

            	
              Loan
                term: one year starting from the date the loan is
                provided;

            

    

    
      	
              Ø

            	
              Interest
                rate: fixed at 7.47%;

            

    

    
      	 	
              n

            	
              Penalty
                interest rate for delayed repayment: 7.47% plus 30%
                *7.47%;

            

    

    
      	 	
              n

            	
              Penalty
                interest rate for embezzlement of loan proceeds: 7.47% plus 50%
                *7.47%;

            

    

    
      	
              Ø

            	
              Purpose
                of the loan is to provide working capital for the Company;
                

            

    

    
      	
              Ø

            	
              Advanced
                repayment of loan needs to be approved by Industrial Bank and Industrial
                Bank is entitled to charge the interest based on the agreed date
                in this
                contract; 

            

    

    
      	
              Ø

            	
              In
                the event of occurrence of the any of the following during the term
                of
                loan, Industrial Bank is entitled to demand repayment of loan principal
                before maturity and withdraw directly from any accounts of the Company
                for
                the repayment:

            

    

    
      	
            	n	
              Delay
                in repayment of interest for the
                loan;

            

    

    
      	
            	n	
              The
                Company suffers operation loss or sharp decline in
                operation;

            

    

    
      	
            	n	
              Being
                involved in or threatened to be involved in lawsuit, arbitration
                or other
                legal disputes; 

            

    

    
      	
            	n	
              Providing
                untrue financial statements or
                information;

            

    

    
      	
            	n	
              Embezzling
                loan (i.e. using loan proceeds for purposes other than what is agreed
                in
                the contract without the consent of the
                Creditor);

            

    

    
      	
            	n	
              Refusing
                the examination or supervision of the Creditor on the Company’s
                operational and financial conditions, and refuse to provide relevant
                financial statements and
                information;

            

    

    
      	
            	n	
              Great
                changes in management;

            

    

    
      	
            	n	
              Occurrence
                of other instances which endanger the safety of the loan provided
                by the
                Creditor;

            

    

    
      	
              Ø

            	
              Breach
                of contract penalties: correct the breach of contract in time limit;
                suspension of loan unprovided; terminate the loan agreement, demand
                prepayment of loan principal and interest before maturity; imposition
                of
                punitive interest incurred due to delayed loan; imposition of punitive
                interest for embezzlement of loan; imposition of plural interest
                for
                unpaid interest; withdraw from any accounts of the Company the loan
                principal and interest, if currency in the accounts is different
                from loan
                currency, the Creditor is entitled to withdraw from the accounts
                of the
                Company the amount of equivalent to the loan according to the current
                foreign exchange rate; indemnification for the Creditor’s expenses
                incurred due to demanding the loan principal and interest in case
                of
                litigation, etc.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Headlines
      of the articles omitted: 

    
      	Ø	
              Loan
                arrangement 

            

    

    
      	Ø	
              Interest
                clearing of the loan 

            

    

    
      	Ø	
              Payment
                of the loan 

            

    

    
      	Ø	
              Interest
                penalty of loan

            

    

    
      	Ø	
              Guarantee
                of the loan agreement 

            

    

    
      	Ø	
              Rights
                and obligation of the Company

            

    

    
      	Ø	
              Rights
                and obligations of the Creditor 

            

    

    
      	Ø	
              Breach
                of contract responsibility

            

    

    
      	Ø	
              Validity
                

            

    

    
      	Ø	
              Text

            

    

    
      	Ø	
              Supplemental

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