Summary of Guaranty Contract of Maximum Amount (the “Contract”) Entered into by and between Mr. Li Xiangqian and Longgang Branch, Shenzhen Development Bank (the “Creditor”) on December 3rd, 2008

Main contents:

ØGuaranty Contract number: Shenfa Longgang Ebaozi 20081203001-3;

ØAs guarantor, Mr. Li Xiangqian undertakes to assume joint and several liabilities for Shenzhen BAK Battery Co., Ltd (the “Obligor”)’s indebtedness towards Shenzhen Development Bank under the Comprehensive Credit Facility Agreement of Maximum Amount (reference no.: Shenfa Longgang Zongzi 20081203001) from December 8th, 2008 to December 8th, 2009, and the maximum amount secured is RMB150 million.

ØGuaranty Responsibility: The guaranty under this Contract shall be guaranty with joint and several liabilities. 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).

ØScope 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.

ØGuaranty 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.

Headlines of the articles omitted:

ØTermination and explanation

ØPayment on demand

ØDeclaration and guaranty

ØIndependent guaranty

ØFulfillment of the responsibility and giving up of the right

ØAmendment of the Contract

ØEffectiveness and Disputation settlement

ØContract period

ØSupplement articles