CBAK Energy Technology (CBAT) 10-Q 2011 Q1 Quarterly report

Summary of Guaranty Contract of Maximum Amount ( the “Contract”) Entered into by and between BAK International (Tianjin) Limited (the “Guarantor”)and Longgang Branch, Shenzhen Development Bank (the “Creditor”) on January 21, 2011

Main contents:

• Guaranty Contract number: Shenfa Longgang Ebaozi 20110120001-3;

• Bak International (Tianjin) Limited 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 20110120001) from January 26, 2011 to January 18, 2012, and the maximum amount secured is RMB200 million.

• Guaranty 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).

• 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.

• 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.

Headlines of the articles omitted:

• Payment on demand

• Guarantee period

• Guarantee Responsibility

• Instances of Breach of Contract and its Liabilities

• Declaration, guaranty and undertaking of the Guarantor

• Amendment of the Contract

• Effectiveness and Disputation settlement