CHINA BAK BATTERY, INC.
STOCK OPTION PLAN
1.1 Name. This Plan shall be known as the “China BAK Battery, Inc. Stock Option Plan.” Capitalized terms used herein are
defined in Article VII hereof.
1.2 Purpose. The purpose of the Plan is to promote the growth and general prosperity of the Company by permitting the
Company to grant Options to purchase Common Stock and Restricted Stock of the Company to key Employees, Nonemployee
Directors, and Advisors. The Plan is designed to help the Company and its subsidiaries and affiliates attract and retain superior
personnel for positions of substantial responsibility and to provide key Employees, Nonemployee Directors, and Advisors with
an additional incentive to contribute to the success of the Company.
This Plan is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and
any regulatory or other guidance issued under such section. At the Effective Date of the Plan, additional guidance had yet to be
promulgated by the Department of Treasury. Any terms of the Plan that conflict with such guidance shall be null and void as of
the Effective Date. After such additional guidance is issued, the intent is to amend the Plan to delete any conflicting provisions
and to add such other provisions as are required to fully comply with Section 409A and any other legislative or regulatory
requirements applicable to the Plan. The Plan is also intended to comply with Rule 16b-3 promulgated under the Securities
Exchange Act of 1934, as amended from time to time, or any successor provision thereto (“Rule 16b-3”), and shall be construed
to so comply. With respect to any restriction in the Plan that is based on the requirements of Rule 16b-3 or the rules of any
exchange upon which the Company’s securities are listed or automated quotation system upon which the Company’s securities
are quoted, or any other applicable law, rule or restriction, to the extent that any such restriction is no lo