On August 6, 2013, China BAK Battery, Inc. appointed Mr. Jonathan Christopher Paugh as a director of the company. Mr. Paugh was also appointed by the Board to each of the Audit, Compensation and Nominating and Corporate Governance Committees and will act as the Chair of the Nominating and Corporate Governance Committee. In addition, the Board determined that Mr. Paugh meets the criteria for independent directors and audit committee members as set forth in NASDAQ Listing Rules 5605(a)(2) and 5605(c)(2)(A).

Mr. Paugh has been an associate at the law firm, Wojciechowski & Associates, P.C. since May 2008. From January 2004 to January 2008, Mr. Paugh was an associate at Powers & Frost L.L.P. Mr. Paugh's practice primarily consists of defense litigation involving construction defects, professional liability, personal injury, and other commercial litigation matters. In connection with Mr. Paugh's appointment, Ms. Martha Agee resigned from her position as the Chair of the Nominating and Corporate Governance Committee.

The Board appointed Ms. Agee as the Chair of the Audit Committee and determined that Ms. Agee possesses accounting or related financial management experience that qualifies her as financially sophisticated within the meaning of NASDAQ Listing Rule 5605(c)(2)(A) and that she is an 'audit committee financial expert' as defined by the rules and regulations of the Securities and Exchange Commission.