**Exhibit      10.7**

**Summary      of Loan Agreement entered into by and between Shenzhen BAK Battery Co., Ltd.      and      Eastern Branch, Agricultural Bank of China dated January 9,      2007.**

**Summary      of main contents: **

| · | Contract                number: NO.81101200700000043 |
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|   |   |
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| · | Loan                Principal: RMB160 million; |
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| · | Loan                term: six months starting from the date loan is actually provided                to the                Company. |
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| · | Interest                rate: 90% of the benchmark rate issued by the People’s Bank of China, i.e.                fixed rate of 5.022%; |
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|  | · | Penalty                    interest rate for delayed repayment: 5.022% plus 50%                    *5.022%; |
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|  | · | Penalty                    interest rate for embezzlement of loan proceeds: 5.022% *                    2; |
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| · | Purpose                of the loan is to provide working capital for the Company; |
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| · | Advanced                repayment of loan needs to be approved by the Lender; |
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| · | Breach                of contract penalties: suspension of loan un-provided, demand prepayment                of loan principal and interest before maturity; imposition of punitive                interest; compensation for the Lender’s expenses incurred due to the                Company’s breach of contract such as lawyer’s fee, travel cost in case of                litigation, etc. |
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**Headlines      of articles omitted:**

| · | Types                of the loan |
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|   |   |
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| · | Clearing                of the loan interest |
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| · | Condition                precedent to the drawing of the loan |
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| · | Rights                and obligations of the borrower |
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| · | Rights                and obligations of the lender |
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| · | Guarantee                of the loan |
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| · | Dispute                settlement |
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| · | Miscellaneous |
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| · | Validity |
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| · | Notes |
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