Exhibit
      10.42

     

    Summary
      of Loan Agreement by and between Shenzhen BAK Battery Co., Ltd. and East Branch,
      Agricultural Bank of China dated August 27 , 2007.

     

    Summary
      of the main articles 

     

    
      	
              
                ·

              

            	
              Contract
                number: NO.81101200700001547

            


    

    
      	 	 


      	
              
                ·

              

            	
              Loan
                Principal: RMB 40 million;

            


      	 	 


    

    
      	
              
                ·

              

            	
              Loan
                term: twelve months starting from the date loan is actually provided
                to
                the Company.

            


    

    
      	 	 


      	
              
                ·

              

            	
              Floating
                interest rate: annually 7.722%, 110% of the benchmark rate announced
                by
                the People’s Bank of China;

            


      	 	 


    

    
      	
               

            	
              ·

            	
              Penalty
                interest rate for delayed repayment: 5.022% plus 50%
                *5.022%;

            


      	 	 	 


      	 	
              ·

            	
              Penalty
                interest rate for embezzlement of loan proceeds: 5.022% *
                2;

            


      	 	 	 


    

    
      	
              
                ·

              

            	
              Purpose
                of the loan is to provide working capital for the Company;
                

            


    

    
      	 	 


      	
              
                ·

              

            	
              Advanced
                repayment of loan needs to be approved by the Lender;
                

            


      	 	 


    

    
      	
              
                ·

              

            	
              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.

            


    

    


    Summary
      of the articles omitted 

     

    
      	
              
                ·

              

            	
              Types
                of the loan 

            


    

    
      	 	 


      	
              
                ·

              

            	
              Clearing
                of the loan interest 

            


      	 	 


    

    
      	
              
                ·

              

            	
              Condition
                precedent to the drawing of the loan


            


    

    
      	 	 


      	
              
                ·

              

            	
              Rights
                and obligations of the borrower

            


      	 	 


    

    
      	
              
                ·

              

            	
              Rights
                and obligations of the lender 

            


    

    
      	 	 


      	
              
                ·

              

            	
              Guarantee
                of the loan 

            


      	 	 


    

    
      	
              
                ·

              

            	
              Dispute
                settlement 

            


    

    
      	 	 


      	
              
                ·

              

            	
              Miscellaneous
                

            


      	 	 


    

    
      	
              
                ·

              

            	
              Validity

            


    

    
      	 	 


      	
              
                ·

              

            	
              Notes