**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 |
|--------|-------|

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