--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Exhibit 10-b
 
ADVANCED BATTERY TECHNOLOGIES, INC.
15 West 39th Street
Suite 14A
New York, New York 10018

 
June 16, 2009

Cranshire Capital, LP
Iroquois Master Fund Ltd.
Hudson Bay Fund LP
Hudson Bay Overseas Fund, Ltd.

 
Re:
Letter of Understanding Regarding Series E and Series F 0% Convertible Preferred
Stock of Advanced Battery Technologies, Inc.

Dear above-referenced Investors:
 
Reference is made to that certain Securities Purchase Agreement, dated as of May
27, 2009 (“May SPA”), the Certificate of Designation of Preferences, Rights and
Limitations (“May CD”) of the Series E 0% Convertible Preferred Stock issued
thereunder (the “Series E”), the Registration Rights Agreement, dated May 27,
2009 (“May RRA”), the Securities Purchase Agreement, dated June 12, 2009 (“June
SPA”), the Certificate of Designation of Preferences, Rights and Limitation
(“June CD” and collectively with the May CD, the “CDs”) of the Series F 0%
Convertible Preferred Stock issued thereunder (the “Series F”) and the
Registration Rights Agreement, dated June 12, 2009 (“June RRA”).  Please confirm
your agreement and understanding as to the following:

 
1.
Schedule 3.1(g) is hereby amended to include therein the issuance of the Series
E along with the common stock purchase warrants issued under the May SPA and new
Schedule 3.1(v) is added to disclose the existence of the May RRA and new
Schedule 3.1(ff) is added to disclose the pari passu status of the Series E and
Series F.

 
2.
Upon any Liquidation (as defined and used in Section 5 of the CDs) or redemption
of the Series E and Series F pursuant to Section 8 of the CDs, the rights of the
holders of the Series E and Series F shall be pari passu  to each other in all
respects and any distributions or payments made thereunder shall be pro-rata in
proportion to each holders aggregate amount of Series E and Series F then held
by such holder in relation to the aggregate amount of Series E and Series F held
by all holders.

 
3.
The prohibition on filing another registration statement under Section 6(b) of
the May RRA is hereby waived solely as it relates to the registration rights
granted under the June RRA and the Registrable Securities (as defined under the
June RRA) under the June RRA shall be included on the same Registration
Statement filed pursuant to the May RRA.  The rights of the Holders (as defined
in the May RRA and June RRA, respectively) under the May RRA and June RRA shall
be pari passu in all respects pro-rata in proportion to each Holders aggregate
amount of Registrable Securities originally held by such Holder and all
Registrable Securities originally issued pursuant to the May SPA and June SPA,
including but not limited any cutbacks to the number of Registrable Securities
to be included in any Registration Statement on account of SEC Guidance (as
defined under the May RRA and June RRA) or otherwise.

 
 

--------------------------------------------------------------------------------

 

This letter agreement may be executed in two or more counterparts, all of which
when taken together shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered
to the other party, it being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such
facsimile or “.pdf” signature page were an original thereof.

All questions concerning the construction, validity, enforcement and
interpretation of this letter agreement shall be determined in accordance with
the provisions of the June SPA.

 
Sincerely,
     
ADVANCED BATTERY TECHNOLOGIES, INC.
         
By:  /s/ Zhiguo Fu
 
         Name:  Zhiguo Fu
 
         Title: Chairman, Chief Executive Officer

Accepted and Agreed:

Name of Purchaser:  __________________
Signature of Purchaser:  /s/                              
Name of Signatory:  __________________
Title of Signatory: ________________

 

--------------------------------------------------------------------------------