Document:

Unassociated Document

    

    SILVER
      POINT FINANCE, LLC

    Two
      Greenwich Plaza

    Greenwich,
      CT 06830 

    

    Dated
      as
      of March 19, 2008

    

    Equity
      Media Holdings Corporation, as Borrower Representative

    1
      Shackleford Drive, Suite 400

    Little
      Rock, Arkansas 72111

    Attention:
      Larry E. Morton, President

    Fax
      No.:
      (501) 221-1101

    

    
      	Re:	
              First
                Amendment to Third
                Amended and Restated Credit Agreement and Forbearance Agreement of
                even
                date herewith (the "First
                Amendment")
                amending the Third Amended and Restated Credit Agreement dated as
                of
                February 13, 2008 (as amended, supplemented and joined, the "Credit
                Agreement")
                among EQUITY
                MEDIA HOLDINGS CORPORATION,
                as successor by merger to Equity Broadcasting Corporation ("EMHC"),
                certain of EMHC's affiliates (together with EMHC, "Borrowers"),
                SILVER
                POINT FINANCE, LLC,
                as administrative agent and documentation agent (in such capacity,
                "Administrative
                Agent"),
                WELLS
                FARGO FOOTHILL, INC.,
                as collateral agent (in such capacity, "Collateral
                Agent",
                and together with Administrative Agent, the "Agents"),
                and the lenders that are from time to time parties thereto (each
                a
                "Lender"
                and collectively the "Lenders").

            

    

     

    Ladies
      and Gentlemen:

     

    This
      letter agreement (this "Agreement")
      is the
      First Amendment to Side Letter Agreement referred to in the First Amendment.
      Unless otherwise indicated, all capitalized terms used but not defined herein
      shall have the meanings assigned to such terms in the Credit
      Agreement.

     

    For
      good
      and valuable consideration, the receipt and adequacy of which are hereby
      acknowledged, and to induce the Agents and Lenders to enter into the First
      Amendment, the parties hereto hereby amend the terms of that certain Side Letter
      Agreement dated as February 13, 2008 (the "Side
      Letter Agreement")
      as
      follows:

     

    1, Section
      I Amendments.
      Paragraphs
      (a) and (b) of Section
      I
      of the
      Side Letter Agreement are hereby amended to read in their entirety as
      follows:

     

    "(a) Within
      the time frames set forth in the chart below, Borrowers shall deliver to Agents,
      and maintain in full force and effect through closing thereunder, executed
      bona
      fide purchase agreements with third parties for Dispositions of Stations that
      will generate, in the aggregate, minimum Net Cash Proceeds as
      follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Not
                  later than the Date that is::

              	 	
                Minimum Aggregate

                Net Cash

                Proceeds:

              	 
	
                March
                  30, 2008

              	 	
                $

              	
                7,500,000

              	 
	
                Two
                  Months after March 17, 2008

              	 	
                $

              	
                10,000,000

              	 
	
                Four
                  (4) months after March 17, 2008

              	 	
                $

              	
                20,000,000

              	 
	
                Six
                  (6) months after March 17, 2008

              	 	
                $

              	
                30,000,000

              	 
	
                Eight
                  (8) months after March 17, 2008

              	 	
                $

              	
                40,000,000;

              	 

      

    

     

    "(b) Within
      the time frames set forth in the chart below, Borrowers shall close on
      Dispositions of Stations that will generate, in the aggregate, minimum Net
      Cash
      Proceeds as follows:

    

      
        	
                Not
                  later than the Date that is:

              	 	
                Minimum Aggregate

                Net
                  Cash

                Proceeds:

              	 
	
                Four
                  (4) months after March 17, 2008

              	 	
                $

              	
                7,500,000

              	 
	
                Five
                  (5) months after March 17, 2008

              	 	
                $

              	
                10,000,000

              	 
	
                Seven
                  (7) months after March 17, 2008

              	 	
                $

              	
                20,000,000

              	 
	
                Nine
                  (9) months after March 17, 2008

              	 	
                $

              	
                30,000,000

              	 
	
                Eleven
                  (11) months after March 17, 2008

              	 	
                $

              	
                40,000,000"

              	 

      

    

     

    2. Section
      III Amendments.
      Section III
      of the
      Side Letter Agreement is hereby amended to read in its entirety as
      follows:

     

    "III. Financial
      Officers.
      Borrowers shall, at any time after the earlier of (a) April 18, 2008, and (b)
      the date of any Termination Event, upon the Required Lenders' or Administrative
      Agent's request, hire a financial advisor and/or chief restructuring officer
      at
      Borrowers' cost and expense, provided,
      that
      such date shall be extended to April 30, 2008 if EMHC issues additional Equity
      Securities or Indebtedness permitted by the Credit Agreement and receives cash
      proceeds of $5,000,000 in exchange therefor prior to March 28, 2008. Such
      financial advisor and/or chief restructuring officer shall be selected and
      hired
      by EMHC, shall be reasonably acceptable to Agents and shall have duties and
      rights reasonably satisfactory to Agents. Borrowers shall commence the selection
      process for such parties promptly after the earlier to occur of (a) March 28,
      2008, and (b) the occurrence of a Termination Event."

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Additional
      Definition.
      (a) The
      following definition is hereby added to the Side Letter Agreement as
Section
      III-A
      (other
      than the Designated Defaults as defined in the First Amendment):

     

    "For
      the
      purpose of this Agreement, “Termination
      Event”
shall
      mean the occurrence of any one or more of the following events:

     

    (a)
      any
      misrepresentation by Borrowers made in the Credit Agreement or this letter,
      as
      amended, supplemented or otherwise modified from time to time;

     

    (b) any
      default by any Person other than an Agent or any Lender in the due observance
      or
      performance of, or compliance with, any covenant, condition or agreement
      contained in the Credit Agreement or this letter, as the same may be amended,
      supplemented or otherwise modified from time to time;

     

    (c)
      the
      occurrence of a Default or an Event of Default under Article
      VIII
      of the
      Credit Agreement (other than a Default under paragraph
      (d)(ii) of Article VIII
      by
      reason of any default by Borrowers in earning minimum required levels of Minimum
      Revenues and EBITDA under Section
      5.06(a)
      of the
      Credit Agreement for the month of February 2008)."

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) A
      new
Exhibit
      A
      is
      hereby added to the Side Letter Agreement to read in its entirety in the form
      of
Exhibit
      A
      attached
      hereto and made a part hereof.

     

    4.
      Miscellaneous
      Provisions. 

     

    (a) THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF CALIFORNIA, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THAT
      REQUIRE OR PERMIT APPLICATION OF THE LAWS OF ANY OTHER STATE OR
      JURISDICTION.

     

    (b) Borrowers
      acknowledge and agree that, a failure to comply in all respects with the terms
      of the Side Letter Agreement, as amended hereby, shall constitute an Event
      of
      Default under the Credit Agreement and the other Loan Documents.

     

    (c) This
      Agreement shall, for all purposes, constitute a Loan Document.

     

    (d) This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original but all of which together shall constitute one instrument. Each
      counterpart may consist of a number of copies hereof, each signed by less than
      all, but together signed by all, of the parties hereto. 

     

    (e) Any
      signature delivered by a party by facsimile transmission shall be deemed to
      be
      an original signature hereto.

     

    (f) By
      signing this Agreement, Borrowers agree to be bound by the terms and conditions
      hereof.

     

    (g) Except
      as
      amended hereby, the Side Letter Agreement shall remain in full force and effect
      and is in all respects hereby ratified and affirmed.

     

    (Signatures
      begin on the next page.)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Very
                truly yours,

            
	 
	
              WELLS
                FARGO FOOTHILL, INC., as

              Collateral
                Agent and a Lender

            
	 
	
              By:

            	_____________________________________
	 	
              Print
                Name: ____________________________________

            
	 	
              Title:
                _________________________________________

            
	 	 
	
              SILVER
                POINT FINANCE, LLC, as

              Administrative
                Agent and Documentation Agent

            
	 	 
	
              By:

            	_____________________________________
	 	
              Print
                Name: ____________________________________

            
	 	
              Title:
                _________________________________________

            
	 	 
	
              SPF
                CDO I, LTD., as a Lender

            
	 	 
	
              By:

            	_____________________________________
	 	
              Print
                Name: ____________________________________

            
	 	
              Title:
                _________________________________________

            
	 	 
	
              SPCP
                GROUP, LLC, as a Lender

            
	 	 
	
              By:

            	_____________________________________
	 	
              Print
                Name: ____________________________________

            
	 	
              Title:
                _________________________________________

            
	 	 
	
              FIELD
                POINT III, LTD., as a Lender

            
	 	 
	
              By:

            	_____________________________________
	 	
              Print
                Name: ____________________________________

            
	 	
              Title:
                _________________________________________

            
	 	 
	
              FIELD
                POINT IV, LTD., as a Lender

            
	 	 
	
              By:

            	_____________________________________
	 	
              Print
                Name: ____________________________________

            
	 	
              Title:
                _________________________________________

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Accepted
      and agreed as of the day and year first above written. 

     

    BORROWERS:

    EQUITY
      MEDIA HOLDINGS CORPORATION

     

    
      	
              By:

            	___________________________
	 	
              Print
                Name: ___________________________

            
	 	
              Title: _______________________________

            

    

    

    ARKANSAS
      49, INC.

    BORGER
      BROADCASTING, INC. 

    DENVER
      BROADCASTING, INC. 

    EBC
      HARRISON, INC.

    EBC
      PANAMA CITY, INC.

    EBC
      POCATELLO, INC.

    EBC
      SCOTTSBLUFF, INC.

    EBC
      ST.
      LOUIS, INC.

    EQUITY
      NEWS SERVICES, INC.,

    
      	 	
              f/k/a
                Hispanic News Network, Inc.

            

    

    FORT
      SMITH 46, INC.

    LA
      GRANDE
      BROADCASTING, INC. 

    LOGAN
      12,
      INC.

    MARQUETTE
      BROADCASTING, INC. 

    MONTGOMERY
      22, INC.

    NEVADA
      CHANNEL 3, INC.

    NEWMONT
      BROADCASTING CORPORATION

    PRICE
      BROADCASTING, INC.

    PULLMAN
      BROADCASTING INC. 

    REP
      PLUS,
      INC.

    RIVER
      CITY BROADCASTING, INC. 

    ROSEBURG
      BROADCASTING, INC. 

    SHAWNEE
      BROADCASTING, INC.

    TV
      34,
      INC.

    VERNAL
      BROADCASTING, INC. 

    WOODWARD
      BROADCASTING, INC. 

    EBC
      MINNEAPOLIS, INC.

    EBC
      DETROIT, INC. 

    EBC
      BUFFALO, INC. 

    EBC
      WATERLOO, INC.

    EBC
      ATLANTA, INC. 

    EBC
      SEATTLE, INC. 

    EBC
      KANSAS CITY, INC.

    EBC
      SYRACUSE, INC. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NEVADA
      CHANNEL 6, INC.

    EBC
      PROVO, INC.

    EBC
      SOUTHWEST FLORIDA, INC.

    EBC
      LOS
      ANGELES, INC.

    EBC
      BOISE, INC.

    C.A.S.H.
      SERVICES, INC. f/k/a Skyport

    Services,
      Inc. 

    EBC
      NASHVILLE, INC.

    EBC
      JACKSONVILLE, INC.

    

    
      	
              By:

            	_____________________________
	 	
              James
                Hearnsberger

            
	 	
              Vice
                President of EachUnassociated Document

    SETTLEMENT
      AGREEMENT

     

    THIS
      SETTLEMENT AGREEMENT (the
      “Settlement
      Agreement”)
      is
      entered into by and between China BAK Battery, Inc. (the “Company”)
      and
      its subsidiary BAK International, Ltd. (“BAK
      International”
and,
      together with the Company, “CBAK”)
      and
      each of the investors listed on the signature pages hereto (each an
“Investor,”
and
      together the “Investors”).
      The
      Investors and CBAK are also each referred to separately as a “Party”
and
      together as the “Parties.”
The
      Parties, in order to resolve disputed and contested issues and to limit the
      hazards, uncertainties and inconvenience of potential litigation, enter into
      this Settlement Agreement.

     

    1. Escrow
      Agreement.
      On
      January 20, 2005, BAK International consummated a private placement of its
      common stock with unrelated investors whereby it issued an aggregate of
      8,600,433 shares of common stock for gross proceeds of US$17,000,000 (the
“Private
      Placement”).
      Immediately thereafter, the shares of BAK International were exchanged for
      shares of the Company. Each of the Investors was an investor in the Private
      Placement and entered into a subscription agreement (the “Subscription
      Agreement”)
      in
      connection therewith. In conjunction with the Private Placement, pursuant to
      an
      Escrow Agreement dated January 20, 2005, Mr. Li Xiangqian, the Chairman and
      Chief Executive Officer of the Company, placed 2,179,550 shares of the Company’s
      common stock owned by him (the “Make
      Good Shares”)
      into
      an escrow account. The terms and conditions regarding release of the Make Good
      Shares from escrow was set forth in the Escrow Agreement. A dispute has arisen
      between the Investors and CBAK regarding 1,089,775 Make Good Shares (herein
      referred to as the “Released
      Shares”)
      released from the escrow account to Mr. Li and subsequently delivered by Mr.
      Li
      to BAK International, which then delivered the shares to the Company.

    

    The
      Parties have agreed, without any admission of liability, that it is in the
      interests of all of the Parties and their respective Affiliates and investors
      to
      resolve the issues relating to the Released Shares amicably. 

    

    2. Definitions.
      Capitalized terms not otherwise defined herein shall have the following
      meanings:

     

    
      	 	
              a.

            	
              Affiliates
                means all persons and entities controlling, controlled by or under
                common
                control with a Party. 

            

    

     

    
      	 	
              b.

            	
              Claims means
                any and all claims, demands, causes of actions, or liabilities, of
                any and
                every character, kind and nature whatsoever, in law or in equity,
                whether
                known or unknown, foreseen or unforeseen, past, present, or future,
                accrued or unaccrued, contingent or fixed, arising out of or related
                to
                any or all of the Subscription Agreement, the Escrow Agreement, the
                Make
                Good Shares (including the Released Shares), and the Private Placement,
                including any registration rights (other than the registration rights
                granted pursuant to Section 3.b. of this Settlement Agreement) related
                thereto. 

            

    

     

    
      	 	
              c.

            	
              Release
                Date
                means the earliest of (x) such time as all of the Investor Shares
                have
                been sold by the Investors; (y) such
                time as all of the Investor Shares may be sold by the Investors without
                volume limitations pursuant to Rule 144 under the Securities Act,
                as
                determined by the counsel to the Company pursuant to a written opinion
                letter to such effect, addressed and acceptable to the Company’s transfer
                agent;
                and (z) the date a Registration Statement on Form S-3 (or other
                appropriate form) covering the resale by the Investors of the Investor
                Shares is declared effective by the SEC as set forth in Section
                3.b.

            

    

     

    
      	
              SETTLEMENT
                AGREEMENT 

            	
              Page
                1 of
                7

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              d.

            	
              SEC
                means the U.S. Securities and Exchange
                Commission.

            

    

     

    
      	 	
              e.

            	
              Securities
                Act
                means the U.S. Securities Act of 1933, as
                amended.

            

    

     

    3. Settlement
      Terms.

     

    
      	 	
              a.

            	
              Delivery
                of Shares.
                Upon execution of this Settlement Agreement by the Company and the
                Investors, the Company shall promptly, and no later than ten days
                after
                the date this Settlement Agreement is executed by the Parties, deliver
                to
                each Investor at the address set forth on the signature pages hereto
                a
                certificate or certificates registered in the name of such Investor
                for
                such number of the Released Shares as is set forth opposite such
                Investor’s name on the signature pages hereto (the “Investor
                Shares”).

            

    

     

    
      	 	
              b.

            	
              Registration.
                On or prior to the date (the “Filing
                Date”)
                that is one month after the date that the Company’s Registration Statement
                on Form S-3 (Registration No. 333-148253) is declared effective by
                the SEC
                (or, if the Filing Date is not a business day, the first business
                day
                after the Filing Date), and provided that each Investor has provided
                the
                Company with a completed questionnaire in the form attached as
                Exhibit
                A
                hereto, the Company shall prepare and file with the SEC a Registration
                Statement on Form S-3 (or such other appropriate form for such purpose)
                covering the resale by the Investors of the Investor Shares in an
                offering
                to be made on a continuous basis pursuant to Rule 415 under the Securities
                Act. Such Registration Statement may also include such other selling
                holders as the Company shall deem appropriate. The Company shall
                cause
                such Registration Statement to be declared effective under the Securities
                Act as soon as possible, and shall use its reasonable best efforts
                to keep
                such Registration Statement continuously effective under the Securities
                Act until the date which is the earliest of (i) two years after its
                effective date; (ii) such time as all of the Investor Shares covered
                by
                such Registration Statement have been sold by the Investors; and
                (iii)
                such time as all of the Investor Shares covered by such Registration
                Statement may be sold by the Investors without volume limitations
                pursuant
                to Rule 144, as determined by counsel to the Company pursuant to
                a written
                opinion letter to such effect, addressed and acceptable to the Company’s
                transfer agent. No later than 5:00 p.m. Eastern time on the day following
                the date the Registration Statement is declared effective, the Company
                shall file with the SEC in accordance with Rule 424 under the Securities
                Act the final prospectus to be used in connection with sales pursuant
                to
                such Registration Statement (whether or not such filing is technically
                required under such Rule).

            

    

     

    
      	
              SETTLEMENT
                AGREEMENT 

            	
              Page 2
                of
                7

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              c.

            	
              Ability
                to Disclose Information.
                The Company agrees that the Investors may inform other investors
                in the
                Private Placement of the terms of this Settlement Agreement. The
                Company
                agrees that it will promptly furnish or file a report on Form 8-K
                regarding this Settlement Agreement, or otherwise make information
                regarding this Settlement Agreement available in accordance with
                Regulation FD. 

            

    

     

    
      	 	
              d.

            	
              Relief.
                The Company acknowledges that in the event it fails to deliver to
                an
                Investor a certificate or certificates representing the applicable
                number
                of Investor Shares as provided in Section 3.a, any remedy at law
                may prove
                to be inadequate relief to the affected Investor. The Company agrees
                that
                such Investor may require specific performance of this Settlement
                Agreement by insisting upon delivery of the applicable Investor Shares,
                and shall be entitled to seek temporary and permanent injunctive
                relief
                without the necessity of proving actual damages and without posting
                a bond
                or other security. 

            

    

     

    4 Interpretation.
      The
      Parties have participated jointly in the negotiation and drafting of this
      Settlement Agreement. If an ambiguity or question of intent or interpretation
      arises, this Settlement Agreement will be construed as if drafted jointly by
      the
      Parties, and no presumption or burden of proof will arise favoring or
      disfavoring any Party because of the authorship of any provision of this
      Settlement Agreement.

     

    5. No
      Admission.
      By
      entering into this Settlement Agreement, no Party is in any way admitting any
      liability to any other Party on account of any matter covered by this Settlement
      Agreement. Rather, this Settlement Agreement is entered into solely for the
      purpose of compromise and settlement of doubtful and contested claims and
      issues, to buy peace, and to avoid the hazards, delays, and uncertainties of
      litigation.

     

    6. Mutual
      Releases.
      Effective on the Release Date, each Investor, on behalf of itself and its
      Affiliates, releases,
      acquits, and forever discharges CBAK, its predecessors and successors in
      interest, its parent and subsidiary organizations, and its Affiliates, all
      of
      their respective officers, directors, employees, managers, shareholders,
      partners, attorneys, accountants, advisors, representatives, agents, insurers,
      heirs, executors and assigns (collectively, the “CBAK
      Releasees”)
      of and from any and all Claims; and each Investor covenants never to sue any
      of
      the CBAK Releasees upon any of the Claims hereby released.
      Effective on the Release Date, CBAK, on behalf of itself and its Affiliates,
      releases, acquits, and forever discharges each Investor and its Affiliates,
      and
      all of their respective officers, directors, employees, managers, shareholders,
      partners, attorneys, accountants, advisors, representatives, agents, insurers,
      heirs, executors, and assigns (collectively, the “Investor
      Releasees”)
      of and
      from any and all Claims; and CBAK covenants never to sue any of the Investor
      Releasees upon any of the Claims hereby released. 

     

    
      	
              SETTLEMENT
                AGREEMENT 

            	
              Page 3
                of
                7

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    7. Indemnification.
      In the
      event that any Investor institutes any proceedings or asserts any Claim against
      any of the CBAK Releasees, such Investor, to the fullest extent permitted under
      the law, shall hold harmless, defend and indemnify such CBAK Releasees with
      respect to such proceedings and asserted Claims. 

     

    8. Choice
      of Law.
      This
      Settlement Agreement shall be interpreted and construed according to the
      internal laws of the State of New York (without giving effect to any choice
      of
      law or conflict of law provisions of any jurisdiction), and applicable laws
      of
      the United States of America.

     

    9. Entire
      Agreement.
      This
      Settlement Agreement supersedes all other prior oral or written agreements
      between the Parties with respect to the matters set forth herein and contains
      the entire agreement of the Parties with respect to the matters set forth
      herein. If
      any
      provision of this Agreement shall be held invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Settlement Agreement in that
      jurisdiction or the validity or enforceability of that or any other provision
      of
      this Settlement Agreement in any other jurisdiction. 

     

    10. Amendments.
      This Settlement Agreement may be modified or amended only in writing, signed
      by
      each of the Parties to this Settlement Agreement prior to the effective date
      of
      any such modification or amendment. Any waiver must be in writing and signed
      by
      each Party whose interests are adversely affected by such waiver. No waiver
      granted in any one instance shall be construed as a continuing waiver or as
      a
      waiver applicable to any other provision.
      No
      exercise or failure to exercise any right shall preclude any other or further
      exercise of that right or any other right. 

     

    11. Representations.
      The
      Parties acknowledge that this Settlement Agreement is executed after
      substantial, long-term negotiations between and among representatives of the
      Company and of other investors in the Private Placement. Each Party represents
      that: (a) such Party and its attorneys (if any) have conducted their own
      investigation concerning the facts surrounding the matters covered by this
      Settlement Agreement and in voluntarily choosing to execute this Settlement
      Agreement, have relied upon their own analysis of such facts and not on any
      information furnished by any other Party or its representatives; (b) there
      are no oral or other written agreements concerning the subject matter of this
      Settlement Agreement; (c) the right to rely on any oral or written
      statement of any Party or any failure of any Party to state any fact is
      expressly waived and released; (d) it owns and has the right to release any
      Claims released herein; (e) such Party has the requisite corporate power and
      authority to enter into and to perform this Settlement Agreement; and (f) the
      person signing the Settlement Agreement on behalf of such Party has been
      authorized to execute and deliver this Settlement Agreement on behalf of such
      Party. In addition, each Investor represents that
      it
      (i) is acquiring the Investor Shares in the ordinary course of business for
      its
      own account and not with a view towards, or for resale in connection with,
      the
      sale or distribution thereof, except pursuant to sales registered or exempted
      under the Securities Act, (ii) does not have a present arrangement to effect
      any
      distribution of the Investor Shares to or through any person or entity, (iii)
      does not presently have any agreement or understanding, directly or indirectly,
      with any person to distribute any of the Investor Shares, (iv) is an “accredited
      investor” as that term is defined in Rule 501(a) of Regulation D under the
      Securities Act and (v) is not a registered broker-dealer under Section 15 of
      the
      Securities Exchange Act of 1934, as amended. Such Investor understands that
      the
      Company is relying on specific exemptions from the registration requirements
      of
      United States federal and state securities laws and that the Company is relying
      in part upon the truth and accuracy of, and such Investor’s compliance with, its
      representations, warranties, agreements, acknowledgments and understandings
      set
      forth herein in order to determine the availability of such exemptions. When
      executed by all Parties and delivered by each Party to the other Parties, this
      Settlement Agreement will constitute the legal, valid and binding obligation
      of
      each Party. This Settlement Agreement shall be binding upon the assignees and
      successors of the Parties. This Settlement Agreement is personal to the Parties
      and is not intended to create any right in any third person who is not a Party
      or is not identified as a CBAK Releasee or an Investor Releasee in
      Section 6 of this Settlement Agreement.

     

    
      	
              SETTLEMENT
                AGREEMENT 

            	
              Page 4
                of
                7

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    12. Notice.
      All
      notices, demands, waivers or other communications required or permitted under
      this Settlement Agreement must be in writing and will be deemed to have been
      delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
      when
      sent by facsimile evidenced by confirmation of transmission (provided a copy
      of
      such facsimile is also sent by one of the methods provided in (i), (iii) or
      (iv)
      of this Section 12 within 24 hours of transmission); (iii) two calendar days
      after deposit with a courier service that regularly conducts deliveries in
      the
      recipient’s jurisdiction; or (iv) if the recipient is located in the United
      States, five calendar days after deposit in the United States mail, postage
      prepaid, return receipt requested, in each case addressed to the addressees
      shown below:

     

    
      	
              If
                to an Investor:

              At
                the address set forth below such 

              Investor’s signature
                below 

            	
              If
                to CBAK:

              Louis
                Bevilacqua

              Thelen
                Reid Brown Raysman & 

              Steiner
                LLP

              701
                Eighth Street, NW

              Washington,
                DC 20001-3721

              Tel:
                (202) 508-4281

              Fax:
                (202) 654-1804

              E-mail:
                lbevilacqua@thelen.com 

            

    

    

    Any
      Party may change such Party’s address for the purpose of notices, demands and
      requests required or permitted under this Settlement Agreement by providing
      written notice of such change of address to the other Party, which change of
      address shall only be effective when notice of the change is actually received
      by the Party who thereafter sends any notice, demand, or request.

     

    13. Counterparts.
      This
      Settlement Agreement may be executed in multiple counterparts, each of which
      shall be deemed an original and all of which shall constitute one and the same
      instrument. A facsimile or electronically reproduced signature shall constitute
      due execution, shall be admissible as evidence of execution, and shall be
      binding upon the signatory with the same force and effect as if the signature
      were an original.

     

    [Signature
      Page Follows]

     

    
      	
              SETTLEMENT
                AGREEMENT 

            	
              Page 5
                of
                7

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Parties have executed and delivered this Settlement Agreement. 

     

    
      	Number
              of Released
              Shares:	 	[Name
              of
              Investor]
	 	 	 
	 	 	[applicable
              signature block]
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	Address:	 
	 	 	Tel:	 
	 	 	Fax:	 
	 	 	E-mail:	 
	 	 	 	 
	 	 	 
	 	 	CHINA BAK BATTERY,
              INC.
	 	 	 	 
	 	 	By:	 
	 	 	Name:	Tony Shen
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	 	 
	 	 	BAK International,
              Inc.
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

    

     

    
      	
              SETTLEMENT
                AGREEMENT 

            	
              Page 6
                of
                7

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      A

     

    CHINA
      BAK BATTERY, INC.

    

    SELLING
      STOCKHOLDER QUESTIONNAIRE

     

    
      	
              SETTLEMENT
                AGREEMENT 

            	
              Page 7
                of
                7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]