<SEC-DOCUMENT>0001062993-19-000156.txt : 20190111
<SEC-HEADER>0001062993-19-000156.hdr.sgml : 20190111
<ACCEPTANCE-DATETIME>20190111165702
ACCESSION NUMBER:		0001062993-19-000156
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20190111
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20190111
DATE AS OF CHANGE:		20190111

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CBAK Energy Technology, Inc.
		CENTRAL INDEX KEY:			0001117171
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				880442833
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32898
		FILM NUMBER:		19522789

	BUSINESS ADDRESS:	
		STREET 1:		BAK INDUSTRIAL PARK, MEIGUI STREET
		STREET 2:		HUAYUANKOU ECONOMIC ZONE
		CITY:			DALIAN
		STATE:			F4
		ZIP:			116422
		BUSINESS PHONE:		(86)(411)6251-0619

	MAIL ADDRESS:	
		STREET 1:		BAK INDUSTRIAL PARK, MEIGUI STREET
		STREET 2:		HUAYUANKOU ECONOMIC ZONE
		CITY:			DALIAN
		STATE:			F4
		ZIP:			116422

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHINA BAK BATTERY INC
		DATE OF NAME CHANGE:	20050214

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEDINA COFFEE INC
		DATE OF NAME CHANGE:	20000626
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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   <TITLE>CBAK Energy Technology, Inc.: Form 8-K - Filed by newsfilecorp.com</TITLE>
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<P align=center><B><FONT size=5>UNITED STATES </FONT></B><BR><B><FONT
size=5>SECURITIES AND EXCHANGE COMMISSION </FONT></B><BR><B>WASHINGTON, D.C.
20549 </B></P>
<P align=center><B><FONT size=5>FORM 8-K </FONT></B></P>
<P align=center><B>CURRENT REPORT </B></P>
<P align=center><B>PURSUANT TO SECTION 13 OR 15(d) </B><BR><B>OF THE SECURITIES
EXCHANGE ACT OF 1934 </B></P>
<P align=center><B>Date of Report (Date of Earliest Event Reported):
</B><B><U>January 7, 2019 </U></B></P>
<P align=center><B><U><FONT size=5>CBAK ENERGY TECHNOLOGY,
INC.</FONT></U></B><BR><I>(Exact name of registrant as specified in its
charter)</I></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center><U><B>Nevada </B></U></TD>
    <TD align=center width="33%"><U><B>001-32898 </B></U></TD>
    <TD align=center width="33%"><U><B>86-0442833 </B></U></TD></TR>
  <TR vAlign=top>
    <TD align=center><I>(State or other jurisdiction </I></TD>
    <TD align=center width="33%"><I>(Commission File No.) </I></TD>
    <TD align=center width="33%"><I>(IRS Employer </I></TD></TR>
  <TR vAlign=top>
    <TD align=center><I>of incorporation) </I></TD>
    <TD align=left width="33%">&nbsp; </TD>
    <TD align=center width="33%"><I>Identification No.)
</I></TD></TR></TABLE>
<P align=center><B>BAK Industrial Park, Meigui Street </B><BR><B>Huayuankou
Economic Zone </B><BR><B><U>Dalian, China, 116450 </U></B><BR><I>(Address,
including zip code, of principal executive offices)</I></P>
<P align=center><B><U>(86)(411)-3918-5985</U></B><BR><I>(Registrant&#146;s telephone
number, including area code)</I></P>
<P align=center><I>(Former name or former address, if changed since last report)
</I></P>
<P align=justify>Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below): </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
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  <TR vAlign=top>
    <TD align=left >[&nbsp; ]</TD>
    <TD align=left width="95%">
      <P align=justify>Written communications pursuant to Rule 425 under the
      Securities Act (17 CFR 230.425) </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >[&nbsp; ]&nbsp;</TD>
    <TD align=left width="95%">
      <P align=justify>Soliciting material pursuant to Rule 14a-12 under the
      Exchange Act (17 CFR 240.14a-12) </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >[&nbsp; ]</TD>
    <TD align=left width="95%">
      <P align=justify>Pre-commencement communications pursuant to Rule 14d-2(b)
      under the Exchange Act (17 CFR 240.14d-2(b)) </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >[&nbsp; ]</TD>
    <TD align=left width="95%">
      <P align=justify>Pre-commencement communications pursuant to Rule 13e-4(c)
      under the Exchange Act (17 CFR 240.13e-4(c)) </P></TD></TR></TABLE>
<P align=justify>Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of
this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b -2
of this chapter). </P>
<P align=right>Emerging growth company [&nbsp; ]</P>
<P align=justify>If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to
Section 13(a) of the Exchange Act. [&nbsp; ] </P>
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<P align=justify><B>ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
</B></P>
<P align=justify>On January 7, 2019, CBAK Energy Technology, Inc. (the
&#147;Company&#148;) entered into a Cancellation Agreement (the &#147;Cancellation Agreement&#148;)
with two individual creditors who loaned an aggregate of approximately $5.2
million to the Company&#146;s wholly-owned subsidiary (the &#147;Debts&#148;). Pursuant to the
terms of the Cancellation Agreement, the creditors agreed to cancel the Debts in
exchange for an aggregate of 5,098,040 shares of common stock of the Company
(the &#147;Shares&#148;) at an exchange price of $1.02 per share. Upon receipt of the
Shares, the creditors will release the Company from any claims, demands and
other obligations relating to the Debts. The Cancellation Agreement contains
customary representations and warranties of the creditors. The creditors do not
have registration rights with respect to the Shares. </P>
<P align=justify>The foregoing description of the Cancellation Agreement is
qualified in its entirety by reference to the full text of the Cancellation
Agreement, which is attached hereto as Exhibit 10.1, and is incorporated herein
by reference. </P>
<P align=justify>The issuance of the Shares to the creditors will be made in
reliance on the exemption provided by Section 4(a)(2) of the Securities Act of
1933, as amended (the "Act"), for the offer and sale of securities not involving
a public offering, and Regulation S promulgated thereunder. None of the Shares
have been registered under the Act and neither may be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements. This current report on Form 8-K does not constitute an offer to
sell, or a solicitation of an offer to buy, any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in which such
offering would be unlawful. </P>
<P align=justify><B>ITEM 3.02 UNREGISTERED SALE OF EQUITY SECURITIES. </B></P>
<P align=justify>Reference is made to the disclosure set forth under Item 1.01
above, which disclosures are incorporated herein by reference. </P>
<P align=justify><B>ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.</B> </P>
<P align=justify>(d) Exhibits </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
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  <TR vAlign=top>
    <TD noWrap align=left ><B>Exhibit</B> </TD>
    <TD noWrap align=left width="90%"><B>Description</B> </TD></TR>
  <TR>
    <TD noWrap align=left >&nbsp;</TD>
    <TD noWrap align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee ><a href="exhibit10-1.htm">10.1</a></TD>
    <TD align=left width="90%" bgColor=#eeeeee><a href="exhibit10-1.htm">Cancellation Agreement
  </a></TD></TR></TABLE>
<P align=center>2 </P>
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<P align=center><B>SIGNATURE</B> </P>
<P align=justify>Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized. </P>
<TABLE
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  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="50%"><B>CBAK ENERGY TECHNOLOGY, INC.</B> </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >Date: January 11, 2019 </TD>
    <TD align=left width="50%">By: <U>/s/ Wenwu Wang</U> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="50%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Wenwu Wang
  </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="50%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Chief
      Financial Officer </TD></TR></TABLE>
<P align=center>3 </P>
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<P align=center><B>EXHIBIT INDEX</B></P>
<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left ><B>Exhibit</B> </TD>
    <TD noWrap align=left width="90%"><B>Description</B> </TD></TR>
  <TR>
    <TD noWrap align=left >&nbsp;</TD>
    <TD noWrap align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee ><a href="exhibit10-1.htm">10.1</a></TD>
    <TD align=left width="90%" bgColor=#eeeeee><a href="exhibit10-1.htm">Cancellation Agreement
  </a></TD></TR></TABLE>
<P align=center>4 </P>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<P align=center><B>CANCELLATION AGREEMENT </B></P>
<P align=justify style="text-indent:5%"><STRONG>THIS CANCELLATION
AGREEMENT</STRONG> (this &#147;<U>Agreement</U>&#148;), is entered into effective as of
January 7, 2019, by and between CBAK Energy Technology, Inc., a Nevada
corporation (the &#147;<U>Company</U>&#148;) and each of the persons listed on the
Schedule of Creditors attached hereto as <U>Exhibit A </U>(individually, a
&#147;<U>Creditor</U>&#148; and collectively, the &#147;<u>Creditors</u>&#148;). </P>
<P align=center><B>RECITALS </B></P>
<P align=justify style="text-indent:5%"><B>WHEREAS</B>, from time to
time, the Creditors have provided financing to the Company or its subsidiaries,
and, as of the date hereof, each of the Creditors holds outstanding debt in the
Company, including both principals and accrued interests, as is set forth
opposite such Creditor&#146;s name on the Schedule of Creditors (collectively, the
&#147;<U>Debts</U>&#148;); </P>
<P align=justify style="text-indent:5%"><B>WHEREAS</B>, the Company
desires to reduce its debt load in order to improve its balance sheet and to
enhance its ability to secure additional financing; and </P>
<P align=justify style="text-indent:5%"><B>WHEREAS</B>, each of the
Creditors agrees to cancel all of its respective amount of the Debts in exchange
for certain amount of shares of common stock of the Company, calculated at the
price of $1.02 per share (the &#147;<U>Exchange Price</U>&#148;), on the terms set forth
herein, and the Company is willing and able to issue shares of common stock to
the Creditors on the terms described herein. </P>
<P align=justify style="text-indent:5%"><STRONG>NOW THEREFORE</STRONG>,
in consideration of the foregoing and the representations, warranties,
covenants, and agreements set forth herein, and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and
intending to be legally bound hereby, the parties hereto hereby covenant and
agree as follows: </P>
<P align=justify style="text-indent:5%">1.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Cancellation of the Debts; Issuance of the Shares</U>. At the Closing (as
defined in <U>Section 2 </U>hereof) and subject to the terms and conditions of
this Agreement, all of the Debts shall be cancelled and the Company shall issue
an aggregate of 5,098,040 shares of common stock, par value $0.001 per share
(the &#147;<U>Shares</U>&#148;), calculated at the Exchange Price, to the Creditors as is
set forth opposite such Creditor&#146;s name on the Schedule of Creditors. </P>
<P align=justify style="text-indent:5%">2.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Closing; Delivery of Shares</U>. </P>
<P align=justify style="text-indent:10%">(a). The
closing of the cancellation of Debts and the issuance of the Shares shall occur
as soon as practicable after the execution of this Agreement, but in no event
later than thirty (30) calendar days from the execution of this Agreement (the
&#147;Outside Date&#148;), at the offices of the Company, or such other place, date and
time as set forth in this Agreement or as the parties hereto may otherwise agree
(the &#147;<U>Closing</U>&#148;). </P>
<P align=justify style="text-indent:10%">(b). At
the Closing, the Company shall use its best efforts to cause the Company&#146;s
transfer agent to deliver to each of the Creditors, by courier or FedEx, stock
certificate, or certificates, registered in the name of such Creditor and
representing the amount of Shares as is set forth opposite such Creditor&#146;s name
on the Schedule of Creditors. </P>
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<P align=justify style="text-indent:5%">3.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Representations and Warranties of Creditor</U>. Each Creditor, severally and
not jointly, represents and warrants to the Company with respect to only itself
that, as of the date hereof and as of the date of Closing: </P>
<P align=justify style="text-indent:10%">(a).&nbsp;&nbsp;&nbsp;&nbsp; <U>Qualification, Authorization and
Enforcement</U>. This Agreement has been duly executed by such Creditor, and
when delivered by such Creditor in accordance with the terms hereof, will
constitute the valid and legally binding obligation of such Creditor,
enforceable against it in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally the enforcement of, creditors&#146; rights and remedies or by
other equitable principles of general application. </P>
<P align=justify style="text-indent:10%">(b).&nbsp;&nbsp;&nbsp;&nbsp; <U>No Conflict</U>. The execution, delivery, and
performance of this Agreement do not and will not: (i) conflict with or violate
any law or governmental order applicable to the Creditor; or (ii) conflict with,
result in any breach of, constitute a default (or event which with the giving of
notice or lapse of time or both would become a default) under, require any
consent under, or give to others any rights of termination, amendment,
acceleration, suspension, revocation or cancellation of, or result in the
creation of any encumbrance on any of the assets or properties of the Creditor
pursuant to, any contract to which the Creditor is a party or by which any of
such assets or properties is bound or affected. </P>
<P align=justify style="text-indent:10%">(c).&nbsp;&nbsp;&nbsp;&nbsp; <U>Governmental Consents and Approvals</U>. The
execution, delivery, and performance of this Agreement by the Creditor do not
and will not require any consent, approval, authorization, or other order of,
action by, filing with, or notification to, any governmental authority. </P>
<P align=justify style="text-indent:10%">(d).&nbsp;&nbsp;&nbsp;&nbsp; <U>Purchase Entirely for Own Account</U>. Creditor
is acquiring the Shares for Creditor&#146;s own account for investment purposes only,
not as nominee or agent, and not with a view to, or for sale in connection with,
a distribution of the Shares within the meaning of the Securities Act of 1933,
as amended (the &#147;<U>Securities Act</U>&#148;), and Creditor has no present intention
of selling, granting any participation in, or otherwise distributing the same in
violation of the Securities Act without prejudice; however, Creditor has a right
at all times to sell or otherwise dispose of all or any part of such Shares in
compliance with applicable federal and state securities laws. Nothing contained
herein shall be deemed a representation or warranty by Creditor to hold Shares
for any period of time. </P>
<P align=justify style="text-indent:10%">(e).&nbsp;&nbsp;&nbsp;&nbsp; <U>Investor Status</U>. Creditor is not a
registered broker-dealer under Section 15 of the Securities Exchange Act of 1934
(the &#147;<U>Exchange Act</U>&#148;) or an entity engaged in a business that would
require it to be so registered. Creditor has such experience in business and
financial matters that it is capable of evaluating the merits and risks of an
investment in the Shares. Creditor acknowledges that an investment in the Shares
is speculative and involves a high degree of risk. If such Creditor is a U.S.
Person (as such term is defined in Rule 902(k) of Regulation S), at the time
such Creditor was offered the Shares, it was, and at the date hereof it is, an
&#147;accredited investor&#148; as defined in Rule 501(a) under the Securities Act, and
such Creditor has completed and executed the Creditor Questionnaire attached as
<U>Exhibit B </U>to this Agreement. </P>
<P align=center>2 </P>
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<P align=justify style="text-indent:10%">(f).&nbsp;&nbsp;&nbsp;&nbsp; <U>Regulation S</U>. If such Creditor is not a U.S.
Person, such Creditor (i) acknowledges that the certificate(s) representing or
evidencing the Shares contain a customary restrictive legend restricting the
offer, sale or transfer of any Shares except in accordance with the provisions
of Regulation S, pursuant to registration under the Securities Act, or pursuant
to an available exemption from registration, (ii) agrees that all offers and
sales by such Creditor of Shares shall be made pursuant to an effective
registration statement under the Securities Act or pursuant to an exemption
from, or a transaction not subject to the registration requirements of, the
Securities Act, (iii) represents that the offer to purchase the Shares was made
to such Creditor outside of the United States, and such Creditor was, at the
time of the offer and will be, at the time of the sale and is now, outside the
United States, (iv) has not engaged in or directed any unsolicited offers to
purchase Shares in the United States, (v) is neither a U.S. Person nor a
Distributor (as such terms are defined in Rule 902(k) and 902(d), respectively,
of Regulation S), (vi) has purchased the Shares for its own account and not for
the account or benefit of any U.S. Person, (vii) is the sole beneficial owner of
the Shares specified on signature pages hereto opposite its name and has not
pre-arranged any sale with an investor in the United States, and (ix) is
familiar with and understands the terms and conditions and requirements
contained in Regulation S, specifically, without limitation, each Creditor
understands that the statutory basis for the exemption claimed for the sale of
the Shares would not be present if the sale, although in technical compliance
with Regulation S, is part of a plan or scheme to evade the registration
provisions of the Securities Act. Such Creditor has completed and executed the
Creditor Questionnaire attached as <U>Exhibit B </U>to this Agreement. </P>
<P align=justify style="text-indent:10%">(g).&nbsp;&nbsp;&nbsp;&nbsp; <U>Access to Information</U>. Creditor has been
afforded (i) the opportunity to ask such questions as it has deemed necessary
of, and to receive answers from, representatives of the Company concerning the
terms and conditions of the offering of the Shares and the merits and risks of
investing in the Shares; (ii) access to information about the Company and its
financial condition, results of operations, business, properties, management and
prospects sufficient to enable it to evaluate its investment; and (iii) the
opportunity to obtain such additional information that the Company possesses or
can acquire without unreasonable effort or expense that is necessary to make an
informed investment decision with respect to the investment. </P>
<P align=justify style="text-indent:10%">(h).&nbsp;&nbsp;&nbsp;&nbsp; <U>Independent Investment Decision</U>. Creditor
has independently evaluated the merits of its decision to purchase the Shares
pursuant to the this Agreement, and such Creditor confirms that it has not
relied on the advice of any other Creditor&#146;s business and/or legal counsel in
making such decision. Creditor understands that nothing in the Agreement or any
other materials presented to Creditor in connection with the purchase and sale
of the Shares constitutes legal, tax or investment advice. Creditor has
consulted such legal, tax and investment advisors as it, in its sole discretion,
has deemed necessary or appropriate in connection with its purchase of the
Shares. </P>
<P align=justify style="text-indent:10%">(i).&nbsp;&nbsp;&nbsp;&nbsp; <U>Restricted Securities</U>. Creditor understands
and acknowledges that: </P>
<P align=justify style="text-indent:15%">i.&nbsp;&nbsp;&nbsp;&nbsp; the
Shares are characterized as &#147;restricted securities&#148; under the U.S. federal
securities laws and will bear a customary restrictive legend inasmuch as they
are being acquired from the Company in a transaction not involving a public
offering and that under such laws and applicable regulations such securities may be
resold without registration under the Securities Act only in certain limited
circumstances; </P>
<P align=center>3 </P>
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<P align=justify style="text-indent:15%">ii.&nbsp;&nbsp;&nbsp; the Shares
  have not been registered under the Securities Act or any state securities laws
  and are being offered and sold in reliance upon specific exemptions from the
  registration requirements of the Securities Act and state securities laws, and
  the Company is relying upon the truth and accuracy of, and Creditor&#146;s compliance
  with, the representations, warranties, covenants, agreements, acknowledgments
  and understandings of Creditor contained in this Agreement in order to determine
  the availability of such exemptions and the eligibility of Creditor to acquire
the Shares; and </P>
<P align=justify style="text-indent:15%">iii.&nbsp;&nbsp; the Shares must
be held indefinitely unless such Shares are registered under the Securities Act
or applicable state securities laws, or an exemption from registration is
available. </P>
<P align=justify style="text-indent:10%">(j).&nbsp;&nbsp;&nbsp;&nbsp; <U>No Registration Rights</U>. Creditor further
understands that there are no registration rights associated with the Shares
being acquired pursuant to this Agreement. </P>
<P align=justify style="text-indent:5%">4.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Representations and Warranties of the Company</U>. The Company hereby
represents and warrants to each of the Creditors that, as of the date hereof and
as of the date of Closing: </P>
<P align=justify style="text-indent:10%">(a).&nbsp;&nbsp;&nbsp;&nbsp; <U>Qualification, Authorization and
Enforcement</U>. The Company is duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation, with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently conducted. The
Company has the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by this Agreement and otherwise to
carry out its obligations there under. The execution and delivery of this
Agreement by the Company and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
action on the part of the Company and no further action is required by the
Company in connection therewith. This Agreement has been duly executed by the
Company and, when delivered in accordance with the terms hereof, will constitute
the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally the enforcement of, creditors&#146;
rights and remedies or by other equitable principles of general application.
</P>
<P align=justify style="text-indent:10%">(b).&nbsp;&nbsp;&nbsp;&nbsp; <U>No Conflicts</U>. The execution, delivery and
performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby do not and will not (i)
conflict with or violate any provision of the Company&#146;s articles of
incorporation, bylaws or other organizational or charter documents as in effect
on the date hereof, or (ii) conflict with, or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, or give
to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company debt or otherwise) or
other understanding to which the Company is a party or by which any property or
asset of the Company is bound or affected, or (iii) result in a violation of
any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Company is
subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company is bound or affected; except in the
case of each of clauses (ii) and (iii), such as could not, individually or in
the aggregate, have or reasonably be expected to result in a material adverse
effect. </P>
<P align=center>4 </P>
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<P align=justify style="text-indent:10%">(c).&nbsp;&nbsp;&nbsp;&nbsp; <U>Filings, Consents and Approvals</U>. The Company
  is not required to obtain any consent, waiver, authorization or order of, give
  any notice to, or make any filing or registration with, any United States or
  People&#146;s Republic of China court or other federal, state, local or other
  governmental authority or other person in connection with the execution,
  delivery and performance by the Company of this Agreement, other than (i)
  filings if required by state securities laws, (ii) if required, the filing with
  NASDAQ of an applicable additional shares listing application or notification
  relating to the Shares issuable hereunder, (iii) if required, the filing of a
  Notice of Sale of Securities on Form D with the Securities and Exchange
  Commission under Regulation D of the Securities Act, (iv) the filings required
  in accordance with the Exchange Act and (v) those that have been made or
obtained prior to the date of this Agreement. </P>
<P align=justify style="text-indent:10%">(d).&nbsp;&nbsp;&nbsp;&nbsp; <U>Issuance of Shares</U>. The Shares are duly
authorized and, when issued and paid for in accordance with the terms and
conditions of this Agreement, will be validly issued, fully paid and non
assessable, free and clear of all liens imposed by the Company. There are no
subscriptions, warrants, rights of first refusal or other restrictions on
transfer relative to, or options exercisable with respect to, the Shares. The
Shares are not the subject of any present or, to the Company&#146;s knowledge,
threatened suit, action, arbitration, administrative or other proceeding, and
the Company knows of no reasonable grounds for the institution of any such
proceedings. </P>
<P align=justify style="text-indent:5%">5.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Amounts Repaid in Full</U>. For and in consideration of the issuance of the
Shares to the Creditors, the Debts shall be deemed to be repaid in full, and the
Company shall have no further obligations in connection with the Debts. </P>
<P align=justify style="text-indent:5%">6.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Release by the Creditors</U>. Upon receipt of the Shares, each Creditor
releases and discharges the Company, the Company&#146;s subsidiaries, Company&#146;s and
each of its subsidiaries&#146; officers, directors, principals, control persons, past
and present employees, insurers, successors, and assigns (&#147;<U>Company
Parties</U>&#148;) from all actions, cause of action, suits, debts, dues, sums of
money, accounts, reckonings, bonds, bills, specialties, covenants, contracts,
controversies, agreements, promises, variances, trespasses, damages, judgments,
extents, executions, claims, and demands whatsoever, in law, admiralty or
equity, which against Company Parties such Creditor ever had, now have or
hereafter can, shall or may, have for, upon, or by reason of any matter, cause
or thing whatsoever, whether or not known or unknown, from the beginning of the
world to the day of the date of this release relating to the Debts. Each of the
Creditors represents and warrants that no other person or entity has any
interest in the matters released herein, and that it has not assigned or
transferred, or purported to assign or transfer, to any person or entity all or
any portion of the matters released herein. </P>
<P align=center>5 </P>
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<P align=justify style="text-indent:5%">7.&nbsp;&nbsp;&nbsp;&nbsp;
<U>Fees, Expenses</U>. Each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement. The Company shall pay all transfer
agent fees (including, without limitation, any fees required for same-day
processing of any instruction letter delivered by the Company), stamp taxes and
other taxes and duties levied in connection with the delivery of any Shares to
the Creditors. </P>
<P align=justify style="text-indent:5%">8.&nbsp;&nbsp;&nbsp;&nbsp;
<U>General Provisions</U>. </P>
<P align=justify style="text-indent:10%">(a).&nbsp;&nbsp;&nbsp;&nbsp; <U>Governing Law; Jurisdiction; Waiver of Jury
Trial</U>. This Agreement shall be governed by and construed under the laws of
the State of New York without regard to the choice of law principles thereof.
Each party hereby irrevocably submits to the exclusive jurisdiction of the state
and federal courts sitting in the State of New York located in The City of New
York, Borough of Manhattan for the adjudication of any dispute hereunder or in
connection herewith or therewith or with any transaction contemplated hereby or
thereby, and hereby irrevocably waives any objection that such suit, action or
proceeding is brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law. EACH
PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY. </P>
<P align=justify style="text-indent:10%">(b).&nbsp;&nbsp;&nbsp;&nbsp; <U>Termination</U>. This Agreement may be
terminated prior to Closing: </P>
<P align=justify style="text-indent:15%">i.&nbsp;&nbsp;&nbsp;&nbsp; by
written agreement of the Creditors and the Company; or </P>
<P align=justify style="text-indent:15%">ii.&nbsp;&nbsp;&nbsp; by either
the Company or an Creditor (as to itself but no other Creditor) upon written
notice to the other, if the Closing shall not have taken place by 6:30 p.m.
Eastern time on the Outside Date; <U>provided</U>, that the right to terminate
this Agreement under this Section 8(b) shall not be available to any person
whose failure to comply with its obligations under this Agreement has been the
cause of or resulted in the failure of the Closing to occur on or before such
time. </P>
<P align=justify style="text-indent:10%">Upon a
termination in accordance with this Section 8(b), the Company and terminating
Creditor(s) shall not have any further obligation or liability (including as
arising from such termination) to the other and no Creditor will have any
liability to any other Creditor under this Agreement as a result here from and
there from. </P>
<P align=justify style="text-indent:10%">(c).&nbsp;&nbsp;&nbsp;&nbsp; <U>Notices</U>. All notices or other communications
required or permitted by this Agreement shall be writing and shall be deemed to
have been duly received: </P>
<P align=justify style="text-indent:15%">i.&nbsp;&nbsp;&nbsp;&nbsp; if
given by facsimile or electronic version, when transmitted and the appropriate
telephonic or electronic confirmation received if transmitted on a business day
and during normal business hours of the recipient, and otherwise on the next
business day following transmission; </P>
<P align=center>6 </P>
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<P align=justify style="text-indent:15%">ii.&nbsp;&nbsp;&nbsp; if given by
certified or registered mail, return receipt requested, postage prepaid, three
business days after being deposited in the U.S. mails; and </P>
<P align=justify style="text-indent:15%">iii.&nbsp;&nbsp; if given by
courier or other means, when received or personally delivered, and, in any such
case, addressed as indicated herein, or to such other addresses as may be
specified by any such party to the other party pursuant to notice given by such
party in accordance with the provisions of this Section. </P>
<P align=justify style="text-indent:10%">(d).&nbsp;&nbsp;&nbsp;&nbsp; <U>Further Assurances</U>. The parties shall
execute and deliver all such further instruments and documents and take all such
other actions as may reasonably be required to carry out the transactions
contemplated hereby and to evidence the fulfillment of the agreements herein
contained. </P>
<P align=justify style="text-indent:10%">(e).&nbsp;&nbsp;&nbsp;&nbsp; <U>Successors and Assigns</U>. The terms and
conditions of this Agreement shall inure to the benefit of and be binding upon
the respective successors and assigns of the parties. </P>
<P align=justify style="text-indent:10%">(f).&nbsp;&nbsp;&nbsp;&nbsp; <U>No Third-Party Beneficiaries</U>. This Agreement
is intended for the benefit of the parties hereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any
provision hereof be enforced by, any other person, except as otherwise set forth
in Section 6. </P>
<P align=justify style="text-indent:10%">(g).&nbsp;&nbsp;&nbsp;&nbsp; <U>Modification and Waivers</U>. No provision of
this Agreement may be waived or amended except in a written instrument signed by
the Company and the Creditor(s) holding a majority of the Shares. No waiver of
any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise
any right hereunder in any manner impair the exercise of any such right. </P>
<P align=justify style="text-indent:10%">(h).&nbsp;&nbsp;&nbsp;&nbsp; <U>Severability</U>. If any provision of this
Agreement is held to be invalid or unenforceable in any respect, the validity
and enforceability of the remaining terms and provisions of this Agreement shall
not in any way be affected or impaired thereby and the parties will attempt to
agree upon a valid and enforceable provision that is a reasonable substitute
therefor, and upon so agreeing, shall incorporate such substitute provision in
this Agreement. </P>
<P align=justify style="text-indent:10%">(i).&nbsp;&nbsp;&nbsp;&nbsp; <U>Entire Agreement</U>. This Agreement contains
the entire understanding of the parties with respect to the subject matter
hereof and supersede all prior agreements, understandings, discussions and
representations, oral or written, with respect to such matters, which the
parties acknowledge have been merged into such documents, exhibits and
schedules. </P>
<P align=justify style="text-indent:10%">(j).&nbsp;&nbsp;&nbsp;&nbsp; <U>Headings</U>. The headings used in this
Agreement are for convenience of reference only and shall not be deemed to
limit, characterize or in any way affect the interpretation of any provision of
this Agreement. </P>
<P align=center>7 </P>
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<P align=justify style="text-indent:10%">(k).&nbsp;&nbsp;&nbsp;&nbsp; <U>Survival</U>. The representations, warranties,
agreements and covenants contained herein shall survive the Closing and the
delivery of the Shares, until the second anniversary of the date hereof. </P>
<P align=justify style="text-indent:10%">(l).&nbsp;&nbsp;&nbsp;&nbsp; <U>Counterparts</U>. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same Agreement. A facsimile or
PDF copy of this Agreement shall be deemed an original. </P>
<P align=center><I>[Signature Page Follows]</I></P>
<P align=center>8 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_9></A>
<P align=justify style="text-indent:5%"><B>IN WITNESS WHEREOF, </B>the
parties have executed this Agreement or caused their duly authorized officers to
execute this Agreement as of the date first above written. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="45%"><B>COMPANY:</B> </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="45%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="45%"><B>CBAK ENERGY TECHNOLOGY, INC.</B> </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="45%">&nbsp; </TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="45%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >By: </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="45%">&nbsp;
      &nbsp;/s/ Wenwu Wang </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="45%">&nbsp; &nbsp;Name: Wenwu Wang </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="45%">&nbsp; &nbsp;Title: Chief Financial Officer
  </TD></TR></TABLE>
<P align=center>[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK <BR>SIGNATURE PAGE
FOR CREDITORS FOLLOWS] </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_10></A>
<P align=justify style="text-indent:5%"><B>IN WITNESS WHEREOF, </B>the
parties have executed this Agreement or caused their duly authorized officers to
execute this Agreement as of the date first above written. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=center width="50%"><B>CREDITORS</B> </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="50%">/s/
      Yunfei Li </TD></TR>
  <TR vAlign=top>
    <TD align=left ></TD>
    <TD align=left width="50%">Name: Yunfei Li </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="50%">/s/
      Dawei Li </TD></TR>
  <TR vAlign=top>
    <TD align=left ></TD>
    <TD align=left width="50%">Name: Dawei Li </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_11></A>
<P align=center><B><U>Exhibit A</U></B><B> </B><BR><B>Schedule of Creditors
</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD noWrap align=center><B>Name</B> </TD>
    <TD noWrap align=center width="33%"><B>Debt Amount ($)</B> </TD>
    <TD noWrap align=center width="33%"><B>Number of Shares</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center>Yunfei Li </TD>
    <TD align=center width="33%">1,700,000 </TD>
    <TD align=center width="33%">1,666,667 </TD></TR>
  <TR vAlign=top>
    <TD align=center>Dawei Li </TD>
    <TD align=center width="33%">3,500,000 </TD>
    <TD align=center width="33%">3,431,373 </TD></TR>
  <TR vAlign=top>
    <TD align=right><B>Total</B> </TD>
    <TD align=center width="33%"><B>5,200,000</B> </TD>
    <TD align=center width="33%"><B>5,098,040</B>
</TD></TR></TABLE></DIV><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_12></A>
<P align=center><B><U>EXHIBIT B</U></B><B> </B><BR><B><U>Regulation S
Representation Letter</U></B><B> </B></P>
<P align=justify>Date: _____________<BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>Re: </TD>
    <TD align=left width="95%">Company Name: CBAK Energy Technology, Inc. (the
      &#147;<B>Company</B>&#148;) </TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="95%">Number of Shares of Common Stock of the
      Company: _________(collectively, the &#147;<B>Shares</B>&#148;) </TD></TR></TABLE>
<P align=justify>Ladies and Gentlemen: </P>
<P align=justify>Pursuant to certain Cancellation Agreement between the
undersigned and the Company, dated as of January 7, 2019, the undersigned hereby
represents, warrants and covenants to the Company as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD colSpan=2>
      <P align=justify>The undersigned is not a &#147;U.S. Person,&#148; as such term is
      defined in Regulation S (&#147;<B>Regulation S</B>&#148;) promulgated under the
      Securities Act of 1933, as amended (the &#147;<B>Securities
Act</B>&#148;).</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD colSpan=2>
      <P align=justify>No offer or sale of the Shares was made to the
      undersigned in the United States.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD colSpan=2>
      <P align=justify>The undersigned is not acquiring the Shares for the
      account or on behalf of any U. S. Person.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4. </TD>
    <TD colSpan=2>
      <P align=justify>The undersigned has not made any prearrangement to
      transfer the Shares to a U.S. Person or to return the Shares to the United
      States securities markets (which includes short sales in the United States
      within the applicable &#147;distribution compliance period,&#148; as defined in
      Regulation S (hereinafter referred to as the &#147;<B>restricted period</B>&#148;)
      to be covered by delivery of the Company&#146;s Shares) and is not acquiring
      the Shares as part of any plan or scheme to evade the registration
      requirements of the Securities Act.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5. </TD>
    <TD colSpan=2>
      <P align=justify>All offers and sales of the Shares by the undersigned in
      the United States or to U. S. Persons or otherwise whether prior to the
      expiration or after the expiration of the applicable restricted period
      shall be made only pursuant to a registration of the Shares under the
      Securities Act or an exemption from registration, and in compliance with
      Regulation S.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">6. </TD>
    <TD colSpan=2>
      <P align=justify>The undersigned is not a &#147;distributor,&#148; as defined in
      Regulation S. However, if the undersigned should be deemed to be a
      distributor prior to reselling the Shares to a non-U.S. Person during the
      restricted period, the undersigned will send a notice to each new
      purchaser of Shares that such new purchaser is subject to the restrictions
      of Regulation S during the restricted period.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">7. </TD>
    <TD colSpan=2>
      <P align=justify>The undersigned is not an &#147;underwriter&#148; or &#147;dealer&#148; (as
      such terms are defined in the Securities Act), and the acquisition of the
      Shares by the undersigned is not a transaction (or part of a series of transactions) that is part
of any plan or scheme to evade the registration provisions of the Securities
Act. </P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_13></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">8. </TD>
    <TD>
      <P align=justify>The undersigned does not have a short position in any
      securities of the Company and will not have a short position in such
      securities at any time prior to the expiration of the restricted
  period.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">9. </TD>
    <TD>
      <P align=justify>If at any time after the expiration of the restricted
      period, the undersigned wishes to transfer or attempts to transfer the
      Shares to a U.S. Person, the undersigned agrees to notify the Company if
      at such time it is an &#147;affiliate&#148; of the Company or is then acting as an
      &#147;underwriter,&#148; &#147;dealer,&#148; or &#147;distributor&#148; as to such securities (as such
      terms are defined in the Securities Act or the regulations promulgated
      thereunder, including but not limited to, Regulation S), or if such
      transfer is being made as part of a plan or scheme to evade the
      registration provisions of the Securities Act.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">10. </TD>
    <TD>
      <P align=justify>The undersigned acknowledges that the undersigned may
      only be able to resell the Shares pursuant to the provisions of Regulation
      S and otherwise pursuant to the Securities Act, and that it may not be
      possible for the undersigned to liquidate its investment in the Shares.
      The undersigned is prepared, therefore, to hold its, his or her Shares in
the Company indefinitely.</P></TD></TR></TABLE><BR>
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<P align=justify style="text-indent:5%"><B>IN WITNESS WHEREOF</B>, the
undersigned has executed this Regulation S Representation Letter as of the date
first set forth above. </P>
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  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%" >________________&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%">Name: </TD></TR></TABLE><BR>
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