Document:

ex10_12.htm

    Exhibit
10.12

     

    Loan
for Export Rebates Custody Account

     

    
 

                             Contract
No : 
 Borrow
2008 Credit Line 267001R

     

     

    

    Party A
:   SinoHub SCM Shenzhen,
Ltd. 

     

    Address
:  6/F, No. 5 Qiongyu Road,
Central Area, Technology Park, Nanshan District, Shenzhen,
China

     

    The legal
representative :  Christina Cui
   Postcode :  518057

     

    Phone
:  86-755-26612106    
Fax : 
86-755-26612060

     

    
 

    Party B
:  Shenzhen
Branch, China Construction Bank

     

    Address
:  East Bldg, Financial center,
Hongling Road, Luohu District, Shenzhen

     

    The legal
representative :  Tian Hui
Yu     Postcode :  518010

     

    Phone:    82389079             Fax
:   82389543

    

    Party A
applied for a loan to the Export Rebates Custody Account, Party B agreed to
provide a loan for Party A. To clear the rights and obligations of both parties,
Party A and Party B agreed on the following terms and conditions in accordance
with relevant laws and regulations:

    

    
      	
              1

            	
              Representations
      and Warranties of Party A

            

        
Party A is incorporated in Shenzhen and is authorized to operate import and
export business. Party A shall meet the following requirements during the term
of contract:

    
      	
               
      

            	
              1.1

            	
              Party
      A shall open an Export Rebates Custody Account at China Construction Bank
      under the permission of the Import and Export Tax Administration of
      Shenzhen. And Party A agrees to use recognized tax rebate receivables as
      the guarantee of repayment.

            

    

    
      	
               
      

            	
              1.2

            	
              Party
      A shall not be one of the “D” type enterprises at the Import and Export
      Tax Administration of Shenzhen.

            

    

    
      	
               
      

            	
              1.3

            	
              Party
      A shall have good tax records for the past two years, no outstanding tax,
      no tax evasion, no tax fraud, and no tax
  avoidance.

            

    

    
      	
               
      

            	
              1.4

            	
              Party
      A shall have good “Cancel after Verification” records, no violation of
      foreign exchange management policy or customs import and export policies
      and regulations.

            

    

    
      	
               
      

            	
              1.5

            	
              Export
      products shall not be sensitive products or products in sensitive areas
      according to Shenzhen Customs.

            

    

    
      	
               
      

            	
              1.6

            	
              Party
      A shall have good business operations, financial situation, standard
      corporate management, good reputation at banks, and reasonable assets and
      net assets.

            

    

     

    
      	
              2

            	
              Amount
      of Loan

            

    

    Party B
provides RMB15
million loan to the Export Rebates Custody Account of Party
A.

    During
the term of the loan stipulated in this contract, Party A can reuse the loan, as
long as the total amount of used loan and the balance is within the total amount
of the loan.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    
      	
              3

            	
              Term
      for the loan

            

    

    
      
        	 	
                The loan
      starts on May
      12, 2008, and ends on May
      11, 2009. The loan shall not be valid for more than one year. The
      repayment time of the loans submitted during the term shall not be
      affected by the end 

                of the
      term.

              
	 	Any
      unused loan amount shall be terminated when the term of loan
      ends.
	 	Repayment time
      refers to the period between the withdraw time and the regulated pay-off
      time.

      

       

       

      
        	
                4

              	
                The
      Use of Loan

              

      

      Within
the term and the amount of the loan, Party A can apply for loans successively.
Loan amount, interest rates, duration, and the use of loan shall be in
compliance with the Applications and Notice of withdrawal issued by Party B to
Party A.

        
The term of each approved loan shall not be longer than four
months.

        

       

    

    
      	
              5

            	
              Interest Rate, Interest
      Calculation,
      Interest Payment and Fees

            

    

    
      	
               
      

            	
              5.1

            	
              Loan
      interest rate

            

        
The loan interest rate is 10%
above the benchmark interest rate, and the loan interest rate is fixed during
the loan term.

    

    
      	
               
      

            	
              5.2

            	
              Defaut
      interest

            

    

    
      	
               
      

            	
              5.2.1

            	
              Defaut
      interest shall be charged on a monthly
base

            

    

    
      	
               
      

            	
              5.2.2

            	
              If
      Party A does not use the loan for a stipulated purpose, Party A shall pay
      defaut interest, which is 120%
      above the benchmark interest rate.

            

    

    
      	
               
      

            	
              5.2.3

            	
              If
      Party A does not pay off a loan at the stipulated time, Party A shall pay
      defaut interest, which is 65%
      above the benchmark interest rate.

            

    

    
      	
               
      

            	
              5.3

            	
              The
      date at which interest begins to be owed (the Value Date) is the day when
      Party B wires the loan amount to Party A’s bank
  account.

            

    

    
      	
               
      

            	
              5.3.1

            	
              The
      benchmark interest rate refers to the rate that is published by the
      People's Bank of China on the Value Date. When the loan interest rate is
      adjusted, or when there is defaut interest, the benchmark interest rate
      shall be the rate published by the People's Bank of China on date of the
      adjustment. When the People's Bank of China does not publish a benchmark
      interest rate, both parties agree to use the benchmark interest rate,
      which is recognized by the industry, unless otherwise
    agreed.

            

    

    
      	
               
      

            	
              5.4

            	
              Loan
      interest shall be charged since the day Party B wires the loan to Party
      A’s bank account. Loan interest under this contract shall be charged on a
      daily base. Daily interest rate=monthly interest rate/30=annual annual
      rate/360. If Party A does not pay-off interest on time, Party B shall
      charge compound interest starting on the second day after the interest was
      due.

            

    

    
      	
               
      

            	
              5.5

            	
              Interest
      payment

            

    

    
      	
               
      

            	
              5.5.1

            	
              Interest
      under this contract shall be charged on the 20th day of each
      month.

            

    

    
      	
               
      

            	
              5.6

            	
              Party
      A shall pay Party B a loan management fee, which is 0.5 % of the
      loan.

            

    

     

    
      	
              6

            	
              Granting
      of loans

            

    

    
      	
               
      

            	
              6.1

            	
              Conditions
      of Application

            

    

    Party A
shall submit to Party B a complete set of export rebate documents which
includes: VAT, export declaration forms, Foreign Exchange Management and Control
Form, export invoices, application form for export rebate, detailed report on
purchase of goods for export, detailed report on exports tax rebate or the like.
Party B shall review those documents and decide the granting of
loan.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	
               
      

            	
              6.2

            	
              Prerequisites
      for granting the loan

            

    

    Party B
is obligated to grant the loan if all of the following conditions are
met:

    
      	
               
      

            	
              6.2.1

            	
              Party
      A has well finished procedures under loan approval, registration, delivery
      and other legal formalities in accordance with relevant laws and
      regulations.

            

    

    
      	
               
      

            	
              6.2.2

            	
              Guarantee
      required by Party B has come into
force.

            

    

    
      	
               
      

            	
              6.2.3

            	
              Party
      A does not violate any of the provisions in this
  contract.

            

    

    
      	
               
      

            	
              6.2.4

            	
              Party
      A paid off management fees 10
      days after the signing of this
contract.

            

    

    
      	
               
      

            	
              6.2.5

            	
              Party
      A has signed a Pledge Contract on Custody Account with Party B. During the
      term of the loan, Party A agrees to have Party B supervise the custody
      account, and Party A shall not wire money from the custody account without
      the permission of Party B.

            

    

    
      	
               
      

            	
              6.2.6

            	
              The
      loan amount shall not be greater than 90% of the
      total export rebate amount.

            

    

    
      	
               
      

            	
              6.2.7

            	
              Party
      B must have approved the loan
application.

            

    

    

    
      	
               
      

            	
              6.3

            	
              Loans
      under this contract shall be wired to the RMB bank account at China
      Construction Bank of Party A.

            

    

     

    
      	
              7

            	
              Loan
      Repayment

            

    

    
      	
               
      

            	
              7.1

            	
              Repayment
      principles

            

    

    
      	
               
      

            	
              7.1.1

            	
              If
      the loan principle or interest is overdue for more than 90 days, or if
      Party A has shut down production and operation (even though the loan is
      not due), or if it is required by laws and regulations, Party A shall
      repay the principle first, and then the
  interest.

            

    

    
      	
               
      

            	
              7.1.2

            	
              For
      circumstances other than Chapter 7.1.1, Party A
      shall repay the interest first, or interest paid off with
      principal.

            

    

    
      	
               
      

            	
              7.2

            	
              Interest
      payment

            

    

    Party A
shall pay off interest on the due date. When the loan is due, interest shall be
paid off with principal.

    
      	
               
      

            	
              7.3

            	
              Principal
      payment

            

    

    Party A
shall pay-off principal in according to the schedule on the Loan
application.

     

    
      	
              8

            	
              Guarantee
      of the Loan

            

        
The guarantee method under this contract is pledge.

     

    
      	
              9

            	
              Rights
      and obligations of Party A

            

    

    
      	
               
      

            	
              9.1

            	
              Party
      A has the right to request Party B not to disclose any trade secrets on
      corporate information or business operations, unless the disclosure is
      required by rules and regulations.

            

    

    
      	
               
      

            	
              9.2

            	
              Party
      A shall submit financial and business operation information under the
      requirements of Party B. Such information shall include, tax registration,
      tax report, export rebate, and import and export data for the last year.
      Party A has to guarantee the authenticity, integrity and effectiveness of
      the information submitted.

            

    

    
      	
               
      

            	
              9.3

            	
              Party
      A shall open a bank account at China Construction Bank, and have all the
      transactions under this contract processed through that
      account.

            

    

    
      	
               
      

            	
              9.4

            	
              Party
      A shall actively cooperate with Party B to inspect and supervise the
      business operation, financial activities, and the use of loans under this
      contract.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              9.5

            	
              Party
      A shall use the loans for a purpose agreed by both
  parties.

            

    

    
      	
               
      

            	
              9.6

            	
              Party
      A shall pay off principle and interest on the due date agreed by both
      parties.

            

    

    
      	
               
      

            	
              9.7

            	
              Party
      A shall not surreptitiously withdraw funds or transfer capital to evade
      the debt.

            

    

    
      	
               
      

            	
              9.8

            	
              During
      the term of this contract, Party A shall get the permission of Party B
      before making a guarantee (which may affect the liquidity of Party A) for
      a third party.

            

    

    
      	
               
      

            	
              9.9

            	
              Party
      A shall promptly provide a new recognized guarantee to Party B when the
      following situations happen to the guarantor: shutting down of production
      or business, cancellation of business registration, cancellation of
      business license, bankruptcy, loss of business, losing some
      or all of the capabilities as a guarantor. When the value of the
      collateral or pledge of this contract is reduced, lost or destroyed, Party
      A shall also provide a new recognized guarantee to Party B
      promptly.

            

    

    
    

    
      	 	
              9.10

            	
              Party
      A shall promptly inform Party B by written notice when there are changes
      in corporate name, legal representative (person in charge), address,
      business scope, or registered
capital.

            

    

    
      	 	
              9.11

            	
              When
      situations (which may be detrimental to the rights of Party B) such as
      contracting, leasing, joint-stock reforming, affiliation, merging,
      acquisition, separation, equity participation, business rectification,
      applying for dissolution happen to Party A , Party A shall inform Party B
      within 30
      working days by written notice, and Party A shall pay-off the
      outstanding debt and implement guarantee obligations under the
      requirements of Party B.

            

    

    
      	 	
              9.12

            	
              When
      situations (which may badly affect the liquidity of Party A) such as
      shutting down of production or business, suspension of business
      registration, revocation of license, involvement in illegal activates or
      major lawsuits, having serious difficulties in production and operation or
      financial deterioration happen to Party A, Party A shall inform Party B
      immediately by written notice, and Party A shall pay off the outstanding
      debt and implement guarantee obligations under the requirements of Party
      B.

            

    

    
      	 	
              9.13

            	
              Legal
      fees, insurance, evaluation fees, registration fees, custody fees,
      identification fees, and notary fees under this contract shall be paid by
      Party A.

            

    

    
      	 	
              9.14

            	
              If
      Party A is a group company, Party A shall submit a timely report on
      transactions whose amount is above 10% of the net assets. The report shall
      include: (1) relationships between the transaction parties; (2)
      transaction items and the nature of the transaction; (3) transaction
      amount and corresponding proportion; (4) pricing policies (including
      transactions which are not money related or are just a token
      payment).

            

    

    
      	 	
              9.15

            	
              If
      necessary, Party B has the right to participate in foreign investment,
      asset restructuring and other major issues of Party A, in order to
      effectively implement the repayment and guarantee its
    rights.

            

    

     

    
      	
              10

            	
              Rights
      and obligations of Party B

            

    

    
      	 	
              10.1

            	
              Party
      B has the right to know the business operation, financial activities, tax
      affairs, and import and export activities of Party A, and Party B has the
      right to request for relevant information from Party
  A.

            

    

    
      	 	
              10.2

            	
              When
      there are changes in the export rebate law, or Party A has a decline in
      credit, Party B has the right to adjust or terminate the
    loan.

            

    

    
      	 	
              10.3

            	
              Party
      B has the right to recover any designated collection from the bank account
      of Party A at China Construction
Bank.

            

    

    
      	 	
              10.4

            	
              Party
      B shall provide the loan in accordance with the time and amount under this
      contract, but Party B shall not be liable for the delay caused by Party
      A.

            

    

    
      	 	
              10.5

            	
              Party
      B shall not disclose any of the financial information, or business
      operation information of Party A, unless the disclosure is required by
      laws and regulations.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              11

            	
              Liabilities

            

    

    
      	 	
              11.1

            	
              Breach
      of Contract

            

    

    
      	
               
      

            	
              11.1.1

            	
              Breach
      of Contract by Party A shall mean:

            

    

    
      	
               
      

            	
              11.1.1.1

            	
              Party
      A does not provide authentic, complete, valid financial information,
      business operation information or other
  information.

            

    

    
      	
               
      

            	
              11.1.1.2

            	
              Party
      A does not use the loan for the stipulated
  purpose.

            

    

    
      	
               
      

            	
              11.1.1.3

            	
              Party
      A does not pay off loan principle and interest on
  time.

            

    

    
      	
               
      

            	
              11.1.1.4

            	
              Party
      A refuses to allow or impedes Party B’s ability to supervise and inspect
      the use of the loan.

            

    

    
      	
               
      

            	
              11.1.1.5

            	
              Party
      A transfers capital or withdraws funds to evade the debt to Party
      B.

            

    

    
      	
               
      

            	
              11.1.1.6

            	
              Party
      A cannot pay-off the loan because of business or financial deterioration,
      or Party A is involved or about to be involved in a significant
      litigation, arbitration, or other legal
  disputes.

            

    

    
      	
               
      

            	
              11.1.1.7

            	
              Party
      A has other debts, which have been or are likely to affect Party A to
      fulfill obligations to Party B.

            

    

    
      	
               
      

            	
              11.1.1.8

            	
              Party
      A does not honor other debts at maturity to China Construction
      Bank.

            

    

    
      	
               
      

            	
              11.1.1.9

            	
              Party
      A is having contracting, leasing, affiliation, merging, separation, equity
      participation, joint-stock reforming or other changes of business
      operation, which have been or are likely to be detrimental to the rights
      of Party B.

            

    

    
      	
               
      

            	
              11.1.1.10

            	
              Party
      A has bad records like tax arrearages, tax evasion, tax fraud, tax
      avoidance, or Party A violates the Foreign Exchange Control policies or
      customs regulations.

            

    

    
      	
               
      

            	
              11.1.1.11

            	
              Party
      A has changes in shareholders or equity, which have been or are likely to
      be detrimental to the rights of Party
B.

            

    

    
      	
               
      

            	
              11.1.1.12

            	
              Other
      situations that may be detrimental to the rights of Party
    B.

            

    

    
      	
               
      

            	
              11.1.1.13

            	
              Party
      A violates other provisions in this
contract.

            

    

    

    
      	
               
      

            	
              11.1.2

            	
              When
      the following situations happen to the guarantor, and Party A does not
      provide a new guarantee under the requirements of Party B, it constitutes
      a breach of contract of Party A:

            

    

    
      	
               
      

            	
              11.1.2.1

            	
              The
      guarantor is having contracting, leasing, affiliation, merging,
      separation, equity participation, joint-stock reforming, bankruptcy,
      revoking, or other situations that affect the ability of the
      guarantor.

            

    

    
      	
               
      

            	
              11.1.2.2

            	
              The
      guarantor provides a third party with a guarantee, which is beyond the
      ability of the guarantor.

            

    

    
      	
               
      

            	
              11.1.2.3

            	
              The
      guarantor has lost or is likely to lose his guarantee
    ability.

            

    

    
      	
               
      

            	
              11.1.2.4

            	
              Other
      violations against the guarantee
contract.

            

    

    

    
      	
               
      

            	
              11.1.3

            	
              When
      any of the following situations happen to the mortgagor, and Party A does
      not provide a new guarantee under the requirements of Party B, it
      constitutes a breach of contract of Party
A:

            

    

    
      	
               
      

            	
              11.1.3.1

            	
              The
      mortgagor does not insure the collateral, or the mortgagor does not use
      the insurance indemnity in accordance with the mortgage
      contract.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              11.1.3.2

            	
              When
      the collateral value is reduced or destructed by a third party, the
      mortgagor does not use the insurance indemnity in accordance with the
      mortgage contract.

            

    

    
      	
               
      

            	
              11.1.3.3

            	
              The
      mortgagor transfers, leases, or re-mortgage assets without the written
      consent of Party B.

            

    

    
      	
               
      

            	
              11.1.3.4

            	
              The
      mortgagor disposes of the collateral without the written consent of Party
      B, and the mortgagor does not use the earnings in accordance with the
      mortgage contract.

            

    

    
      	
               
      

            	
              11.1.3.5

            	
              The
      collateral is reduced, lost or destroyed, but the mortgagor does not
      recover the value of the collateral in time, or provide other recognized
      guarantee.

            

    

    
      	
               
      

            	
              11.1.3.6

            	
              Other
      violations against the mortgage
contract.

            

    

    

    
      	
               
      

            	
              11.1.4

            	
              When
      the following situations happen to the pledgor, and Party A does not
      provide a new guarantee under the requirements of Party B, it constitutes
      a breach of contract of Party A:

            

    

    
      	
               
      

            	
              11.1.4.1

            	
              The
      pledgor does not insure the pledge, or the pledgor does not use the
      insurance indemnity in accordance with the pledge
  contract.

            

    

    
      	
               
      

            	
              11.1.4.2

            	
              When
      the pledge value is reduced or destroyed by a third party and the pledgor
      does not use the insurance indemnity in accordance with the pledge
      contract.

            

    

    
      	
               
      

            	
              11.1.4.3

            	
              The
      pledgor disposes of the pledge without the written consent of Party B, and
      the pledgor does not use the earnings in accordance with the pledge
      contract.

            

    

    
      	
               
      

            	
              11.1.4.4

            	
              The
      pledge is reduced, lost or destroyed, and the pledgor does not recover the
      value of the collateral in time, or provide other recognized
      guarantee.

            

    

    
      	
               
      

            	
              11.1.4.5

            	
              Other
      violations against the pledge
contract.

            

    

    

    
      	
               
      

            	
              11.1.5

            	
              When
      the guarantee contract does not enter into force, the guarantor loses some
      or all of its abilities, or the guarantor refuses to fulfill its
      obligations and Party A does not provide a new guarantee under the
      requirements of Party B, this will be deemed as breach of contract by
      Party A.

            

    

    

    
      	 	
              11.2

            	
              Remedial
      Measures

            

    

        
Party B has the right to exercise one or more of the following measures when the
circumstances of above Chapter
11.1 happen:

    
      	
               
      

            	
              11.2.1

            	
              Party
      B shall adjust or cancel the loan, or modify the loan
  term.

            

    

    
      	
               
      

            	
              11.2.2

            	
              Terminate
      the loan and request repayment
immediately.

            

    

    
      	
               
      

            	
              11.2.3

            	
              Charge
      a penalty, which shall be 144.54 % of the
      principle balance.

            

    

    
      	
               
      

            	
              11.2.4

            	
              For
      an undue loan, Party B shall charge compound interest in accordance with
      the contract. For an overdue loan (including loans terminated in advance),
      Party B shall charge defaut interest and compound interest in accordance
      with the contract.

            

    

    
      	
               
      

            	
              11.2.5

            	
              If
      Party A does not use the loan for the stipulated purpose, Party B shall
      charge defaut interest and compound interest for the used loan in
      accordance with the contract.

            

    

    
      	
               
      

            	
              11.2.6

            	
              Party
      B has the right to recover any designated collection of this contract from
      the bank account of Party A at China Construction
  Bank.

            

    

    
      	
               
      

            	
              11.2.7

            	
              Party
      B has the right to exercise the
guarantee.

            

    

    
      	
               
      

            	
              11.2.8

            	
              Party
      B has the right to request for a new recognized
  guarantee.

            

    

    
      	
               
      

            	
              11.2.9

            	
              Party
      B has the right to terminate this
contract.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              12

            	
              Bank
      In Charge

            

    

    
      
        	 	
                Party
      B authorizes Cheng Dong Branch of CCB as the bank in charge. After the
      entry into force of this contract, Cheng Dong Branch has the right to
      perform the contract (in whole or in part), debt collection, litigation or
      arbitration, implementation, and chop on related materials or
      documents.

              

      

       

    

    
      	
              13

            	
              Amendment
      to the Contract

            

    

    Any
amendment to this contract shall be agreed in writting by both parties, unless
otherwise agreed.

     

    
      	
              14

            	
              Other
      issues agreed                                   .

            

    

     

    
      	
              15

            	
              Dispute
      settlement methods

            

    

    During
the term of the contract, all controversy and dispute shall be dealt with
through negotiation. If the two parties are unable to reach an agreement, either
Party can institute legal proceedings in the People’s Court at the place of
Party B.

    In the
litigation or arbitration, terms or conditions that are not controversial shall
continue to be fulfilled.

     

    
      	
              16

            	
              Effective
      conditions of the contract

            

    

    This
contract shall enter into force after the legal representative (primary person
responsible) or authorized person of both parties sign and chop on the
contract.

     

    
      	
              17

            	
              Agreement
      documents

            

    

    This
Agreement will be executed in quadruplicate.

    All the
legal documents under this contract (including but not limited to: applications,
notices, warranties or the like) are an integral part of this
contract.

     

    
      	
              18

            	
              Acknowledgements

            

    

    
      	 	
              18.1

            	
              Party
      A is well aware of the business line and authorization of Party
      B.

            

    

    
      	 	
              18.2

            	
              Party
      A has read through this contract. Party B has made explanations on
      corresponding provisions. Party A is well aware of meanings of the
      contract, and the legal
consequences.

            

    

    
      	 	
              18.3

            	
              Party
      A has the right to sign this
contract.

            

    

     

                
Signature Page Follows

     

     

     

     7Exhibit 10.18

                             CONTRACT OF EMPLOYMENT

Entered into between:

SinoHub Electronics Shenzhen, Ltd.
(Herein after referred to as "the employer")

Address of employer:

6/F, No. 5 Qiongyu Road
Central Area, Technology Park
Nanshan District
Shenzhen, China 518057

Legal Representative:

Li De Hai

Contact Person:

Zhao Xi Hang

Contact phone number:

+86-138-2319-3216

And

Henry T. Cochran
(Herein after referred to as "the employee")

Address of employee:

Coastal Rose Garden II, 35-17C
Nanshekougang West, Wanghai Road
Shekou,Shenzhen
P.R. China 518028

ID card number:

711890358 (US Passport)

Contact phone number:

+86-139-2286-3021

According to the relative terms and regulations in China Employment Law, the
employer and the employee hereafter sign the following contract and willing to
obey it.

<PAGE>

1. Term of the contract

   1.1  The employer and the employee define the term of the contract in the
fixed term way listed below:

       a. Fixed term: This contract will begin on January 1, 2009 and continue
until December 31, 2009

       b. No fixed term: This contract will begin on .........

      C. After completing some work: This contract will begin on ......... and
continue until terminated on ......... when the work is done. The criteria of
completion of the work is .........

   1.2 The term of the probation is ....N/A..... (It includes in the term of the
contract. If no probation, please put in N/A.)

2. Job description

Job Title: Chief Executive Officer

3. Hours of work

   3.1 The employer and the employee define hours of work in the no fixed
working hours way listed below:

       a. Normal daily working hours will be ......... hours (no more than 8
hours), and the weekly working hours will be......... hours (no more than 40
hours).

       b. No fixed working hours, i.e. after getting the approval of labor
 department, the employee will work without the regular fixed period of time.

       c. After getting the approval of labor department, the employee will work
 and be paid according to the accumulated hours.

   3.2 Overtime will only be worked if agreed upon between the parties as set
out in Clause 41 in the Employment Law.

4. Wage

   4.1 The employer must structure the wage system in compliance with relative
laws and regulations and inform the employees. The employee wage shall be paid
no less than the minimum wage of that year announced by the government.

   4.2 Monthly wage of the employee is (Y)35,000 (The employee wage during
probation is N/A)

   4.3 The employee wage shall be paid in cash on the last working day of every
month and shall be: .........

   4.4 In terms of overtime payment, public holidays, Paid Time Of and other
special conditions of the employee, the employer must execute according to the
Regulations of the Shenzhen Municipality on the Wage Payment to Employees.

<PAGE>

   4.5 Other agreements between the employer and the employee as below:

   .........................................................................

5. Protection of Employees and Other conditions of employment

   5.1 The employer must provide the employee with working environment compliant
with the national sanitation standard and labor protection devices in order to
protect the employees at work.

   5.2 Employee is engaged in ......... which may lead to occupational harm
.........., therefore, the employer must ......... and organize the employees to
take physical examination ......... (times) a year.

   5.3 The employee is entitled to refuse to obey the instructions of the
employer that is against the relative law and (or) regulations and may bring the
harm to the security or health of the employee, who can report to the relative
organizations.

6. Social insurance and labor protection allowances and welfare

   6.1 The employer conducts social insurance procedures for employees. The
insurance fee will be paid according to insurance law and regulations.

   6.2 The employer offers sick leave and medical welfare when employee is sick
or injured not related with work;

   6.3 The employer conducts according to the Code of Occupational Disease
Prevention of PRC and Work-related Injury Insurance Regulations when the
employee has occupational disease, is injured or dead.

   6.4 The employee is entitled to take public holidays, annual leave, honeymoon
vacation and maternity leave, etc.

7. Labor discipline

   7.1 The discipline and regulations that the employer establishes must be open
and informed to employees.

   7.2 The employee must obey the relative national, provincial and municipal
discipline and regulations and those established by the employer, and complete
the assignment timely.

   7.3 The employee must obey the relative national, provincial and municipal
regulations of birth-control.

8. Alteration of the contract

This contract can be altered or modified with the agreement of both parties. Any
changes of the contract must be in written form.

9. Dissolution of the contract

   9.1 If one party or both parties of the contract proposes to dissolute the
contract before the contract expires, the proposal must be compliant with the
relative regulations.

   9.2 The employer must pay the employee compensation if it conforms to the
needed conditions.

<PAGE>

   9.3 When both parties dissolute the contract, the employer must inform the
employee in written form and go through the corresponding procedure.

10. Termination of employment

   10.1 When the contract expires or the condition that both parties agree to
terminate the contract occurs, this contract of employment is terminated. The
employer must inform the employee in written form and go through the
corresponding procedure.

   10.2 When the contract expires, if both parties agree to renew it, needed
procedures must be done with 30 days before the expiration of the contract.

11. Liabilities for Breach of Contracts

   11.1  Liabilities of the employer:

Local third party health insurance

Indemnifcation Agreement

Director and Officer Insurance

   11.2 Liabilities of the employee:

Employee shall be liable for negligence, fraud and theft

12. Dispute Principle

When dispute about employment arises between both parties, they should first
resolve this by resorting to consultations by themselves. If it fails, both
parties can apply for mediation at the labor dispute mediation commissions of
its own, or apply for arbitration directly at the labor dispute arbitration
commissions. If the parties agree to accept the award of arbitration, they must
fulfill it. If the parties refuse to accept the award of arbitration over a
personnel dispute, they may file an action in a people's court according to law.

13. Other conditions of employment both parties agree on:

.................................................................................
.................................................................................
.................................................................................
.................................................................................
.................................................................................

14. Other issues

   14.1 For the matters not mentioned herein or terms against the applicable
laws and standards, it must be carried on according to law.

   14.2 The following regulations of the employer will be the appendix to this
contract.

.................................................................................
.................................................................................
.................................................................................

   14.3 This contract is effective on the date since both parties sign. Any sign
of erasure or authorized signature without approval in written form is invalid.

   14.4 This contract is in duplicate and is to be held by both parties.

<PAGE>

THUS DONE AND SIGNED AT SHENZHEN, PR CHINA ON THIS FIRST DAY OF JANUARY 2009

EMPLOYER                                              EMPLOYEE

/s/ Lei Xia                                           /s/ Henry T. Cochran

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

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