Document:

ex10_36.htm

     EXHIBIT
10.36 

    INDEMNIFICATION
AGREEMENT

    

    

     This
Agreement, made and entered into as of this __th day of ________ 200_
(“Agreement”), by and between SinoHub, Inc., a Delaware corporation (the
“Company”), and _________________ (the “Indemnitee”). 

     

     WHEREAS,
highly competent persons are reluctant to serve corporations as directors or
officers or in other capacities unless they are provided with adequate
protection through insurance or adequate indemnification against inordinate
risks of claims and actions against them arising out of their service to and
activities on behalf of corporations; and 

     

     WHEREAS,
the current impracticability of obtaining adequate insurance and the
uncertainties relating to indemnification have increased the difficulty of
attracting and retaining such persons; and 

     

     WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to
obligate itself to indemnify such persons to the fullest extent permitted by
applicable law so that they will serve or continue to serve the Company free
from undue concern that they will not be so indemnified; and 

     

     WHEREAS,
Indemnitee is willing to serve, continue to serve and to take on additional
service for or on behalf of the Company on the condition that Indemnitee be
indemnified to the fullest extent permitted. 

     

     NOW,
THEREFORE, in consideration of the premises and the covenants contained herein,
the Company and Indemnitee do hereby covenant and agree as
follows: 

     

    

     

     ARTICLE
I 

     

     Definitions 

    

     For
purposes of this Agreement the following terms shall have the meanings
indicated: 

     

    Section
1.1 .          “Board”
shall mean the Board of Directors of the Company. 

     

    Section
1.2 .          “Corporate
Status” describes the status of a person who is or was a
director,  officer, employee, agent, trustee or fiduciary of the
Company or of any other corporation, partnership, joint venture, trust, employee
benefit plan or other Enterprise which such person is or was serving at the
request or on behalf of the Company. 

     

    Section
1.3 .          “Court”
means the Court of Chancery of the State of Delaware, the court in which the
Proceeding, in respect of which indemnification is sought by the Indemnitee,
shall have been brought or is pending, or another court having subject matter
jurisdiction and personal jurisdiction over the parties. 

     

     

    
      
        
          
            	
                     Indemnification
      Agreement 

                  	
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    Section
1.4 .          “Disinterested
Director” means a director of the Company who is not and was not a party to the
Proceeding in respect of which indemnification is sought by
Indemnitee. 

     

    Section
1.5 .          “Enterprise”
shall mean the Company and any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise of which Indemnitee is or was
serving at the request of the Company as a director, officer, employee, agent,
trustee or fiduciary. 

     

    Section
1.6 .          “Expenses”
shall include, without limitation, all reasonable attorneys’ fees, retainers,
court costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, facsimile transmission charges, and all other
disbursements or expenses of the types customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating or being
or preparing to be a witness in a Proceeding. 

     

    Section
1.7 .          “Good
Faith” shall mean Indemnitee having acted in good faith and in a manner
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company or, in the case of an Enterprise which is an employee benefit plan,
the best interests of the participants or beneficiaries of said plan, as the
case may be, and, with respect to any Proceeding which is criminal in nature,
having had no reasonable cause to believe Indemnitee’s conduct was
unlawful. 

     

    Section
1.8 .          “Improper
Personal Benefit” shall include, but not be limited to, the personal gain in
fact by reason of a person’s Corporate Status of a financial profit, monies or
other advantage not also accruing to the benefit of the Company or to the
stockholders generally and which is unrelated to his or her usual compensation
including, but not limited to: (i) in exchange for the exercise of influence
over the Company’s affairs; (ii) as a result of the diversion of corporate
opportunity; or (iii) pursuant to the use or communication of confidential or
inside information for the purpose of generating a profit from trading in the
Company’s securities.  Notwithstanding the foregoing, “Improper
Personal Benefit” shall not include any benefit, directly or indirectly, related
to actions taken in order to evaluate, discourage, resist, prevent or negotiate
any transaction with or proposal from any person or entity seeking control of,
or a controlling interest in, the Company. 

     

    Section
1.9 .          “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporate law and may include law firms or members thereof that are
regularly retained by the Company but not any other party to the Proceeding
giving rise to a claim for indemnification hereunder.  Notwithstanding
the foregoing, the term “Independent Counsel” shall not include any person who,
under the standards of professional conduct then prevailing and applicable to
such counsel, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this
Agreement unless such parties execute a written waiver of any such conflict of
interest. 

     

    Section
1.10 .          “Officer”
means the president, vice presidents, treasurer, assistant treasurer(s), chief
financial officer, secretary, assistant secretary and such other executive
officers as are appointed by the Board or by the board of directors of the
Enterprise, as the case may be. 

     

     

    
      
        
          
            	
                     Indemnification
      Agreement 

                  	
                     Page 2  
      

                  

          

        

        
           

          
              

            
              

            

          

          
              

          

        

      

    

     

    Section
1.11 .          “Proceeding”
includes any action, suit, arbitration, alternate dispute resolution mechanism,
investigation (including any internal corporate investigation), administrative
hearing or any other actual, threatened or completed proceeding, whether civil,
criminal, administrative or investigative, formal or informal, other than one
initiated by Indemnitee.  For purposes of the foregoing sentence, a
“Proceeding” shall not be deemed to have been initiated by Indemnitee where
Indemnitee seeks, pursuant to Article VIII of this Agreement, to enforce
Indemnitee’s rights under this Agreement. 

     

    

     ARTICLE
II 

     

     Term
of Agreement 

    

     This
Agreement shall continue until and terminate upon the later of: (i) ten (10)
years after the date that Indemnitee shall have ceased to serve in all
capacities as a director, officer, employee, agent, trustee or fiduciary of the
Company or of any other Enterprise (the “Ten Year Period”); or (ii) the final
termination of all pending Proceedings instituted before the expiration of the
Ten Year Period in respect of which Indemnitee is granted rights of
indemnification or advancement of expenses hereunder and of any proceeding
commenced by Indemnitee within the Ten Year Period pursuant to Article VIII of
this Agreement relating thereto. 

     

    

     

     ARTICLE
III 

     

     Services
by Indemnitee, Notice of Proceedings 

    

     

    Section 3.1.
Services .  Indemnitee agrees to serve or continue to serve
as a director or Officer of the Company for so long as he or she is duly elected
or appointed.  Indemnitee may at any time and for any reason resign
from such position (subject to any other contractual obligation or any
obligation imposed by operation of law). 

     

    Section 3.2. Notice of
Proceeding .  Indemnitee agrees promptly to notify the
Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding
or matter which may be subject to indemnification or advancement of Expenses
covered hereunder, but the omission so to notify the Company shall not relieve
the Company from its obligations hereunder. 

     

    

     

     ARTICLE
IV 

     

     Indemnification 

    

    Section 4.1. In
General .  In connection with any Proceeding, the Company
shall indemnify, and advance Expenses, to Indemnitee as provided in this
Agreement and to the fullest extent permitted by applicable law in effect on the
date hereof and to such greater extent as applicable law may hereafter from time
to time permit. 

    
       

       

      
        
          
            
              	
                       Indemnification
      Agreement 

                    	
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    Section 4.2. Proceedings
Other Than Proceedings by or in the Right of the
Company .  Indemnitee shall be entitled to the rights of
indemnification provided in this Section 4.2 if, by reason of Indemnitee’s
Corporate Status, Indemnitee is, or is threatened to be made, a party to or is
otherwise involved in any Proceeding, other than a Proceeding by or in the right
of the Company.  Indemnitee shall be indemnified against Expenses,
judgments, penalties, fines and amounts paid in settlement, actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with
such Proceeding or any claim, issue or matter therein, if Indemnitee acted in
Good Faith and such Indemnitee has not been adjudged during the course of such
Proceeding to have derived an Improper Personal Benefit from the transaction or
occurrence forming the basis of such Proceeding. 

     

    Section 4.3. Proceedings by
or in the Right of the Company .   Indemnitee shall be
entitled to the rights of indemnification provided in this Section 4.3 if, by
reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be
made, a party to or is otherwise involved in any Proceeding brought by or in the
right of the Company to procure a judgment in its favor.  Indemnitee
shall be indemnified against Expenses, judgments, penalties, fines and amounts
paid in settlement, actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection with such Proceeding if Indemnitee acted in
Good Faith and such Indemnitee has not been adjudged during the course of such
Proceeding to have derived an Improper Personal Benefit from the transaction or
occurrence forming the basis of such Proceeding.  Notwithstanding the
foregoing, no such indemnification shall be made in respect of any claim, issue
or matter in such Proceeding as to which Indemnitee shall have been adjudged to
be liable to the Company if applicable law prohibits such indemnification;
provided, however, that, if applicable law so permits, indemnification shall
nevertheless be made by the Company in such event if and only to the extent that
the Court which is considering the matter shall so determine. 

     

    Section 4.4. Indemnification
of a Party Who is Wholly or Partly
Successful .  Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate
Status, a party to or is otherwise involved in and is successful, on the merits
or otherwise, in any Proceeding, Indemnitee shall be indemnified, to the maximum
extent permitted by law, against all Expenses, judgments, penalties, fines, and
amounts paid in settlement, actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection therewith.  If Indemnitee is not
wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such
Proceeding, the Company shall indemnify Indemnitee, to the maximum extent
permitted by law, against all Expenses, judgments, penalties, fines, and amounts
paid in settlement, actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection with each successfully resolved claim, issue
or matter as determined by the Court which adjudicates the
Proceeding.  For purposes of this Section 4.4 and without limitation,
the termination of any claim, issue or matter in such a Proceeding by dismissal,
with or without prejudice, shall be deemed to be a successful result as to such
claim, issue or matter. 

     

    Section 4.5. Indemnification
for Expenses of a Witness .  Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of
Indemnitee’s Corporate
Status, a witness in any Proceeding, Indemnitee shall be indemnified against all
Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s
behalf in connection therewith. 

     

     

    
      
        
          
            	
                     Indemnification
      Agreement 

                  	
                     Page 4  
      

                  

          

        

        
           

          
              

            
              

            

          

          
              

          

        

      

    

    
       

    

     ARTICLE
V 

     

     Advancement
of Expenses 

    

     Notwithstanding
any provision to the contrary in Article VI, the Company (acting through the
President) shall advance all reasonable Expenses which, by reason of
Indemnitee’s Corporate Status, were incurred by or on behalf of Indemnitee in
connection with any Proceeding, within thirty (30) days after the receipt by the
Company of a statement or statements from Indemnitee requesting such advance or
advances, whether prior to or after final disposition of such
Proceeding.  Such statement or statements shall reasonably evidence
the Expenses incurred by Indemnitee and shall include or be preceded or
accompanied by an undertaking by or on behalf of Indemnitee to repay any
Expenses if it shall ultimately be determined that Indemnitee is not entitled to
be indemnified against such Expenses.  Any advance and undertakings to
repay pursuant to this Article V shall be unsecured and interest
free.  Advancement of Expenses pursuant to this Article V shall not
require approval of the Board or the stockholders of the Company, or of any
other person or body.  The President or, at the President’s request,
the Secretary of the Company shall promptly advise the Board in writing of the
request for advancement of Expenses, of the amount and other details of the
advance and of the undertaking to make repayment pursuant to this Article
V. 

     

    

     

     ARTICLE
VI 

     

     Procedures
for Determination of Entitlement 

     to
Indemnification and Defense of Claims 

     

    Section 6.1. Initial
Request .  To obtain indemnification under this Agreement
(other than advancement of Expenses pursuant to Article V), Indemnitee shall
submit to the Company a written request, including therein or therewith such
documentation and information as is reasonably available to Indemnitee and as is
reasonably necessary to determine whether and to what extent Indemnitee is
entitled to indemnification.  The President, or at the President’s
request, the Secretary of the Company shall promptly advise the Board in writing
that Indemnitee has requested indemnification. 

     

    Section 6.2. Method of
Determination .  A determination (if required by applicable
law in the specific case) with respect to Indemnitee’s entitlement to
indemnification shall be made: (i) by the Board by a majority vote of a quorum
consisting of Disinterested Directors; or (ii) in the event that a quorum of the
Board consisting of Disinterested Directors is not obtainable or, even if
obtainable, if such quorum of Disinterested Directors so directs, by Independent
Counsel, in a written opinion to the Board, a copy of which shall be delivered
to Indemnitee; or (iii) by a special litigation committee of the Board appointed
by the Board; or (iv) by the stockholders of the Company by vote of a majority
of the holders of the Company’s outstanding capital stock at the time entitled
to vote on the election or removal of directors, voting as a single class,
including the capital stock of Indemnitee. 

     

     

    
      
        
          
            	
                     Indemnification
      Agreement 

                  	
                     Page 5  
      

                  

          

        

        
           

          
              

            
              

            

          

          
              

          

        

      

    

     

    Section 6.3. Selection,
Payment, Discharge of Independent Counsel . In the event the
determination of entitlement to indemnification is to be made by Independent
Counsel pursuant to Section 6.2 of this Agreement, the Independent Counsel shall
be selected, paid, and discharged in the following manner: 

     

    
      	
               (i)   

            	
               The
      Independent Counsel shall be selected by the Board, and the Company shall
      give written notice to Indemnitee advising Indemnitee of the identity of
      the Independent Counsel so
selected. 

            

    

     

    
      	
               (ii)   

            	
               Following
      the initial selection described in clause (i) of this Section 6.3,
      Indemnitee may, within seven (7) days after such written notice of
      selection has been given, deliver to the Company a written objection to
      such selection.  Such objection may be asserted only on the
      ground that the Independent Counsel so selected does not meet the
      requirements of “Independent Counsel” as defined in Section 1.9 of this
      Agreement, and the objection shall set forth with particularity the
      factual basis of such assertion.  Absent a proper and timely
      objection, the person so selected shall act as Independent
      Counsel.  If such written objection is made, the Independent
      Counsel so selected may not serve as Independent Counsel unless and until
      a Court has determined that such objection is without
      merit. 

            

    

     

    
      	
               (iii)   

            	
               Either
      the Company or Indemnitee may petition a Court if the parties have been
      unable to agree on the selection of Independent Counsel within twenty (20)
      days after submission by Indemnitee of a written request for
      indemnification pursuant to Section 6.1 of this Agreement.  Such
      petition may request a determination whether an objection to the party’s
      selection is without merit and/or seek the appointment as Independent
      Counsel of a person selected by the Court or by such other person as the
      Court shall designate.  A person so appointed shall act as
      Independent Counsel under Section 6.3 of this
    Agreement. 

            

    

     

    
      	
               (iv)   

            	
               The
      Company shall pay any and all reasonable fees of Independent Counsel and
      expenses incurred by such Independent Counsel in connection with acting
      pursuant to this Agreement, and the Company shall pay all reasonable fees
      and expenses incident to the procedures of this Section 6.3, regardless of
      the manner in which such Independent Counsel was selected or
      appointed. 

            

    

     

    
      	
               (v)   

            	
               Upon
      the due commencement of any judicial proceeding or arbitration pursuant to
      Section 8.2 of this Agreement, Independent Counsel shall be discharged and
      relieved of any further responsibility in such capacity (subject to the
      applicable standards of professional conduct then
      prevailing). 

            

    

     

     

    Section 6.4.
Cooperation .  Indemnitee shall cooperate with the person,
persons or entity making the determination with respect to Indemnitee’s
entitlement to indemnification under this Agreement, including providing to such
person, persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure
and which is reasonably available to Indemnitee and reasonably necessary to such
determination.  Any costs or expenses (including attorneys’ fees and
disbursements) incurred by Indemnitee in so cooperating with the person, persons
or entity making such determination shall be borne by the Company (irrespective
of the determination as to Indemnitee’s entitlement to indemnification) and the
Company hereby indemnifies and agrees to hold Indemnitee harmless
therefrom. 

    
       

       

      
        
          
            
              	
                       Indemnification
      Agreement 

                    	
                       Page 6  
      

                    

            

          

          
             

            
                

              
                

              

            

            
                

            

          

        

      

       

    

    Section 6.5. Defense of
Claim .  With respect to any Proceeding to which Indemnitee
shall have requested indemnification in accordance with Section
6.1: 

     

    
      	
               (i)   

            	
               The
      Company will be entitled to participate in the defense at its own
      expense. 

            

    

     

    
      	
               (ii)   

            	
               Except
      as otherwise provided below, the Company jointly with any other
      indemnifying party will be entitled to assume the defense with counsel
      reasonably satisfactory to Indemnitee.  After notice from the
      Company to the Indemnitee of its election to assume the defense of a suit,
      the Company will not be liable to the Indemnitee under this Agreement for
      any legal or other expenses subsequently incurred by the Indemnitee in
      connection with the defense of the Proceeding other than reasonable costs
      of investigation or as otherwise provided below.  The Indemnitee
      shall have the right to employ his own counsel in such Proceeding but the
      fees and expenses of such counsel incurred after notice from the Company
      of its assumption of the defense shall be at the expense of the Indemnitee
      unless: (i) the employment of counsel by the Indemnitee has been
      authorized by the Company; (ii) the Indemnitee shall have concluded
      reasonably that there may be a conflict of interest between the Company
      and the Indemnitee in the conduct of the defense of such action and such
      conclusion is confirmed in writing by the Company’s outside legal counsel
      regularly employed by it in connection with corporate matters; or (iii)
      the Company shall not in fact have employed counsel to assume the defense
      of such Proceeding, in each of which cases the fees and expenses of
      counsel shall be at the expense of the Company.  The Company
      shall be entitled to participate in, but shall not be entitled to assume
      the defense of any Proceeding brought by or in the right of the Company or
      as to which the Indemnitee shall have made the conclusion provided for in
      (ii) above and such conclusion shall have been so confirmed by the
      Company’s said outside counsel. 

            

    

     

    
      	
               (iii)   

            	
               Notwithstanding
      any provision of this Agreement to the contrary, the Company shall not be
      liable to indemnify the Indemnitee under this Article for any amounts paid
      in settlement of any Proceeding or claim effected without its written
      consent.  The Company shall not settle any Proceeding or claim
      in any manner which would impose any penalty, limitation or
      disqualification of the Indemnitee for any purpose without the
      Indemnitee’s written consent.  Neither the Company nor the
      Indemnitee will unreasonably withhold their consent to any proposed
      settlement. 

            

    

     

    Section 6.6.
Payment .  If it is determined that Indemnitee is entitled to
indemnification not covered by defense of the claim afforded under Section 6.5
above, payment to Indemnitee shall be made within ten (10) days after such
determination. 

     

     

    
      
        
          
            
              	
                       Indemnification
      Agreement 

                    	
                       Page 7  
      

                    

            

          

          
             

            
                

              
                

              

            

            
                

            

          

        

      

       

    

     ARTICLE
VII 

     

     Presumptions
and Effect of Certain Proceedings 

     

    Section 7.1. Burden of
Proof .  In making a determination with respect to
entitlement to indemnification hereunder, the person or persons or entity making
such determination shall presume that Indemnitee is entitled to indemnification
under this Agreement if Indemnitee has submitted a request for indemnification
in accordance with Section 6.1 of this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making by
any person, persons or entity of any determination contrary to that
presumption. 

     

    Section 7.2. Effect of Other
Proceedings .  The termination of any Proceeding or of any
claim, issue or matter therein, by judgment, order, settlement or conviction, or
upon a plea of guilty or of nolo contendere or its equivalent, shall not (except
as otherwise expressly provided in this Agreement) of itself adversely affect
the right of Indemnitee to indemnification or create a presumption that
Indemnitee did not act in Good Faith. 

     

    Section 7.3. Reliance as
Safe Harbor .  For purposes of any determination of Good
Faith, Indemnitee shall be deemed to have acted in Good Faith if Indemnitee’s
action is based on the records or books of account of the Enterprise, including
financial statements, or on information supplied to Indemnitee by the Officers
of the Enterprise in the course of their duties, or on the advice of legal
counsel for the Enterprise or on information or records given or reports made to
the Enterprise by an independent certified public accountant or by an appraiser
or other expert selected with reasonable care by the Enterprise.  The
provisions of this Section 7.3 shall not be deemed to be exclusive or to limit
in any way the other circumstances in which the Indemnitee may be deemed to have
met the applicable standard of conduct set forth in this
Agreement. 

     

    Section 7.4. Actions of
Others .  The knowledge and/or actions, or failure to act, of
any director, Officer, employee, agent, trustee or fiduciary of the Enterprise
shall not be imputed to Indemnitee for purposes of determining the right to
indemnification under this Agreement. 

     

    

     

     ARTICLE
VIII 

     

     Remedies
of Indemnitee 

     

    Section 8.1.
Application .  This Article VIII shall apply in the event of
a Dispute.  For purposes of this Article, “Dispute”, shall mean any of
the following events: 

     

    
      	
               (i)   

            	
               a
      determination is made pursuant to Article VI of this Agreement that
      Indemnitee is not entitled to indemnification under this
      Agreement; 

            

    

     

    
      	
               (ii)   

            	
               an
      advancement of Expenses is not timely made pursuant to Article V of this
      Agreement; 

            

    

    
       

      
        	
                 (iii)   

              	
                 the
      determination of entitlement to be made pursuant to Section 6.2 of this
      Agreement has not been made within sixty (60) days after receipt by the
      Company of the request for
indemnification; 

              

      

       

    

     

    
      
        
          
            	
                     Indemnification
      Agreement 

                  	
                     Page 8  
      

                  

          

        

        
           

          
              

            
              

            

          

          
              

          

        

      

    

     

    
      	
               (iv)   

            	
               the
      payment of indemnification is not made pursuant to Section 4.5 of this
      Agreement within ten (10) days after receipt by the Company of a written
      request therefor; or 

            

    

     

    
      	
               (v)   

            	
               a
      notice of election by the Company to assume defense of a claim as provided
      for in Section 6.5 or payment of indemnification, as the case may be, is
      not given or made within ten (10) days after a determination has been made
      that Indemnitee is entitled to indemnification or such determination is
      deemed to have been made pursuant to Article VI of this
      Agreement. 

            

    

     

    Section 8.2.
Adjudication .  In the event of a Dispute, Indemnitee shall
be entitled to an adjudication in an appropriate Court of Indemnitee’s
entitlement to such indemnification or advancement of
Expenses.  Alternatively, Indemnitee, at Indemnitee’s option, may seek
an award in arbitration to be conducted by a single arbitrator in San Francisco,
California pursuant to the rules of the American Arbitration
Association.  Indemnitee shall commence such proceeding seeking an
adjudication or an award in arbitration within one hundred eighty (180) days
following the date on which Indemnitee first has the right to commence such
proceeding pursuant to this Section 8.2.  The Company shall not oppose
Indemnitee’s right to seek any such adjudication or award in
arbitration. 

     

    Section 8.3. De Novo
Review .  In the event that a determination shall have been
made pursuant to Article VI of this Agreement that Indemnitee is not entitled to
indemnification, any judicial proceeding or arbitration commenced pursuant to
this Article VIII shall be conducted in all respects as a de novo trial or
arbitration on the merits and Indemnitee shall not be prejudiced by reason of
that adverse determination.  In any such proceeding or arbitration,
the Company shall have the burden of proving that Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be. 

     

    Section 8.4. Company
Bound .  If a determination shall have been made or deemed to
have been made pursuant to Article VI of this Agreement that Indemnitee is
entitled to indemnification, the Company shall be bound by such determination in
any judicial proceeding or arbitration absent: (i) a misstatement by Indemnitee
of a material fact, or any omission of a material fact necessary to make
Indemnitee’s statement not materially misleading, in connection with the request
for indemnification; or (ii) a prohibition of such indemnification under
applicable law. 

     

    Section 8.5. Procedures
Valid .  The Company shall be precluded from asserting in any
judicial proceeding or arbitration commenced pursuant to this Article VIII that
the procedures and presumptions of this Agreement are not valid, binding and
enforceable and shall stipulate in any such Court or before any such arbitrator
that the Company is bound by all the provisions of this
Agreement. 

    
      
         

        Section 8.6. Expenses of
Adjudication .  In the event that Indemnitee, pursuant to
this Article VIII, seeks a judicial adjudication of or an award in arbitration
to enforce Indemnitee’s  rights
under, or to recover damages for breach of, this Agreement, Indemnitee shall be
entitled to recover from the Company, and shall be indemnified by the Company
against, any and all expenses (of the types described in the definition of
Expenses in Section 1.6 of this Agreement) actually and reasonably incurred by
Indemnitee in such adjudication or arbitration, but only if Indemnitee prevails
therein.  If it shall be determined in such adjudication or
arbitration that Indemnitee is entitled to receive part but not all of the
indemnification or advancement of Expenses sought, the expenses incurred by
Indemnitee in connection with such adjudication or arbitration shall be
appropriately prorated as determined by the court or arbitrator which determines
the adjudication or arbitration. 

      

       

    

     

    
      
        
          
            	
                     Indemnification
      Agreement 

                  	
                     Page 9  
      

                  

          

        

        
           

          
              

            
              

            

          

          
              

          

        

      

    

     

     ARTICLE
IX 

     

     Non-Exclusivity,
Insurance, Subrogation 

     

    Section 9.1.
Non-Exclusivity .  The rights of indemnification and to
receive advancement of Expenses as provided by this Agreement shall not be
deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Certificate of Incorporation of the Company
as amended and/or restated, the By-Laws of the Company as amended and/or
restated, any agreement, a vote of stockholders or a resolution of directors, or
otherwise.  No amendment, alteration, rescission or replacement of
this Agreement or any provision hereof shall be effective as to Indemnitee with
respect to any action taken or omitted by such Indemnitee in Indemnitee’s
Corporate Status prior to such amendment, alteration, rescission or
replacement. 

     

    Section 9.2.
Insurance .  The Company may maintain an insurance policy or
policies against liability arising out of this Agreement or
otherwise. 

     

    Section 9.3.
Subrogation .  In the event of any payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee, who shall execute all papers required
and take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such
rights. 

     

    Section 9.4. No Duplicative
Payment .  The Company shall not be liable under this
Agreement to make any payment of amounts otherwise indemnifiable hereunder if
and to the extent that Indemnitee has otherwise actually received such payment
under any insurance policy, contract, agreement, Certificate of Incorporation of
the Company as amended and/or restated, By-Laws of the Company as amended and/or
restated or otherwise. 

     

    

     

     ARTICLE
X 

     

     General
Provisions 

    

    Section 10.1. Successors and
Assigns .  This Agreement shall be binding upon the Company
and its successors and assigns and shall inure to the benefit of Indemnitee and
Indemnitee’s legal representatives, heirs, executors and
administrators. 

    
       

       

      
        
          
            
              	
                       Indemnification
      Agreement 

                    	
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      Section 10.2.
Severability .  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: 

    

     

    
      	
               (i)   

            	
               The
      validity, legality and enforceability of the remaining provisions of this
      Agreement (including without limitation, each portion of any Section of
      this Agreement containing any such provision held to be invalid, illegal
      or unenforceable, that is not itself invalid, illegal or unenforceable)
      shall not in any way be affected or impaired thereby;
    and 

            

    

     

    
      	
               (ii)   

            	
               To
      the fullest extent possible, the provisions of this Agreement (including,
      without limitation, each portion of any Section of this Agreement
      containing any such provision held to be invalid, illegal or
      unenforceable, that is not itself invalid, illegal or unenforceable) shall
      be construed so as to give effect to the intent manifested by the
      provision held invalid, illegal or
  unenforceable. 

            

    

     

    Section 10.3. No Adequate
Remedy .  The parties declare that it is impossible to
measure in money the damages which will accrue to either party by reason of a
failure to perform any of the obligations under this
Agreement.  Therefore, if either party shall institute any action or
proceeding to enforce the provisions hereof, such party against whom such action
or proceeding is brought hereby waives the claim or defense that the other party
has an adequate remedy at law, and such party shall not urge in any such action
or proceeding the claim or defense that the other party has an adequate remedy
at law. 

     

    Section 10.4.
Headings .  The headings of the paragraphs of this Agreement
are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof. 

     

    Section 10.5. Modification
and Waiver .  No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both of the
parties hereto.  No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor shall such waiver constitute a continuing
waiver. 

     

    Section 10.6.
Notices .  All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if: (i) delivered by hand and receipted for by the party to whom said
notice or other communication shall have been directed; (ii) sent by prepaid
nationally recognized overnight courier on the next business day after the date
on which it is so delivered to such courier; (iii) mailed by certified or
registered mail with postage prepaid, on the third business day after the date
on which it is so mailed; or (iv) by facsimile, on the day it is sent with
receipt acknowledging delivery: 

     

    
      	
                
      

            	
               If
      to Indemnitee, to: 

            	
               As
      shown with Indemnitee’s Signature
below. 

            

    

     

    
      
        	
                  
      

              	
                 If
      to the Company, to:  

              	
                 SinoHub,
      Inc. 

                
                   6/F,
      Building 51, Road 5, Qiongyu Blvd. 

                   Technology
      Park, Nanshan District 

                   Shenzhen,
      China 518057 

                   Fax:
      011-86-755-2601-2224 

                   Attn:
      Chief Executive Officer 

                

              

      

      
         

         

        
          
            
              
                	
                         Indemnification
      Agreement 

                      	
                         Page 11  
      

                      

              

            

            
               

              
                  

                
                  

                

              

              
                  

              

            

          

        

        
           

          
            
              	
                        
      

                    	 	
                      
                         With
      a copy to: 

                        

                         Seyfarth
      Shaw LLP 

                         Two
      Seaport Lane 

                         Boston,
      MA 02210 

                         Fax:
      (617) 946-4801 

                         Attn:
      William Hanlon, Esquire 

                      

                    

            

            
               

            

          

        

      

    

     or to
such other address as may have been furnished to Indemnitee by the Company or to
the Company by Indemnitee, as the case may be. 

     

    Section 10.7. Governing
Law .  The parties agree that this Agreement shall be
governed by, and construed and enforced in accordance with, the laws of the
State of Delaware without application of the conflict of laws principles
thereof. 

     

    

     [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

    
       

       

       

      
        
          
            
              	
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       IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first set forth above. 

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	  
      	
                                                 SINOHUB,
      INC. 

                                              
	  
      	  
      
	  
      	
                                                 By:  

                                              	  
      
	  
      	  
      	
                                                 Henry
      T. Cochran 

                                              
	  
      	  
      	
                                                 Chief
      Executive
Officer 

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    
      	 	
               INDEMNITEE 

            
	  
      	  
      
	  
      	  
      
	  
      	  
      
	  
      	  
      	  
      

       

    

    
      	 	
               Address
      and Fax Number of Indemnitee: 

            
	  
      	  
      
	  
      	  
      
	  
      	  
      
	  
      	  
      
	  
      	
               Fax
      No. 

            	  
      

    

     

     

     

     

     

     

    
      
        
          
            
              	
                       Indemnification
      Agreement 

                    	
                       Signature
      Pageex10_37.htm

     EXHIBIT
10.37 

     

     REGISTRATION
RIGHTS AGREEMENT 

     

     This
Registration Rights Agreement (this “Agreement”) is made and
entered into as of April 13, 2009, by and among SinoHub, Inc., a Delaware
corporation (the “Company”), and those holders
of common stock, $.001 par value, of the Company (“Common Stock”) that have
executed signature pages hereto (each a “Stockholder” and
collectively, the “Stockholders”) on or after
the date hereof. 

     

     WHEREAS,
SinoHub International, Inc., f/k/a SinoHub, Inc., a Delaware corporation (“Old SinoHub”), and the
Stockholders are parties to certain stock purchase agreements which are listed
on Schedule 1
attached hereto (the “Purchase
Agreements”) pursuant to which the Stockholders (or their assignors)
purchased shares of Series A Preferred Stock (“Series A Preferred”), Series
B Preferred Stock (“Series B
Preferred”) and Series C Preferred Stock (“Series C Preferred” and
collectively with the Series A Preferred and Series B Preferred, the “Preferred Stock”) of Old
SinoHub; and 

     

     WHEREAS,
the Purchase Agreements provided for, among other things, certain registration
rights with respect to the shares of Old SinoHub common stock issuable upon
conversion of the Preferred Stock; 

     

     WHEREAS,
pursuant to the provisions of a certain Agreement and Plan of Merger by and
among the Company, SinoHub Acquisition Corp., Old SinoHub and Steven L. White,
the then-principal stockholder of the Company dated May 12, 2008 (the “Merger Agreement”), the
Preferred Stock was converted into shares of Common
Stock of the Company(the “Shares”); 

     

     WHEREAS,
on September 10, 2008, the Company entered into a Registration Rights Agreement
with certain investors identified therein (the “September 2008 Registration Rights
Agreement”); 

     

     WHEREAS,
as a condition to the transactions consummated in connection with the September
2008 Registration Rights Agreement, the Stockholders waived their registration
rights under the Purchase Agreements; 

     

     WHEREAS,
the Company and the Stockholders desire to enter into this Agreement to, among
other things, amend the Purchase Agreements to clarify the registration rights
of the Stockholders following the consummation of the transactions contemplated
by the Merger Agreement and the execution of the September 2008 Registration
Rights Agreement; and 

     

     WHEREAS,
each of the Purchase Agreements may be amended by an agreement duly executed by
the Company and the holders of a majority of the “Registrable Securities” under
such Purchase Agreement, as such term is defined in each of the respective
Purchase Agreements. 

     

     NOW
THEREFORE, in consideration of the premises and the mutual agreements contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as
follows: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

     1. 
   Definitions.  As
used in this Agreement, the following terms have the respective meanings set
forth in this Section 1: 

     

     “Advice” has the meaning set
forth in Section 11(d). 

     

     “Allowed Delay” has the meaning
set forth in Section 6(j). 

     

     “Board” has the meaning set
forth in Section 6(j). 

     

     “Commission” means the
Securities and Exchange Commission. 

     

     “Commission Comments” means
written comments pertaining solely to Rule 415 which are received by the Company
from the Commission to a filed Registration Statement, a copy of which shall
have been provided by the Company to the Investors, which either (i) requires
the Company to limit the number of Registrable Securities which may be included
therein to a number which is less than the number sought to be included thereon
as filed with the Commission or (ii) requires the Company to either exclude
Registrable Securities held by specified Investors or deem such Investors to be
underwriters with respect to Registrable Securities they seek to include in such
Registration Statement. 

     

     “Costs and Expenses” means all
of the costs and expenses relating to the Registration Statement involved,
including but not limited to registration, filing and qualification fees,
printing expenses, reasonable fees and disbursements of counsel to the Company
and counsel for the Selling Investor (provided, however, that no more than one
such counsel for all of the Selling Investor will be so designated on any
occasion), and accounting fees; provided however, that underwriting discounts
and commissions and reimbursable underwriters' expenses will be borne pro rata
by the Holders of the Registrable Securities included in the Registration
Statement. 

     

     “Cut Back Shares” has the
meaning set forth in Section 2(f). 

     

     “Effective Date” means, as to
any Registration Statement required to be filed pursuant to this Agreement, the
earlier of the date which is within five (5) business days after the date on
which the Commission informs the Company (i) that the Commission will not review
the Registration Statement or (ii) that the Company may
request the acceleration of the effectiveness of the Registration Statement and
the Company makes such request; provided that, if the Effective Date falls on a
Saturday, Sunday or any other day which shall be a legal holiday or a day on
which the Commission is authorized or required by law or other government
actions to close, the Effective Date shall be the following business
days. 

     

     “Effectiveness Period” means,
as to any Registration Statement required to be filed pursuant to this
Agreement, the period commencing on the Effective Date of such Registration
Statement and ending on the earliest to occur of (a) such time as all of the
Registrable Securities covered by such Registration Statement have been publicly
sold by the Investors of the Registrable Securities included therein, or (b)
such time as all of the Registrable Securities covered by such Registration
Statement may be sold by the Investors without volume restrictions pursuant to
Rule 144, in each case as determined by the counsel to the
Company. 

     

    
      
        
        

      

      
         2 

        
          

        

      

      
        
        

      

       

    

     “Effective Time” has the
meaning set forth in Section 2. 

     

     “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 

     

     “Holder” or “Holders” has the meaning set
forth in Section 2. 

     

     “Indemnified Party” has the
meaning set forth in Section 8(c). 

     

     “Indemnifying Party” has the
meaning set forth in Section 8(c). 

     

     “Initial Registration
Statement” means the Registration Statement of the Company filed on
October 24, 2008. 

     

     “Initiating Holders” has the
meaning set forth in Section 2. 

     

     “Losses” has the meaning set
forth in Section 8(a). 

     

     “Proceeding” means an action,
claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced or
threatened. 

     

     “Prospectus” means the
prospectus included in a Registration Statement (including, without limitation,
a prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by a Registration Statement, and all other
amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus. 

     

     “Registrable Securities”
means: (i) the Shares held by the Stockholder (including, without limitation,
(a) Shares purchased by the Stockholder directly from Old SinoHub pursuant to
the Purchase Agreements and (b) Shares acquired by a Stockholder by purchase,
gift or other form of transfer either (I) prior to the date of this Agreement
that complied with the terms of the Purchase Agreements or (II) subsequent to
the date of this Agreement that complies with the terms hereunder) and (ii) any
securities issued or issuable upon any stock split, dividend or other
distribution, recapitalization or similar event, or any price adjustment as a
result of such stock splits, reverse stock splits or similar events with respect
to the Shares.  Notwithstanding the foregoing, a security shall cease
to be a Registrable Security for purposes of this Agreement from and after such
time as (x) the security is sold or otherwise transferred by a person in a
transaction in which rights under this Agreement are not assigned in accordance
with this Agreement or (y) the Holder of such security may resell such security
without volume restrictions under Rule 144, as evidence by an opinion of counsel
reasonably acceptable to the Company. 

     

     “Registration Statement” means
any registration statements required to be filed under this Agreement, including
in each case the Prospectus, amendments and supplements to such registration
statements or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference or deemed to be
incorporated by reference therein. 

     

    
      
        
        

      

      
         3 

        
          

        

      

      
        
        

      

       

    

     “Restriction Termination Date”
has the meaning set forth in Section 2(f). 

     

     “Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule. 

     

     “Rule 415” means Rule 415
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule. 

     

     “Rule 424” means Rule 424 promulgated
by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule. 

     

     “SEC Restrictions” has the
meaning set forth in Section 2(f). 

     

     “Securities Act” means the
Securities Act of 1933, as amended. 

     

     “Selling Holder” means a
Holder whose Registrable Securities are included in a Registration Statement
pursuant to the terms hereunder. 

     

     “Selling Holder Questionnaire”
has the meaning set forth in Section 5. 

     

     “Shares” has the meaning set
forth in the introduction above. 

     

     “Trading Day” means a day on
which the New York Stock Exchange is open for trading.. 

     

     2. 
   Required
Registration.  If, at any time following the one hundred
eightieth (180th ) day
following the date on which the Initial Registration Statement is declared
effective by the Commission (the “Effective Time”), the holders
of at least fifty one percent (51%) of the Registrable Securities then
outstanding (the “Initiating
Holders”) (or, in the case of a request for registration on Form S-3, any
holder of Registrable Securities (the “Holders”)) shall decide to
sell or otherwise dispose of Registrable Securities of the Company then owned by
such Holders, such Holders may give written notice to the Company of the
proposed disposition, specifying the number of Registrable Securities so to be
sold or disposed of (which must include at least fifty one percent (51%) of the
Registrable Securities) and requesting that the Company prepare and file a
registration statement (or the equivalent) under the Securities Act or any
successor statute covering such Registrable Securities. 

     

     (a)           Notice.  Within
10 days thereafter, give written notice to the other Holders of such request and
each of such other Holders shall have the option, for a period of ten (10) days
after receipt by it of such notice from the Company, to include all or part of
its Registrable Securities in such registration statement. 

    

    
      
        
        

      

      
         4 

        
          

        

      

      
        
        

      

       

    

     (b)           Obligation to File
Registration Statement.  Use its best efforts to cause an
appropriate Registration Statement covering such Registrable Securities to be
filed with the Commission and to become effective as soon as reasonably
practicable and to remain effective until the completion of the distribution of
the Registrable Securities to be offered or sold but not longer than one hundred
twenty (120) days after effectiveness of the Registration
Statement. 

     

     (c)           Maximum Number of Demand
Registrations.  The Company is obligated to effect only two (2)
such registrations pursuant to this Section 2 on forms other than Form
S-3.  The Company shall not be obligated to effect a registration
prior to or during the six (6) month period commencing with the date of the
Company’s initial public offering pursuant to which the Company receives gross
proceeds of at least Five Million US Dollars (US$5,000,000) or any registration
under the Securities Act in which Registrable Securities were
registered.  The Company shall bear all of the Costs and Expenses of
the two (2) Registration Statements on forms other than Form S-3, and all of the
Costs and Expenses of each Registration Statement on Form S-3.  A
demand for registration under this Section 2 will not count as such until it has
become effective and unless the holders of Registrable Securities are able to
register and sell at least eighty percent (80%) of the Registrable Securities
requested to be included in such Registration Statement; provided, however, that
if the Initiating Holders withdraw a request for registration before the
Registration Statement becomes effective, then the Initiating Holders at their
option either shall:  (i) bear the Costs and Expenses thereof pro rata
on the basis of the number of shares requested to be included therein, or (ii)
have such Registration Statement applied to and counted as one (1) of the two
(2) Registration Statements for which the Company has agreed to bear the Costs
and Expenses. 

     

     (d)           Deferral.  Notwithstanding
the foregoing, if the Company shall furnish to Holders requesting the filing of
a Registration Statement pursuant to this Section 2, a certificate signed by the
President, Chief Executive Officer or Chairman of the Board of Directors of the
Company stating that in the good faith judgment of the Board of Directors of the
Company, it would be seriously detrimental to the Company and its stockholders
for such Registration Statement to be filed and it is therefore essential to
defer the filing of such Registration Statement, then the Company shall have the
right to defer such filing for a period of not more than one hundred twenty
(120) days after receipt of the request of the Initiating Holders; provided, however, that the
Company may not utilize this right more than once in any twelve (12) month
period. 

     

     (e)           Underwriting.  If
the Initiating Holders intend to distribute the Registrable Securities covered
by their request by means of an underwriting, then they shall so advise the
Company as a part of their request made pursuant to this Section and the Company
shall include such information in the written notice referred to in subsection
2(a) hereof.  In such event, the right of any Holder to include
Registrable Securities in such registration shall be conditioned upon such
Holder's participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting (unless otherwise mutually agreed by
a majority in interest of the Initiating Holders and such Holder) to the extent
provided herein.  All Holders proposing to distribute their
Registrable Securities through such underwriting shall enter into an
underwriting agreement in customary form with the managing underwriter or
underwriters selected for such underwriting by the
Company.  Notwithstanding any other provision of this Section, if the
underwriter(s) advise(s) the Company in writing that marketing factors require a
limitation of the number of securities to be sold in the offering, then the
Company shall so advise all Holders of Registrable Securities which would
otherwise be registered pursuant hereto, and the number of Registrable
Securities that may be included in the offering shall be reduced as required by
the underwriter(s) and allocated among the Holders of Registrable Securities on
a pro rata basis according to the number of Registrable Securities then
outstanding held by each Holder requesting registration (including the
Initiating Holders); provided, however, that the
number of shares of Registrable Securities to be included in such underwritten
offering shall not be reduced unless all other securities of the Company are
first entirely excluded from such underwritten offering and
registration. 

    

    
      
        
        

      

      
         5 

        
          

        

      

      
        
        

      

       

    

     (f)        
   Cut Back
Shares.  Notwithstanding anything
to the contrary contained in this Section 2, if the Company receives Commission
Comments, and following discussions with and responses to the Commission in
which the Company uses its reasonable best efforts and time to cause as many
Registrable Securities for as many Holders as possible to be
included in the Registration Statement filed pursuant to Section 2(b) without
characterizing any Holder as an underwriter, the Company is unable to cause the
inclusion of all Registrable Securities, then the Company may, following not
less than three (3) Trading Days prior written notice to the Holders (i) remove
from the Registration Statement such Registrable Securities (the “Cut Back
Shares”) and/or (ii) agree
to such restrictions and limitations on the registration and resale of the
Registrable Securities, in each case as the Commission may require in order for
the Commission to allow such Registration Statement to become effective;
provided, that in no event may the Company name
any Holder as an underwriter without such Holder’s prior written consent
(collectively, the “SEC
Restrictions”).  Unless the SEC
Restrictions otherwise require, any cut-back imposed pursuant to this Section
2(b) shall be allocated among the Registrable Securities of the Holders on a pro
rata basis.  The required Effective Date for such Registration
Statement will be tolled, until such time as the Company is able to effect the
registration of the Cut Back Shares in accordance with any SEC Restrictions
(such date, the “Restriction
Termination Date”).  From and after the
Restriction Termination Date, all provisions of this Section 2 shall again be
applicable to the Cut Back Shares (which, for avoidance of doubt, retain their
character as “Registrable Securities”) so that the Company will be required to
file with and cause to be declared effective by the Commission such additional
Registration Statements as necessary to ultimately cause to be covered by
effective Registration Statements all Registrable Securities (if such
Registrable Securities cannot at such time be resold by the Holders thereof
without volume limitations pursuant to Rule 144).   

    

    
      
        
        

      

      
         6 

        
          

        

      

      
        
        

      

       

    

     3. 
  
Piggyback
Registration.   If at any time following the Effective
Time the Company shall propose the filing of a Registration Statement on an
appropriate form under the Securities Act of any securities of the Company, but
excluding Registration Statements relating to any registration under
Section 2 or Section 4 or to any employee benefit plan or a corporate
reorganization, then the Company shall give the Holders notice of such proposed
registration and shall include in any Registration Statement relating to such
securities all or a portion of the Registrable Securities then owned by such
Holders, which such Holders shall request, by notice given by such Holders to
the Company within thirty (30) days after the giving of such notice by the
Company, to be so included.  In the event of the inclusion of
Registrable Securities pursuant to this Section 3, the Company shall bear all of
the Costs and Expenses of such registration; provided, however, that the Selling
Holder shall pay, pro rata based upon the number of Registrable Securities
included therein, the underwriters' discounts and compensation.  In
the event the distribution of securities of the Company covered by a
Registration Statement referred to in this Section 3 is to be underwritten, then
the Company's obligation to include Registrable Securities in such Registration
Statement shall be subject, at the option of the Company, to the following
further conditions: 

     

     (a)   The
distribution for the account of the Selling Holder shall be underwritten by the
same underwriters who are underwriting the distribution of the securities for
the account of the Company and/or any other persons whose securities are covered
by such Registration Statement, and the Selling Holder will enter into an
agreement with such underwriters containing customary
provisions; 

     

     (b)   If the
underwriting agreement entered into with the aforesaid underwriters contains
restrictions upon the sale of securities of the Company, other than the
securities which are to be included in the proposed distribution, for a period
not exceeding one hundred eighty (180) days from the effective date of the
Registration Statement, then such restrictions will be binding upon the Selling
Holder and, if requested by the Company, the Selling Holder will enter into a
written agreement to that effect; and 

     

     (c)   If the
underwriters state in writing that they are unwilling to include any or all of
the Selling Holder's securities in the proposed offering because such inclusion
will materially interfere with the orderly sale and distribution of the
securities being offered by the Company or others, then the number of Selling
Holder Registrable Securities to be included will be reduced pro rata on the
basis of the number of shares owned by such Holders, or there will be no
inclusion of Selling Holder' Registrable Securities in the registration
statement and proposed distribution, in accordance with such statement by the
underwriters. 

     

    
      
        
        

      

      
         7 

        
          

        

      

      
        
        

      

       

    

     4. 
  
Form S-3 Registration.  In the event
that, following the Effective Time, the Company becomes eligible to use Form S-3
for the registration of its securities, and the Company shall receive from any
Holder or Holders of Registrable Securities a written request or requests that
the Company effect a registration on Form S-3 and any related qualification or
compliance with respect to all or a part of the Registrable Securities owned by
such Holder or Holders, then the Company will: 

     

     (a)   Promptly
give written notice of the proposed registration and the Holder's or Holders'
request therefor, and any related qualification or compliance, to all other
Holders of Registrable Securities. 

     

     (b)   As soon
as practicable, effect such registration and any related qualifications and
compliances as may be so requested and as would permit or facilitate the sale
and distribution of all or such portion of such Holder's or Holders' Registrable
Securities as are specified in such request, together with all or such portion
of the Registrable Securities of any other Holder or Holders joining in such
request as are specified in a written request given within twenty (20) days
after receipt of such written notice from the Company; provided, however, that the
Company shall not be obligated to effect any such registration, qualification or
compliance pursuant to this Section 4: 

     

     (1)          if
Form S-3 is not available for such offering; 

     

     (2)          if
the Holders, together with the holders of any other securities of the Company
entitled to inclusion in such registration, propose to sell Registrable
Securities and such other securities (if any) at an aggregate price to the
public of less than One Million US Dollars (US$1,000,000); 

     

     (3)          if
the Company shall furnish to the Holders a certificate signed by the President,
Chief Executive Officer or Chairman of the Board of Directors  of the
Company stating that in the good faith judgment of the Board of Directors of the
Company, it would be seriously detrimental to the Company and its stockholders
for such Form S-3 Registration to be effected at such time, in which event the
Company shall have the right to defer the filing of the Form S-3 registration
statement no more than once during any twelve (12) month period for a period of
not more than ninety (90) days after receipt of the request of the Holder or
Holders under this Section 4; 

     

     (4)          if
the Company has, within the twelve (12) month period preceding the date of such
request, already effected one (1) registration on Form S-3 for the Holders
pursuant to this Section 4; or 

     

     (5)          in
any particular jurisdiction in which the Company would be required to qualify to
do business or to execute a general consent to service of process in effecting
such registration, qualification or compliance. 

     

     (c)   Subject
to the foregoing, the Company shall file a Form S-3 registration statement
covering the Registrable Securities and other securities so requested to be
registered pursuant to this Section 4 as soon as practicable after receipt of
the request or requests of the Holders for such registration.  The
Company shall pay all Costs and Expenses incurred in connection with the
registration requested pursuant to this Section 4. 

     

    
      
        
        

      

      
         8 

        
          

        

      

      
        
        

      

       

    

     (d)           Form S-3
registrations shall not be deemed to be demand registrations as described in
Section 2 above. 

     

     5.            
Selling Holder
Questionnaire.   Each Holder agrees to furnish to the
Company a completed questionnaire in the form attached to this Agreement as
Annex A (a
“Selling Holder
Questionnaire”) in connection with any notice provided to the Company by
such Holder pursuant to Section 2, 3 or 4 above.  The Company shall
not be required to include the Registrable Securities of a Holder in a
Registration Statement to any Holder who fails to furnish to the Company a fully
completed Selling Holder Questionnaire at least two Trading Days prior to the
filing date. 

     

     6. 
  
Registration
Procedures. 

     

     In
connection with the Company’s registration obligations hereunder, the Company
shall: 

     

     (a)           The
Company shall not file a Registration Statement, any Prospectus or any
amendments or supplements thereto in which the “Selling Stockholder” section
thereof differs from the disclosure received from a Holder in its Selling Holder
Questionnaire (as amended or supplemented).  The Company shall not
file a Registration Statement, any Prospectus or any amendments or supplements
thereto in which it (i) characterizes any Holder as an underwriter, (ii)
excludes a particular Holder due to such Holder refusing to be named as an
underwriter, or (iii) reduces the number of Registrable Securities being
registered on behalf of a Holder (except pursuant to, in the case of this
subsection (iii), the Commission Comments), without, in each case, such Holder’s
express written authorization.  Not less than three (3) business days
prior to the filing of a Registration Statement or any related Prospectus or any
amendment or supplement thereto, the Company shall (i) furnish to the Holders
copies of all such documents proposed to be filed, which documents will be
subject to the review of such Holders, and (ii) cause its officers and
directors, counsel and independent registered public accounting firm to respond
to such inquiries as shall be necessary to conduct a reasonable review of such
documents.  The Company shall not file a Registration Statement or any
such Prospectus or any amendments or supplements thereto to which the Holders of
a majority of the Registrable Securities shall reasonably object in writing
within three (3) business days of their receipt thereof. 

     

     (b)           (i)  Prepare
and file with the Commission such amendments, including post-effective
amendments, to each Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep such Registration Statement continuously
effective as to the applicable Registrable Securities for its Effectiveness
Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the
Registrable Securities; (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement, and as so supplemented or
amended to be filed pursuant to Rule 424; (iii) respond as promptly as
reasonably possible to any comments received from the Commission with respect to
each Registration Statement or any amendment thereto; and (iv) comply in all
material respects with the provisions of the Securities Act and the Exchange Act
with respect to the Registration Statement(s) and the disposition of all
Registrable Securities covered by each Registration Statement. 

     

    
      
        
        

      

      
         9 

        
          

        

      

      
        
        

      

       

    

     (c)           Notify
the Holders as promptly as reasonably possible of (i) the issuance by the
Commission of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of
any Proceedings for that purpose; (ii) the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; (iii) the date upon which any Registration Statement or any
post-effective amendment becomes effective; and (iv) the occurrence of any event
that makes any statement made in any Registration Statement or Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires any revisions to any Registration
Statement, Prospectus or other documents so that, in the case of a Registration
Statement or Prospectus, as the case may be, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading. 

     

     (d)           Use its
reasonable best efforts to avoid the issuance of, or, if issued, obtain the
withdrawal of (i) any order suspending the effectiveness of a Registration
Statement, or (ii) any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest practicable moment. 

     

     (e)           Promptly
deliver to each Holder, without charge, as many copies of each Prospectus or
Prospectuses (including each form of prospectus) and each amendment or
supplement thereto as such Persons may reasonably request.  The
Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling Holders in connection with the
offering and sale of the Registrable Securities covered by such Prospectus and
any amendment or supplement thereto. 

     

     (f)           Prior to
any public offering of Registrable Securities, register or qualify such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of all jurisdictions within the United States as any Holder may request, to keep
each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the
Registrable Securities covered by the Registration
Statement(s). 

     

     (g)           Use
commercially reasonable efforts to cause all Registrable Securities relating to
any Registration Statement to be quoted on the OTC Bulletin Board or any other
securities exchange, quotation system or market, if any, on which similar
securities issued by the Company are then listed, quoted or
traded. 

     

    
      
        
        

      

      
         10 

        
          

        

      

      
        
        

      

       

    

     (h)           Upon the
occurrence of any event contemplated by Section 6(c)(iv), as
promptly as possible, prepare a supplement or amendment, including a
post-effective amendment, to the applicable Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither the applicable Registration Statement nor
such Prospectus will contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. 

     

     (i)           Comply in
all material respects with all applicable rules and regulations of the
Commission and make generally available to its security holders all documents
filed or required to be filed with the Commission, including, but not limited,
to, earning statements satisfying the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 90 days after the end of any 12-month
period if such period is a fiscal year commencing on the first day of the first
fiscal quarter of the Company after the Effective Date of the applicable
Registration Statement, which statement shall conform to the requirements of
Rule 158. 

     

     (j)           
If (i)
there is material non-public information regarding the Company which the
Company’s Board of Directors (the “Board”) determines not to be
in the Company’s best interest to disclose and which the Company is not
otherwise required to disclose, (ii) there is a significant business opportunity
(including, but not limited to, the acquisition or disposition of assets (other
than in the ordinary course of business) or any merger, consolidation, tender
offer or other similar transaction) available to the Company which the Board
determines not to be in the Company’s best interest to disclose, or (iii) the
Company is required to file a post-effective amendment to a Registration
Statement to incorporate the Company’s quarterly and annual reports and audited
financial statements on Forms 10-Q and 10-K, then the Company may (x) postpone
or suspend filing of a Registration Statement for a period not to exceed thirty
(30) consecutive days or (y) postpone or suspend effectiveness of a Registration
Statement for a period not to exceed thirty (30) consecutive days (each, an
“Allowed Delay”);
provided that the Company may not postpone or suspend effectiveness of a
Registration Statement under this Section 6(j) for more than 60 days in the
aggregate during any 360 day period; provided, however, that no such
postponement or suspension shall be permitted for consecutive thirty (30) day
periods arising out of the same set of facts, circumstances or
transactions. 

     

    
      
        
        

      

      
         11 

        
          

        

      

      
        
        

      

       

    

     7.            
“Lock-up” or
“Market Stand-Off” Agreement.  The Stockholder hereby
agrees that he shall not, to the extent requested by the Company or an
underwriter of securities of the Company, sell or otherwise transfer or dispose
of any Registrable Securities or other shares of stock of the Company then owned
by the Stockholder (other than to donees or partners of the Holder who agree to
be similarly bound) for up to one hundred eighty (180) days following the
effective date of a registration statement of the Company filed under the
Securities Act.  In order to enforce the foregoing covenant, the
Company shall have the right to place restrictive legends on the certificates
representing the shares subject to this Section 7 and to impose stop transfer
instructions with respect to the Registrable Securities and such other shares of
stock of the Holder (and the shares or securities of every other person subject
to the foregoing restriction) until the end of such period. 

     

     8. 
  
Indemnification. 

     

     (a)           Indemnification by the
Company.  The Company shall, notwithstanding any termination of
this Agreement, indemnify and hold harmless each Holder, the officers,
directors, agents, investment advisors, partners, members and employees of each
of them, each Person who controls any such Holder (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, agents and employees of each such controlling Person, to the fullest
extent permitted by applicable law, from and against any and all losses, claims,
damages, liabilities, costs (including, without limitation, reasonable costs of
preparation and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising
out of or relating to any violation of securities laws by the Company or any
untrue or alleged untrue statement of a material fact contained in any
Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out
of or relating to any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein (in the case of
any Prospectus or form of prospectus or supplement thereto, in light of the
circumstances under which they were made) not misleading, except to the extent,
but only to the extent, that (1) such untrue statements or omissions are based
solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such
information relates to such Holder or such Holder’s proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto
(it being understood that the Holder has approved Annex B hereto for this
purpose) or (2), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of an Advice or an
amended or supplemented Prospectus, but only if and to the extent that following
the receipt of the Advice or the amended or supplemented Prospectus the
misstatement or omission giving rise to such Loss would have been
corrected.  The Company shall notify the Holders promptly of the
institution, threat or assertion of any Proceeding of which the Company is aware
in connection with the transactions contemplated by this
Agreement. 

     

    
      
        
        

      

      
         12 

        
          

        

      

      
        
        

      

       

    

     (b)   Indemnification by
Holders.   Each Holder shall, severally and not jointly,
indemnify and hold harmless the Company, its directors, officers, agents and
employees, each Person who controls the Company (within the meaning of Section
15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, agents or employees of such controlling Persons, to the fullest extent
permitted by applicable law, from and against all Losses, as incurred, arising
solely out of or based solely upon: (x) such Holder’s failure to comply with the
prospectus delivery requirements of the Securities Act or (y) any untrue
statement of a material fact contained in any Registration Statement, any
Prospectus, or any form of prospectus, or in any amendment or supplement
thereto, or arising solely out of or based solely upon any omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading to the extent, but only to the extent that, (1) such
untrue statements or omissions are based solely upon information regarding such
Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
the Registration Statement (it being understood that the Holder has approved
Annex A hereto for this purpose), such Prospectus or such form of Prospectus or
in any amendment or supplement thereto or (2) the use by such Holder of an
outdated or defective Prospectus after the Company has notified such Holder in
writing that the Prospectus is outdated or defective and prior to the receipt by
such Holder of an Advice or an amended or supplemented Prospectus, but only if
and to the extent that following the receipt of the Advice or the amended or
supplemented Prospectus the misstatement or omission giving rise to such Loss
would have been corrected.  In no event shall the liability of any
selling Holder hereunder be greater in amount than the dollar amount of the net
proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation. 

     

     (c)           Conduct of Indemnification
Proceedings. If any Proceeding shall be brought or asserted against any
Person entitled to indemnity hereunder (an “Indemnified Party”), such
Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying
Party”) in writing, and the Indemnifying Party shall assume the defense
thereof, including the employment of counsel reasonably satisfactory to the
Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided that the failure of any Indemnified
Party to give such notice shall not relieve the Indemnifying Party of its
obligations or liabilities pursuant to this Agreement, except (and only) to the
extent that it shall be finally determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) that such
failure shall have proximately and materially adversely prejudiced the
Indemnifying Party. 

     

    
      
        
        

      

      
         13 

        
          

        

      

      
        
        

      

       

    

     An
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties
unless:  (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party
shall have been advised by counsel that a conflict of interest would exist if
the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party
in writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and such counsel shall be at the expense of the Indemnifying
Party).  The Indemnifying Party shall not be liable for any settlement
of any such Proceeding effected without its written consent.  No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending Proceeding in respect of which any
Indemnified Party is a party, unless such settlement includes an unconditional
release of such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding. 

     

     All
fees and expenses of the Indemnified Party (including reasonable fees and
expenses to the extent incurred in connection with investigating or preparing to
defend such Proceeding in a manner not inconsistent with this Section) shall be
paid to the Indemnified Party, as incurred, within ten Trading Days of written
notice thereof to the Indemnifying Party (provided, that the Indemnifying Party
may require such Indemnified Party to undertake to reimburse all such fees and
expenses to the extent it is finally judicially determined that such Indemnified
Party is not entitled to indemnification hereunder). 

     

     (d)           Contribution.  If
a claim for indemnification under Section 8(a) or 8(b) is unavailable to an
Indemnified Party (by reason of public policy or otherwise), then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations.  The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information supplied by,
such Indemnifying Party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission.  The amount paid or payable by a party
as a result of any Losses shall be deemed to include, subject to the limitations
set forth in Section 8(c), any reasonable attorneys’ or other reasonable fees or
expenses incurred by such party in connection with any Proceeding to the extent
such party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms.  In no event shall any selling Holder be
required to contribute an amount under this Section 8(d) in excess of the gross
proceeds received by such Holder upon sale of such Holder’s Registrable
Securities pursuant to the Registration Statement giving rise to such
contribution obligation. 

     

     The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 8(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in the immediately preceding paragraph.  No
Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation. 

     

    
      
        
        

      

      
         14 

        
          

        

      

      
        
        

      

       

    

     The
indemnity and contribution agreements contained in this Section are in addition
to any liability that the Indemnifying Parties may have to the Indemnified
Parties. 

     

     9.      
 
Rule
144. 

     

     Until
such time as all of the Registrable Securities may be sold pursuant to Rule 144
without restrictions on volume, as long as any Holder owns Shares or Registrable
Securities, the Company covenants to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to Section
13(a) or 15(d) of the Exchange Act.  Until such time as all of the
Registrable Securities may be sold pursuant to Rule 144 without restrictions on
volume, as long as any Holder owns Shares or Registrable Securities, if the
Company is not required to file reports pursuant to Section 13(a) or 15(d) of
the Exchange Act, it will prepare and furnish to the Holders and make publicly
available in accordance with Rule 144 annual and quarterly financial statements,
together with a discussion and analysis of such financial statements in form and
substance substantially similar to those that would otherwise be required to be
included in reports required by Section 13(a) or 15(d) of the Exchange Act, as
well as any other information required thereby, in the time period that such
filings would have been required to have been made under the Exchange Act;
provided that the provisions of this sentence shall be of no further force and
effect in the event of any sale of the Company or substantially all of its
assets. 

     

     10.   Termination of Right of
First Refusal.  The rights of first refusal provided by Section
8 of each of the Purchase Agreements to which a Stockholder is a party are
hereby terminated. 

     

     11.   Miscellaneous. 

     

     (a)           Remedies.  In
the event of a breach by the Company or by a Holder, of any of their obligations
under this Agreement, each Holder or the Company, as the case may be, in
addition to being entitled to exercise all rights granted by law and under this
Agreement, including recovery of damages, will be entitled to specific
performance of its rights under this Agreement.  The Company and each
Holder agree that monetary damages would not provide adequate compensation for
any losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate. 

     

     (b)           Entire
Agreement.  This Agreement constitutes the full and entire
understanding and agreement between the parties with regard to the subjects
hereof and thereof, and no party shall be liable or bound to any other in any
manner by any representations, warranties, covenants and agreements except as
specifically set forth herein and therein.  Without limiting the
foregoing, this Agreement supersedes the registration rights provisions
contained in Section 7 of each Purchase Agreement. 

     

    
      
        
        

      

      
         15 

        
          

        

      

      
        
        

      

       

    

     (c)           Compliance.  Each
Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to the Registration
Statement. 

     

     (d)           Discontinued
Disposition.  Each Holder agrees by its acquisition of such
Registrable Securities that, upon receipt of a notice from the Company of the
occurrence of any event of the kind described in Sections 6(c) or 6(j), such
Holder will forthwith discontinue disposition of such Registrable Securities
under the Registration Statement until such Holder’s receipt of the copies of
the supplemented Prospectus and/or amended Registration Statement or until it is
advised in writing (the “Advice”) by the Company that
the use of the applicable Prospectus may be resumed, and, in either case, has
received copies of any additional or supplemental filings that are incorporated
or deemed to be incorporated by reference in such Prospectus or Registration
Statement.  The Company may provide appropriate stop orders to enforce
the provisions of this paragraph. 

     

     (e)           Amendments and
Waivers.  The provisions of this Agreement, including the
provisions of this Section 11(e), may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the same shall be in writing and signed by the Company and the
Holders of no less than a majority in interest of the then outstanding
Registrable Securities.  Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of certain Holders and that does not directly
or indirectly affect the rights or obligations of other Holders may be given by
Holders of at least a majority of the Registrable Securities to which such
waiver or consent relates; provided, further
that no amendment or waiver to any provision of this Agreement relating to
naming any Holder or requiring the naming of any Holder as an underwriter may be
effected in any manner without such Holder’s prior written
consent. 

     

     (f)           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile (provided the sender receives a
machine-generated confirmation of successful transmission) at the facsimile
number specified in this Section prior to 6:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number
specified in this Section on a day that is not a Trading Day or later than 6:30
p.m. (New York City time) on any Trading Day, (c) the Trading Day following the
date of mailing, if sent by U.S. nationally recognized overnight courier
service, or (d) upon actual receipt by the party to whom such notice is required
to be given.  The address for such notices and communications shall be
as follows: 

     

    
      	  
      	
               If
      to the Company: 

            	
               SinoHub,
      Inc. 

            
	  
      	  
      	
               6/F,
      Building 51, Road 5, Qiongyu Blvd. 

            
	  
      	  
      	
               Technology Park,
      Nanshan District 

            
	  
      	  
      	
               Shenzhen,
      People’s Republic of China 518057 

            
	  
      	  
      	
               Attn:
      Chief Executive Officer 

            
	  
      	  
      	
               Facsimile:
      +86-755-2661-2060 

            

    

     

    
      
        
        

      

      
         16 

        
          

        

      

      
        
        

      

       

    

    
      	  
      	  
      	  
      
	  
      	
               With
      a copy to: 

            	
               Seyfarth
      Shaw LLP 

            
	  
      	  
      	
               Two
      Seaport Lane, Suite 300 

            
	  
      	  
      	
               Boston,
      MA 02210 

            
	  
      	  
      	
               Facsimile:  (617)
      946-4801 

            
	  
      	  
      	
               Attn.:  Gregory
      L. White, Esq. 

            
	   	   	   
	   	
               If
      to an Investor: 

            	
               To
      the address set forth under such Investor’s name on the signature pages
      hereto. 

            
	   	   	   
	   	
               If
      to any other Person who 
 is then the
      registered Holder: 	
               To
      the address of such Holder as it appears in the stock transfer books of
      the Company or such other address as may be designated in writing
      hereafter, in the same manner, by such Person. 

            
	   	   	   

    

     

     or
such other address as may be designated in writing hereafter, in the same
manner, by such Person. 

     

     (g)           Successors and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and
shall inure to the benefit of each Holder.  The Company may not assign
its rights or obligations hereunder without the prior written consent of each
Holder.  Each Holder may assign their respective rights hereunder in
the manner and to the Persons as permitted under the Purchase
Agreement. 

     

     (h)           Execution and
Counterparts.  This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same
Agreement.  In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof. 

     

     (i)           Governing
Law.  This Agreement shall be governed by and construed under
the General Corporation Law of the State of Delaware as to all matters within
the scope thereof and as to all other matters by the internal laws of The
Commonwealth of Massachusetts as applied to agreements among Massachusetts
residents entered into and to be performed entirely within Massachusetts,
without reference to principles of conflict of laws or choice of
laws. 

     

     (j)           Cumulative
Remedies.  The remedies provided herein are cumulative and not
exclusive of any remedies provided by law. 

     

    
      
        
        

      

      
         17 

        
          

        

      

      
        
        

      

       

       (k)           Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction.  It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable. 

       

    

     (l)           
Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof. 

     

     (m)          Independent Nature of
Investors’ Obligations and Rights.  The obligations of each
Investor under this Agreement are several and not joint with the obligations of
each other Investor, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor under this
Agreement.  Nothing contained herein or in any Transaction Document,
and no action taken by any Investor pursuant thereto, shall be deemed to
constitute the Investors as a partnership, an association, a joint venture or
any other kind of entity, or create a presumption that the Investors are in any
way acting in concert or as a group with respect to such obligations or the
transactions contemplated by this Agreement or any other Transaction
Document.  Each Investor acknowledges that no other Investor will be
acting as agent of such Investor in enforcing its rights under this
Agreement.  Each Investor shall be entitled to independently protect
and enforce its rights, including without limitation the rights arising out of
this Agreement, and it shall not be necessary for any other Investor to be
joined as an additional party in any Proceeding for such purpose.  The
Company acknowledges that each of the Investors has been provided with the same
Registration Rights Agreement for the purpose of closing a transaction with
multiple Investors and not because it was required or requested to do so by any
Investor. 

     

     (n)           Termination of the Company's Obligations.  The Company shall
have no obligations pursuant to Sections 2-4 hereunder with respect
to:  (i) any request or requests for registration made by any Holder
on a date more than five (5) years after the
closing date of the Company's initial public offering; or (ii) any Registrable
Securities proposed to be sold by a Holder in a registration pursuant to
Sections 2-4 hereunder if, in the opinion of counsel to the Company, all such
Registrable Securities proposed to be sold by a Holder may be sold in a three
(3) month period without registration under the Securities Act pursuant to Rule
144 under the Securities Act. 

     

    

     

     [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK 

     SIGNATURE
PAGES TO FOLLOW] 

     

    
      
        
        

      

      
         18 

        
          

        

      

      
        
        

      

    

    

     

     IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as
of the date first written above. 

     

    
      
        
          
            
              	   	 SINOHUB,
      INC. 	   
	   	   	   	   
	   	   	   	   
	   	   	   	   
	   	   	   	   
	   	   	   	   
	
                       

                    	
                       By:
      

                    	 /s/ Henry
      T. Cochran   	   
	   	   	 Name:
      Henry T. Cochran 	   
	   	   	 Title:
      CEO 	   
	   	   	   	   

            

          

        

      

    

    

     

    

     

     [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK 

     SIGNATURE
PAGES OF INVESTORS TO FOLLOW] 

     

    
      
        
        

      

      
         19 

        
          

        

      

      
        
        

      

       

    

     IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as
of the date first written above. 

     

    
      
        
          
            
              
                
                  
                    	   	 NAME
      OF STOCKHOLDER 	   
	   	   	   	   
	   	 Henry
      T. Cochran   	   
	   	   	   	   
	   	   	   	   
	
                             

                          	
                             By:
      

                          	 /s/ Henry
      T. Cochran   	   

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	   	 ADDRESS
      FOR NOTICE 	   
	   	   	   	   
	
                                                             

                                                          	 c/o: 	   	   
	   	   	   	   
	   	 Attention:  	   	   
	   	   	   	   	   
	   	 Street:  	
                                                             Coastal
      Rose Garden II 35-17C 

                                                          	   
	   	   	   	   	   
	   	 Street: 	
                                                             Shekou,
      Nanshan District  

                                                          	   
	   	   	   	   	   
	   	 City/State/Zip:  	
                                                             Shenzhen 

                                                          	   
	   	   	   	   	   
	   	 Country: 	
                                                             P.R.
      CHINA 

                                                          	   
	   	   	   	   	   
	   	 Postal
      Code: 	
                                                             518028  

                                                          	   
	   	   	   	   	   
	   	 Tel:  	
                                                             +86-755-2661-2106 

                                                          	   
	   	   	   	   	   
	   	 Fax:   	
                                                             +86-755-2661-2060  

                                                          	   

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
           20 

          
            

          

        

        
          
          

        

      

     IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as
of the date first written above. 

    
       

      
        
          
            
              
                
                  
                    
                      	 	 NAME
      OF STOCKHOLDER 	   
	   	   	   	   
	   	
                               Wang Zan 

                            	   
	   	   	   	   
	   	   	   	   
	
                               

                            	
                               By:
      

                            	 /s/ Wang Zan 	   

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	   	 ADDRESS
      FOR NOTICE 	   
	   	   	   	   
	
                                                                 

                                                              	 c/o: 	   	   
	   	   	   	   
	   	 Attention:  	   	   
	   	   	   	   	   
	   	 Street:  	
                                                                
                                                                   Rm
      301, Unit 3, Building 27 

                                                                

                                                              	   
	   	   	   	   	   
	   	 Street: 	
                                                                
                                                                   Wan
      Quan Xin Xin Jia Yuan, Haidian District 

                                                                

                                                              	   
	   	   	   	   	   
	   	 City/State/Zip:  	
                                                                
                                                                   Beijing 

                                                                

                                                              	   
	   	   	   	   	   
	   	 Country: 	
                                                                 P.R.
      CHINA 

                                                              	   
	   	   	   	   	   
	   	 Postal
      Code: 	
                                                                 100089 

                                                              	   
	   	   	   	   	   
	   	 Tel:  	
                                                                
                                                                  
                                                                     

                                                                  

                                                                

                                                              	   
	   	   	   	   
	   	 Fax:   	
                                                                
                                                                   

                                                                

                                                              	 

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
        

      

      
         21 

        
          

        

      

      
        
        

      

    

     

     IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as
of the date first written above. 

     

    
      
        
          
            
              
                
                  
                    
                      	 	 NAME
      OF STOCKHOLDER 	   
	   	   	   	   
	   	
                               Jan Reibo 

                            	   
	   	   	   	   
	   	   	   	   
	
                               

                            	
                               By:
      

                            	 /s/ Jan Reibo 	   

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	   	 ADDRESS
      FOR NOTICE 	   
	   	   	   	   
	
                                                                 

                                                              	 c/o: 	   	   
	   	   	   	   
	   	 Attention:  	   	   
	   	   	   	   	   
	   	 Street:  	
                                                                
                                                                  
                                                                     64/38
      M.6 Crystal Park, Soi Yothinpattana 

                                                                  

                                                                

                                                              	   
	   	   	   	   	   
	   	 Street: 	
                                                                
                                                                  
                                                                     Praditmanutham
      Road, Latprao Latprao 

                                                                  

                                                                

                                                              	   
	   	   	   	   	   
	   	 City/State/Zip:  	
                                                                
                                                                   Bangkok 

                                                                

                                                              	   
	   	   	   	   	   
	   	 Country: 	
                                                                 Thailand 

                                                              	   
	   	   	   	   	   
	   	 Postal
      Code: 	
                                                                 10230 

                                                              	   
	   	   	   	   	   
	   	 Tel:  	
                                                                
                                                                  
                                                                     

                                                                  

                                                                

                                                              	   
	   	   	   	   
	   	 Fax:   	
                                                                
                                                                   

                                                                

                                                              

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
         22 

        
          

        

      

      
        
        

      

       

    

     IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as
of the date first written above.    

    
       

      
        
          
            
              
                
                  
                    
                      	 	 NAME
      OF STOCKHOLDER 	   
	   	   	   	   
	   	
                              
                                 Li
      Xian Qiu 

                              

                            	   
	   	   	   	   
	   	   	   	   
	
                               

                            	
                               By:
      

                            	 /s/ Li
      Xian Qiu 	   

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	   	 ADDRESS
      FOR NOTICE 	   
	   	   	   	   
	
                                                                 

                                                              	 c/o: 	   	   
	   	   	   	   
	   	 Attention:  	   	   
	   	   	   	   	   
	   	 Street:  	
                                                                
                                                                  
                                                                     Hua
      Qiao Cheng Chum Shui An 

                                                                  

                                                                

                                                              	   
	   	   	   	   	   
	   	 Street: 	
                                                                
                                                                  
                                                                     Building
      J, Apt 203, Nanshan District 

                                                                  

                                                                

                                                              	   
	   	   	   	   	   
	   	 City/State/Zip:  	
                                                                
                                                                  
                                                                     Shenzhen,
      Guangdong 

                                                                  

                                                                

                                                              	   
	   	   	   	   	   
	   	 Country: 	
                                                                 P.R.
      China 

                                                              	   
	   	   	   	   	   
	   	 Postal
      Code: 	
                                                                 518129 

                                                              	   
	   	   	   	   	   
	   	 Tel:  	
                                                                
                                                                  
                                                                     

                                                                  

                                                                

                                                              	   
	   	   	   	   
	   	 Fax:   	
                                                                
                                                                   

                                                                

                                                              

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
         23 

        
          

        

      

      
        
        

      

    

     

     SCHEDULE
1 

     PURCHASE
AGREEMENTS 

    

     Series
A Stock Purchase Agreement dated as of April 15, 2002 between SinoHub
International, Inc. (f/k/a SinoHub, Inc.) (“Old SinoHub”) and Ronald J.
Hollmeier 

    

     Series
A Stock Purchase Agreement dated as of December 11, 2007 between Old SinoHub and
Manfred J. Pfeifer 

    

     Series
A Stock Purchase Agreement dated as of January 10, 2003 between Old SinoHub and
Jan Reibo 

    

     Series
A Stock Purchase Agreement dated as of May 31, 2001 by and between Old SinoHub
and Zan Wang, Henry T. Cochran, and Jan Reibo 

    

     Series
A Stock Purchase Agreement dated as of October 22, 2001 between Old SinoHub and
Donald G. Thomas 

    

     Series
A Stock Purchase Agreement dated as of April 30, 2004 between Old SinoHub and
Zan Wang 

    

     Series
B Stock Purchase Agreement dated as of May 12, 2005 between Old SinoHub and Jan
Reibo 

    

     Series
B Stock Purchase Agreement dated as of November 1, 2004 between Old SinoHub and
Jan Reibo 

    

     Series
C Stock Purchase Agreement dated as of November 27, 2007 between Old SinoHub, Li
Xian Qiu and Zhang Yi 

    

     Series
C Stock Purchase Agreement dated as of December 28, 2007 between Old SinoHub and
Li Xian Qiu 

    

     Series
C Stock Purchase Agreement dated as of December 14, 2007 between Old SinoHub and
Ronald Cochrane 

    

    
      
        
        

      

      
         24 

        
          

        

      

      
        
        

      

    

     

     Annex
A 

     

     (TO BE
USED ONLY IN CONNECTION WITH A REGISTRATION OF SHARES UNDER THE AGREEMENT – DO
NOT COMPLETE AT TIME OF SIGNING THE AGREEMENT) 

     

     SINOHUB,
INC. 

     

     Selling
Security Holder Notice and Questionnaire 

     

     The
undersigned beneficial owner of common stock (the “Common Stock”), of SinoHub,
Inc., a Delaware corporation (the “Company”), understands that
the Company has filed or intends to file with the Securities and Exchange
Commission (the “Commission”) a Registration
Statement for the registration and resale of the Registrable Securities, in
accordance with the terms of the Registration Rights Agreement, dated as of
[_____________,
2009] (the “Registration Rights
Agreement”), among the Company and the Investors named
therein.  A copy of the Registration Rights Agreement is available
from the Company upon request at the address set forth below.  All
capitalized terms used and not otherwise defined herein shall have the meanings
ascribed thereto in the Registration Rights Agreement. 

     

     The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate: 

     

     QUESTIONNAIRE 

     

    
      	
               1.   

            	
               Name. 

            

    

     

    
      	   	
               (a)   

            	
               Full
      Legal Name of Selling
Securityholder 

            

    

     

    
      
        

      

    

     

    
      	   	
               (b)   

            	
               Full
      Legal Name of Registered Holder (if not the same as (a) above) through
      which Registrable Securities Listed in Item 3 below are
      held: 

            

    

     

    
      
        

      

    

     

    
      	   	
               (c)   

            	
               Full
      Legal Name of Natural Control Person (which means a natural person who
      directly or indirectly alone or with others has power to vote or dispose
      of the securities covered by the
  questionnaire): 

            

    

      

      
        

      

    

     

    
      	
               2.   

            	
               Address
      for Notices to Selling
Securityholder: 

            

    

     

    
      
        	   	   
	   	   
	   	   
	
                 Telephone: 

              	  
      
	
                 Fax: 

              	  
      
	
                 Contact
      Person: 

              	  
      

      

    

    

    
      
        
        

      

      
         25 

        
          

        

      

      
        
        

      

    

     

    
      	
               3.   

            	
               Beneficial
      Ownership of Registrable
Securities: 

            

    

     

     Type
and Principal Amount of Registrable Securities beneficially
owned: 

     

    
      
        	   	   
	   	   
	   	   

      

       

      
        	
                 4.   

              	
                 Broker-Dealer
      Status: 

              

      

    

     

    
      	   	
               (a)   

            	
               Are
      you a broker-dealer? 

            
	   	   	   
	
               Yes    o    

            	   	 No
      o 

    

    
      	   	   
	
               Note:  

            	 If
      yes, the Commission’s staff has indicated that you should be identified as
      an underwriter in the Registration
Statement. 

    

     

    
      	   	
               (b)   

            	
               Are
      you an affiliate of a broker-dealer? 

            
	   	   	   
	
               Yes  o  

            	   	 No 
      o 

    

     

    
      	   	
               (c)   

            	
               If
      you are an affiliate of a broker-dealer, do you certify that you bought
      the Registrable Securities in the ordinary course of business, and at the
      time of the purchase of the Registrable Securities to be resold, you had
      no agreements or understandings, directly or indirectly, with any person
      to distribute the Registrable Securities? 

            
	   	   	   
	
               Yes  o  

            	   	 No 
      o 
	   	   	   
	   	
               Note:   

            	 If
      yes, the Commission’s staff has indicated that you should be identified as
      an underwriter in the Registration
Statement. 

    

     

    
      	
               5.   

            	
               Beneficial
      Ownership of Other Securities of the Company Owned by the Selling
      Securityholder. 

            

    

     

     Except
as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable
Securities listed above in Item 3. 

     

     Type
and Amount of Other Securities beneficially owned by the Selling
Securityholder: 

     

    

      
        	  
      	  
      
	  
      	  
      
	  
      	  
      

      

    

    
       

    

    
      
        
        

      

      
         26 

        
          

        

      

      
        
        

      

       

    

    
      	
               6.   

            	
               Relationships
      with the Company: 

            

    

     

     Except
as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity
securities of the undersigned) has held any position or office or has had any
other material relationship with the Company (or its predecessors or affiliates)
during the past three years. 

     

     State
any exceptions here: 

      

      
        

      

      
        

      

      
        

      

       

    

    
       7.            
The
Company has advised each Selling Stockholder that it is the view of the
Commission that it may not use shares registered on the Registration Statement
to cover short sales of Common Stock made prior to the date on which the Registration Statement is declared
effective by the Commission, in accordance with 1997 Securities and Exchange
Commission Manual of Publicly Available Telephone Interpretations Section
A.65.  If a Selling Stockholder uses the prospectus for any sale of
the Common Stock, it will be subject to the prospectus delivery requirements of
the Securities Act.  The Selling Stockholders will be responsible to
comply with the applicable provisions of the Securities Act and Exchange Act,
and the rules and regulations thereunder promulgated, including, without
limitation, Regulation M, as applicable to such Selling Stockholders in
connection with resales of their respective shares under the Registration
Statement. 

    

     

     The
undersigned agrees to promptly notify the Company of any inaccuracies or changes
in the information provided herein that may occur subsequent to the date hereof
and prior to the Effective Date for the Registration Statement. 

     

     By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 6 and the inclusion of such
information in the Registration Statement and the related
prospectus.  The undersigned understands that such information will be
relied upon by the Company in connection with the preparation or amendment of
the Registration Statement and the related prospectus. 

     

     IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
and Questionnaire to be executed and delivered either in person or by its duly
authorized agent. 

     

    
      
        	 Dated: 	   	   	 Beneficial
      Owner:  	   	   

      

      
        
          	   	   	   	   
	
                   

                	
                   By:
      

                	   	   
	   	   	 Name: 	   
	   	   	 Title: 	   
	   	   	   	   

        

      

    

                                                                                                                                      

    
      
        
        

      

      
         27 

        
          

        

      

      
        
        

      

    

     

     PLEASE
FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO
+86-755-2661-2060 ATTENTION HARRY COCHRAN, AND RETURN THE ORIGINAL BY OVERNIGHT
MAIL, TO: 

     

     Henry
T. Cochran 

     SinoHub,
Inc. 

     Unit
B, 17th Floor, Tins Plaza 

     3
San On Street 

     Tuen
Mun, New Territories 

     Hong
Kong, SAR 

     Tel:
+852-2464-7178 

     

    
      
        
        

      

      
         28 

        
          

        

      

      
        
        

      

       

    

     Annex
B 

     

     Plan
of Distribution 

     

     The
Selling Stockholders and any of their pledgees, donees, transferees, assignees
and successors-in-interest may, from time to time, sell any or all of their
shares of Common Stock on any stock exchange, market or trading facility on
which the shares are traded or quoted or in private
transactions.  These sales may be at fixed or negotiated
prices.  The Selling Stockholders may use any one or more of the
following methods when selling shares: 

     

    
      	
               ·   

            	
               ordinary
      brokerage transactions and transactions in which the broker-dealer
      solicits Investors; 

            

    

     

    
      	
               ·   

            	
               block
      trades in which the broker-dealer will attempt to sell the shares as agent
      but may position and resell a portion of the block as principal to
      facilitate the transaction; 

            

    

     

    
      	
               ·   

            	
               purchases
      by a broker-dealer as principal and resale by the broker-dealer for its
      account; 

            

    

     

    
      	
               ·   

            	
               an
      exchange distribution in accordance with the rules of the applicable
      exchange; 

            

    

     

    
      	
               ·   

            	
               privately
      negotiated transactions; 

            

    

     

    
      	
               ·   

            	
               to
      cover short sales made after the date that this Registration Statement is
      declared effective by the
Commission; 

            

    

     

    
      	
               ·   

            	
               broker-dealers
      may agree with the Selling Stockholders to sell a specified number of such
      shares at a stipulated price per
share; 

            

    

     

    
      	
               ·   

            	
               a
      combination of any such methods of sale;
and 

            

    

     

    
      	
               ·   

            	
               any
      other method permitted pursuant to applicable
  law. 

            

    

     

     The
Selling Stockholders may also sell shares under Rule 144 under the Securities
Act, if available, rather than under this prospectus. 

     

     Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to
participate in sales.  Broker-dealers may receive commissions or
discounts from the Selling Stockholders (or, if any broker-dealer acts as agent
for the purchaser of shares, from the purchaser) in amounts to be
negotiated.  The Selling Stockholders do not expect these commissions
and discounts to exceed what is customary in the types of transactions
involved. 

     

     The
Selling Stockholders may from time to time pledge or grant a security interest
in some or all of the Securities owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may
offer and sell shares of Common Stock from time to time under this prospectus,
or under an amendment to this prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act of 1933 amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest
as selling stockholders under this prospectus. 

     

    
      
        
        

      

      
         29 

        
          

        

      

      
        
        

      

       

    

     Upon
the Company being notified in writing by a Selling Stockholder that any material
arrangement has been entered into with a broker-dealer for the sale of Common
Stock through a block trade, special offering, exchange distribution or
secondary distribution or a purchase by a broker or dealer, a supplement to this
prospectus will be filed, if required, pursuant to Rule 424(b) under the
Securities Act, disclosing (i) the name of each such Selling Stockholder and of
the participating broker-dealer(s), (ii) the number of shares involved, (iii)
the price at which such the shares of Common Stock were sold, (iv)the
commissions paid or discounts or concessions allowed to such broker-dealer(s),
where applicable, (v) that such broker-dealer(s) did not conduct any
investigation to verify the information set out or incorporated by reference in
this prospectus, and (vi) other facts material to the transaction.  In
addition, upon the Company being notified in writing by a Selling Stockholder
that a donee or pledgee intends to sell more than 500 shares of Common Stock, a
supplement to this prospectus will be filed if then required in accordance with
applicable securities law. 

     

     The
Selling Stockholders also may transfer the shares of Common Stock in other
circumstances, in which case the transferees, pledgees or other successors in
interest will be the selling beneficial owners for purposes of this
prospectus. 

     

     The
Selling Stockholders and any broker-dealers or agents that are involved in
selling the shares may be deemed to be “underwriters” within the meaning of the
Securities Act in connection with such sales.  In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.  Discounts,
concessions, commissions and similar selling expenses, if any, that can be
attributed to the sale of Securities will be paid by the Selling Stockholder
and/or the purchasers.  Each Selling Stockholder has represented and
warranted to the Company that it acquired the securities subject to this
Registration Statement in the ordinary course of such Selling Stockholder’s
business and, at the time of its purchase of such securities such Selling
Stockholder had no agreements or understandings, directly or indirectly, with
any person to distribute any such securities. 

     

     The
Company has advised each Selling Stockholder that it is the view of the
Commission that it may not use shares registered on this Registration Statement
to cover short sales of Common Stock made prior to the date on which this
Registration Statement shall have been declared effective by the
Commission.  If a Selling Stockholder uses this prospectus for any
sale of the Common Stock, it will be subject to the prospectus delivery
requirements of the Securities Act.  The Selling Stockholders will be
responsible to comply with the applicable provisions of the Securities Act and
Exchange Act, and the rules and regulations thereunder promulgated, including,
without limitation, Regulation M, as applicable to such Selling Stockholders in
connection with resales of their respective shares under this Registration
Statement. 

     

     The
Company is required to pay all fees and expenses incident to the registration of
the shares, but the Company will not receive any proceeds from the sale of the
Common Stock.  The Company has agreed to indemnify the Selling
Stockholders against certain losses, claims, damages and liabilities, including
liabilities under the Securities Act. 

     

     

     30

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