Document:

Unassociated Document

    CONSULTING
      AGREEMENT

    

    This
      Consulting Agreement (“Agreement”), which shall be effective as of July 31,
      2007, by and between DIODES, INCORPORATED (“DIODES”), and MR. M.K. LU (“M.K.”),
      and each
      may
      be referred to as a party (“Party”), or both may be collectively known as
      parties (“Parties”),
      is made with reference to the
      following facts:

     

    RECITALS

     

    A. DIODES
      is engaged in the business of manufacturing, marketing, and distributing a
      line
      of discrete and analog semi-conductor products;

     

    B. M.K.
      is an expert in the development, manufacturing, distributing and marketing
      of
      discrete and analog semi-conductor products. M.K.’s expertise has been available
      to DIODES during the time period M.K. served as a member of DIODES’ Board of
      Directors beginning in 1995 and ending upon his retirement from the Board of
      Directors on May 31, 2007. 

     

    C. DIODES
      wants to retain the ability to draw on M.K.’s expertise, even though M.K. is no
      longer a member of the Board of Directors, and DIODES is desirous of entering
      into this Agreement for the purposes of maintaining the ability of drawing
      on
      M.K.’s expertise.

     

    D. M.K.
      is willing to act as a consultant for DIODES and to impart his expertise to
      DIODES on the terms and conditions set forth in this Agreement.

     

    NOW,
      THEREFORE, BOTH PARTIES HEREBY AGREED AS FOLLOWS: 

     

    1. The
      above Recitals are incorporated into this Agreement as though set forth in
      full
      herein. 

    2. DIODES
      hereby appoints M.K. as its consultant for the terms and conditions (“Terms”)
      set forth in this Agreement. M.K. accepts such appointment on the Terms set
      forth herein and agrees to accept consulting service assignments for
      DIODES.

    3.
      From time to time, DIODES will request M.K. to provide consulting services
      in
      the form of various projects, which will utilize the expertise of M.K., and
      M.K.
      will undertake to complete such projects. In addition, M.K. may, from time
      to
      time, suggest to DIODES the need for certain projects utilizing his expertise
      and shall act as a consultant to accomplish such projects after DIODES’s
      approval. No consulting services shall be undertaken by M.K. without the express
      consent of DIODES. 

    4. M.K.
      shall be compensated for his consulting services on an hourly basis in
      accordance with the generally accepted hourly rate for professional consulting
      services at the time the consulting services are performed. The Parties shall
      agree upon a rate for the consulting services prior to M.K. undertaking a
      project under this Agreement. DIODES shall also compensate M.K. for any
      out-of-pocket expenses incurred in connection with the consulting services.
      M.K.
      shall invoice DIODES for the consulting services on a monthly basis, and DIODES
      shall pay all such invoices on a “net thirty (30)” day basis.

    5. This
      Agreement shall be effective as of July 31, 2007, for a one-year term ending
      July 31, 2008. This Agreement shall be automatically renewed on a year-to-year
      basis unless, within sixty (60) days of the expiration of any one (1) year
      term,
      one Party gives notice to the other of its intention to terminate this Agreement
      at the end of such one-year term. Such notice shall be communicated via e-mail.
      

    6. Once
      M.K. has undertaken a project from DIODES, he alone shall determine the manner
      in which the consulting services are performed and shall report back to DIODES
      at the conclusion of the project. DIODES shall have no input as to the method
      or
      manner utilized by M.K. in performing the consulting services. 

    7.
      M.K., for the duration of this Agreement, shall be an independent contractor.
      Nothing contained herein shall be deemed to cause this Agreement to create
      an
      agency, partnership, or joint venture between the Parties, and nothing in this
      Agreement shall be interpreted as construing or creating or establishing a
      relationship of employer and employee between the Parties. Unless otherwise
      agreed upon by DIODES, the consulting services shall be performed personally
      and
      exclusively by M.K.

    8. It
      is understood that in connection with performing the consulting services, M.K.
      may come into possession of certain Confidential Information belonging to
      DIODES. M.K. agrees to keep this Confidential Information in the strictest
      confidence and will not disclose it by any means to any third party not employed
      by or affiliated with DIODES. Upon the completion of a project, M.K. shall
      return any Confidential Information to DIODES.

    9.
      This Agreement may not be assigned, nor the duties hereunder delegated, to
      any
      party.

    10.
      This Agreement shall automatically terminate upon the death of M.K. or upon
      the
      bankruptcy or insolvency of either M.K. or DIODES.

    11.
      This Agreement shall be governed by and construed in all respects in accordance
      with the laws of the State of California.

    12.
      This Agreement constitutes the entire Agreement between the Parties and
      supersedes all prior representations, proposals, discussions and communications,
      whether oral or in writing. This Agreement may be amended or modified only
      by a
      written document executed by the Parties hereto. 

     

    
      
         

      

      
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    13.
      The Parties agree that any litigation to enforce or interpret this Agreement
      may
      be brought only in the appropriate Court in Ventura County, California. The
      prevailing Party in any such litigation shall be entitled to recover its
      reasonable attorneys’ fees.

     

    
      	Dated: July 31, 2007	 	 	 
	 	 	 	 
	DIODES, INCORPORATED	 	 	M.K.
	 	 	 	 
	 	 	 	 
	/s/ 	 	 	/s/ 
	
              
                

              

               

              
                

              
Title	 	 	
              
Mr.
              M. K. Lu

    
      
         

      

      
        2Unassociated Document

    EXHIBIT
      10.65

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of February 29, 2008, by and among Hoku Scientific,
      Inc., a Delaware corporation (the “Company”),
      and
      the several purchasers signatory hereto (each a “Purchaser”
and
      collectively, the “Purchasers”).

     

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      February 25, 2008 between the Company and each Purchaser (the “Purchase
      Agreement”).

     

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration, the receipt and adequacy of
      which
      are hereby acknowledged, the Company and each of the Purchasers agree as
      follows: 

     

    1. Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Purchase Agreement shall have the meanings given such terms in the Purchase
      Agreement. As used in this Agreement, the following terms shall have the
      following meanings:

     

    “Advice”
shall
      have the meaning set forth in Section 6(f).

     

    “Affiliate”
means,
      with respect to any person, any other person which directly or indirectly
      controls, is controlled by, or is under common control with, such
      person.

     

    “Business
      Day”
means
      a
      day, other than a Saturday or Sunday, on which banks in New York City are open
      for the general transaction of business.

     

    “Closing”
has
      the
      meaning set forth in the Purchase Agreement.

     

    “Closing
      Date”
has
      the
      meaning set forth in the Purchase Agreement.

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “common
      stock”
means
      the common stock of the Company, par value $0.001 per share, and any securities
      into which such common stock may hereinafter be reclassified. 

     

    “Effective
      Date”
means
      the date that the Registration Statement filed pursuant to Section 2(a) is
      first
      declared effective by the Commission.

     

    “Effectiveness
      Deadline”
means,
      with respect to the Initial Registration Statement or the New Registration
      Statement, the earlier of: (i) the thirtieth (30th)calendar
      day following the Closing Date; provided,
      that,
      if the Commission reviews and has written comments to a filed Registration
      Statement, then the Effectiveness Deadline under this clause (i) shall be the
      sixtieth (60th)calendar
      day following the Closing Date, and (ii) the fifth (5th)
      Trading
      Day following the date on which the Company is notified by the Commission that
      the Registration Statement will not be reviewed or is no longer subject to
      further review and comments and the effectiveness of the Registration Statement
      may be accelerated; provided,
      however,
      that if
      the Effectiveness Deadline falls on a Saturday, Sunday or other day that the
      Commission is closed for business, the Effectiveness Deadline shall be extended
      to the next Business Day on which the Commission is open for business.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2(b).

     

    “Event”
shall
      have the meaning set forth in Section 2(c).

     

    “Event
      Date”
shall
      have the meaning set forth in Section 2(c).

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

     

    “Filing
      Deadline”
means,
      with respect to the Registration Statement required to be filed pursuant to
      Section 2(a), the tenth (10th)calendar
      day following the Closing Date, provided,
      however,
      that if
      the Filing Deadline falls on a Saturday, Sunday or other day that the Commission
      is closed for business, the Filing Deadline shall be extended to the next
      business day on which the Commission is open for business.

     

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

     

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 5(c).

     

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 5(c).

     

    “Losses”
shall
      have the meaning set forth in Section 5(a).

     

    “New
      York Courts”
means
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan.

     

    “Person”
means
      an individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, joint stock company,
      government (or an agency or subdivision thereof) or other entity of any
      kind.

     

    “Placement
      Agent”
means
      Deutsche Bank Securities, Inc. and any permitted assigns.

     

    “Principal
      Market”
means
      the Trading Market on which the common stock is primarily listed on and quoted
      for trading, which, as of the Closing Date, shall be the Nasdaq Global
      Market.

     

    “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.

     

    “Register,”
      “registered”
and
      “registration”
refer
      to a registration made by preparing and filing a Registration Statement or
      similar document in compliance with the Securities Act and pursuant to Rule
      415,
      and the declaration or ordering of effectiveness of such Registration Statement
      or document.

     

    
      
         

      

      
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    “Registrable
      Securities”
means
      all of (i) the Shares and (ii) any securities issued or issuable upon any stock
      split, dividend or other distribution, recapitalization or similar event with
      respect to the foregoing, provided,
      that
      the Holder has completed and delivered to the Company a Selling Stockholder
      Questionnaire; and provided,
      further,
      that
      Shares shall cease to be Registrable Securities upon the earliest to occur
      of
      the following: (A) sale pursuant to a Registration Statement or Rule 144 under
      the Securities Act (in which case, only such security sold shall cease to be
      a
      Registrable Security); or (B) becoming eligible for sale by the Holder pursuant
      to the last sentence of Rule 144(b)(1)(i).

     

    “Registration
      Statements”
means
      any one or more registration statements of the Company filed under the
      Securities Act that covers the resale of any of the Registrable Securities
      pursuant to the provisions of this Agreement (including without limitation
      the
      Initial Registration Statement, the New Registration Statement and any Remainder
      Registration Statements), amendments and supplements to such Registration
      Statements, including post-effective amendments, all exhibits and all material
      incorporated by reference or deemed to be incorporated by reference in such
      Registration Statements.

     

    “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
      Guidance"
      means
      (i) any publicly-available written or oral guidance, comments, requirements
      or
      requests of the Commission staff and (ii) the Securities Act. 

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    “Selling
      Stockholder Questionnaire”
means
      a
      questionnaire in the form attached as Annex
      B
      hereto,
      or such other form of questionnaire as may reasonably be adopted by the Company
      from time to time.

     

    “Shares”
means
      the shares of common stock issued or issuable to the Purchasers pursuant to
      the
      Purchase Agreement.

     

    “Special
      Registration Statement”
shall
      mean a registration statement relating to any employee benefit plan under Form
      S-8 or similar form or with respect to any corporate reorganization or other
      transaction under Rule 145 of the Securities Act.

     

    “Trading
      Day”
means
      (i) a day on which the common stock is listed or quoted and traded on its
      Principal Market (other than the OTC Bulletin Board), or (ii) if the common
      stock is not listed on a Trading Market (other than the OTC Bulletin Board),
      a
      day on which the common stock is traded in the over-the-counter market, as
      reported by the OTC Bulletin Board, or (iii) if the common stock is not quoted
      on any Trading Market, a day on which the common stock is quoted in the
      over-the-counter market as reported in the “pink sheets” by Pink Sheets LLC (or
      any similar organization or agency succeeding to its functions of reporting
      prices); provided,
      that in
      the event that the common stock is not listed or quoted as set forth in (i),
      (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    “Trading
      Market”
means
      whichever of the New York Stock Exchange, the American Stock Exchange, the
      NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market
      or OTC Bulletin Board on which the common stock is listed or quoted for trading
      on the date in question. 

     

    2. Registration.

     

    (a) On
      or
      prior to the Filing Deadline, the Company shall prepare and file with the
      Commission a “Shelf” Registration Statement covering the resale of all of the
      Registrable Securities not already covered by an existing and effective
      Registration Statement for an offering to be made on a continuous basis pursuant
      to Rule 415 under which no Holder will be deemed an underwriter of the
      Registrable Securities registered therein, or, if Rule 415 is not available
      for
      offers and sales of the Registrable Securities, by such other means of
      distribution of Registrable Securities as the Holders may reasonably specify
      (the “Initial
      Registration Statement”).
      The
      Initial Registration Statement shall be on Form S-3 (except if the Company
      is
      then ineligible to register for resale of the Registrable Securities on Form
      S-3, in which case such registration shall be on such other form available
      to
      register for resale of the Registrable Securities as a secondary offering)
      subject to the provisions of Section 2(f) and shall contain (except if otherwise
      required pursuant to written comments received from the Commission upon a review
      of such Registration Statement) the “Plan of Distribution” section attached
      hereto as Annex
      A.
      Notwithstanding the registration obligations set forth in this subsection (a)
      and subject to subsections (b) and (c) of this Section 2, in the event the
      Commission informs the Company that all of the Registrable Securities cannot,
      as
      a result of the application of Rule 415, be registered for resale as a secondary
      offering on a single registration statement, or that registration of all the
      Registrable Securities on a single registration statement would cause any Holder
      to be deemed an underwriter with respect to such Registrable Securities, the
      Company agrees to promptly (i) inform each of the holders thereof and use its
      commercially reasonable efforts to file amendments to the Initial Registration
      Statement as required by the Commission and/or (ii) withdraw the Initial
      Registration Statement and file a new registration statement (a “New
      Registration Statement”),
      in
      either case covering the maximum number of Registrable Securities permitted
      to
      be registered by the Commission, on Form S-3 or such other form available to
      register for resale the Registrable Securities as a secondary
      offering;
      provided, however,
      that
      prior to filing such amendment or New Registration Statement, the Company shall
      be obligated to use its commercially reasonable efforts to advocate with the
      Commission for the registration of all of the Registrable Securities in
      accordance with the SEC Guidance, including without limitation, the Manual
      of
      Publicly Available Telephone Interpretations D.29. Notwithstanding any other
      provision of this Agreement and subject to the payment of liquidated damages
      in
      Section 2(c), if any SEC Guidance sets forth a limitation of the number of
      Registrable Securities permitted to be registered on a particular Registration
      Statement as a secondary offering (and notwithstanding that the Company used
      diligent efforts to advocate with the Commission for the registration of all
      or
      a greater number of Registrable Securities), unless otherwise directed in
      writing by a Holder as to its Registrable Securities, the number of Registrable
      Securities to be registered on such Registration Statement will first be reduced
      by Registrable Securities not acquired pursuant to the Purchase Agreement
      (whether pursuant to registration rights or otherwise), second by Registrable
      Securities represented by Shares (applied, in the case that some Shares may
      be
      registered, to the Holders on a pro rata basis based on the total number of
      unregistered Shares held by such Holders, subject to a determination by the
      Commission that certain Holders must be reduced first based on the number of
      Shares held by such Holders). In the event the Company amends the Initial
      Registration Statement or files a New Registration Statement, as the case may
      be, under clauses (i) or (ii) above, the Company will use its commercially
      reasonable efforts to file with the Commission, as promptly as allowed by
      Commission or staff guidance provided to the Company or to registrants of
      securities in general, one or more registration statements on Form S-3 or such
      other form available to register for resale those Registrable Securities that
      were not registered for resale on the Initial Registration Statement, as
      amended, or the New Registration Statement (the “Remainder
      Registration Statements”).

     

    
      
         

      

      
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    (b) The
      Company shall use its commercially reasonable efforts to cause each Registration
      Statement to be declared effective by the Commission as soon as practicable
      and,
      with respect to the Initial Registration Statement or the New Registration
      Statement, as applicable, no later than the Effectiveness Deadline (including
      filing with the Commission a request for acceleration of effectiveness in
      accordance with Rule 461 promulgated under the Securities Act within five (5)
      Business Days after the date that the Company is notified by the Commission
      that
      such Registration Statement will not be “reviewed,” or not be subject to further
      review and the effectiveness of such Registration Statement may be accelerated)
      and shall use its commercially reasonable efforts to keep each Registration
      Statement continuously effective under the Securities Act until the earlier
      of
      (i) such time as all of the Registrable Securities covered by such Registration
      Statement have been publicly sold by the Holders or (ii) the date that all
      Registrable Securities covered by such Registration Statement may be sold by
      non-affiliates without volume restrictions pursuant to the last sentence of
      Rule
      144(b)(1)(i) as determined by counsel to the Company pursuant to a written
      opinion letter to such effect, addressed and reasonably acceptable to the
      Company's transfer agent (the “Effectiveness
      Period”).
      Each
      Registration Statement shall also cover, to the extent allowable under the
      Securities Act and the rules promulgated thereunder (including Rule 416), such
      indeterminate number of additional shares of common stock resulting from stock
      splits, stock dividends or similar transactions with respect to the Registrable
      Securities. The Company shall promptly notify the Holders via facsimile or
      e-mail of the effectiveness of a Registration Statement within one (1) Business
      Day of the Effective Date. The Company shall, by 9:30 am Eastern Time on the
      first Trading Day after the Effective Date, file a Rule 424(b) prospectus with
      the Commission. Failure to so notify the Holders on or before the second Trading
      Day after such notification or effectiveness or failure to file a final
      Prospectus as aforesaid shall be deemed an Event under Section
      2(c).

     

    (c) If:
      (i)
      the Initial Registration Statement is not filed with the Commission on or prior
      to the Filing Deadline, (ii) the Initial Registration Statement or the New
      Registration Statement, as applicable, is not declared effective by the
      Commission (or otherwise does not become effective) for any reason on or prior
      to the Effectiveness Deadline, or less than all of the Registrable Securities
      are included in the Initial Registration Statement for any reason, including
      without limitation, the reasons described in Section 2(a) above, or (iii) after
      its Effective Date, (A) such Registration Statement ceases for any reason
      (including without limitation by reason of a stop order, or the Company’s
      failure to update the Registration Statement), but excluding the inability
      of
      any Holder to sell the Registrable Securities covered thereby due to market
      conditions, to remain continuously effective as to all Registrable Securities
      for which it is required to be effective or (B) the Holders are not permitted
      to
      utilize the Prospectus therein to resell such Registrable Securities, in the
      case of (A) and (B), for an aggregate of more than ten (10) consecutive Trading
      Days or for more than an aggregate of thirty (30) Trading Days in any 12-month
      period (which need not be consecutive), other than as a result of a breach
      of
      this Agreement by a Holder or a Holder’s failure to return a Selling Stockholder
      Questionnaire within the time period provided by Section 2(e) hereof or as
      a
      result of Section 6(e) hereof (any such failure or breach in clauses (i) through
      (iii) above being referred to as an “Event,”
and,
      for purposes of clauses (i) or (ii), the date on which such Event occurs, or
      for
      purposes of clause (iii), the date on which such 10 consecutive or 30 Trading
      Day period (as applicable) is exceeded, being referred to as “Event
      Date”),
      then
      in lieu of any other rights available to the Holders hereunder or under
      applicable law: (x) within five (5) Business Days after each such Event Date,
      the Company shall pay to each Holder an amount in cash, as partial liquidated
      damages and not as a penalty, equal to two percent (2.0%) of the aggregate
      purchase price paid by such Holder pursuant to the Purchase Agreement for any
      Registrable Securities held by such Holder on the Event Date (which remedy
      shall
      be in addition to any other remedies available under this Agreement or under
      applicable law); and (y) on each monthly anniversary of each such Event Date
      (if
      the applicable Event shall not have been cured by such date) until the
      applicable Event is cured, the Company shall pay to each Holder an amount in
      cash, as partial liquidated damages and not as a penalty, equal to two percent
      (2.0%) of the aggregate purchase price paid by such Holder pursuant to the
      Purchase Agreement for any Registrable Securities then held by such Holder
      (which remedy shall be in addition to any other remedies available under this
      Agreement or under applicable law). The parties agree that the maximum aggregate
      liquidated damages payable to a Holder under this Agreement shall be eighteen
      percent (18%) of the aggregate Subscription Amount paid by such Holder pursuant
      to the Purchase Agreement; provided,
      however,
      that
      such cap shall not limit the other remedies and rights that Holders may have
      hereunder or under applicable law. If the Company fails to pay any liquidated
      damages pursuant to this Section in full within five (5) Business Days after
      the
      date payable, the Company will pay interest thereon at a rate of one and
      one-half percent (1.5%) per month (or such lesser maximum amount that is
      permitted to be paid by applicable law) to the Holder, accruing daily from
      the
      date such liquidated damages are due until such amounts, plus all such interest
      thereon, are paid in full. The liquidated damages pursuant to the terms hereof
      shall apply on a daily pro-rata basis for any portion of a month prior to the
      cure of an Event, except in the case of the first Event Date.
      In the
      event that the Company registers some but not all of the Registrable Securities,
      the 2.0% of partial liquidated damages referred to above for any monthly period
      shall be reduced to equal the percentage determined by multiplying 2.0% by
      a
      fraction, the numerator of which shall be the number of Registrable Securities
      for which there is not an effective Registration Statement at such time and
      the
      denominator of which shall be the number of Registrable Securities at such
      time.
The
      Effectiveness Deadline for a Registration Statement shall be extended without
      default or liquidated damages hereunder in the event that the Company’s failure
      to obtain the effectiveness of the Registration Statement on a timely basis
      results from the failure of a Purchaser to timely provide the Company with
      information requested by the Company and necessary to complete the Registration
      Statement in accordance with the requirements of the Securities Act (in which
      the Effectiveness Deadline would be extended with respect to Registrable
      Securities held by such Purchaser).

     

    
      
         

      

      
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    (d) Each
      Holder agrees to furnish to the Company a completed Questionnaire in the form
      attached to this Agreement as Annex
      B
      (a
“Selling
      Stockholder Questionnaire”)
      not
      more than ten (10) Trading Days following the date of this Agreement. At least
      ten (10) Trading Days prior to the first anticipated filing date of a
      Registration Statement for any registration under this Agreement, the Company
      will notify each Holder of the information the Company requires from that Holder
      other than the information contained in the Selling Stockholder Questionnaire,
      if any, which shall be completed and delivered to the Company promptly upon
      request and, in any event, within three (3) Trading Days prior to the applicable
      anticipated filing date. Each Holder further agrees that it shall not be
      entitled to be named as a selling securityholder in a Registration Statement
      or
      use the Prospectus for offers and resales of Registrable Securities at any
      time,
      unless such Holder has returned to the Company a completed and signed Selling
      Stockholder Questionnaire and a response to any requests for further information
      as described in the previous sentence. If a Holder of Registrable Securities
      returns a Selling Stockholder Questionnaire or a request for further
      information, in either case, after its respective deadline, the Company shall
      use its commercially reasonable efforts to take such actions as are required
      to
      name such Holder as a selling security holder in the Registration Statement
      or
      any pre-effective or post-effective amendment thereto and to include (to the
      extent not theretofore included) in the Registration Statement the Registrable
      Securities identified in such late Questionnaire or request for further
      information. Each Holder acknowledges and agrees that the information in the
      Selling Stockholder Questionnaire or request for further information as
      described in this Section 2(e) will be used by the Company in the preparation
      of
      the Registration Statement and hereby consents to the inclusion of such
      information in the Registration Statement.

     

    (e) In
      the
      event that Form S-3 is not  available for the registration of the resale of
      Registrable Securities hereunder, the Company shall
      (i)
      register the resale of the Registrable Securities on another appropriate form
      reasonably acceptable to the Holders and (ii) undertake to register the
      Registrable Securities on Form S-3 as soon as such form is available,
provided
      that the
      Company shall maintain the effectiveness of the Registration Statement then
      in
      effect until such time as a Registration Statement on Form S-3 covering the
      Registrable Securities has been declared effective by the
      Commission.

     

    
      
         

      

      
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    3. Registration
      Procedures.

     

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

     

    (a) Not
      less
      than five (5) Trading Days prior to the filing of a Registration Statement
      and
      not less than one (1) Trading Day prior to the filing of any related Prospectus
      or any amendment or supplement thereto (except
      for Annual Reports on Form 10-K, and Quarterly Reports on Form 10-Q and Current
      Reports on Form 8-K and any similar or successor reports),
      the
      Company shall furnish to the Holder copies of such Registration Statement,
      Prospectus or amendment or supplement thereto, as proposed to be filed, which
      documents will be subject to the review of such Holder (it being acknowledged
      and agreed that if a Holder does not object to or comment on the aforementioned
      documents within such five (5) Trading Day or one (1) Trading Day period, as
      the
      case may be, then the Holder shall be deemed to have consented to and approved
      the use of such documents). The Company shall not file
      any
      Registration Statement or amendment or supplement thereto in a form to which
      a
      Holder reasonably objects
      in good
      faith, provided that, the Company is notified of such objection in writing
      within the five (5) Trading Day or one (1) Trading Day period described above,
      as applicable. 

     

    (b) (i)
      Prepare and file with the Commission such amendments (including post-effective
      amendments) and supplements 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
      (subject to the terms of this Agreement), and, as so supplemented or amended,
      to
      be filed pursuant to Rule 424; (iii) respond as promptly as reasonably
      practicable to any comments received from the Commission with respect to each
      Registration Statement or any amendment thereto and, as promptly as reasonably
      possible, provide the Holders true and complete copies of all correspondence
      from and to the Commission relating to such Registration Statement that pertains
      to the Holders as “Selling Stockholders” but not any comments that would result
      in the disclosure to the Holders of material and non-public information
      concerning the Company; and (iv) comply with the provisions of the Securities
      Act and the Exchange Act with respect to the disposition of all Registrable
      Securities covered by a Registration Statement until such time as all of such
      Registrable Securities shall have been disposed of (subject to the terms of
      this
      Agreement) in accordance with the intended methods of disposition by the Holders
      thereof as set forth in such Registration Statement as so amended or in such
      Prospectus as so supplemented; provided,
      however,
      that
      each Purchaser shall be responsible for the delivery of the Prospectus to the
      Persons to whom such Purchaser sells any of the Shares (including in accordance
      with Rule 172 under the Securities Act), and each Purchaser agrees to dispose
      of
      Registrable Securities in compliance with the plan of distribution described
      in
      the Registration Statement and otherwise in compliance with applicable federal
      and state securities laws.
      In the
      case of amendments and supplements to a Registration Statement which are
      required to be filed pursuant to this Agreement (including pursuant to this
      Section 3(b)) by reason of the Company filing a report on Form 10-K, Form 10-Q
      or Form 8-K or any analogous report under the Exchange Act, the Company shall
      have incorporated such report by reference into such Registration Statement,
      if
      applicable, or shall file such amendments or supplements with the Commission
      on
      the same day on which the Exchange Act report which created the requirement
      for
      the Company to amend or supplement such Registration Statement was
      filed.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

     

    (c) Notify
      the Holders (which notice shall, pursuant to clauses (iii) through (vi) hereof,
      be accompanied by an instruction to suspend the use of the Prospectus until
      the
      requisite changes have been made) as promptly as reasonably possible (and,
      in
      the case of (i)(A) below, not less than three Trading Days prior to such filing,
      in the case of (iii) and (iv) below, not more than one Trading Day after such
      issuance or receipt, in the case of (v) below, not less than one Trading Day
      after a determination by the Company that the financial statements in any
      Registration Statement have become ineligible for inclusion therein and, in
      the
      case of (vi) below, not more than one Trading Day after the occurrence or
      existence of such development) and (if requested by any such Person) confirm
      such notice in writing no later than one Trading Day following the day (i)(A)
      when a Prospectus or any Prospectus supplement or post-effective amendment
      to a
      Registration Statement is proposed to be filed; (B) when the Commission notifies
      the Company whether there will be a “review” of such Registration Statement and
      whenever the Commission comments in writing on any Registration Statement (in
      which case the Company shall provide to each of the Holders true and complete
      copies of all comments that pertain to the Holders as a “Selling Stockholder” or
      to the “Plan of Distribution” and all written responses thereto, but not
      information that the Company believes would constitute material and non-public
      information); and (C) with respect to each Registration Statement or any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other Federal or state governmental authority
      for amendments or supplements to a Registration Statement or Prospectus or
      for
      additional information that pertains to the Holders as “Selling Stockholders” or
      the “Plan of Distribution”; (iii) of the issuance by the Commission or any other
      federal or state governmental authority 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; (iv) of 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; (v) of the occurrence of any event or passage
      of
      time that makes the financial statements included in a Registration Statement
      ineligible for inclusion therein or any statement made in such 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 such Registration Statement, Prospectus or other
      documents so that, in the case of such Registration Statement or the 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 case of any Prospectus, form of prospectus
      or supplement thereto, in light of the circumstances under which they were
      made), not misleading; and (vi) the occurrence or existence of any pending
      development with respect to the Company that the Company believes may be
      material and that, in the determination of the Company, makes it not in the
      best
      interest of the Company to allow continued availability of a Registration
      Statement or Prospectus, provided
      that any
      and all of such information shall remain confidential to each Holder until
      such
      information otherwise becomes public, unless disclosure by a Holder is required
      by law; provided,
      further,
      that
      notwithstanding each Holder’s agreement to keep such information confidential,
      the Holders make no acknowledgement that any such information is material,
      non-public information.

     

    (d) Use
      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, as soon as
      practicable.

     

    (e) If
      requested by a Holder, furnish to such Holder, without charge, at least one
      conformed copy of each Registration Statement and each amendment thereto and
      all
      exhibits to the extent requested by such Person (including those previously
      furnished or incorporated by reference) promptly after the filing of such
      documents with the Commission; provided,
      that
      the Company shall have no obligation to provide any document pursuant to this
      clause that is available on the Commission’s EDGAR system.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

     

    (f) [reserved]

     

    (g) Prior
      to
      any resale of Registrable Securities by a Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the selling Holders
      in connection with the registration or qualification (or exemption from the
      registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep each
      registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary to enable the disposition in such jurisdictions of the Registrable
      Securities covered by each Registration Statement; provided,
      that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified, subject the Company to any
      material tax in any such jurisdiction where it is not then so subject or file
      a
      general consent to service of process in any such jurisdiction.

     

    (h) If
      requested by the Holders, cooperate with the Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to the Registration Statement, which
      certificates shall be free, to the extent permitted by the Purchase Agreement
      and under law, of all restrictive legends, and to enable such Registrable
      Securities to be in such denominations and registered in such names as any
      such
      Holders may reasonably request.

     

    (i) Following
      the occurrence of any event contemplated by Section 3(c) as promptly as
      reasonably practicable (taking into account the Company’s good faith assessment
      of any adverse consequences to the Company and its stockholders of the premature
      disclosure of such event), prepare a supplement or amendment, including a
      post-effective amendment, to the affected Registration Statements 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, no Registration Statement nor any 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 case of any Prospectus, form of prospectus or supplement thereto, in light
      of the circumstances under which they were made), not misleading. 

     

    (j) (i)
      In
      the time and manner required by the Principal Market, prepare and file with
      such
      Trading Market an additional shares listing application covering all of the
      Registrable Securities, (ii) use commercially reasonable efforts to take all
      steps necessary to cause such Registrable Securities to be approved for listing
      on the Principal Market as soon as possible thereafter, (iii) if requested
      by
      any Holder, provide such Holder evidence of such listing, and (iv) during the
      Effectiveness Period, use commercially reasonable efforts to maintain the
      listing of such Registrable Securities on the Principal Market.

     

    (k) In
      order
      to enable the Holders to sell Shares under Rule 144, for a period of two years
      from the Closing, the Company covenants to use commercially reasonable efforts
      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. During
      such two year period, 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(c) promulgated
      under the Securities Act 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.
      The
      Company further covenants that it will use commercially reasonable efforts
      to
      take such further action as any Holder may reasonably request, all to the extent
      required from time to time to enable such Person to sell Shares without
      registration under the Securities Act within the limitation of the exemptions
      provided by Rule 144 promulgated under the Securities Act, including compliance
      with the provisions of the Purchase Agreement relating to the transfer of the
      Shares. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    (l) The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to (i) the number of shares of common stock beneficially owned
      by
      such Holder and any Affiliate thereof, (ii) any Financial Industry Regulatory
      Authority (“FINRA”)
      affiliations, (iii) any natural persons who have the power to vote or dispose
      of
      the common stock and (iv) any other information as may be requested by the
      Commission, the NASD or any state securities commission. During any periods
      that
      the Company is unable to meet its obligations hereunder with respect to the
      registration of Registrable Securities because any Holder fails to furnish
      such
      information within three (3) Trading Days of the Company’s request, any
      liquidated damages that are accruing at such time as to such Holder only shall
      be tolled and any Event that may otherwise occur solely because of such delay
      shall be suspended as to such Holder only, until such information is delivered
      to the Company.

     

    (m) The
      Company shall cooperate with the placement agent and any registered broker
      dealer that is required to make a filing with FINRA pursuant to NASD Rule 2710
      in connection with the resale of any Registrable Securities by any Holder and
      pay the filing fee required for the first such filing.

     

    4. Registration
      Expenses.
      All fees
      and expenses incident to the Company’s performance of or compliance with its
      obligations under this Agreement (excluding any underwriting discounts and
      selling commissions and all legal fees and expenses of legal counsel for any
      Holder) shall be borne by the Company whether or not any Registrable Securities
      are sold pursuant to a Registration Statement. The fees and expenses referred
      to
      in the foregoing sentence shall include, without limitation, (i) all
      registration and filing fees (including, without limitation, fees and expenses
      (A) with respect to filings required to be made with any Trading Market on
      which
      the common stock is then listed for trading, (B) with respect to compliance
      with
      applicable state securities or Blue Sky laws (including, without limitation,
      fees and disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities and determination
      of
      the eligibility of the Registrable Securities for investment under the laws
      of
      such jurisdictions as requested by the Holders) and (C) with respect to any
      filing that may be required to be made by any broker through which a Holder
      intends to make sales of Registrable Securities with FINRA pursuant to the
      NASD
      Rule 2710, so long as the broker is receiving no more than a customary brokerage
      commission in connection with such sale, (ii) printing expenses (including,
      without limitation, expenses of printing certificates for Registrable Securities
      and of printing prospectuses if the printing of prospectuses is reasonably
      requested by the Holders of a majority of the Registrable Securities included
      in
      the Registration Statement), (iii) messenger, telephone and delivery expenses,
      (iv) fees and disbursements of counsel for the Company, (v) Securities Act
      liability insurance, if the Company so desires such insurance, and (vi) fees
      and
      expenses of all other Persons retained by the Company in connection with the
      consummation of the transactions contemplated by this Agreement. In addition,
      the Company shall be responsible for all of its internal expenses incurred
      in
      connection with the consummation of the transactions contemplated by this
      Agreement (including, without limitation, all salaries and expenses of its
      officers and employees performing legal or accounting duties), the expense
      of
      any annual audit and the fees and expenses incurred in connection with the
      listing of the Registrable Securities on any securities exchange as required
      hereunder. In no event shall the Company be responsible for any underwriting,
      broker or similar fees or commissions of any Holder or, except to the extent
      provided for in the Transaction Documents, any legal fees or other costs of
      the
      Holders.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    5. 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, partners, members,
      managers, stockholders, Affiliates 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, partners,
      members, managers, stockholders, 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 investigation and reasonable,
      documented attorneys' fees) and expenses (collectively, “Losses”),
      as
      incurred, that arise out of or are based upon (i) 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
      (it being understood that the Holder has approved Annex
      A
      hereto
      for this purpose) or in any preliminary prospectus, or arising out of or
      relating to any omission or alleged omission to state 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 or (ii) any violation
      or alleged violation by the Company of the Securities Act, Exchange Act or
      any
      state securities law or any rule or regulation thereunder, in connection with
      the performance of its obligations under this Agreement, except to the extent,
      but only to the extent, that (A) such untrue statements, alleged untrue
      statements, omissions or alleged 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 approved 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 each Holder has
      approved Annex
      A
      hereto
      for this purpose), (B) in the case of an occurrence of an event of the type
      specified in Section 3(c)(iii)-(vi), related to the use by a 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 the Advice contemplated and defined in Section 6(f) below, but
      only if and to the extent that following the receipt of the Advice the
      misstatement or omission giving rise to such Loss would have been corrected
      or
      (C) any such Losses arise out of the Purchaser’s (or any other indemnified
      Person’s) failure to send or give a copy of the Prospectus or supplement (as
      then amended or supplemented) to the Persons asserting an untrue statement
      or
      alleged untrue statement or alleged untrue statement or omission or alleged
      omission at or prior to the written confirmation of the sale of Registrable
      Securities to such Person if such statement or omission was corrected in such
      Prospectus or supplement, but only to the extent that such failure constitutes
      a
      violation of the Securities Act. The Company shall notify the Holders promptly
      of the institution, threat or assertion of any Proceeding arising from or in
      connection with the transactions contemplated by this Agreement of which the
      Company is aware. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of an Indemnified Party
      (as
      defined in Section 5(c)) and shall survive the transfer of the Registrable
      Securities by the Holders.

     

    (b) Indemnification
      by Holders.
      Each
      Holder shall, notwithstanding any termination of this Agreement, 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 out of or are based upon 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
      any
      form of prospectus or supplement thereto, in light of the circumstances under
      which they were made) not misleading (i) to the extent, but only to the extent
      that, 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, (ii) 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 approved 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 (iii) in the case of an occurrence of an
      event of the type specified in Section 3(c)(iii)-(vi), to the extent related
      to
      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 the Advice contemplated in Section
      6(f). 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.

     

    
      
         

      

      
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    (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 have the right to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all reasonable, documented 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. 

     

    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
      in the reasonable opinion of such separate counsel, a material conflict on
      any
      material issue between the position of the Indemnifying Party and the position
      of such Indemnified Party, in which case the Indemnifying Party shall be
      responsible for the reasonable, documented fees and expenses of no more than
      one
      such separate counsel. The Indemnifying Party shall not be liable for any
      settlement of any such Proceeding effected without its written consent, which
      consent shall not be unreasonably withheld, delayed or conditioned. 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.

     

    (d) Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(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 this Agreement, 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. 

     

    
      
         

      

      
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    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(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.
      Notwithstanding the provisions of this Section 5(d), (A) no Holder shall be
      required to contribute, in the aggregate, any amount in excess of the amount
      by
      which the net proceeds actually received by such Holder from the sale of the
      Registrable Securities subject to the Proceeding exceeds the amount of any
      damages that such Holder has otherwise been required to pay by reason of such
      untrue or alleged untrue statement or omission or alleged omission and (B)
      no
      contribution will be made under circumstances where the maker of such
      contribution would not have been required to indemnify the Indemnified Party
      under the fault standards set forth in this Section 5. 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. 

     

    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 and are not in diminution or limitation of the indemnification
      provisions under the Purchase Agreement.

     

    6. 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) No
      Piggyback on Registrations.
      Except
      and to the extent specified in Schedule 3.1(y) to the Purchase Agreement,
      neither the Company nor any of its security holders (other than the Holders
      in
      such capacity pursuant hereto) may include securities of the Company in a
      Registration Statement other than the Registrable Securities, and the Company
      shall not prior to the Effective Date enter into any agreement providing any
      such right to any of its security holders. The Company shall not, from the
      date
      hereof until the date that is thirty (30) days after the Effective Date of
      the
      Registration Statement, prepare and file with the Commission a registration
      statement relating to an offering for its own account (or, except as set forth
      on Schedule 6(b) hereto, for the account of any other person or entity) under
      the Securities Act of any of its equity securities, other than a registration
      statement on Form S-8 or, in connection with an acquisition, on Form S-4. For
      the avoidance of doubt, the Company shall, except as set forth on Schedule
      6(b)
      hereto, be prohibited from preparing and filing with the Commission a
      registration statement relating to an offering of Common Stock by existing
      stockholders of the Company under the Securities Act pursuant to the terms
      of
      registration rights held by such stockholder, or from filing amendments to
      registration statements filed prior to the date of this Agreement or a Special
      Registration Statement. 

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

     

    (c) Entire
      Agreement.
      This
      Agreement is intended by the parties as a final expression of their agreement
      and intended to be a complete and exclusive statement of the agreement and
      understanding of the parties hereto in respect of the subject matter contained
      herein. This Agreement supersedes all prior agreements and understandings
      between the parties with respect to such subject matter, except for, and as
      provided in the Transaction Documents.

     

    (d) Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it (unless an exemption
      therefrom is available) in connection with sales of Registrable Securities
      pursuant to the Registration Statement and shall sell the Registrable Securities
      only in accordance with a method of distribution described in the Registration
      Statement.

     

    (e) Suspension
      of Trading.
      At any
      time after the Registrable Securities are covered by an effective Registration
      Statement, the Company may deliver to the Holders of such Registrable Securities
      a certificate (the “Suspension
      Certificate”)
      approved by the Chief Executive Officer or Chief Financial Officer of the
      Company and signed by an officer of the Company stating that the effectiveness
      of and sales of Registrable Securities under the Registration Statement would:
      

     

    (i) materially
      interfere with any transaction that would require the Company to prepare
      financial statements under the Securities Act that the Company would otherwise
      not be required to prepare in order to comply with its obligations under the
      Exchange Act, or  

    

    (ii) require
      public disclosure of a material transaction or event prior to the time such
      disclosure might otherwise be required. 

    

    Upon
      receipt of a Suspension Certificate by Holders of Registrable Securities, such
      Holders of Registrable Securities shall refrain from selling or otherwise
      transferring or disposing of any Registrable Securities then held by such
      Holders for a specified period of time (a “Suspension
      Period”)
      that
      is customary under the circumstances (not to exceed twenty (20) days).
      Notwithstanding the foregoing sentence, the Company shall be permitted to cause
      Holders of Registrable Securities to so refrain from selling or otherwise
      transferring or disposing of any Registrable Securities on only two (2)
      occasions during each twelve (12) consecutive month period that the Registration
      Statement remains effective with no less than twenty (20) calendar days in
      between Suspension Periods. The Company may impose stop transfer instructions
      to
      enforce any required agreement of the Holders under this Section 6(e).
      Notwithstanding anything in this Section 6(b) to the contrary, the declaration
      by the Company of a Suspension Period shall constitute an “Event” within the
      meaning of Section 2(c)(iii)(B) of this Agreement, and shall give rise to
      partial liquidated damages pursuant to Section 2(c) upon the terms and
      conditions set forth therein, even if the Suspension Period is otherwise
      permissible under this Section 6(b). 

    

    (f) Discontinued
      Disposition.
      Each
      Holder further 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 Section 3(c)(iii)-(vi), such Holder will forthwith discontinue
      disposition of such Registrable Securities under the Registration Statement
      until it is advised in writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus (as it may have been
      supplemented or amended) may be resumed. The Company may provide appropriate
      stop orders to enforce the provisions of this paragraph. The Company agrees
      and
      acknowledges that any periods during which the Holder is required to discontinue
      the disposition of the Registrable Securities hereunder shall be subject to
      the
      provisions of Section 2(c) as qualified by Section 3(a).

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

     

    (g) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified, supplemented or waived unless the same shall be in writing
      and signed by the Company and Holders holding a majority 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 Holders and that does not directly or indirectly
      affect the rights of other Holders may be given by Holders of all of the
      Registrable Securities to which such waiver or consent relates; provided,
      however,
      that
      the provisions of this sentence may not be amended, modified or supplemented
      except in accordance with the provisions of the immediately preceding sentence.
      

     

    (h) Term.
      The
      registration rights provided to the Holders of Registrable Securities hereunder,
      and the Company’s obligation to keep the Registration Statements effective,
      shall terminate at such time as there are no Registrable Securities.
      Notwithstanding the foregoing, Section 2(c), Section 4, Section 5, Section
      6(i),
      Section 6(l), Section 6(m), Section 6(n), Section 6(o), Section 6(p) and Section
      6(q) shall survive the termination of this Agreement.

     

    (i) Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be delivered as set forth in the Purchase Agreement.
      

     

    (j) 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. Nothing in this Agreement, express or implied, is intended to confer
      upon any party other than the parties hereto or their respective successors
      and
      assigns any rights, remedies, obligations, or liabilities under or by reason
      of
      this Agreement, except as expressly provided in this Agreement. The Company
      may
      not assign its rights or obligations hereunder without the prior written consent
      of all the Holders of the then outstanding Registrable Securities (other than
      by
      merger or consolidation or to an entity which acquires the Company including
      by
      way of acquiring all or substantially all of the Company’s assets). The rights
      of the Holders hereunder, including the right to have the Company register
      Registrable Securities pursuant to this Agreement, may be assigned by each
      Holder to transferees or assignees of all or any portion of the Registrable
      Securities, but only if (i) the Holder agrees in writing with the transferee
      or
      assignee to assign such rights and related obligations under this Agreement,
      and
      for the transferee or assignee to assume such obligations, and a copy of such
      agreement is furnished to the Company within a reasonable time after such
      assignment, (ii) the Company is, within a reasonable time after such transfer
      or
      assignment, furnished with written notice of the name and address of such
      transferee or assignee and the securities with respect to which such
      registration rights are being transferred or assigned, (iii) at or before the
      time the Company received the written notice contemplated by clause (ii) of
      this
      sentence, the transferee or assignee agrees in writing with the Company to
      be
      bound by all of the provisions contained herein and (iv) the transferee is
      an
“accredited investor,” as that term is defined in Rule 501 of Regulation
      D.

     

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

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

     

    (l) Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be determined in accordance with the provisions of
      the
      Purchase Agreement. 

     

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

     

    (n) 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.

     

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

     

    (p) Independent
      Nature of Purchasers' Obligations and Rights.
      The
      obligations of each Purchaser under this Agreement are several and not joint
      with the obligations of any other Purchaser hereunder, and no Purchaser shall
      be
      responsible in any way for the performance of the obligations of any other
      Purchaser hereunder. The decision of each Purchaser to purchase the Shares
      pursuant to the Purchase Agreement has been made independently of any other
      Purchaser. Nothing contained herein or in any other agreement or document
      delivered at any closing, and no action taken by any Purchaser pursuant hereto
      or thereto, shall be deemed to constitute the Purchasers as a partnership,
      an
      association, a joint venture or any other kind of entity, or create a
      presumption that the Purchasers are in any way acting in concert with respect
      to
      such obligations or the transactions contemplated by this Agreement. Each
      Purchaser acknowledges that no other Purchaser has acted as agent for such
      Purchaser in connection with making its investment hereunder and that no
      Purchaser will be acting as agent of such Purchaser in connection with
      monitoring its investment in the Shares or enforcing its rights under the
      Purchase Agreement. Each Purchaser shall be entitled to protect and enforce
      its
      rights, including, without limitation, the rights arising out of this Agreement,
      and it shall not be necessary for any other Purchaser to be joined as an
      additional party in any Proceeding for such purpose. The Company acknowledges
      that each of the Purchasers has been provided with the same Registration Rights
      Agreement for the purpose of closing a transaction with multiple Purchasers
      and
      not because it was required or requested to do so by any Purchaser.

     

    (q) Currency.
      Unless
      otherwise indicated, all dollar amounts referred to in this Agreement are in
      United States Dollars. All amounts owing under this Agreement are in United
      States Dollars. All amounts denominated in other currencies shall be converted
      in the United States Dollar equivalent amount in accordance with the applicable
      exchange rate in effect on the date of calculation.

     

    (r) Further
      Assurances.
      The
      parties shall execute and deliver all such further instruments and documents
      and
      take all such other actions as may reasonably be required to carry out the
      transactions contemplated hereby and to evidence the fulfillment of the
      agreements herein contained.

     

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK,

    SIGNATURE
      PAGES TO FOLLOW]

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

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

     

    
      	 	
              HOKU
                SCIENTIFIC, INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Dustin Shindo

            
	 	 	
              Name:
                Dustin Shindo 

            
	 	 	
              Title:
                President and Chief Executive
                Officer

            

    

     

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK,

    SIGNATURE
      PAGES OF HOLDERS TO FOLLOW]

     

     

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

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

     

    
      	 	 	 
	 	
              NAME
                OF INVESTING ENTITY

            
	 	 	 
	 	
              Suntech
                Power International Ltd.

            
	 	 	 
	 	
              AUTHORIZED
                SIGNATORY

            
	 	 	 
	 	
              By:
                

            	
              /s/
                Zhengrong Shi

            
	 	 	
              Name:
                Mr. Zhengrong Shi

            
	 	 	
              Title:
                Director 

            
	 	 	 

    

     

    
      	 	
              ADDRESS
                FOR NOTICE

            
	 	 	 
	 	
              c/o:
                

            	
              Suntech
                America

            
	 	 	 
	 	
              Street:
                

            	
              188
                The Embarcadero, 80th
                Fl

            
	 	 	 
	 	
              City/State/Zip:
                

            	
              San
                Francisco, CA 94105

            
	 	 	 
	 	
              Attention

            	
              :
                Steven
                Chan

            
	 	 	 
	 	
              Tel:

            	
              415-922-8822

            
	 	 	 
	 	
              Fax:

            	
              415-922-8823

            
	 	 	 
	 	
              Email:

            	  

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

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

     

    
      	 	 	 
	 	
              NAME
                OF INVESTING ENTITY

            
	 	 	 
	 	
              Investcorp
                Interlachen Multi-Strategy Master Fund

            
	 	
              Limited

            
	 	 	 
	 	
              By:
                

            	
              Interlachen
                Capital Group LP

            
	 	 	
              Authorized
                Signatory 

            
	 	 	 
	 	
              AUTHORIZED
                SIGNATORY

            
	 	 	 
	 	
              By:
                

            	
              /s/
                Gregg T. Colburn

            
	 	 	
              Name:
                Gregg T. Colburn

            
	 	 	
              Title:
                Authorized Signatory 

            
	 	 	 

    

     

    
      	 	
              ADDRESS
                FOR NOTICE

            
	 	 	 
	 	
              c/o:
                

            	 
	 	 	 
	 	
              Street:
                

            	
              800
                Nizollet Mall, Suite 2500

            
	 	 	 
	 	
              City/State/Zip:
                

            	
              Minneapolis,
                MN 55402

            
	 	 	 
	 	
              Attention:
                

            	
              Gregg
                Colburn / Legal

            
	 	 	 
	 	
              Tel:

            	
              612-659-4407

            
	 	 	 
	 	
              Fax:

            	
              612-659-4457

            
	 	 	 
	 	
              Email:

            	  

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    IN

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

     

    

    
      	 	
              NAME
                OF INVESTING ENTITY

            
	 	 	 
	 	
              Capital
                Ventures International

            
	 	 	 
	 	
              By:

            	
              Hieghts
                Capital Management, Inc.

            
	 	 	
              its
                authorized agent 

            
	 	 	 
	 	
              AUTHORIZED
                SIGNATORY

            
	 	 	 
	 	
              By:
                

            	
              /s/
                Martin Kobinger

            
	 	 	
              Name:
                Martin Kobinger

            
	 	 	
              Title:
                Investment Manager 

            
	 	 	 

    

     

    
      	 	
              ADDRESS
                FOR NOTICE

            
	 	 	 
	 	
              c/o:
                

            	
              Heights
                Capital Management

            
	 	 	 
	 	
              Street:
                

            	
              101
                California Street, Suite 3250

            
	 	 	 
	 	
              City/State/Zip:
                

            	
              San
                Francisco, CA 94111

            
	 	 	 
	 	
              Attention:
                

            	
              Martin
                Kobinger

            
	 	 	 
	 	
              Tel:

            	
              415-403-6525

            
	 	 	 
	 	
              Fax:

            	
              415-403-6525

            
	 	 	 
	 	
              Email:

            	  

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    Annex
      A

     

    PLAN
      OF DISTRIBUTION

    

    We
      are
      registering the shares of common stock issued to the selling stockholders to
      permit the resale of these shares of common stock by the holders of the shares
      of common stock from time to time after the date of this prospectus. We will
      not
      receive any of the proceeds from the sale by the selling stockholders of the
      shares of common stock. We will bear all fees and expenses incident to our
      obligation to register the shares of common stock.

     

    The
      selling stockholders may sell all or a portion of the shares of common stock
      beneficially owned by them and offered hereby from time to time directly or
      through one or more underwriters, broker-dealers or agents. If the shares of
      common stock are sold through underwriters or broker-dealers, the selling
      stockholders will be responsible for underwriting discounts or commissions
      or
      agent's commissions. The shares of common stock may be sold on any national
      securities exchange or quotation service on which the securities may be listed
      or quoted at the time of sale, in the over-the-counter market or in transactions
      otherwise than on these exchanges or systems or in the over-the-counter market
      and in one or more transactions at fixed prices, at prevailing market prices
      at
      the time of the sale, at varying prices determined at the time of sale, or
      at
      negotiated prices. These sales may be effected in transactions, which may
      involve crosses or block transactions. 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 purchasers;

            

    

     

    
      	
              ·

            	
              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;

            

    

     

    
      	
              ·

            	
              settlement
                of short sales entered into after the effective date of the registration
                statement of which this prospectus is a
                part;

            

    

     

    
      	
              ·

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

            

    

     

    
      	
              ·

            	
              through
                the writing or settlement of options or other hedging transactions,
                whether such options are listed on an options exchange or
                otherwise;

            

    

     

    
      	
              ·

            	
              a
                combination of any such methods of sale;
                and

            

    

     

    
      	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      selling stockholders also may resell all or a portion of the shares in open
      market transactions in reliance upon Rule 144 under the Securities Act, as
      permitted by that rule, or Section 4(1) under the Securities Act, if available,
      rather than under this prospectus, provided that they meet the criteria and
      conform to the requirements of those provisions.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

    Broker-dealers
      engaged by the selling stockholders may arrange for other broker-dealers to
      participate in sales. If the selling stockholders effect such transactions
      by
      selling shares of common stock to or through underwriters, broker-dealers or
      agents, such underwriters, broker-dealers or agents may receive commissions
      in
      the form of discounts, concessions or commissions from the selling stockholders
      or commissions from purchasers of the shares of common stock for whom they
      may
      act as agent or to whom they may sell as principal. Such commissions will be
      in
      amounts to be negotiated, but, except as set forth in a supplement to this
      Prospectus, in the case of an agency transaction will not be in excess of a
      customary brokerage commission in compliance with NASD Rule 2440; and in the
      case of a principal transaction a markup or markdown in compliance with NASD
      IM-2440. 

     

    In
      connection with sales of the shares of common stock or otherwise, the selling
      stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the shares
      of
      common stock in the course of hedging in positions they assume. The selling
      stockholders may also sell shares of common stock short and if such short sale
      shall take place after the date that this Registration Statement is declared
      effective by the Commission, the selling stockholders may deliver shares of
      common stock covered by this prospectus to close out short positions and to
      return borrowed shares in connection with such short sales. The selling
      stockholders may also loan or pledge shares of common stock to broker-dealers
      that in turn may sell such shares, to the extent permitted by applicable law.
      The selling stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such transaction).
      Notwithstanding the foregoing, the selling stockholders have been advised that
      they may not use shares registered on this registration statement to cover
      short
      sales of our common stock made prior to the date the registration statement,
      of
      which this prospectus forms a part, has been declared effective by the
      SEC.

     

    The
      selling stockholders may, from time to time, pledge or grant a security interest
      in some or all of [the warrants or ]shares of common stock owned by them and,
      if
      they default in the performance of their secured obligations, the pledgees
      or
      secured parties may offer and sell the shares of common stock from time to
      time
      pursuant to this prospectus or any amendment to this prospectus under Rule
      424(b)(3) or other applicable provision of the Securities Act of 1933, as
      amended, amending, if necessary, the list of selling stockholders to include
      the
      pledgee, transferee or other successors in interest as selling stockholders
      under this prospectus. The selling stockholders also may transfer and donate
      the
      shares of common stock in other circumstances in which case the transferees,
      donees, pledgees or other successors in interest will be the selling beneficial
      owners for purposes of this prospectus.

     

    The
      selling stockholders and any broker-dealer or agents participating in the
      distribution of the shares of common stock may be deemed to be “underwriters”
within the meaning of Section 2(11) of the Securities Act in connection with
      such sales. In such event, any commissions paid, or any discounts or concessions
      allowed to, any such broker-dealer or agent 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. Selling Stockholders who are "underwriters"
      within the meaning of Section 2(11) of the Securities Act will be subject to
      the
      prospectus delivery requirements of the Securities Act and may be subject to
      certain statutory liabilities of, including but not limited to, Sections 11,
      12
      and 17 of the Securities Act and Rule 10b-5 under the Securities Exchange
      Act of 1934, as amended, or the Exchange Act.

     

    Each
      selling stockholder has informed the Company that it is not a registered
      broker-dealer and does not have any written or oral agreement or understanding,
      directly or indirectly, with any person to distribute the common stock. 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 no event
      shall any broker-dealer receive fees, commissions and markups, which, in the
      aggregate, would exceed eight percent (8%). 

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

    Under
      the
      securities laws of some states, the shares of common stock may be sold in such
      states only through registered or licensed brokers or dealers. In addition,
      in
      some states the shares of common stock may not be sold unless such shares have
      been registered or qualified for sale in such state or an exemption from
      registration or qualification is available and is complied with.

     

    There
      can
      be no assurance that any selling stockholder will sell any or all of the shares
      of common stock registered pursuant to the shelf registration statement, of
      which this prospectus forms a part.

     

    Each
      selling stockholder and any other person participating in such distribution
      will
      be subject to applicable provisions of the Securities Exchange Act of 1934,
      as
      amended, and the rules and regulations thereunder, including, without
      limitation, Regulation M of the Exchange Act, which may limit the timing of
      purchases and sales of any of the shares of common stock by the selling
      stockholder and any other participating person. Regulation M may also restrict
      the ability of any person engaged in the distribution of the shares of common
      stock to engage in market-making activities with respect to the shares of common
      stock. All of the foregoing may affect the marketability of the shares of common
      stock and the ability of any person or entity to engage in market-making
      activities with respect to the shares of common stock.

     

    We
      will
      pay all expenses of the registration of the shares of common stock pursuant
      to
      the registration rights agreement, including, without limitation, Securities
      and
      Exchange Commission filing fees and expenses of compliance with state securities
      or “blue sky” laws; provided,
      however,
      that
      each selling stockholder will pay all underwriting discounts and selling
      commissions, if any, and any legal expenses incurred by it. We will indemnify
      the selling stockholders against certain liabilities, including some liabilities
      under the Securities Act, in accordance with a registration rights agreement,
      or
      the selling stockholders will be entitled to contribution. We may be indemnified
      by the selling stockholders against civil liabilities, including liabilities
      under the Securities Act, that may arise from any written information furnished
      to us by the selling stockholders specifically for use in this prospectus,
      in
      accordance with the related registration rights agreements, or we may be
      entitled to contribution.

     

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    Annex
      B

     

    HOKU
      SCIENTIFIC, INC.

     

    SELLING
      STOCKHOLDER NOTICE AND QUESTIONNAIRE

    

    The
      undersigned holder of shares of the common stock, par value $0.001 per share,
      of
      Hoku Scientific, Inc., a Delaware corporation (the “Company”),
      issued pursuant to a certain Securities Purchase Agreement by and among the
      Company and the Purchasers named therein, dated as of [MM/DD], 2008 (the
“Agreement”),
      understands that the Company intends to file with the Securities and Exchange
      Commission a registration statement on Form S-3 (the “Resale
      Registration Statement”)
      for
      the registration and the resale under Rule 415 of the Securities Act of 1933,
      as
      amended (the “Securities
      Act”),
      of
      the Registrable Securities in accordance with the terms of the Agreement. All
      capitalized terms not otherwise defined herein shall have the meanings ascribed
      thereto in the Agreement. 

    

    In
      order
      to sell or otherwise dispose of any Registrable Securities pursuant to the
      Resale Registration Statement, a holder of Registrable Securities generally
      will
      be required to be named as a selling stockholder in the related prospectus
      or a
      supplement thereto (as so supplemented, the “Prospectus”),
      deliver the Prospectus to purchasers of Registrable Securities (including
      pursuant to Rule 172 under the Securities Act) and be bound by the provisions
      of
      the Agreement (including certain indemnification provisions, as described
      below). Holders must complete and deliver this Notice and Questionnaire in
      order
      to be named as selling stockholders in the Prospectus. Holders
      of Registrable Securities who do not complete, execute and return this Notice
      and Questionnaire within ten (10) Trading Days following the date of the
      Agreement (1) will not be named as selling stockholders in the Resale
      Registration Statement or the Prospectus and (2) may not use the Prospectus
      for
      resales of Registrable Securities. 

    

    Certain
      legal consequences arise from being named as a selling stockholder in the Resale
      Registration Statement and the Prospectus. Holders of Registrable Securities
      are
      advised to consult their own securities law counsel regarding the consequences
      of being named or not named as a selling stockholder in the Resale Registration
      Statement and the Prospectus. 

    NOTICE

     

    The
      undersigned holder (the “Selling
      Stockholder”)
      of
      Registrable Securities hereby gives notice to the Company of its intention
      to
      sell or otherwise dispose of Registrable Securities owned by it and listed
      below
      in Item (3), unless otherwise specified in Item (3), pursuant to the Resale
      Registration Statement. The undersigned, by signing and returning this Notice
      and Questionnaire, understands and agrees that it will be bound by the terms
      and
      conditions of this Notice and Questionnaire and the Agreement. 

    

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

    

    

    QUESTIONNAIRE

     

    
      
        
          	1.	
                  Name.

                

        

      

    

     

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling Stockholder:

            

    

     

    
      	 

	 

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	 	
              (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
                Stockholder:

            

    

     

    
      	 

	 

	 

    

    

    
      	
              Telephone:

            	   

    

    
      	
              Fax:

            	   

    

    
      	
              Contact
                Person:

            	   

    

    
      	
              E-mail
                address of Contact Person:

            	
               
                

            

    

    

    
      	3.	
              Beneficial
                Ownership of Registrable Securities Issuable Pursuant to the Purchase
                Agreement:

            

    

     

    
      	 	
              (a)

            	
              Type
                and Number of Registrable Securities beneficially owned and issued
                pursuant to the Agreement:

            

    

     

    
      	 

	 

	 

	  

    

    

     

    
      	 	
              (b)

            	
              Number
                of shares of common stock to be registered pursuant to this Notice
                for
                resale:

            

    

     

    
      	 

	 

	 

	  

    

    

     

    4.
      Broker-Dealer Status:

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes
      མ      No
      མ

     

    
      	 	
              (b)

            	
              If
                “yes” to Section 4(a), did you receive your Registrable Securities as
                compensation for investment banking services to the
                Company?

            

    

     

    Yes
      མ      No
      མ

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

    
      	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    (c) Are
      you
      an affiliate of a broker-dealer?

     

    Yes
      མ      No
      མ

     

    
      	 	
              Note:

            	
              If
                yes, provide a narrative explanation
                below:

            

    

     

    
      	 

	 

	 

    

    

     

    
      	 	
              (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
      མ      No
      མ

     

    
      	 	
              Note:

            	
              If
                no, 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
                Stockholder.

            

    

     

    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.

     

    
      	 	
              (a)

            	
              Type
                and amount of other securities beneficially
                owned:

            

    

     

    
      	 

	
                

               

            
	 

    

    
      	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.	
              Plan
                of Distribution:

            

    

     

    The
      undersigned has reviewed the form of Plan of Distribution attached as Annex
      A to
      the Registration Rights Agreement, and hereby confirms that, except as set
      forth
      below, the information contained therein regarding the undersigned and its
      plan
      of distribution is correct and complete.

     

    State
      any
      exceptions here:

     

    
      	  

	  

	 

    

    

     

    ***********

     

     

    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 of any applicable Resale Registration Statement.
      All notices hereunder and pursuant to the Agreement shall be made in writing,
      by
      hand delivery, confirmed or facsimile transmission, first-class mail or air
      courier guaranteeing overnight delivery at the address set forth below. In
      the
      absence of any such notification, the Company shall be entitled to continue
      to
      rely on the accuracy of the information in this Notice and
      Questionnaire.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items (1) through (7) above and the inclusion
      of such information in the Resale Registration Statement and the Prospectus.
      The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of any such Registration
      Statement and the Prospectus.

     

    By
      signing below, the undersigned acknowledges that it understands its obligation
      to comply, and agrees that it will comply, with the provisions of the Exchange
      Act and the rules and regulations thereunder, particularly Regulation M in
      connection with any offering of Registrable Securities pursuant to the Resale
      Registration Statement. The undersigned also acknowledges that it understands
      that the answers to this Questionnaire are furnished for use in connection
      with
      Registration Statements filed pursuant to the Registration Rights Agreement
      and
      any amendments or supplements thereto filed with the Commission pursuant to
      the
      Securities Act.

     

    The
      undersigned hereby acknowledges and is advised of the following Interpretation
      A.65 of the July 1997 SEC Manual of Publicly Available Telephone Interpretations
      regarding short selling:

     

    “An
      Issuer filed a Form S-3 registration statement for a secondary offering of
      common stock which is not yet effective. One of the selling stockholders wanted
      to do a short sale of common stock “against the box” and cover the short sale
      with registered shares after the effective date. The issuer was advised that
      the
      short sale could not be made before the registration statement become effective,
      because the shares underlying the short sale are deemed to be sold at the time
      such sale is made. There would, therefore, be a violation of Section 5 if the
      shares were effectively sold prior to the effective date.”

     

    By
      returning this Questionnaire, the undersigned will be deemed to be aware of
      the
      foregoing interpretation.

     

    I
      confirm
      that, to the best of my knowledge and belief, the foregoing statements
      (including without limitation the answers to this Questionnaire) are
      correct.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

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

     

    
      	
              Dated:
                ________________________

            	
              Beneficial
                Owner: 

            	 

    

    
      	 	 	 
	 	
              By:

            	  

	 	 	
              Name:

            
	 	 	
              Title:

            

    

    

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO:

    

    
      	 	
              [             ]

            
	 	
              [             ]

            
	 	
              New
                York, NY [   ]

            
	 	
              Tel:
                

            
	 	
              Fax:
                

            
	 	
              Email:
                

            

    

    

     

    

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule
      6(b)

    

    PERMITTED
      REGISTRATIONS

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