|   | 1. | Definitions. | Unless otherwise defined herein, capitalized terms used in this Amendment shall have the meanings set forth in the Supply Agreement. |
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|   | 2. | Amendments. | The following provisions of the Supply Agreement are amended or amended and restated as follows. |
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|   | 2.1. | The Pricing Schedule on Appendix 1 to the Supply Agreement is hereby amended and restated such that the price in Year [***] shall be $[***]/kg and the price in Years [***] and [***] shall be $[***]/kg, as follows: |
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| Year   | 1     | 2     | 3     | 4     | 5     | 6     | 7     | 8     | 9     | 10    | Total |
|--------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|
| Volume | 200   | 200   | 200   | 200   | 200   | 200   | 200   | 200   | 200   | 200   | 2,000 |
| Price  | [***] | [***] | [***] | [***] | [***] | [***] | [***] | [***] | [***] | [***] | [***] |

|   | · | The Price in Year [***] shall be determined annually by the Parties three (3) months prior to the expiration of each Year, beginning in Year [***] of the Agreement. |
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|   | · | If there is a difference greater than or equal to [***]% (+/-) between the then-effective price pursuant to the Agreement and the average contract price for the last twelve (12) months reported by [***] or another mutually acceptable third party index (the “Average Index Price”), then the price for such subsequent Year shall be renegotiated in good faith by the Parties. |
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|   | · | If, following 45 days’ of good faith negotiations, the Parties are unable to agree on the price, such subsequent Year’s price will be the same as the Average Index Price. |
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|   | · | If the Average Index Price within [***]% (+/-) of the then-effective price under the Agreement, then the price shall not be renegotiated, and the prior Year’s price shall continue to be the effective price for such subsequent Year. |
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|   | 2.2. | Section 4.3 of the Supply Agreement is hereby amended and restated in its entirety to read as follows: |
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|   | 2.3. | Section 5.2 of the Supply Agreement is hereby amended such that the reference to September 30, 2010, is changed to March 31, 2011, and the reference to June 30, 2010, is changed to January 31, 2011. |
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|   | 2.4. | Section 10.2.6 of the Supply Agreement is hereby amended such that the reference to December 31, 2010, is changed to September 30, 2011. |
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|   | 3. | Hoku shall use commercially reasonable efforts to make available to Alex additional Product beyond the specified volumes of Product in the Supply Agreement; provided, however, that Alex is not in material breach of the Supply Agreement; and provided further that the terms and conditions for the sale of any additional amount of Product shall be negotiated and agreed in writing pursuant to a new agreement between the Parties. |
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|   | 4. | This Amendment, together with the Supply Agreement, constitute the entire agreement between the Parties concerning the subject matter hereof.  Except as specifically amended herein, the terms of the Supply Agreement shall continue in full force and effect without modification or amendment. |
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| IN WITNESS WHEREOF, the Parties have executed this Amendment No. 2 to Supply Agreement as of the date first set forth above. |                 | Date:      | January 11, 2011         |                 |
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|                                                                                                                         |                 |                 | HOKU                     |                 |   |
|                                                                                                                         |                 |                 |                     |                 |   |
| ALEX                                                                                                                         |                 | HOKU MATERIALS, INC. |                     |
|                                                                                                                         |                 |                 |                     |                 |   |
| SHANGHAI ALEX NEW ENERGY CO., LTD.                                                                                           |                 | By:             | /s/ Scott B. Paul        |                 |
|                                                                                                                         |                 |                 |                     |                 |   |
| By:                                                                                                           | /s/ Zhang LianWen    |                 | Name:               | Scott B. Paul        |   |
|                                                                                                                         |                 |                 |                     |                 |   |
| Name:                                                                                                                   | Zhang LianWen        |       | Title:    | CEO                  |   |
|                                                                                                                         |                 |                 |                     | Authorized Signatory |   |
| Title:                                                                                                                       | President            |                 |                     |                 |   |
|                                                                                                                         | Authorized Signatory |                 | Date:                    | January 12, 2011     |   |