Document:

Separation Agreement --Bryant P.  Bynum & Keystone Automotive Holdings, Inc.

 Exhibit 10.143 
 SEPARATION AGREEMENT 
 This SEPARATION AGREEMENT (this “Agreement”) is made
as of March 14, 2007 by and between Keystone Automotive Holdings, Inc. (the “Company”) and Bryant P. Bynum (“Executive,” and together with the Company, the “Parties” and each a
“Party”). 
 WHEREAS, Executive has been employed by the Company under terms set forth in that certain Employment Agreement,
dated October 30, 2003, by and between the Parties (the “Employment Agreement”); and 
 WHEREAS, Executive’s
employment with the Company has ended by agreement of the Parties (the “Separation”), effective as of February 28, 2007 (the “Separation Date”); and 
 WHEREAS, Executive holds options to acquire shares of the Company’s Class A Common, par value $.01 per share, and the Company’s Class L
Common, par value $.01 per share, pursuant to that certain Option Agreement, dated May 1, 2004, by and between the Company and Executive (the “Option Agreement”), which was entered into pursuant to the Company’s 2003
Executive Stock Option Plan (the “Plan”); and 
 WHEREAS, the Parties desire to enter into this Agreement in order to set
forth the definitive rights and obligations of the Parties in connection with the Separation. 
 NOW, THEREFORE, in consideration of the
mutual covenants, commitments and agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties intending to be legally bound hereby agree as follows: 

1. Acknowledgment of Separation. The Parties acknowledge and agree that the Separation (i) was effective as of the Separation Date and
(ii) represents a termination of Executive’s employment by the Company other than for Cause (as such term is defined in the Employment Agreement). 
 2. Resignations. Effective as of the Separation Date, Executive voluntarily resigns or otherwise shall cease to hold (i) if applicable, his position as a member of the board of directors of the Company and
as a member of the board of directors of each subsidiary of the Company on which he serves, (ii) his position as the Company’s chief financial officer, and (iii) any and all other offices which he holds at the Company or any of its
subsidiaries. 
 3. Executive’s Acknowledgment of Consideration. Executive specifically acknowledges and agrees that certain of
the obligations created and payments to be made to him by the Company under this Agreement are promises and payments to which he is not otherwise entitled under any law, the Employment Agreement or any other contract. 

 4. Payments Upon and After the Separation. 
 (a) Final Pay. Executive acknowledges that he has received all final wages, minus withholdings, for services performed for the Company through and
including the Separation Date. Furthermore, Executive acknowledges that, subject to Section 4(b) below, any other payments owed to him by the Company are deemed satisfied. 
 (b) Severance Benefits. Notwithstanding anything in the Employment Agreement to the contrary and in full satisfaction of all obligations of the
Company to Executive under Section 4(b)(i) of the Employment Agreement, in connection with the Separation, on the date that is seven (7) days following the date hereof (the seven-day period ending on such date, the “Revocation
Period”), but only if Executive has not revoked all or any portion of the Release (as contemplated by Section 6(f) of such Release) attached to this Agreement as Exhibit A hereto (the “Release”), Executive shall
be entitled to receive the severance benefits described below in paragraphs (i) through (iii), inclusive, of this Section 4(b) (collectively, the “Severance Benefits”). The payment or provision of such benefits by the
Company shall not represent any admission or concession by the Company that such benefits are owed to Executive under any agreement or obligation that might be asserted by or on behalf of Executive. Subject to Executive’s performance of his
obligations under the Release, this Agreement, including, without limitation, his obligations under Section 8 hereof, and his continuing obligations under Sections 5, 6 and 7 of the Employment Agreement, in full satisfaction of the severance
obligations described in clause (i) of Section 4(b) of the Employment Agreement: 
 (i) Severance Pay.
Executive shall be entitled to, as a cash severance payment, (A) a lump sum amount of (x) $272,336 (which is equal to twelve (12) months of the Executive’s annual base salary) and (y) up to five weeks of any accrued but
unpaid vacation pay as of the Termination Date, in each case promptly following the expiration of the Revocation Period, and (B) $108,934 (which is equal to 40% of Executive’s current annual base salary and Executive’s target bonus
for the 2006 fiscal year), (x) 50% of which shall be payable on the second business day following the filing of the Company’s Form 10K for the fiscal year ended December 31, 2006 with the United States Securities and Exchange
Commission, and (y) the remainder of which shall be payable on the first anniversary of the Separation Date. The payments contemplated by this Section 4(b)(i) shall be made by check or wire transfer of immediately available funds and shall
be subject to applicable withholding requirements. 
 (ii) Benefits. During the one-year period ending on the first
anniversary of the Separation Date, Executive shall be entitled to continue to participate fully in the disability and life insurance Benefits (as defined in the Employment Agreement) in which he participated as of the Separation Date;
provided, that, if for any reason such Benefits cannot be provided to Executive during such period, the Company shall pay to Executive an amount calculated to permit Executive to obtain the same benefits individually, grossed up for tax
purposes so that Executive is in the same position as if such Benefits were provided by the Company. 

 (iii) COBRA and COBRA Premium Payments. Effective as of the Separation Date, as
required by the continuation coverage provisions of Section 4980B of the U. S. Internal Revenue Code of 1986, as amended (the “Code”), Executive shall be offered the opportunity to elect continuation coverage under the group
medical and dental plan(s) of the Company (“COBRA coverage”); provided, that Executive shall notify the Company immediately of any change in his circumstances that would warrant discontinuation of his COBRA coverage and
benefits (including but not limited to Executive’s receipt of group medical benefits from any other employer). The Company shall provide Executive with the appropriate COBRA coverage notice and election form for this purpose. The existence and
duration of Executive’s rights and/or the COBRA rights of any of Executive’s eligible dependents shall be determined in accordance with Section 4980B of the Code. The Company shall pay the full amount of Executive’s COBRA
premiums during the one-year period ending on the first anniversary of the Separation Date. 
 5. Effect on Existing Options.
Executive has been issued certain options (the “Options”) to acquire capital stock of the Company pursuant to the terms and conditions of the Option Agreement and the Plan. Notwithstanding anything to the contrary in the Option
Agreement or the Plan, all Options (whether vested and unvested pursuant to the terms of the Option Agreement) shall automatically expire and cease to be exercisable as of the Separation Date. The Parties hereby agree the Option Agreement is hereby
terminated and of no further force and effect. 
 6. New Options. In consideration of Executive’s promises and agreements set
forth in Section 8 hereof, and conditioned upon the Executive’s continued compliance with the Release, Section 8 hereof and his continuing obligations under the Employment Agreement, Executive and the Company will enter into an Option
Agreement in the form attached hereto as Exhibit B (the “New Option Agreement”), pursuant to which Executive will be granted options to acquire capital stock of the Company. 
 7. Effect on Employment Agreement. Except as modified by Section 4 hereof, the Employment Agreement shall remain in full force and
effect and binding on Executive with respect to those obligations and provisions that survive the termination of the Executive’s employment with the Company pursuant to the terms of the Employment Agreement. Without limiting the generality of
the foregoing, Executive acknowledges that from and after the Separation Date he shall continue to remain bound by the terms and conditions of Sections 5, 6, 7 and 18 of the Employment Agreement. 
 8. Transition Assistance. Executive shall (i) use commercially reasonable efforts to cooperate with the Company and Executive’s
successor on a transition of the office of chief financial officer from Executive to such successor and (ii) assist the Company in completing the audit of the Company’s annual financial statements for the 2006 fiscal year (which shall
include executing all documents and certifications necessary therefor). 
 9. Announcement. The Company and Executive have issued to
the Company’s employees a joint announcement of the Separation. Neither the Company nor Executive shall make any statement to the Company’s employees or any other person that is inconsistent with such announcement. 

 10. General Release. In consideration for the Company entering into this Agreement and the
performance of its obligations hereunder, Executive agrees, contemporaneously with the execution and delivery by the Company of this Agreement, to execute and deliver to the Company the Release. 
 11. Effect of Breach. Executive understands that his breach of Section 5, 6 or 7 of the Employment Agreement or any of his obligations under
the Release shall eliminate his entitlement to any Severance Benefits under this Agreement, including any such payment already received and, with respect to payments received, Executive shall be required to immediately return any such amounts in the
event of a breach. 
 12. No Conflict of Interest. Executive hereby covenants and agrees that he shall not, directly or indirectly,
incur any obligation or commitment, or enter into any contract, agreement or understanding, whether express or implied, and whether written or oral, which would be in conflict with his obligations, covenants or agreements hereunder or which could
cause any of his representations or warranties made herein to be untrue or inaccurate. 
 13. Confidentiality. The Parties agree that
the terms and conditions of this Agreement are to be strictly confidential, except that Executive may disclose such terms and conditions to his family, attorneys, accountants, tax consultants, state and federal tax authorities or as may otherwise be
required by law. The Company may disclose the terms and conditions of this Agreement as the Company deems necessary to its officers, employees, board of directors, stockholders, insurers, attorneys, accountants, state and federal tax authorities, or
as may otherwise be required by law. Executive represents and warrants that he has not discussed, and agrees that except as expressly authorized by the Company he will not discuss, this Agreement, or the circumstances of his Separation with any
employee of the Company, and that he will take affirmative steps to avoid or absent himself from any such discussion even if he is not an active participant therein. EXECUTIVE ACKNOWLEDGES THE SIGNIFICANCE AND MATERIALITY OF THIS PROVISION TO THIS
AGREEMENT AND HIS UNDERSTANDING THEREOF. 
 14. Return of Company Property. Executive hereby covenants and agrees to immediately
return all items which are the property of the Company and/or which contain Confidential Information (as that term is defined in Section 5 of the Employment Agreement) and, in the case of documents, to return any and all materials of any kind
and in whatever medium evidenced. 
 15. Remedies. Each Party hereby acknowledges and affirms that in the event of any breach by such
Party of any of his or its covenants, agreements and obligations hereunder, monetary damages would be inadequate to compensate the Releasee(s) affected thereby. Accordingly, in addition to other remedies which may be available to the Releasees
hereunder or otherwise at law or in equity, any Releasee shall be entitled to specifically enforce such covenants, obligations and restrictions through injunctive and/or equitable relief, in each case without the posting of any bond or other
security with respect thereto. Should any provision hereof be adjudged to any extent invalid by any court or tribunal of competent jurisdiction, each provision shall be deemed modified to the minimum extent necessary to render it enforceable.

 16. Complete Agreement; Inconsistencies. This Agreement and the Release, together with the
Employment Agreement, the New Option Agreement and the Plan, in each case, as modified by this Agreement, as applicable, and any other documents referenced herein, constitute the complete and entire agreement and understanding of the Parties with
respect to the subject matter hereof, and supersedes in its entirety any and all prior understandings, commitments, obligations and/or agreements, whether written or oral, with respect thereto; it being understood and agreed that this Agreement and
the Release, including the mutual covenants, agreements, acknowledgments and affirmations contained herein and therein, are intended to constitute a complete settlement and resolution of all matters relating to the Separation. 
 17. No Strict Construction. The language used in this Agreement shall be deemed to be the language mutually chosen by the Parties to reflect their
mutual intent, and no doctrine of strict construction shall be applied against any Party. 
 18. Non-Admission. Nothing herein shall
be deemed or construed to represent an admission by any Releasee of any violation of law or other wrongdoing with respect to any Party. 
 19. Notices. All communications or notices required or permitted by this Agreement shall be in writing and shall be deemed to have been given (i) on the date of personal delivery to the recipient or an officer of the recipient
(other than Executive in the case of notice to the Company), or (ii) when sent by telecopy or facsimile machine to the number shown below on the date of such confirmed facsimile or telecopy transmission (provided that a confirming copy is sent
via overnight mail), or (iii) when properly deposited for delivery by a nationally recognized commercial overnight delivery service, prepaid, or by deposit in the United States mail, certified or registered mail, postage prepaid, return receipt
requested, on the delivery date set forth in the records of such delivery service or on the fifth day after so deposited in the United States mail, in each case, addressed as follows: 
 Notices to Executive, to: 
 Bryant P.
Bynum 
 PO Box 32 
 Bear Creek,
PA 18602 
 Facsimile: 
 with
a copy (which shall not constitute notice to Executive), to: 
 Schnader Harrison Segal & Lewis LLP 
 1600 Market Street, Suite 3600 
 Philadelphia,
PA 19203 
 Attention: Nicholas N. Price 
 Facsimile: 215-972-7484 
 Notices to the Company, to: 
 Keystone Automotive Holdings, Inc. 
 44
Tunkhannock Avenue 
 Exeter, PA 18643 
 Attention: Chief Executive Officer 
 Facsimile: 570-655-8203 

 with a copy (which shall not constitute notice to the Company), to: 
 Kirkland & Ellis 
 Citigroup Center

 153 East 53rd Street 
 New
York, New York 10022 
 Attention: Eunu Chun 
 Facsimile: 212-446-4900 
 or to such other address or to the attention of such other person as the recipient party has
specified by prior written notice to the sending party. 
 20. Third Party Beneficiaries. The Company Parties (as defined in the
Release) are intended third-party beneficiaries of this Agreement and the Release, and this Agreement and the Release may be enforced by each of them in accordance with the terms hereof and thereof in respect of the rights granted to such Company
Parties hereunder and thereunder. Except and to the extent set forth in the preceding sentence, this Agreement is not intended for the benefit of any Person other than the Parties, and no such other Person shall be deemed to be a third party
beneficiary hereof. 
 21. Tax Withholdings. Notwithstanding any other provision herein, the Company shall be entitled to withhold
from any amounts otherwise payable hereunder to Executive any amounts required to be withheld in respect of federal, state or local taxes. 
 22. Governing Law. All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of
Pennsylvania, without giving effect to any choice of law or conflict of law rules or provisions (whether of the Commonwealth of Pennsylvania or any other jurisdiction) that would cause the application hereto of the laws of any jurisdiction other
than the Commonwealth of Pennsylvania. 
 23. Severability. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which shall otherwise remain in full force and effect. 
 24. Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
 25. Successors and Assigns. The Parties’ obligations hereunder shall be binding upon their successors and assigns. The Parties’ rights
and the rights of the other Company Parties shall inure to the benefit of, and be enforceable by, any of the Parties’ and Company Parties respective successors and assigns. The Company may assign all rights and obligations of this Agreement to
any successor in interest to the assets of the Company. 

 26. Amendments and Waivers. No amendment to or waiver of this Agreement or any of its terms shall
be binding upon any Party unless consented to in writing by such Party. 
 27. Headings. The headings of the Sections and subsections
hereof are for purposes of convenience only, and shall not be deemed to amend, modify, expand, limit or in any way affect the meaning of any of the provisions hereof. 
 28. Waiver of Jury Trial. Each of the Parties hereby waives its rights to a jury trial of any claim or cause of action based upon or arising out of this Agreement or any dealings between the Parties relating to
the subject matter hereof and thereof. Each of the Parties also waives any bond or surety or security upon such bond which might, but for this waiver, be required of the other party. The scope of this waiver is intended to be all-encompassing of any
and all disputes that may be filed in any court and that relate to the subject matter of this Agreement, including, without limitation, contract claims, tort claims, breach of duty claims, and all other common law and statutory claims. EACH OF THE
PARTIES ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO THIS AGREEMENT, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE
DEALINGS. Each of the Parties further represents and warrants that he or it has had an adequate opportunity to consider this waiver and to consult with legal counsel with respect hereto, and that he or it knowingly and voluntarily waives its jury
trial rights. This waiver shall apply to any subsequent amendments, renewals, supplements or modifications to this Agreement. In the event of litigation, this Agreement may be filed as a written consent to a trial by the court. 
 * * * * * 

 IN WITNESS WHEREOF, the Parties have executed this Separation Agreement effective as of the date first
written above. 
  

			
	 KEYSTONE AUTOMOTIVE HOLDINGS, INC.

		
	By:	 	 /s/ W. L. Brady

	Name:	 	W. L. Brady
	Title:	 	Vice President and Controller
		
		 	 /s/ Bryant P. Bynum

		 	Bryant P. Bynum

 EXHIBIT A 
 Form of Release 
 THIS RELEASE (this “Release”) is made as of this
    day of             , 2007, by and between Keystone Automotive Holdings, Inc., a Delaware corporation (the “Company”), and Bryant P.
Bynum (“Executive”). 
 PRELIMINARY RECITALS 
 A. Executive’s employment with the Company has terminated. 
 B. Executive and the Company are parties to a Separation Agreement, dated as of March __, 2007 (the “Agreement”). 
 AGREEMENT 
 In consideration of the payments due Executive under the Agreement, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Executive,
intending to be legally bound, does hereby, on behalf of himself and his agents, representatives, attorneys, assigns, heirs, executors and administrators (collectively, the “Executive Parties”) REMISE, RELEASE AND FOREVER DISCHARGE
the Company, its affiliates, subsidiaries, parents, joint ventures, and its and their officers, directors, shareholders, members, managers and employees, and its and their respective successors and assigns, heirs, executors, and administrators
(collectively, the “Company Parties”) from all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which Executive or any of the Executive Parties ever had, now has, or hereafter may have, by reason of
any matter, cause or thing whatsoever, from the beginning of Executive’s initial dealings with the Company to the date of this Release, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating
in any way to Executive’s employment relationship with Company, the terms and conditions of that employment relationship, and the termination of that employment relationship, including, but not limited to, any claims arising under the Age
Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq. (the “ADEA”), Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., the Civil Rights Act of 1966, 42 U.S.C. §1981, the
Civil Rights Act of 1991, Pub. L. No. 102-166, the Americans with Disabilities Act, 42 U.S.C. §12101 et seq., the Age Discrimination in Employment Act, as amended, 29 U.S.C. §621 et seq., the Fair Labor Standards Act, 29 U.S.C.
§201 et seq., the National Labor Relations Act, 29 U.S.C. §151 et seq., and any other claims under any federal, state or local common law, statutory, or regulatory provision, now or hereafter recognized, but not including such claims to
payments and other rights provided Executive under the Agreement. This Release is effective without regard to the legal nature of the claims raised and without regard to whether any such claims are based upon tort, equity, implied or express
contract or discrimination of any sort. Except as specifically provided herein, it is expressly understood and agreed that this Release shall operate as a clear and unequivocal waiver by Executive of any claim for accrued or unpaid wages, benefits
or any other type of payment. 

 2. Executive expressly waives all rights afforded by any statute which limits the effect of a release
with respect to unknown claims. Executive understands the significance of his release of unknown claims and his waiver of statutory protection against a release of unknown claims. 
 3. Executive agrees that he will not be entitled to or accept any benefit from any claim or proceeding within the scope of this Release that is filed or
instigated by him or on his behalf with any agency, court or other government entity. 
 4. Executive further agrees and recognizes that he
has permanently and irrevocably severed his employment relationship with the Company, effective as of the date hereof, that he shall not seek employment with the Company or any affiliated entity at any time in the future, and that the Company has no
obligation to employ him in the future. 
 5. The parties agree and acknowledge that the Agreement, and the settlement and termination of any
asserted or unasserted claims against the Company and the Company Parties pursuant to this Release, are not and shall not be construed to be an admission of any violation of any federal, state or local statute or regulation, or of any duty owed by
the Company or any of the Company Parties to Executive. The parties further acknowledge and agree that this Release is not intended to constitute a release of any claim by the Executive Parties for any breach of the Agreement or this Release by the
Company Parties after the date hereof. 
 6. Executive certifies and acknowledges as follows: 
 (a) That he has read the terms of this Release, and that he understands its terms and effects, including the fact that he has agreed to
RELEASE AND FOREVER DISCHARGE the Company and all Company Parties from any legal action or other liability of any type related in any way to the matters released pursuant to this Release other than as provided in the Agreement and in this Release;

 (b) That he has signed this Release voluntarily and knowingly in exchange for the consideration described herein, which he
acknowledges is adequate and satisfactory to him and which he acknowledges is in addition to any other benefits to which he is otherwise entitled; 
 (c) That he has been and is hereby advised in writing to consult with an attorney prior to signing this Release; 
 (d) That he does not waive rights or claims that may arise after the date this Release is executed or those claims arising under the Agreement with respect to payments and other rights due Executive on the date of, or
during the period following, the termination of his Employment; 
 (e) That the Company has provided him with adequate
opportunity, including a period of twenty-one (21) days from the initial receipt of this Release and all other time periods required by applicable law, within which to consider this Release (it being understood by Executive that Executive may
execute this Release less than 21 days from its receipt from the Company, but agrees that such execution will represent his knowing waiver of such 21-day consideration period), and he has been advised by the Company to consult with counsel in
respect thereof; 

 (f) That he has seven (7) calendar days after signing this Release within which to
rescind the portion of this Release relating to Claims (as defined below) arising under the ADEA or any other federal, state, or local law that requires inclusion of such rescission right on any release of Claims arising under such laws, in writing
and delivered to the Company; 
 (g) That Executive shall not be entitled to any of the benefits specified in the Agreement if
Executive rescinds all or any portion of this Release; and 
 (h) That at no time prior to or contemporaneous with his
execution of this Release has he filed or caused or knowingly permitted the filing or maintenance, in any state, federal or foreign court, or before any local, state, federal or foreign administrative agency or other tribunal, any charge, claim or
action of any kind, nature and character whatsoever (“Claim”), known or unknown, suspected or unsuspected, which he may now have or has ever had against the Company Parties which is based in whole or in part on any matter referred
to in Section 1 above; and, subject to the Company’s performance under this Release, to the maximum extent permitted by law, Executive is prohibited from filing or maintaining, or causing or knowingly permitting the filing or maintaining,
of any such Claim in any such forum. Executive hereby grants the Company his perpetual and irrevocable power of attorney with full right, power and authority to take all actions necessary to dismiss or discharge any such Claim. Executive further
covenants and agrees that he will not encourage any person or entity, including but not limited to any current or former employee, officer, director or stockholder of the Company, to institute any Claim against the Company Parties or any of them,
and that except as expressly permitted by law or administrative policy or as required by legally enforceable order he will not aid or assist any such person or entity in prosecuting such Claim. 
 7. The Company (meaning, solely for this purpose, the Company’s directors and executive officers and other individuals authorized to make official
communications on the Company’s behalf) will not disparage Executive or Executive’s performance or otherwise take any action which could reasonably be expected to adversely affect Executive’s personal or professional reputation.
Similarly, Executive will not disparage any Company Party or otherwise take any action which could reasonably be expected to adversely affect the personal or professional reputation of any Company Party. 
 8. Miscellaneous 
 (a)
This Release and the Agreement, and any other documents expressly referenced therein, constitute the complete and entire agreement and understanding of Executive and the Company with respect to the subject matter hereof, and supersedes in its
entirety any and all prior understandings, commitments, obligations and/or agreements, whether written or oral, with respect thereto; it being understood and agreed that this Release and including the mutual covenants, agreements, acknowledgments
and affirmations contained herein, is intended to constitute a complete settlement and resolution of all matters set forth in Section 1 hereof. 

 (b) The Company Parties are intended third-party beneficiaries of this Release, and this
Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Company Parties hereunder. Except and to the extent set forth in the preceding two sentences, this Release is not intended for the
benefit of any Person other than the parties hereto, and no such other person or entity shall be deemed to be a third party beneficiary hereof. Without limiting the generality of the foregoing, it is not the intention of the Company to establish any
policy, procedure, course of dealing or plan of general application for the benefit of or otherwise in respect of any other employee, officer, director or stockholder, irrespective of any similarity between any contract, agreement, commitment or
understanding between the Company and such other employee, officer, director or stockholder, on the one hand, and any contract, agreement, commitment or understanding between the Company and Executive, on the other hand, and irrespective of any
similarity in facts or circumstances involving such other employee, officer, director or stockholder, on the one hand, and Executive, on the other hand. 
 (c) The invalidity or unenforceability of any provision of this Release shall not affect the validity or enforceability of any other provision of this Release, which shall otherwise remain in full force and effect.

 (d) This Release may be executed in separate counterparts, each of which shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. 
 (e) The obligations of each of the Company and Executive
hereunder shall be binding upon their respective successors and assigns. The rights of each of the Company and Executive and the rights of the Company Parties shall inure to the benefit of, and be enforceable by, any of the Company’s,
Executive’s and the Company Parties’ respective successors and assigns. The Company may assign all rights and obligations of this Release to any successor in interest to the assets of the Company. 
 (f) No amendment to or waiver of this Release or any of its terms shall be binding upon any party hereto unless consented to in writing by
such party. 
 (g) ALL ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS
RELEASE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF THE COMMONWEALTH OF PENNSYLVANIA OR ANY OTHER
JURISDICTION) THAT WOULD CAUSE THE APPLICATION HERETO OF THE LAWS OF ANY JURISDICTION OTHER THAN THE COMMONWEALTH OF PENNSYLVANIA. 
 * * * *
* 

 Intending to be legally bound hereby, Executive and the Company have executed this Release as of the date
first written above. 
  

			
	KEYSTONE AUTOMOTIVE HOLDINGS, INC.
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 READ CAREFULLY BEFORE SIGNING 
 I have read this Release and have been given adequate opportunity, including 21 days from my initial receipt of this Release, to review this Release and to consult legal
counsel prior to my signing of this Release. I understand that by executing this Release I will relinquish certain rights or demands I may have against the Company Parties or any of them. 
  

	
	  

	Bryant P. Bynum

 Witness: 
  

	
	  

 EXHIBIT B 
 Form of New Option Agreement 

 OPTION AGREEMENT 
 This OPTION AGREEMENT (this “Agreement”) is made as of March 14, 2007, by and between Keystone Automotive Holdings, Inc., a
Delaware corporation (the “Company”), and Bryant P. Bynum (the “Optionee”). Capitalized terms used in this Agreement without definition herein shall have the meaning given to such terms in the Plan (as defined
below). 
 Pursuant to the Company’s 2003 Executive Stock Option Plan (the “Plan”), and in exchange for Optionee’s
provision of certain services to the Company pursuant to the Separation Agreement (as defined below), the Company and Optionee desire to enter into an agreement pursuant to which the Company will grant to Optionee options to acquire 86,502 shares of
the Company’s Class L Common Stock, par value $.01 per share (the “Class L Common”), and 778,518 shares of the Company’s Class A Common Stock, par value $.01 per share (the “Class A Common”, and
together with the Class L Common, the “Common Stock”). The options described above are sometimes hereinafter referred to individually as an “Option” and collectively as the “Options.” The Options
granted hereunder are intended to replace in their entirety the stock options granted to the Optionee pursuant to the Option Agreement dated as of May 1 , 2004 by and between the Company and the Optionee, which has been terminated by agreement
of the parties. 
 The parties hereto agree as follows: 
 1. Stock Options. 
 (a) Option Grants. The Company hereby grants to Optionee, pursuant
to the Plan, Options to purchase (i) 86,502 shares of Class L Common (the “Class L Common Options”) and (ii) 778,518 shares of Class A Common (the “Class A Common Options”). The Class A Common
Options shall have an exercise price per share of $0.3889 per share (the “Class A Common Option Price”). The Class L Common Options shall have an exercise price per share of $31.50 per share (the “Class L Common Option
Price”). The shares issued upon exercise of the Options are referred to herein as the “Option Shares.” The number of Option Shares and each Class A Common Option Price and Class L Common Option Price will be equitably
adjusted for any stock split, stock dividend, reclassification or recapitalization of the Company which occurs subsequent to the date of this Agreement. 
 (b) Exercisability. Notwithstanding any provision to the contrary in the Plan, all Options granted hereunder may be exercised any time prior to their expiration as set forth in Section 1(d) below.

 (c) Securities Laws Restrictions. Optionee represents that when Optionee exercises the Options he will be purchasing Option Shares
for Optionee’s own account and not on behalf of others. Optionee understands and acknowledges that federal and state securities laws govern and restrict Optionee’s right to offer, sell or otherwise dispose of any Option Shares unless
Optionee’s offer, sale or other disposition thereof is registered under the Securities Act of 1933, as amended (the “1933 Act”), and state securities laws or, in the opinion of the Company’s counsel, such offer, sale or
other disposition is exempt from registration thereunder. Optionee agrees that he will not offer, sell or otherwise dispose of any Option Shares in any manner which would: 
 (i) require the Company to file any registration statement (or similar filing under state law) with the Securities and Exchange Commission or to amend or supplement any such filing or (ii) violate or cause
the Company to violate the 1933 Act, the rules and regulations promulgated thereunder or any other state or federal law. Optionee further understands that the certificates for any Option Shares Optionee purchases will bear the legend set forth in
Section 4 hereof or such other legends as the Company deems necessary or desirable in connection with the 1933 Act or other rules, regulations or laws. 

 (d) Expiration. The Options will expire on May 1, 2014; provided, that all unexercised
Options shall automatically and immediately expire and cease to be exercisable in the event that, prior to the exercise by Executive thereof, the Executive: 
 (i) violates the terms of the Separation Agreement, dated as of March 14, 2007, between the Optionee and Company (the
“Separation Agreement”), and the Release executed in connection therewith; 
 (ii) disparages the Company,
its affiliates, subsidiaries, parents, joint ventures, and its and their officers, directors, shareholders, members, managers and employees, and its and their respective successors and assigns, heirs, executors, and administrators (collectively, the
“Company Parties”) or otherwise takes any action which could reasonably be expected to adversely affect the personal or professional reputation of any Company Party; 
 (iii) directly or indirectly owns any interest in, manages, controls, participates in, consults with, renders services for, or in any
manner engages in any Competing Business within any geographical area in which the Company or its Subsidiaries engage or plan to engage in such businesses; provided, that (x) nothing herein shall prohibit Executive from being a passive
owner of not more than 2% of the outstanding stock of any class of a corporation which is publicly traded, so long as Executive has no active participation in the business of such corporation, and (y) for purposes of this clause (iii),
“Competing Business” means any business activity involving the wholesale distribution of after market specialty automobile parts; or 
 (iv) directly or indirectly through another person or entity (x) induces or attempts to induce any executive of the Company or any Subsidiary to leave the employ of the Company or such Subsidiary, or in any way
interferes with the relationship between the Company or any Subsidiary and any executive thereof, (y) hires any person who was an executive of the Company or any Subsidiary at any time since the date that is three (3) months prior to the
Separation Date or (z) induces or attempts to induce any customer, supplier, licensee, licensor, franchisee or other business relation of the Company or any Subsidiary to cease doing business with the Company or such Subsidiary, or in any way
interferes with the relationship between any such customer, supplier, licensee or business relation and the Company or any Subsidiary. 
 (e)
Rules and Procedures for Exercise. Any exercise of an Option must comply with the terms and conditions respecting exercise set forth in the Plan. Optionee must exercise Class A Common Options to acquire nine shares of Class A Common
for every one share of Class L Common acquired through the exercise of Class L Common Options and Class L Common Options to acquire one share of Class L Common for every nine shares of Class A Common acquired through the exercise of
Class A Common Options. 

 (f) Non-Transferability of Option. The Options are personal to Optionee and are not transferable
by Optionee. Only Optionee or his estate or heirs is entitled to exercise the Options. 
 (g) Class L Yield. The Company and Optionee
acknowledge and agree that, for all purposes (including for purposes of Section 4(b)(vii) of the Plan and pursuant to the Company’s Amended and Restated Certificate of Incorporation (as amended from time to time, the “Certificate
of Incorporation”)), each share of Class L Common issued upon exercise of a Class L Common Option shall have accrued and unpaid “Yield” (as defined in the Certificate of Incorporation) as of the date of exercise as if such share
of Class L Common had been issued on October 30, 2003. 
 2. Restrictions on Transfer; Other Stockholders Agreement
Provisions. Upon exercise of any Option granted hereunder, Optionee, if not already a party thereto, shall execute and deliver to the Company a counterpart to the Stockholders Agreement in form and substance satisfactory to the Company
agreeing to be bound by the terms and conditions thereof. Optionee accepts, acknowledges, and agrees that the Option Shares issued upon exercise of any Options is subject to the terms and conditions of the Stockholders Agreement, including the
restrictions on transfer contained therein. 
 3. Additional Restrictions on Transfer. 
 (a) The certificates representing the Option Shares will bear the following legend: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY
NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AND
CERTAIN OTHER AGREEMENTS SET FORTH IN AN OPTION AGREEMENT BETWEEN THE ISSUER (THE “COMPANY”) AND A CERTAIN EMPLOYEE OF THE COMPANY DATED AS OF MARCH 3, 2006, A COPY OF WHICH MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S
PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.” 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN TRANSFER AND
VOTING RESTRICTIONS PURSUANT TO A STOCKHOLDERS AGREEMENT DATED AS OF OCTOBER 30, 2003 AMONG THE COMPANY AND CERTAIN OF THE COMPANY’S STOCKHOLDERS, AS SUCH AGREEMENT MAY BE AMENDED FROM TIME TO TIME. A COPY OF SUCH STOCKHOLDERS AGREEMENT WILL BE
FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.” 

 (b) No holder of Option Shares may sell, transfer or dispose of any Option Shares (except pursuant to an
effective registration statement under the 1933 Act) without first delivering to the Company an opinion of counsel reasonably acceptable in form and substance to the Company (which counsel shall be reasonably acceptable to the Company) that
registration under the 1933 Act is not required in connection with such transfer. 
 4. Definition of Option Shares For all
purposes of this Agreement, Option Shares will continue to be Option Shares in the hands of any holder other than Optionee (except for the Company or purchasers pursuant to an offering registered under the 1933 Act or purchasers pursuant to a Rule
144 transaction (other than a Rule 144(k) transaction occurring prior to the time of a closing of a Public Offering (as defined in the Stockholders Agreement)), and each such other holder of Option Shares will succeed to all rights and obligations
attributable to Optionee as a holder of Option Shares hereunder. Option Shares will also include shares of the Company’s capital stock issued with respect to shares of Option Shares by way of a stock split, stock dividend or other
recapitalization. 
 5. Notices. Any notice provided for in this Agreement must be in writing and must be personally delivered,
received by certified mail, return receipt requested, or sent by guaranteed overnight delivery service, to the Investors at the addresses indicated in the Company’s records and to the other recipients at the address indicated below: 

If to the Company, to: 
 Keystone
Automotive Holdings, Inc. 
 44 Tunkhannock Avenue 
 Exeter, PA 18643 
 Attn: Chief Executive Officer 
 with a copy (which shall not constitute notice to the Company) to: 
 Kirkland & Ellis LLP 
 Citigroup Center 
 153 East 53rd Street 
 New York, NY 10022

 Attention: Eunu Chun 
 If
to Optionee, to: 
 Bryant P. Bynum 
 PO Box 32 
 Bear Creek, PA 18602 
 Facsimile: 
 with a copy (which shall not constitute notice to Optionee) to: 
 Schnader Harrison Segal & Lewis LLP 
 1600 Market Street, Suite 3600 
 Philadelphia, PA 19203 
 Attention: Nicholas N. Price 
 Facsimile:
215-972-7484 

 or such other address or to the attention of such other person as the recipient party shall have specified by prior
written notice to the sending party. Any notice under this Agreement will be deemed to have been given when so delivered or mailed. 
 6.
Representations and Warranties. In connection with the grant of the Options hereunder, Optionee represents and warrants to the Company that: 
 (a) This Agreement constitutes the legal, valid and binding obligation of Optionee, enforceable against Optionee in accordance with its terms, and the execution, delivery and performance of this Agreement by Optionee
does not and will not conflict with, violate or cause a breach of any agreement, contract or instrument to which Optionee is a party or any judgment, order or decree to which Optionee is subject. 
 (b) As an inducement to the Company to grant the Options to Optionee, and as a condition thereto, Optionee acknowledges and agrees that neither the grant
of the Options to Optionee nor any provision contained herein shall entitle Optionee to remain or continue in the employment of the Company or its Subsidiaries. 
 (c) The Company and Optionee acknowledge and agree that, except as otherwise expressly provided in this Agreement, the issuance of the Options and the issuance of any Option Shares upon the exercise of any of the
Options is subject to all of the terms and conditions contained in the Plan. 
 (d) Subject to any amounts required to be withheld by the
Company, Optionee is solely responsible for paying all taxes (including penalties and interest) in connection with the grant or exercise of the Options. 
 7. Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held
to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or the effectiveness or validity of any provision in any
other jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 
 8. Complete Agreement. This Agreement, the Plan and the Separation Agreement embody the complete agreement and understanding among the
parties and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. 
 9. Counterparts. This Agreement may be executed in separate counterparts (including by means of facsimile), each of which will be deemed to
be an original and all of which taken together will constitute one and the same agreement. 

 10. Successors and Assigns. This Agreement is intended to bind and inure to the benefit of
and be enforceable by Optionee and the Company and their respective successors and assigns, provided, that Optionee may not assign any of his rights or obligations, except as expressly provided by the terms of this Agreement. 
 11. Governing Law. THE CORPORATE LAW OF THE STATE OF DELAWARE WILL GOVERN ALL ISSUES CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS
STOCKHOLDERS. ALL OTHER ISSUES CONCERNING THE ENFORCEABILITY, VALIDITY AND BINDING EFFECT OF THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR
CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK. 
 12. Remedies. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of
this Agreement and that any party hereto will have the right to injunctive relief, in addition to all of its other rights and remedies at law or in equity, to enforce the provisions of this Agreement. 
 13. Effect of Transfers in Violation of Agreement. The Company will not be required (a) to transfer on its books any shares of Option
Shares which have been sold or transferred in violation of any of the provisions set forth in this Agreement or (b) to treat as owner of such shares, to accord the right to vote as such owner or to pay dividends to any transferee to whom such
shares have been transferred in violation of this Agreement. 
 14. Amendments and Waivers. Any provision of this Agreement may
be amended or waived only with the prior written consent of the Company and Optionee. 
 15. Keystone Automotive Holdings, Inc. 2003
Executive Stock Option Plan. Except as otherwise expressly set forth in this Agreement, the grant of Options and issuance of Option Shares hereunder is pursuant to, and subject to all the terms and conditions of, the Plan, attached hereto as
Exhibit A. 
 * * * * * 

 IN WITNESS WHEREOF, the parties have executed this Option Agreement on the day and year first above
written. 
  

			
	KEYSTONE AUTOMOTIVE HOLDINGS, INC.
		
	By:	 	 /s/ W. L. Brady

	Name:	 	W. L. Brady
	Title:	 	Vice President and Controller
		
		 	 /s/ Bryant P. Bynum

		 	Bryant P. Bynum

 Exhibit A 
 Keystone Automotive Holdings, Inc. 2003 Executive Stock Option Plan 
 (see attached) 

 Release 
 THIS RELEASE (this “Release”) is made as of this 14th day of March, 2007, by and
between Keystone Automotive Holdings, Inc., a Delaware corporation (the “Company”), and Bryant P. Bynum (“Executive”). 
 PRELIMINARY RECITALS 
 A. Executive’s employment with the Company has terminated. 
 B. Executive and the Company are parties to a Separation Agreement, dated as of March 14, 2007 (the “Agreement”). 
 AGREEMENT 
 In consideration of the
payments due Executive under the Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Executive, intending to be legally bound, does hereby, on behalf of himself and his agents, representatives, attorneys, assigns, heirs, executors and
administrators (collectively, the “Executive Parties”) REMISE, RELEASE AND FOREVER DISCHARGE the Company, its affiliates, subsidiaries, parents, joint ventures, and its and their officers, directors, shareholders, members, managers
and employees, and its and their respective successors and assigns, heirs, executors, and administrators (collectively, the “Company Parties”) from all causes of action, suits, debts, claims and demands whatsoever in law or in
equity, which Executive or any of the Executive Parties ever had, now has, or hereafter may have, by reason of any matter, cause or thing whatsoever, from the beginning of Executive’s initial dealings with the Company to the date of this
Release, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to Executive’s employment relationship with Company, the terms and conditions of that employment relationship, and
the termination of that employment relationship, including, but not limited to, any claims arising under the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq. (the “ADEA”), Title VII of The Civil Rights
Act of 1964, as amended, 42 U.S.C. § 2000e et seq., the Civil Rights Act of 1966, 42 U.S.C. §1981, the Civil Rights Act of 1991, Pub. L. No. 102-166, the Americans with Disabilities Act, 42 U.S.C. §12101 et seq., the Age
Discrimination in Employment Act, as amended, 29 U.S.C. §621 et seq., the Fair Labor Standards Act, 29 U.S.C. §201 et seq., the National Labor Relations Act, 29 U.S.C. §151 et seq., and any other claims under any federal, state or
local common law, statutory, or regulatory provision, now or hereafter recognized, but not including such claims to payments and other rights provided Executive under the Agreement. This Release is effective without regard to the legal nature of the
claims raised and without regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort. Except as specifically provided herein, it is expressly understood and agreed that this Release shall
operate as a clear and unequivocal waiver by Executive of any claim for accrued or unpaid wages, benefits or any other type of payment. 

 2. Executive expressly waives all rights afforded by any statute which limits the effect of a release
with respect to unknown claims. Executive understands the significance of his release of unknown claims and his waiver of statutory protection against a release of unknown claims. 
 3. Executive agrees that he will not be entitled to or accept any benefit from any claim or proceeding within the scope of this Release that is filed or
instigated by him or on his behalf with any agency, court or other government entity. 
 4. Executive further agrees and recognizes that he
has permanently and irrevocably severed his employment relationship with the Company, effective as of the date hereof, that he shall not seek employment with the Company or any affiliated entity at any time in the future, and that the Company has no
obligation to employ him in the future. 
 5. The parties agree and acknowledge that the Agreement, and the settlement and termination of any
asserted or unasserted claims against the Company and the Company Parties pursuant to this Release, are not and shall not be construed to be an admission of any violation of any federal, state or local statute or regulation, or of any duty owed by
the Company or any of the Company Parties to Executive. The parties further acknowledge and agree that this Release is not intended to constitute a release of any claim by the Executive Parties for any breach of the Agreement or this Release by the
Company Parties after the date hereof. 
 6. Executive certifies and acknowledges as follows: 
 (a) That he has read the terms of this Release, and that he understands its terms and effects, including the fact that he has agreed to
RELEASE AND FOREVER DISCHARGE the Company and all Company Parties from any legal action or other liability of any type related in any way to the matters released pursuant to this Release other than as provided in the Agreement and in this Release;

 (b) That he has signed this Release voluntarily and knowingly in exchange for the consideration described herein, which he
acknowledges is adequate and satisfactory to him and which he acknowledges is in addition to any other benefits to which he is otherwise entitled; 
 (c) That he has been and is hereby advised in writing to consult with an attorney prior to signing this Release; 
 (d) That he does not waive rights or claims that may arise after the date this Release is executed or those claims arising under the Agreement with respect to payments and other rights due Executive on the date of, or
during the period following, the termination of his Employment; 
 (e) That the Company has provided him with adequate
opportunity, including a period of twenty-one (21) days from the initial receipt of this Release and all other time periods required by applicable law, within which to consider this Release (it being understood by Executive that Executive may
execute this Release less than 21 days from its receipt from the Company, but agrees that such execution will represent his knowing waiver of such 21-day consideration period), and he has been advised by the Company to consult with counsel in
respect thereof; 

 (f) That he has seven (7) calendar days after signing this Release within which to
rescind the portion of this Release relating to Claims (as defined below) arising under the ADEA or any other federal, state, or local law that requires inclusion of such rescission right on any release of Claims arising under such laws, in writing
and delivered to the Company; 
 (g) That Executive shall not be entitled to any of the benefits specified in the Agreement if
Executive rescinds all or any portion of this Release; and 
 (h) That at no time prior to or contemporaneous with his
execution of this Release has he filed or caused or knowingly permitted the filing or maintenance, in any state, federal or foreign court, or before any local, state, federal or foreign administrative agency or other tribunal, any charge, claim or
action of any kind, nature and character whatsoever (“Claim”), known or unknown, suspected or unsuspected, which he may now have or has ever had against the Company Parties which is based in whole or in part on any matter referred
to in Section 1 above; and, subject to the Company’s performance under this Release, to the maximum extent permitted by law, Executive is prohibited from filing or maintaining, or causing or knowingly permitting the filing or maintaining,
of any such Claim in any such forum. Executive hereby grants the Company his perpetual and irrevocable power of attorney with full right, power and authority to take all actions necessary to dismiss or discharge any such Claim. Executive further
covenants and agrees that he will not encourage any person or entity, including but not limited to any current or former employee, officer, director or stockholder of the Company, to institute any Claim against the Company Parties or any of them,
and that except as expressly permitted by law or administrative policy or as required by legally enforceable order he will not aid or assist any such person or entity in prosecuting such Claim. 
 7. The Company (meaning, solely for this purpose, the Company’s directors and executive officers and other individuals authorized to make official
communications on the Company’s behalf) will not disparage Executive or Executive’s performance or otherwise take any action which could reasonably be expected to adversely affect Executive’s personal or professional reputation.
Similarly, Executive will not disparage any Company Party or otherwise take any action which could reasonably be expected to adversely affect the personal or professional reputation of any Company Party. 
 8. Miscellaneous 
 (a)
This Release and the Agreement, and any other documents expressly referenced therein, constitute the complete and entire agreement and understanding of Executive and the Company with respect to the subject matter hereof, and supersedes in its
entirety any and all prior understandings, commitments, obligations and/or agreements, whether written or oral, with respect thereto; it being understood and agreed that this Release and including the mutual covenants, agreements, acknowledgments
and affirmations contained herein, is intended to constitute a complete settlement and resolution of all matters set forth in Section 1 hereof. 

 (b) The Company Parties are intended third-party beneficiaries of this Release, and this
Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Company Parties hereunder. Except and to the extent set forth in the preceding two sentences, this Release is not intended for the
benefit of any Person other than the parties hereto, and no such other person or entity shall be deemed to be a third party beneficiary hereof. Without limiting the generality of the foregoing, it is not the intention of the Company to establish any
policy, procedure, course of dealing or plan of general application for the benefit of or otherwise in respect of any other employee, officer, director or stockholder, irrespective of any similarity between any contract, agreement, commitment or
understanding between the Company and such other employee, officer, director or stockholder, on the one hand, and any contract, agreement, commitment or understanding between the Company and Executive, on the other hand, and irrespective of any
similarity in facts or circumstances involving such other employee, officer, director or stockholder, on the one hand, and Executive, on the other hand. 
 (c) The invalidity or unenforceability of any provision of this Release shall not affect the validity or enforceability of any other provision of this Release, which shall otherwise remain in full force and effect.

 (d) This Release may be executed in separate counterparts, each of which shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. 
 (e) The obligations of each of the Company and Executive
hereunder shall be binding upon their respective successors and assigns. The rights of each of the Company and Executive and the rights of the Company Parties shall inure to the benefit of, and be enforceable by, any of the Company’s,
Executive’s and the Company Parties’ respective successors and assigns. The Company may assign all rights and obligations of this Release to any successor in interest to the assets of the Company. 
 (f) No amendment to or waiver of this Release or any of its terms shall be binding upon any party hereto unless consented to in writing by
such party. 
 (g) ALL ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS
RELEASE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF THE COMMONWEALTH OF PENNSYLVANIA OR ANY OTHER
JURISDICTION) THAT WOULD CAUSE THE APPLICATION HERETO OF THE LAWS OF ANY JURISDICTION OTHER THAN THE COMMONWEALTH OF PENNSYLVANIA. 
 * * *
* * 

 Intending to be legally bound hereby, Executive and the Company have executed this Release as of the date
first written above. 
  

			
	 KEYSTONE AUTOMOTIVE HOLDINGS, INC.

		
	By:	 	 /s/ W. L. Brady

	Name:	 	W. L. Brady
	Title:	 	Vice President and Controller

 READ CAREFULLY BEFORE SIGNING 
 I have read this Release and have been given adequate opportunity, including 21 days from my initial receipt of this Release, to review this Release and to consult legal
counsel prior to my signing of this Release. I understand that by executing this Release I will relinquish certain rights or demands I may have against the Company Parties or any of them. 
  

	
	 /s/ Bryant P. Bynum

	 Bryant P. Bynum

 Witness: 
  

	
	 /s/ Dawn L. LayaouCredit Agreement

 Exhibit 10.39 
 CREDIT AGREEMENT 
 Intending to be legally bound by this Credit
Agreement (the “Agreement”), dated March 23, 2007 (the “Effective Date”), BANK OF HAWAII, a Hawaii corporation, whose mailing address is P.O. Box 2900, Honolulu, Hawaii 96846 (the “Bank”) and HOKU
MATERIALS, INC., a Delaware corporation, whose address is 1075 Opakapaka Street, Kapolei, Hawaii 96707 (the “Borrower”) agree as follows: 
 I. LOAN 
 1.01 In General. Subject to the terms of this Agreement and the other Loan Documents, the
Bank hereby establishes a revolving line of credit loan in favor of the Borrower (the “Loan”). Under the Loan, the Bank will extend credit to the Borrower commencing on the Effective Date subject to the Maximum Advance Rate and Maximum
Loan to Value Ratio as described in Section 1.05 of this Agreement, with a maturity date of six (6) months after the Effective Date (the “Maturity Date”). 
 1.02 Maximum Principal Amount of Loan. The principal amount of the Loan shall not exceed $13,000,000.00 (the “Commitment”). The Borrower
may borrow, repay and re-borrow, from the Effective Date until the business day immediately preceding the Maturity Date, provided that the principal amount of the Loan shall never exceed the amount of the Commitment. 
 1.03 Purpose. The proceeds of the Loan shall be used exclusively to support the initial costs associated with the Borrower’s new polysilicon
business, including the purchase of new equipment, initial plant construction costs, and related research and development costs. 
 1.04
Security. The Loan shall be secured by liens on or security interests in the following collateral (the “Collateral”), which liens or security interests shall be of first priority unless otherwise approved by the Bank: 
 Security interest in Borrower’s Piper Jaffray Account No. 4296-8092, by way of a control agreement, in form and substance acceptable to the
Bank, executed by the Borrower, the Bank and Piper Jaffray, a Minnesota brokerage company (“Piper Jaffray”). 
 1.05 Maximum
Advance Rate and Maximum Loan to Value. 
 Eligible Collateral & Loan to Value Requirements 
  

					
	 Collateral Type*
	  	 Maximum Advance Rate
	  	 Maximum Loan to Value Ratio

	 Cash & Cash Equivalents
	  	95%	  	95%
	 Common and preferred stocks listed on the New York Stock Exchange and Mutual Funds
	  	75%	  	82.5%

					
	 U. S. Treasury or Government-Sponsored Organization obligations with remaining term of five years or less
	  	90%	  	95%
	 U. S. Treasury or Government-Sponsored Organization obligations with remaining term greater than five years
	  	80%	  	85%
	 Corporate or Municipal Bonds rated AAA/Aaa, AA/Aa or SP-1 with remaining term of five years or less
	  	85%	  	90%
	 Corporate or Municipal Bonds rated AAA/Aaa, AA/Aa or SP-1 with remaining term of greater than five years
	  	75%	  	80%
	 Corporate or Municipal Bonds rated A, Baa, BBB, or SP-2 with remaining term of five years or less
	  	80%	  	85%
	 Corporate or Municipal Bonds rated A, Baa, BBB, or SP-2 with remaining term of greater than five years
	  	70%	  	75%
	 Commercial Paper rated A1, P1 or F1
	  	80%	  	85%
	 Commercial Paper rated A2, P2 or F2
	  	70%	  	80%

	*	Collateral requirements: 

  

	 	•	Advances must conform to Advance Rate at the time of advance. The Maximum Loan to Value Ratio must be maintained at all times during the Loan term. 

  

	 	•	Stocks must be actively traded on the New York stock exchange and have a per share price at the time of establishment of at least $10.00. 

  

	 	•	Mutual Funds must have a Morning Star Rating of “3” or better. 

  

	 	•	Money Market Mutual Funds are open-end mutual funds that invest only in money market instrument. Money market instruments are stable, short-term (one day to one year) debt
obligations including, but not limited to, treasury bills, certificates of deposit, commercial paper and municipal obligations. 

 If at any time the actual loan to value ratio exceeds the Maximum Loan to Value Ratio, the Borrower is required to restore the Loan to the original Advance Rate within six (6) business days of written notice from the Bank by any one of
the following: 1) Pledge additional assets acceptable to the Bank, 2) Reduce the outstanding amount under the Loan, or 3) Permanently reduce the Loan amount and the outstanding amount under the Loan. 
  

 2 

 1.06 Interest; Minimum Advance Amount; Maximum Number of Loans Outstanding; Repayment of Loans.
Notwithstanding any other provision of this Agreement, the minimum amounts of each advance shall be $100,000.00 and there shall not be more than fifteen (15) Base Rate Loans or LIBOR Loans combined at any one time during the term of the Loan
(as both Loans are hereafter defined). On or before the Effective Date and from time to time thereafter, as applicable for each requested advance, the Borrower shall execute and deliver to the Bank a Notice of Borrowing in the form attached hereto
as Exhibit “A” and made a part hereof. The Notice of Borrowing must be received by the Bank no later than 10:00 a.m. (Hawaii Standard Time) on the date one full Business Day (as defined in Section 1.10, below) prior to the proposed
disbursement date in the case of a Base Rate Loan or three full Business Days prior to the proposed disbursement date in the case of a LIBOR Loan. 
 A certificate in the form attached as Exhibit “B” hereto and made a part hereof (the “Advance Rate Certificate”) shall be submitted with each Notice of Borrowing and shall provide a calculation of the then current market
value of the Collateral multiplied by the Maximum Advance Rates described above. 
 a. Base Rate. The Borrower agrees to pay interest
in respect of the unpaid principal amount of each Base Rate Loan for each day during the period commencing on the date the proceeds thereof are made available to the Borrower until the Maturity Date at a floating rate per annum which shall be equal
to the sum of the Base Rate in effect from time to time minus one and one-quarter percent (1.25%). 
 “Base Rate” means the
primary index rate established from time to time by the Bank of Hawaii in the ordinary course of its business and with due consideration of the money market, and published by intrabank memoranda for the guidance of its loan officers in pricing all
of its loans which float with the Base Rate. 
 Any floating rate of interest will increase or decrease during the term of this Agreement if
there is an increase or decrease in the rate to which the floating rate is tied. If the rate to which the floating rate is tied is no longer available, the Bank will choose a new rate that is based on comparable information. Borrower may repay
principal at any time without a prepayment fee. 
 b. LIBOR. The Borrower agrees to pay interest in respect of the unpaid principal
amount of each LIBOR Loan during the period commencing on the date the proceeds thereof are made available to the Borrower for each day during each LIBOR Interest Period applicable thereto at a rate per annum which shall be equal to the sum of LIBOR
for such LIBOR Interest Period; plus one-half percent (.50%). If Borrower shall: (a) pay or convert any LIBOR Loan on any day other than the last day of the applicable Interest Period, whether by acceleration or otherwise; or (b) fail to
borrow any LIBOR Loan or convert any loan into a LIBOR Loan or rollover in accordance with a Notice of Borrowing delivered to the Bank (whether as a result of the failure to satisfy any applicable conditions or otherwise), Borrower shall reimburse
the Bank and hold the Bank harmless for all costs, net losses or administrative overhead incurred as a result of such repayment, prepayment or failure. The Bank may use any reasonable method in 

  

 3 

 
calculating its loss under this Section 1.06 (b), which calculation shall be binding and conclusive on Borrower absent manifest error. Borrower shall be
obligated to manage the loans so that there are sufficient funds on hand to make each principal installment payment when required without prepaying a LIBOR Loan. 
 1. If the Bank shall reasonably determine (which determination shall be final and conclusive and binding upon all parties) that: 
 a. on any date for determining the LIBOR for any LIBOR Interest Period, by reason of any change after the date hereof affecting the interbank Eurodollar market or affecting the position of the Bank in such market,
adequate and fair means do not exist for ascertaining the applicable interest rate by reference to LIBOR, including, without limitation, if quotations of interest rates for the relevant deposits referred to in the definition of LIBOR are not being
provided in the relevant amounts or for the relative maturities for purposes of determining the interest rate with respect to a LIBOR Loan; or 
 b. at any time, by reason of: (A) the adoption of any new law, rule, regulation, order, guideline, directive or request (whether or not having the force of law) or any change after the date hereof in any applicable law or governmental
rule, regulation or order or any interpretation thereof by a governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or otherwise (provided that, in the case of an interpretation not by a
governmental authority, central bank or comparable agency, such interpretation shall be made in good faith and shall have a reasonable basis); or (B) in the case of LIBOR Loans, other circumstances affecting the Bank or the interbank Eurodollar
market or the position of the Bank in such market, LIBOR shall not represent the effective pricing to the Bank for funding or maintaining the affected LIBOR Loan or the cost of the Bank of maintaining its Commitment under this Agreement is
increased; or 
 c. at any time that the adoption of any applicable law, rule, regulation, guideline, directive, or request (whether or not
having force of law) regarding capital requirements for banks or bank holding companies or any change therein or in the interpretations or administration thereof by any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by the Bank with any of the foregoing imposes or increases a requirement by the Bank to allocate capital resources to the LIBOR Loan which has or will have the effect of reducing the rate of
return on the Bank’s capital or that of the corporation controlling the Bank to a level below that which the Bank or such other corporation could have achieved (taking into consideration the Bank’s then existing policies with respect to
capital adequacy and assuming full utilization of the Bank’s capital) but for such adoption, change or compliance by any amount deemed by the Bank to be material; or 
 d. at any time, by reason of the requirements of Regulation D or other statutory or regulatory reserve requirements, LIBOR shall not represent the
effective pricing to the Bank for funding or maintaining the affected LIBOR Loan; or 
  

 4 

 e. at any time that the making or continuance of any LIBOR Loan has become unlawful by reason of
compliance by the Bank in good faith with any law or governmental rule, regulation, guideline, requests, directive or order (whether or not having the force of law), or would cause severe hardship to the Bank as a result of a contingency occurring
after the date hereof which materially and adversely affects the interbank Eurodollar market; then, and in any such event, the Bank shall on such date of determination give notice (by telephone confirmed in writing) to the Borrower of such
determination. 
 2. At any time that any of its LIBOR Loans are affected by the circumstances described in Section (1) above, the Bank
may: 
 i. if the affected LIBOR Loan is then being made, cancel said LIBOR Loan on the same date that the Borrower was notified by the Bank
pursuant to Section (1), or 
 ii. if the affected LIBOR Loan is then outstanding, convert such LIBOR Loan into a Base Rate Loan.

 In no event shall the Borrower be obligated to pay any amount under this Agreement that exceeds the maximum amount allowable by law. If
any sum is collected in excess of the applicable maximum amount allowable by law, the excess collected shall, at the Bank’s discretion, be applied to reduce the principal balance of the Loans or returned to the Borrower. 
 1.07 Interest Computation/Maximum Interest Rate. Interest on each LIBOR Loan shall be computed (but not compounded) on the basis of the actual
number of days elapsed and a 360-day year. Interest on each Base Rate Loan shall be computed (but not compounded) on the basis of the actual number of days elapsed and a year of 365 days or 366 days, as the actual case may be. In computing interest
on each Loan, the date of the making of such Loan shall be included and the date of payment shall be excluded; provided, however, that if a Loan is repaid on the same day on which it is made, such day shall nevertheless be included in computing
interest thereon. 
 In no event shall the Borrower be obligated to pay any amount under this Agreement that exceeds the maximum amount
allowable by law. If any sum is collected in excess of the applicable maximum amount allowable by law, the excess collected shall, at the Bank’s discretion, be applied to reduce the principal balance of the Loans or returned to the Borrower.

 1.08 Interest Periods. In the case of each LIBOR Loan, upon written or telephonic notice (confirmed in writing) to the Bank three
(3) Business Days prior to the commencement date of each LIBOR Interest Period therefor, the Borrower shall have the option to specify whether such LIBOR Interest Period shall be a period of 1, 2 or 3 months; provided that, in no event shall a
LIBOR Interest Period in respect of any LIBOR Loan extend beyond the Maturity Date. If the Bank shall not have received timely notice of a designation of a LIBOR Interest 

  

 5 

 
Period, the Borrower shall be deemed to have elected to convert such LIBOR Loan to which such LIBOR Interest Period would have been applicable into a Base
Rate Loan effective on the last day of the preceding LIBOR Interest Period applicable thereto. The Interest Period applicable to each Base Rate Loan shall commence on the date it is made and terminate on the earliest of: (A) the maturity date
for such loan (whether by acceleration or otherwise); or (B) the date it is paid in full. The determination of Interest Periods shall be subject to the following provisions: 
 A. the initial LIBOR Interest Period for each LIBOR Loan shall commence on the date such LIBOR Loan is made and each LIBOR Interest Period occurring
thereafter in respect of such LIBOR Loan shall commence on the day on which the immediately preceding Interest Period therefor expires; 
 B. if any LIBOR Interest Period would otherwise expire on a day which is not a Business Day, such LIBOR Interest Period shall expire on the next succeeding Business Day; provided, however, that if such next succeeding Business Day is a day
of the next calendar month, such LIBOR Interest Period shall expire on the next preceding Business Day; and 
 C. no LIBOR Interest Period
in respect of any Loan shall extend beyond the Maturity Date. 
 1.09 Determination of Rate of Borrowing. As soon as practicable, but
in no event less than two (2) Business Days prior to the commencement of each LIBOR Interest Period with respect to each LIBOR Loan, the Bank shall determine (which determination shall absent manifest effort be final, conclusive and binding
upon all parties) the rate of interest per annum which shall be applicable to such LIBOR Loan for the next succeeding Interest Period applicable thereto. Promptly thereafter, the Bank shall give notice thereof (in writing or by telephone, confirmed
in writing) to the Borrower. If there is no applicable rate for such LIBOR Loan: (A) the Bank shall promptly give notice thereof (in writing or by telephone, confirmed in writing) to the Borrower; (B) such Loan shall be converted to a Base
Rate Loan within two (2) Business Days after receipt by Borrower of the notice described in subsection (A) above; and (C) the Base Rate applicable to such Loan, as the case may be, shall be the rate per annum determined pursuant to
the provisions of Section 1.06(a), which rate of interest the Bank shall include in the notice described in subsection (A) above. 
 1.10 Repayment of Loans. 
 a. Payment Schedule for Loans. Accrued interest shall be payable in arrears on each of the
following dates (each called an “Interest Payment Date”): (A) in respect of each Base Rate Loan, on the first Business Day of each calendar month, commencing on the first Business Day of the month immediately following the month
during which the initial Borrowing is made or during which the Loan was converted to a Base Rate Loan, as applicable; (B) in respect of each LIBOR Loan, on the last day of each LIBOR Interest Period applicable thereto; and (C) in respect
of each Loan, on the date of any prepayment thereof and at maturity (whether by acceleration or otherwise); and (D) after maturity of any Loan, on demand. 
  

 6 

 b. Amount of Payments; Maturity. In accordance with payment schedule described in
Section 1.10 (a), the Borrower agrees to make periodic payments to the Bank equal to: all accrued interest on the outstanding principal balance of each Loan. 
 The Borrower agrees to pay in full on or before the Maturity Date all principal and accrued interest then outstanding with respect to the Loan, not required to have been previously paid. 
 c. Currency, Place and Dates of Payments. Payments shall be denominated in United States money and shall be deemed “made” when received
at the Bank’s address stated below, or at such other place as the Bank shall have designated by written notice to the Borrower. Any payment due on a day that is not a Business Day shall be made on the next succeeding Business Day and the
extension of time shall be included in the computation of interest. 
 “Business Day” means any day on which the Bank is open to
the public for carrying on substantially all of its banking functions. 
 d. Evidence of Making and Repayment of Loans. The
Bank’s records evidencing the date of disbursement and principal amount of each Loan and the amounts of all repayments of principal and payments of interest on each Loan shall constitute prima facie evidence of the making and repayment of such
Loans and of the payment of such interest. However, the Bank’s making of erroneous notations in its records shall not affect the Borrower’s obligation to repay the outstanding balance of principal under the Loan and accrued interest
thereon, as provided in this Agreement. 
 e. Late Charges. If any payment under this Agreement is not made when due, the Borrower
will pay to the Bank a late charge in respect of that payment, in the amount of seven and one-half percent (7.5%) of the overdue payment. 
 f. Application of Payments. Payments under this Agreement may be applied by the Bank to the indebtedness evidenced by this Agreement in any manner the Bank deems appropriate. The priority of application elected by the Bank on any one
occasion shall not determine any such election in the future. 
 g. Prepayment. The Loan may be prepaid in whole or in part; subject,
however, to the payment by Borrower of prepayment fees described as follows: 
 No prepayment fee for Base Rate Loans. Prepayments of
principal for Libor Loans permitted, but are subject to a breakage fee as hereafter provided. 
 The Bank reserves the right to determine the
order of priority between the Loans to which such prepayments shall be applied. Partial prepayments shall be applied against required payments of the most remote maturity, and will not extend the dates or change the amounts of subsequent installment
payments. 
 1.11 Evidence of Indebtedness; Loan Documents. The Loan is to be evidenced and/or secured by this Agreement, the Note
attached hereto as Exhibit “C” (the “Note”), the 

  

 7 

 
Pledge and Security Agreement executed by Borrower and the Bank, that certain Notice to Securities Intermediary and Control Agreement executed concurrently
herewith by the Borrower, the Bank and Piper Jaffray, and all such other documents as the Bank may reasonably require from time to time to effectuate the intent of this Agreement, together with all renewals, extensions and modifications thereto
(collectively, the “Loan Documents”). 
 1.12 Borrower’s Obligations. The Borrower’s obligations to pay, observe
and perform all indebtedness, liabilities, covenants and other obligations on the part of the Borrower to be paid, observed and performed under this Agreement, the Note and the remainder of the Loan Documents are herein collectively called the
“Obligations”. 
 1.13 Compensation. The Borrower shall compensate the Bank, upon Bank’s written request given promptly
after learning of the same, for all losses, expenses and liabilities (including, without limitation, breakage fees as described in Section 1.06 above, and any interest paid by the Bank to lenders of funds borrowed by it to make or carry its
LIBOR Loans and any loss sustained by the Bank in connection with the re-employment of such funds) which the Bank sustains: (a) if for any reason (other than a failure of the Bank to perform its obligations hereunder) a Borrowing or a
conversion or a continuation does not occur on a date specified therefor in a Notice of Borrowing (whether or not withdrawn or canceled or otherwise); (b) if any prepayment or conversion of any of its LIBOR Loans occurs on a date which is not
the last day of the LIBOR Interest Period applicable thereto; (c) if any prepayment of any of its LIBOR Loans is not made on the date specified therefor in a notice of prepayment; or (d) without duplication of any amounts paid pursuant to
this Article I hereof, as a consequence of any other default by the Borrower to repay LIBOR Loans when required by the terms of this Agreement. A certificate as to any amounts payable to the Bank under this Section 1.13 submitted to the
Borrower by the Bank shall show the amount payable and the calculations used to determine such amount and shall, absent manifest error, be final, conclusive and binding upon the Borrower. 
 II. CONDITIONS OF LENDING 
 2.01 Loan. The obligation of the Bank to make the
Loan under this Agreement is subject to the satisfaction of all of the following conditions on or before the date on which the Bank shall grant such Loan (the “Closing Date”): 
 a. Documents Required for Closing. The Bank shall have received, in each case in form and substance satisfactory to the Bank, such fully executed
originals or certified copies as the Bank may have requested of each of the following, in each case as amended through the Closing Date: 
  

	 	i.	Loan Documents. All of the Loan Documents. 

  

	 	ii.	Consents. Evidence that all parties to the Loan Documents (except the Bank) have obtained all necessary and appropriate authority, approvals and consents to execute and
deliver the Loan Documents. 

  

 8 

	 	iii.	Organizational Documents/Good Standing Certificate. If any party to the Loan Documents (except the Bank) is a corporation, partnership, trust, association or other recognized
legal entity other than a natural person (a “Legal Entity”), all instruments pursuant to which such Legal Entity was organized and by which its internal affairs are governed and, if requested by the Bank, a Certificate of Good Standing, or
other evidence of such Legal Entity’s good standing and authority to conduct its business in the jurisdiction(s) in which it conducts its business. 

  

	 	iv.	Evidence of Priority. Evidence acceptable to the Bank that the Collateral has no liens on and/or security interests except as approved by the Bank in writing.

  

	 	v.	Tax Clearance Certificate. If requested by Bank, a tax clearance certificate for the Borrower, issued by the Department of Taxation of the State of Hawaii, evidencing that
all taxes due from the Borrower to the State of Hawaii have been paid. 

  

	 	vi.	Other Documents. Such other documents as may be reasonably requested by the Bank. 

  

	 	b.	Certain Other Events. On the Closing Date: 

  

	 	i.	The Borrower shall have paid to the Bank all fees and other charges to have been paid in accordance with the terms hereof and the other Loan Documents. 

  

	 	ii.	The representations and warranties contained in Article III of this Agreement shall be true. 

  

	 	iii.	No event shall have occurred and be continuing that: (A) constitutes an Event of Default; or (B) with the giving of notice or passage of time, or both, would constitute
such an Event of Default. 

  

	 	iv.	No material adverse change shall have occurred in the financial condition of the Borrower since the date of the most recent of the Borrower’s financial statements submitted to
the Bank. 

  

	 	v.	No material adverse change shall have occurred in the physical condition of the Borrower’s assets since the date of this Agreement. 

  

	 	vi.	All legal matters incidental to the Closing shall be satisfactory to legal counsel for the Bank. 

  

 9 

 2.02 Conversion of Loans. The obligation of the Bank to convert any LIBOR Loan or Base Rate Loan
to a Base Rate Loan or LIBOR Loan is subject to: (i) the prior satisfaction of all conditions stated above in Section 2.01a; (ii) the satisfaction as of the date of such subsequent Loan of the conditions stated above in
Section 2.01b. of this Agreement; and (iii) the delivery to the Bank of such additional Loan Documents as may have been reasonably requested by the Bank in respect to such Loan conversion. 
 III. REPRESENTATIONS AND WARRANTIES 
 To
induce the Bank to make the Commitment available to the Borrower, the Borrower makes the following representations and warranties to Bank, all of which representations and warranties shall survive the execution of this Agreement and continue so long
as the Borrower is indebted to Bank under the Loan Documents and until payment in full of the Loan. 
 3.01 Organization. Borrower is
duly organized, validly existing and in good standing under the laws of the State of Delaware, and has the lawful power to own its properties and to engage in the business it conducts. 
 3.02 Assumed Business Names. Borrower has filed or recorded all documents or filings required by law related to all assumed business names used by
Borrower. 
 3.03 No Breach. The execution and performance of the applicable Loan Documents will not immediately, or with the passage
of time or the giving of notice, or both: (a) Violate any law or result in a default under any contract, agreement, or instrument to which Borrower is a party or by which Borrower or its property is bound; or (b) result in the creation or
imposition of any security interest in, or lien or encumbrance on, any of the assets of Borrower, except in favor of the Bank. 
 3.04
Authorization. Borrower has the power and authority to incur and perform the Obligations under the Loan Documents, and, Borrower has taken all corporate action necessary to authorize the execution and delivery of the applicable Loan Documents
and its incurring of such Obligations. 
 3.05 Validity. This Agreement is, and the remainder of the Loan Documents when delivered
will be, legal, valid, binding, and enforceable in accordance with their respective terms. 
 3.06 Financial Statements. All financial
statements heretofore given by Borrower to Bank, including any schedules and notes pertaining thereto, were prepared in accordance with generally accepted accounting principles consistently applied, and fully and fairly present the financial
condition of Borrower at the dates thereof and the results of operations for the periods covered thereby, and as of the date of this Agreement there have been no material adverse changes in the financial condition or business of Borrower from the
date of the most recent financial statements given to Bank. 
  

 10 

 3.07 Taxes. Except as otherwise permitted by this Agreement, Borrower has filed all tax returns it
was required by law to have filed and has paid or caused to be paid all taxes, assessments and other governmental charges that were due and payable and has made adequate provision for the payment of such taxes, assessments or other charges accruing
but not yet payable, and Borrower has no knowledge of any deficiency or additional assessment in a materially important amount in connection with any taxes, assessments or charges not provided for on its books. 
 3.08 Compliance With Law. Except to the extent that the failure to comply would not materially interfere with the conduct of the business of
Borrower, Borrower has complied with all applicable laws in respect of: (1) restrictions, specifications, or other requirements pertaining to products that Borrower sells or to the services it performs; (2) the conduct of its business; and
(3) the use, maintenance, and operation of its properties. 
 3.09 Statements and Omissions. No representation or warranty by
Borrower contained in this Agreement or in any certificate or other document furnished by Borrower pursuant to this Agreement contains any untrue statement of material fact or omits to state a material fact necessary to make such representation or
warranty not misleading in light of the circumstances under which it was made. 
 IV. AFFIRMATIVE COVENANTS 
 For so long as the Commitment or any of the Obligations remains outstanding, the Borrower will, unless otherwise permitted by the Bank in writing:

 4.01 Payments. Punctually pay when due all sums which may be due under the Loan Documents. 
 4.02 Accounting Records. Maintain accurate and proper accounting records and books in accordance with generally accepted accounting principles
consistently applied, and provide Bank with access to such books and accounting records at Bank’s request during normal business hours. 
 4.03 Financial Reporting. Furnish Bank with financial reports, certified as true and correct by Borrower, in reasonable detail and form approved by Bank. 
 a. Financial Statements and Related 8-K Reports. As soon as available, notify the Bank that all financial statements and related 8-K reports for Hoku Scientific, Inc., a Delaware corporation (“Hoku
Scientific”) filed with the Securities Exchange Commission (“SEC”) are available on the SEC’s website. 
 b. Borrowing
Base Certificate. If requested by Bank, and at a minimum on a monthly basis within twenty (20) days after each month end, a Borrowing Base Certificate in the form attached hereto as Exhibit “D” and made a part hereof, which shall be
in form and content satisfactory to Bank and certified by an authorized officer of the Borrower. 
  

 11 

 c. Monthly Statement from Piper Jaffray. As soon as available, a true copy of the monthly statement from
Piper Jaffray covering the Collateral. 
 4.04 Chief Executive Office. Provide Bank with reasonable prior written notice of any change
of the State of Borrower’s principal place of business at the address shown on page one (1) of this Agreement. 
 4.05 State of
Organization; Legal Name. Provide Bank with forty-five (45) days’ prior written notice of any change in borrower’s name or type of entity or jurisdiction of legal formation. 
 4.06 Existence. Preserve and maintain Borrower’s legal existence as a business entity and timely file all necessary and appropriate documents
and exhibits and pay all appropriate fees and charges in connection therewith. 
 4.07 Observance of Laws. Conduct Borrower’s
business activities in an orderly, efficient and regular manner and comply with all requirements of all applicable state, federal and local laws, rules and regulations. 
 4.08 Notice to Bank. Promptly give notice to Bank of: (a) the occurrence of any Event of Default; (b) any change in the name or organizational structure of Borrower; (c) any uninsured loss
through fire, theft, liability or property damage exceeding any material occurrences; (d) any pending or threatened litigation involving Borrower or any security for the Obligations exceeding any material amount; (e) any event which could
have a material adverse effect on the ability of Borrower to continue its business operations in the ordinary course; (f) any change in Borrower’s principal place of business; and (g) any change in the location of the Collateral
securing the Loan. 
 4.09 Loan Proceeds. Use all Loan proceeds solely in accordance with Section 1.03 of this Agreement and the
provisions of the Loan Documents, unless specifically consented to the contrary by Bank in writing. 
 4.10 Insurance. Obtain,
maintain and keep in force insurance of the types and in such amounts as are satisfactory to Bank, and in no event less than amounts customarily carried in lines of business similar to Borrower’s, including but not limited to, property and
casualty, flood, commercial general liability and worker’s compensation insurance, and provide Bank with a schedule or schedules or certificates of insurance form time to time setting forth all insurance then in effect along with copies of all
such policies. 
 4.11 Insurance Notice. The following notice is required by Hawaii law. In this notice, the term
“insurance” means any insurance required by Bank 
  

 12 

 Notice to BORROWER. Borrower may obtain any required insurance from any insurance company which is
licensed to do business in Hawaii, subject to Bank’s right to reject a particular insurer for reasonable cause. 
 4.12
Facilities. Keep all of Borrower’s property and business premises in a good state of repair and condition and make all necessary repairs, renewals and replacements thereto from time to time so that such property and business premises
shall be fully and efficiently preserved and maintained, and keep such property and business premises free and clear of all liens, charges or encumbrances except those consented to by Bank in writing, and permit Bank’s authorized
representatives to make reasonable inspections of Bank’s property and business premises. 
 4.13 Taxes and Other Liabilities. Pay
and discharge when due all of Borrower’s indebtedness, obligations, assessments and taxes, except such as Borrower may in good faith contest or as to which a bona fide dispute may exist, provided that Borrower has provided evidence satisfactory
to Bank regarding Borrower’s ability to pay the disputed items in the event they are determined to be justly due. 
 4.14
Performance. Perform and comply, in a timely manner, with all terms, conditions, and provisions set forth in this Agreement, the Loan Documents, and all other instruments and agreements between Borrower and Bank. Borrower shall notify Bank
immediately in writing of any Event of Default in connection with any agreement. 
 4.15 Hazardous Materials. Abide at all times by
all applicable hazardous material laws, rules and regulations and immediately notify Bank of any claim or threatened claim affecting any property owned, leased or occupied by Borrower. 
 4.16 Financial Covenants and Ratios. Cause Hoku Scientific (including its consolidated operations) to maintain its financial condition according
to the following standards: 
 (a) Minimum Effective Tangible Net Worth. Hoku Scientific (including its consolidated
operations) shall maintain an Effective Tangible Net Worth of net less than $20,000,000.00. Effective Tangible Net Worth is defined as GAAP net worth, less intangible assets. 
 V. NEGATIVE COVENANTS 
 For so long as the Commitment or any of the Obligations remains
outstanding, the Borrower will not, without the prior written consent of the Bank: 
 5.1 Continuity of Operations. (a) Engage in
any business activities substantially different than those in which Borrower is presently engaged or presently intends to engage in the future; (b) cease operations, liquidate, merge, transfer, acquire or consolidate with any other entity,
change its name, dissolve or transfer or sell Collateral out of the ordinary course of business; or (c) alter or amend Borrower’s capital structure. 
  

 13 

 5.2 Business. Materially change the character of Borrower’s current business, or engage in
any other type of business substantially different than those in which Borrower is presently engaged or presently intends to engage in the future. 
 VI. BANK’S RIGHTS UPON DEFAULT 
 6.01 Events of Default. Each of the following events is an “Event of
Default” under this Agreement: 
 a. The Borrower’s failure to pay within ten (10) days after it becomes due any sum payable to
the Bank under the Loan Documents or under any other agreement or note between the Bank and the Borrower, whether now existing or hereafter executed. 
 b. The dissolution or insolvency of the Borrower. 
 c. The commencement of any proceeding or the taking of
any act by or against the Borrower for any relief under bankruptcy, insolvency or similar laws for the protection of debtors, or for the appointment of a receiver of the business or assets of the Borrower or the Borrower’s inability (or
admission of inability) to pay its debts as they become due. 
 d. Any governmental authority having jurisdiction over the Borrower revokes
any authorization or permit (i) materially affecting the Borrower’s ability to repay the Loan, (ii) materially diminishing the value of the Collateral for the Loan, or (iii) materially diminishing Borrower’s sources of
repayment for the Loan. 
 e. A default occurs in any other agreement between the Borrower and the Bank, and such default remains uncured
beyond any applicable grace period. 
 f. The Borrower’s failure to pay any material debt owed by the Borrower to any person or entity
other than the Bank, if such failure results in the acceleration of such debt. 
 g. Any representation, warranty, or other information made
or furnished by the Borrower in respect of the Loan is untrue and materially misleading at the time it is made or given. 
 h. The Bank
reasonably believes there has been a material impairment of or decrease in either the Borrower’s ability to pay or perform the Obligations or the value of the Collateral given to secure payment of the Obligations, and the Borrower has not
remedied such impairment or decrease to the reasonable satisfaction of Bank within thirty (30) days after written notice by Bank. 
 i.
A final judgment (which alone or with other outstanding final judgments) is rendered against the Borrower in an aggregate amount of $1,000,000.00 or more, and each such judgment is not discharged or stayed pending appeal within thirty (30) days
after entry of such judgment or is not discharged within thirty (30) days after the expiration of any such stay. 
  

 14 

 j. Any third party obtains a court order enjoining or prohibiting the Borrower or the Bank from
performing any of its respective obligations under the Loan Documents and such order is not discharged within sixty (60) days after its issuance. 
 k. The Borrower fails to pay when due any amount relating to any plan governed by the Employee Retirement Income Security Act of 1974, as amended. 
 l. The Borrower shall fail to perform or observe any other material term, covenant, agreement or obligation under this Agreement or any of the other Loan
Documents on the part of the Borrower to be performed or observed, and such failure does not constitute an Event of Default under Section 6.01a. through k. above, and any such failure shall remain unremedied after any applicable grace period
provided therefor in this Agreement or in the other Loan Documents, or if no such grace period is provided, for a period of thirty (30) days after the earlier of: (i) the date written notice thereof shall have been given by the Bank to the
Borrower; or (ii) the date the Borrower should have delivered to the Bank a written notice of such default or Event of Default. 
 6.02
Bank’s Rights. If an Event of Default shall occur and be continuing the Bank shall have, in addition to any and all other rights and remedies, legal or equitable, available to the Bank under any and all of the Loan Documents or at law,
the following additional rights and remedies: 
 a. The absolute right to deny to the Borrower any further Loan or extension of credit (the
Bank’s obligation to extend any further credit to the Borrower shall immediately terminate). 
 b. The right, at the option of the Bank,
to declare, without notice, the entire principal amount and accrued interest for any Loan or extension of credit outstanding under this Agreement, plus any fees and charges reasonably incurred by the Bank under any of the Loan Documents, immediately
due and payable. 
 c. The right, at the option of the Bank, to charge interest on any principal amount outstanding under this Agreement at
the rate three (3) percentage points above the “Paying Rate” (the “Default Rate”); the “Paying Rate” being the interest rate which would otherwise be applicable with respect to each Loan if the Maturity Date had
not occurred or been accelerated; and, with respect to any overdue principal and/or interest from and after the Maturity Date, whether or not by acceleration, to determine the Paying Rate pursuant to Section 1.10a. as if the Maturity Date had
been extended to the actual date that payment is made to the Bank. 
 VII. MISCELLANEOUS 
 7.01 Further Assurance. From time to time within five (5) Business Days after the Bank’s demand, the Borrower will execute and deliver
such additional documents and provide such additional information as may be reasonably requested by the Bank to carry out the intent of this Agreement. 
 7.02 Enforcement and Waiver by the Bank. The Bank shall have the right at all times to enforce the provisions of the Loan Documents, as they may be amended from time to time, in 

  

 15 

 
strict accordance with their terms, notwithstanding any conduct or custom on the part of the Bank in refraining from so doing at any time or times. The
failure of the Bank at any time or times to enforce its rights under such provisions, strictly in accordance with the same, shall not be construed as having created a custom in any way or manner contrary to specific provisions of the Loan Documents
or as having in any way or manner modified or waived the same. All rights and remedies of the Bank are cumulative and concurrent and the exercise of one right or remedy shall not be deemed a waiver or release of any other right or remedy.

 7.03 Expenses of the Bank. The Borrower will, on demand, reimburse to the Bank: (a) all reasonable expenses, including without
limitation, all attorneys’ fees incurred by the Bank in connection with the making of the Loans and the preparation of the Loan Documents; and (b) all reasonable expenses, including without limitation, all reasonable attorneys’ fees
incurred by the Bank in connection with the amendment, modification or enforcement of the Loan Documents and the collection or attempted collection of the indebtedness evidenced by the Loan Documents, whether or not legal proceedings are commenced.
Notwithstanding any of the foregoing, the Bank agrees that the legal expenses associated with the initial establishment of the Loan shall not exceed $5,000.00. 
 7.04 Notices. Any notices or consents required or permitted by this Agreement or the remainder of the Loan Documents shall be in writing and shall be deemed delivered if delivered in person or if sent by
certified mail, postage prepaid, return receipt requested, or by FAX, at the following addresses or FAX numbers noted below, unless such address or FAX number is changed by written notice hereunder: 
  

			
	        BORROWER:	  	        BANK:
		
	Hoku Materials, Inc.	  	Bank of Hawaii
	1075 Opakapaka Street	  	Corporate Banking Department
	Kapolei, Hawaii 96707	  	P.O. Box 2900
	PHONE: (808) 682-7800	  	Honolulu, Hawaii 96846-6000
	FAX: (808)
                            	  	PHONE: (808) 537-8014
		  	FAX: (808) 537-8301
		  	Attn: Mr. Luke Yeh

 7.05 Waiver and Release by the Borrower. To the maximum extent permitted by applicable law,
the Borrower: 
 a. Waives notice and opportunity to be heard, after acceleration of the indebtedness evidenced by the Loan Documents, before
exercise by the Bank of the remedy of setoff or of any other remedy or procedure permitted by any applicable law or by any prior agreement with the Borrower, and, except where specifically required by this Agreement or by any applicable law, notice
of any other action taken by the Bank. 
 b. Waives presentment, demand for payment, notice of dishonor, and any and all other notices or
demands in connection with the delivery, acceptance, performance, or 

  

 16 

 
enforcement of this Agreement, and consents to any extension of time (and even multiple extensions of time for longer than the original term), renewals,
releases of any person or organization liable for the payment of the Obligations under this Agreement, and waivers or modifications or other indulgences that may be granted or consented to by the Bank in respect of the Loans and other extensions of
credit evidenced by this Agreement. 
 c. Releases the Bank and its officers, agents, and employees from all claims for loss or damage caused
by any act or omission on the part of any of them except willful misconduct. 
 7.06 Sales and Participations. The Borrower consents
to the Bank’s negotiation, offer, and sale to other lenders (each, a “Participant” and collectively, the “Participants”) of the Loan or participating interests in the Loan, to any and all discussions and agreements
heretofore or hereafter made between the Bank and any Participant or prospective Participant regarding the interest rate, fees, and other terms and provisions applicable to the Loan, and to the Bank’s disclosure to any Participant or
prospective Participant, from time to time, of such financial and other information pertaining to the Borrower and the Loan as the Bank and such Participant or prospective Participant may deem appropriate (whether public or non-public, confidential
or non-confidential, and including information relating to any insurance required to be carried by the Borrower and any financial or other information bearing on the Borrower’s creditworthiness and the value of any collateral). Provided,
however, that the Bank shall require each Participant to agree and not to further disseminate, publish or disclose any non-public information of Borrower, and to return or destroy such information if Participant does not purchase a participating
interest in the Loan. The Borrower acknowledges that the Bank’s disclosure of such information to any Participant or prospective Participant constitutes an ordinary and necessary part of the process of effectuating and servicing the Loan.

 7.07 Applicable Law. The substantive laws of the State of Hawaii shall govern the construction of this Agreement and the rights and
remedies of the parties hereto. 
 7.08 Binding Effect. This Agreement shall inure to the benefit of the parties hereto and their
respective successors and permitted assigns, and shall be binding on the parties hereto and their respective successors and assigns. 
 7.09
Merger. This Agreement and the remainder of the Loan Documents constitute the full and complete agreement between the Bank and the Borrower with respect to the Loan, and all prior oral and written agreements (including but not limited to
letter agreements), commitments, and undertakings shall be deemed to have been merged into the Loan Documents and such prior oral and written agreements, commitments, and undertakings shall have no further force or effect except to the extent
expressly incorporated in the Loan Documents. 
 7.10 Amendments; Consents. No amendment, modification, supplement, termination, or
waiver of any provision of this Agreement or the other Loan Documents, and no consent to any departure by the Borrower therefrom, may in any event be effective unless in writing signed by the Parties, and then only in the specific instance and for
the specific purpose given. 
  

 17 

 7.11 Assignments. 
 a. The Borrower shall have no right to assign any of its rights or obligations under the Loan Documents without the prior written consent of the Bank. 
 b. The Bank may sell participations in the Loan, as contemplated by Section 7.06 above, and the Bank may assign the Loan Documents (or the
receivables evidenced thereby) to a Federal Reserve Bank or to any other agency or instrumentality of the United States of America to support borrowings of Federal Funds. 
 7.12 Severability. If any provision of any of the Loan Documents shall be held invalid under any applicable law, such invalidity shall not affect any other provision of the Loan Documents that can be given
effect without the invalid provision, and, to this end, the provisions of the Loan Documents are severable. 
 7.13 Bank’s Right of
Setoff; Security Interest in Accounts. At any time, the Bank may set off obligations owed by the Bank to the Borrower (such as balances in checking and savings accounts) against the Obligations, whether or not an Event of Default shall have
occurred or shall have been declared, and without first resorting to other collateral. To secure the Obligations, the Borrower grants to the Bank a security interest in all checking, savings, and other deposit accounts now or hereafter maintained by
the Borrower with the Bank. 
 7.14 Time is of the Essence. Time is of the essence under and in respect of this Agreement. 

7.15 Headings. The headings of the various provisions of this Agreement are inserted for convenience of reference only and shall not affect the
meaning or construction of any provision. 
 7.16 Counterparts. This Agreement may be executed in counterparts, each of which shall be
an original instrument and all of which shall together constitute one and the same agreement. 
 7.17 Jury Waiver. Bank and Borrower
hereby waive trial by jury in any action, proceeding, claim, or counterclaim, whether in contract or tort, at law or in equity, arising out of or in any way related to this Agreement or any of the Loan Documents. 
 7.18 Indemnification. Whether or not the transactions contemplated hereby shall be consummated: the Borrower shall pay and indemnify and hold
harmless the Bank, and its respective officers, directors, employees, counsel, agents and attorneys-in-fact (each, an “Indemnified Person”) from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, charges, expenses and disbursements (including all fees and disbursements of counsel, the allocated costs of internal legal services, and disbursements of internal legal counsel) of any kind or nature whatsoever (except for
such 

  

 18 

 
Indemnified Person’s own gross negligence, willful misconduct or failure to comply with the Loan Documents) with respect to and to the extent arising
from the Borrowers’ execution, delivery, enforcement or performance of this Agreement and any other Loan Documents, or the Borrower’s use of the proceeds of the Loan, or arising from the action or failure to act of the Borrower, or its
officers, directors, employees, counsel, agents or attorneys-in-fact. 
 VIII. DEFINITIONS 
 8.0 Base Rate Loan shall mean any Loan bearing interest at a rate based on the Base Rate. 
 8.1 Business Day shall have the meaning given in Section 1.10b. 
 8.2 Closing Date shall have the meaning given in Section 2.01. 
 8.3 Commitment shall have the meaning
given in Section 1.02. 
 8.4 Default Rate shall have the meaning given in Section 6.02c. 
 8.5 Effective Date shall have the meaning given in the first paragraph of this Agreement. 
 8.6 Eurodollar Reserve Requirement shall mean, with respect to each LIBOR Loan for any day, the then aggregate maximum effective rates per annum
(expressed as a percentage), as determined solely by the Agent (which determination shall be final, conclusive and binding on all of the parties hereto, absent manifest error), of the reserve requirements in effect on such day (including, without
limitation, basic, supplemental, marginal and emergency reserves) imposed pursuant to Regulation D by the Board of Governors of the Federal Reserve System or otherwise by any other Governmental Authority having jurisdiction with respect thereto on
“Eurocurrency Liabilities” of any Bank, having a maturity equal to the term of the applicable LIBOR Interest Period. 
 8.7 Event
of Default shall have the meaning given in Section 6.01. 
 8.8 GAAP shall mean generally accepted accounting principles consistently
applied. 
 8.9 Interbank Eurodollar Index Rate means the rate per annum (expressed as a percentage), at which leading banks, as determined
by the Agent, are offered deposits in United States Dollars in the London interbank Eurodollar market as of 11:00 a.m., London time, on the day which is two LIBOR Business Days prior to the beginning of the term of a LIBOR Loan or the LIBOR Interest
Period applicable thereto, for delivery in immediately available funds on the first day of the term of such LIBOR Loan or such LIBOR Interest Period, in an amount equal to the then outstanding principal amount of such LIBOR Loan and for a period
equal to the term of such LIBOR Interest Period. 
 8.10 Legal Entity shall have the meaning given in Section 2.01a.iii. 
  

 19 

 8.11 LIBOR shall mean, for each LIBOR Interest Period, a rate (rounded to the nearest 0.001%) computed
pursuant to the following formula and adjusted as of the date of any change in the Eurodollar Reserve Requirements: 
 Interbank Eurodollar Index Rate x 100 
 100%—Eurodollar Reserve Requirement. 
 8.12 LIBOR Interest Period shall mean, with respect to each LIBOR Loan, an Interest Period consisting of 1, 2 or 3 months as designated by the Borrowers
in accordance with Section 1.06(a)(5) hereof. 
 8.13 LIBOR Loan shall mean any Loan bearing interest at a rate based on LIBOR.

 8.14 Loan shall have the meaning given in Section 1.01. 
 8.15 Loan Documents shall have the meaning given in Section 1.11 
 8.16 Maturity Date shall have the meaning given in Section 1.01. 
 8.17 Note shall have the meaning
given in Section 1.11. 
 8.18 Notice of Borrowing shall have the meaning given in Section 1.06. 
 8.19 Obligations shall have the meaning given in Section 1.12. 
 8.20 Participant(s) shall have the meaning given in Section 7.06. 
 8.21 Paying Rate shall have the
meaning given in Section 6.02c. 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 
  

 20 

 IN WITNESS WHEREOF, the Borrower and the Bank have duly executed this Agreement. 
  

					
	BANK OF HAWAII
		
	By	 	 /s/ Luke Yeh

	Name:	 	Luke Yeh
	Title:	 	Senior Vice President
	
	Bank
	
	 HOKU MATERIALS, INC.,
 a Delaware
corporation

		
	By	 	 /s/ Darryl Nakamoto

	Name:	 	Darryl Nakamoto
	Title:	 	CFO
	
	Borrower

  

 21 

 Exhibit “A” 
 NOTICE OF BORROWING 
  

					
	Date:	  	                                    ,
2007
		
	To:	  	Bank of Hawaii
		  	Corporate Banking
		  	P.O. Box 2900
		  	Honolulu, HI 96846
		  	Fax: 537-8301
		
	Subject:	  	Credit Agreement dated
                                        ,
2007

 The Borrower hereby requests and confirms the following instructions therefor (capitalized terms not defined
herein shall have the respective meanings assigned in the Credit Agreement): 
  

					
	REQUEST FOR NEW LOAN	 	  
			
	Disbursement Date:	 	  
	 	
			
	Principal Amount:	 	  
	 	

  

	 ̈	Base Rate Borrowing 

  

	 ̈	LIBOR Borrowing Interest Period 

 ___ 1 Month 

___ 2 Months 
 ___ 3 Months 
 Method of drawing: 
  ̈ Credit to Deposit Account No. _____________________ maintained with the Bank. 
  ̈ Wire funds to: 
  

							
	ABA No.:	 	  
	  	 
	Credit Account No.:	 	  
	  	
	Special Instructions:	 	  

		 	  

		 	  

  

 22 

			
	REQUEST CHANGE IN INTEREST RATE OPTION:
		
	Disbursement Date:	 	  

		
	Principal Amount:	 	  

		
	Rollover/Change Date:	 	  

  ̈ LIBOR
Borrowing Rollover 
  ̈ Conversion from Base Rate
Borrowing to LIBOR Borrowing 
  ̈ Conversion from
LIBOR Borrowing to Base Rate Borrowing 
 LIBOR Borrowing Interest Period 
 ___ 1 Month 
 ___ 2 Months 
 ___
3 Months 
 The Borrower hereby certifies as follows: 
 1. The representations and warranties of the Borrower contained in Article III of the Credit Agreement are true and correct on and as of the date hereof, with the same force and effect as if made on Such date. 
 2. As of the date hereof, no event has occurred and is continuing that: (a) constitutes an Event of Default under the Credit Agreement; or
(b) with the giving of notice or passage of time, or both, would constitute an Event of Default. The Borrower has observed and performed all of Borrower’s covenants and other agreements, and satisfied every condition, contained in the
Credit Agreement and in the other Loan Documents, to be observed, performed or satisfied by Borrower. 
  

			
	HOKU MATERIALS, INC.
		
	By	 	  

	Its:	 	

  

 23 

 EXHIBIT “B” 
 ADVANCE RATE CERTIFICATE 
 DISBURSEMENT DATED:
                                        

  

							
	 Collateral Type
	  	 Market Value
 (Piper Jaffray)
	  	 Advance
 Rate
	  	 Advance Limit

	 Cash & Cash Equivalents
	  		  	95%	  	$                            
	 Common and preferred stocks listed on the New York Stock Exchange and Mutual Funds
	  		  	75%	  	$                            
	 U. S. Treasury or Government-Sponsored Organization obligations with remaining term of five years or less
	  		  	90%	  	$                            
	 U. S. Treasury or Government-Sponsored Organization obligations with remaining term greater than five years
	  		  	80%	  	$                            
	 Corporate or Municipal Bonds rated AAA/Aaa, AA/Aa or SP-1 with remaining term of five years or less
	  		  	85%	  	$                            
	 Corporate or Municipal Bonds rated AAA/Aaa, AA/Aa or SP-1 with remaining term of greater than five years
	  		  	75%	  	$                            
	 Corporate or Municipal Bonds rated A, Baa, BBB, or SP-2 with remaining term of five years or less
	  		  	80%	  	$                            
	 Corporate or Municipal Bonds rated A, Baa, BBB, or SP-2 with remaining term of greater than five years
	  		  	70%	  	$                            
	 Commercial Paper rated A1, P1 or F1
	  		  	80%	  	$                            
	 Commercial Paper rated A2, P2 or F2
	  		  	70%	  	$                            

  

 24 

				
	TOTAL ADVANCE LIMIT	  	$	                            
		
	 (A)   Outstanding Principal Balance
	  	$	                            
	 (B)   New Loan Amount
	  	$	                            
		
	(A) + (B) Total Balance including new Loan	  	$	                            

 Does the Total Balance exceed the lesser of $13,000,000 or the Total Advance Limit?
             
 On behalf of the Borrower, Hoku Materials, Inc., I hereby certify that
this Advance Rate Certificate is true and correct as of
                                    . 
  

			
	  

	 Name:
	 	
	Title:	 	

  

 25 

 EXHIBIT “C” 
 PROMISSORY NOTE 
  

			
	 $13,000,000.00
	  	                                      
  , 2007

 The undersigned (the “Borrower”) promises to pay to the order of BANK OF HAWAII,
a Hawaii corporation (the “Bank”) the principal amount of THIRTEEN MILLION AND NO/100 DOLLARS ($13,000,000.00) or so much thereof as shall have been disbursed by Bank and may remain outstanding, together with interest on outstanding
balances of principal in accordance with and under the terms of that certain Credit Agreement of even date, between Bank and Borrower, relating to the Loan therein described and all modifications and amendments thereto. 
 The Borrower waives presentment, demand for payment, notice of dishonor, and any and all other notices or demands in connection with the delivery,
acceptance, performance or enforcement of this Note, and consents to any extension of time (and even multiple extensions of time for longer than the original term), renewals, releases of any person or organization liable for the payment of this
Note, and waivers or modifications or other indulgences that may be granted or consented to by the Bank with respect to the Loan evidenced by this Note. 

			
	HOKU MATERIALS, INC.,
	a Delaware corporation
		
	By	 	  

	Name:	 	
	Title:	 	
	
	Borrower

  

 26 

 EXHIBIT “D” 
 BORROWING BASE CERTIFICATE 
 (FOR THE MONTH ENDED:
                                    ) 
  

							
	 Collateral Type
	  	 Market Value
 (Piper Jaffray)
	  	 Maximum
 Loan to
 Value Ratio
	  	 Collateral Value
 (Market Value x
 Maximum
Loan
 to Value Ratio)

	 Cash & Cash Equivalents
	  		  	95%	  	$                            
	 Common and preferred stocks listed on the New York Stock Exchange and Mutual Funds
	  		  	82.5%	  	$                            
	 U. S. Treasury or Government-Sponsored Organization obligations with remaining term of five years or less
	  		  	95%	  	$                            
	 U. S. Treasury or Government-Sponsored Organization obligations with remaining term greater than five years
	  		  	85%	  	$                            
	 Corporate or Municipal Bonds rated AAA/Aaa, AA/Aa or SP-1 with remaining term of five years or less
	  		  	90%	  	$                            
	 Corporate or Municipal Bonds rated AAA/Aaa, AA/Aa or SP-1 with remaining term of greater than five years
	  		  	80%	  	$                            
	 Corporate or Municipal Bonds rated A, Baa, BBB, or SP-2 with remaining term of five years or less
	  		  	85%	  	$                            
	 Corporate or Municipal Bonds rated A, Baa, BBB, or SP-2 with remaining term of greater than five years
	  		  	75%	  	$                            
	 Commercial Paper rated A1, P1 or F1
	  		  	85%	  	$                            
	 Commercial Paper rated A2, P2 or F2
	  		  	80%	  	$                            

  

 27 

				
	 Total Collateral Value
	  	$	                            
		
	Total Outstanding Principal Balance	  	 	$                            
		
	Is Total Collateral Value greater than Outstanding Principal Balance	  	 	Yes/No
		
	If no, the paydown or additional Eligible Collateral required	  	 	$                            

 Pursuant to Section 4.03(b) of that certain Credit Agreement (the “Agreement”) dated
,                             2007, by and between Bank of Hawaii and Hoku Materials, Inc. (the
“Borrower”), I hereby certify, on behalf of the Borrower, that this Borrowing Base Certificate is true and correct as of the above date and the Borrower is in compliance with the Maximum Advance Rate and the Maximum Loan to Value Ratio for
the Collateral (as described in the Agreement). 
  

			
	  

	 Name:
	 	
	Title:	 	

  

 28

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