Document:

ex10_21.htm

    
      

    

    Exhibit
10.21

     

    

    
      EQUITY ONE,
INC.

    

    
      FOURTH
AMENDMENT TO 

      STOCKHOLDERS
AGREEMENT

    

    
       

      This
Fourth Amendment to Stockholders Agreement (this "Fourth Amendment") is entered
into on June 23, 2004, by and among Equity One, Inc., a Maryland corporation
(the "Corporation"), Alony Hetz Properties & Investments Ltd., an Israeli
corporation or a wholly owned entity (the "Investor"), Gazit-Globe (1982) Ltd.,
an Israeli corporation ("Globe"), MGN (USA), Inc., a Nevada corporation ("MGN"),
and GAZIT (1995), Inc., a Nevada corporation ("Gazit").

    

    
       

      WHEREAS,
the parties hereto have entered into a Stockholders Agreement dated October 4,
2000 (the "Original Agreement"), a First Amendment to Stockholder Agreement
dated December 19, 2001 (the "First Amendment"), a Second Amendment to
Stockholder Agreement dated October 28, 2002 (the "Second Amendment") and a
Third Amendment to Stockholder Agreement dated May 23, 2003 (the "Third
Amendment"; the Original Agreement as amended by the First Amendment, the Second
Amendment and the Third Amendment, will be referred to herein as the
"Stockholders Agreement") (all terms not otherwise defined herein shall have the
meanings ascribed thereto in the Stockholders Agreement);

    

    
       

      WHEREAS,
pursuant to the terms of the Stockholders Agreement, the Investor and
Gazit-Globe Group agreed to certain rights relating to the Common Stock
purchased by the Investor; and

    

    
       

      WHEREAS,
the Investor and Gazit-Globe Group desire to amend a certain provision of the
Stockholders Agreement as more fully set forth herein;

    

    
       

      NOW
THEREFORE, in consideration of the mutual covenants and promises contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

    

    
       

      
        	
                1.

              	
                Amendment to the
      Stockholders Agreement. The Stockholders Agreement is hereby
      amended as follows:

              

      

    

    
       

      Section
4 to the Stockholders Agreement is hereby amended by deleting sub­paragraph
(ii) in the first (preamble) paragraph of the Section in its entirety and
inserting in lieu thereof the following:

    

    
       

      "(ii)
Gazit-Globe Group owns and/or controls, directly and/or indirectly through any
of its members' subsidiaries and/or through any agreements or undertakings made
on its (or their) behalf by other stockholders of the Corporation (including the
Investor), at least one-third (1/3) of the Corporation's common stock entitled
to vote at the Corporation's stockholders meetings with respect to the election
of the Corporation's directors."

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        	
                2.

              	
                References. All
      references in the Stockholders Agreement to "this Agreement" shall
      hereafter refer to the Stockholders Agreement as amended
      hereby.

              

      

    

    
       

      
        	
                3.

              	
                Counterparts.
      This Third Amendment may be executed in one or more counterparts, each of
      which shall be deemed an original, but all of which together shall
      constitute one and the same
instrument.

              

      

    

     

    
      
        	
                4.

              	
                Full Force and
      Effect. The Stockholders Agreement, as amended by this Third
      Amendment, shall continue in full force and effect, and nothing herein
      contained shall be construed as a waiver or modification of existing
      rights and obligations under the Stockholders Agreement, except as such
      rights or obligations are expressly modified
  hereby.

              

      

    

    
       

      
        	
                5.

              	
                Governing Law.
      This Third Amendment will be governed by and construed in accordance with
      the laws of the State of
Florida.

              

      

    

    
      

       

      [THE
REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      IN
WITHNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be
executed on their behalf, by their respective officers, thereunto duly
authorized, on the date first written above.

    

    
      

    

    
      

    

    
      	 
      	
              EQUITY
      ONE, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/ Arthur L. Gallagher

            
	 
      	
              Name:
      Arthur L. Gallagher

            
	 
      	
              Title:   General
      Counsel and Secretary

            
	 
      	 
      
	 
      	 
      
	 
      	
              ALONY
      HETZ PROPERTIES & INVESTMENTS LTD.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/ Nathan Hetz

            
	 
      	
              Name:   Nathan
      Hetz

            
	 
      	Title:   
      C.E.O.
	 
      	 
      
	 	 
	 	By:	/s/
      Varda Levy
	 	Name:
      Varda Levy
	 	Title:   
      CFO
	 	 
	 
      	 
      
	 
      	
              GAZIT-GLOBE
      (1982) LTD.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/ Chaim Katzman

            
	 
      	
              Name:
      Chaim Katzman

            
	 
      	 
      
	 
      	 
      
	 
      	
              M.G.N.
      (USA), INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/ Chaim Katzman

            
	 
      	
              Name:
      Chaim Katzman

            
	 
      	 
      
	 
      	 
      
	 
      	
              GAZIT
      (1995), INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/ Chaim Katzman

            
	 
      	
              Name:
      Chaim Katzman

            

    

    
      

    

     

    -3-ex10_62.htm

    
      
        

      

    

    Exhibit
10.62

     

    Amendment
No. 2 to Supply Agreement

     

    (SUNTECH
CONTRACT NO. PUR1-0706092))

     

    This
Amendment No. 2 (this “Amendment”)
is effective as of February 25, 2008, by and between Hoku Materials, Inc., a
Delaware corporation (“HOKU”),
and Wuxi Suntech Power Co., Ltd., a People’s Republic of China company (“SUNTECH”).  HOKU
and SUNTECH are each a “Party” and together the “Parties” to this Amendment No.
2.

     

    Recitals

     

    Whereas,
HOKU and SUNTECH are Parties to that certain Supply Agreement (Suntech Contract
No. PUR1-0706092) dated as of June 13, 2007, as amended by that certain
Amendment No. 1 to Supply Agreement dated as of August 30, 2007 (together, the
“Supply
Agreement”);

     

    Whereas,
the Parties desire to make certain amendments to the Supply Agreement as
hereinafter set forth; and

     

    Whereas,
each Party derives a benefit from the amendments set forth herein.

     

    Now
therefore, in consideration of the foregoing, and for other good and valuable
consideration, the receipt of which is hereby acknowledged by the Parties, the
Parties agree to amend the Supply Agreement as set forth below.

     

    Agreement

     

    1.         Definitions.  All
capitalized terms not otherwise defined are defined in the Supply
Agreement.

     

     

    2.         Amendment
of Section 9.4 of the Supply Agreement.  Section 9.4 of the Supply
Agreement is hereby amended and restated in its entirety to read as
follows:

     

    9.4
Without limiting either Party’s right to terminate this Agreement pursuant to
Section 9.1 and 9.2, HOKU and SUNTECH shall each have the right to terminate
this Agreement in the event that HOKU has, on or before May 31, 2008, failed to
complete the Initial Financing.

    

      
        
           

        

        
          Page 1 of
2

          
            

          

        

        
           

        

      

    

     

    IN
WITNESS WHEREOF, the Parties have executed this Amendment No. 2 to Supply
Agreement as of the date first set forth above.

     

     

    
      
        	
                SUNTECH:

              	
                HOKU:

              
	 
      	 
      
	
                WUXI
      SUNTECH POWER CO., LTD.

              	
                HOKU
      MATERIALS, INC.

              
	 
      	 
      
	
                By:

              	/s/
      Steven Chan	
                                     

              	
                By:

              	
                /s/ Dustin
      Shindo

              	 
      
	 
      	 
      
	
                Name:

              	
                Steven
      Chan

              	
                Name:

              	
                Dustin
      Shindo

              
	 
      	 
      
	
                Title:

              	
                Chief Strategy
      Officer

              	
                Title:

              	
                Chairman &
      CEO

              
	
                Authorized
      Signatory

              	
                Authorized
      Signatory

              

      

       

       

      Page 2 of 2ex10_63.htm

    
      

    

    EXHIBIT
10.63

     

    SECURITIES
PURCHASE AGREEMENT

     

    This
Securities Purchase Agreement (this “Agreement”)
is dated as of February 25, 2008, by and among Hoku Scientific, Inc., a Delaware
corporation (the “Company”),
and each purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “Purchaser”
and collectively, the “Purchasers”).

     

    RECITALS

     

    A.           The
Company and each Purchaser is executing and delivering this Agreement in
reliance upon the exemption from securities registration afforded by Section
4(2) of the Securities Act of 1933, as amended (the “Securities
Act”), and Rule 506 of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange
Commission (the “Commission”)
under the Securities Act.

    

    B.           Each
Purchaser, severally and not jointly, wishes to purchase, and the Company wishes
to sell, upon the terms and conditions stated in this Agreement, that aggregate
number of shares of the common stock, par value $0.001 per share (the “Common
Stock”), of the Company, set forth below such Purchaser’s name on the
signature page of this Agreement (which aggregate amount for all Purchasers
together shall be 2,893,520 shares of Common
Stock and shall be collectively referred to herein as the “Shares”).

    

    C.           The
Company has engaged Deutsche Bank Securities Inc. as the placement agent (the
“Placement
Agent”) for the offering of the Shares on a “best efforts”
basis.

    

    D.           Contemporaneously
with the execution and delivery of this Agreement, the parties hereto are
executing and delivering a Registration Rights Agreement, substantially in the
form attached hereto as Exhibit A (the “Registration
Rights Agreement”), pursuant to which, among other things, the Company
will agree to provide certain registration rights with respect to the Shares
under the Securities Act and the rules and regulations promulgated thereunder
and applicable state securities laws.

    

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

     

    ARTICLE
I.

    DEFINITIONS

     

    1.1           Definitions.  In addition to
the terms defined elsewhere in this Agreement, for all purposes of this
Agreement, the following terms shall have the meanings indicated in this Section
1.1:

     

    “Action”
means any action, suit, inquiry, notice of violation, proceeding (including any
partial proceeding such as a deposition) or investigation pending or, to the
Company’s Knowledge, threatened in writing (or otherwise) against the Company or
any Subsidiary or any of their respective properties or any officer, director or
employee of the Company or any Subsidiary acting in his or her capacity as an
officer, director or employee before or by any federal, state, county, local or
foreign court, arbitrator, governmental or administrative agency, regulatory
authority, stock market, stock exchange or trading facility.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    “Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly
through one or more intermediaries, Controls, is controlled by or is under
common control with such Person, as such terms are used in and construed under
Rule 144.  With respect to a Purchaser, any investment fund or managed
account that is managed on a discretionary basis by the same investment manager
as such Purchaser will be deemed to be an Affiliate of such
Purchaser.

     

    “Agreement”
shall have the meaning ascribed to such term in the Preamble.

     

    “Average Daily
Price”  means, for any security as of any date, the VWAP for
such security on the Principal Trading Market, as reported by Bloomberg or, if
the Principal Trading Market is not the principal securities exchange or trading
market for such security, the VWAP of such security on the principal securities
exchange or trading market where such security is listed or traded as reported
by Bloomberg, or if the foregoing do not apply, the VWAP of such security in the
over-the-counter market on the electronic bulletin board for such security as
reported by Bloomberg, or, if no VWAP is reported for such security by
Bloomberg, the average of the bid prices of any market makers for such security
as reported in the “pink sheets” by Pink Sheets LLC (formerly the National
Quotation Bureau, Inc.).

     

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

     

    “Buy-In”
has the meaning set forth in Section 4.1(f).

    

    “Buy-In
Price” has the meaning set forth in Section 4.1(f).

    

     “Closing”
means the closing of the purchase by the Purchasers listed on Annex A hereto and
sale by the Company of Shares to such Purchasers pursuant to this Agreement on
the Closing Date as provided in Section 2.1(a) hereof.

     

     “Closing
Date” means the
date on which this Agreement has been executed and delivered by all parties
hereto, unless on such date the conditions set forth in Sections 2.1, 2.2, 5.1
and 5.2 (other than those to be satisfied at the Closing) shall not have been
satisfied or waived, in which case the Closing Date shall be on the second
(2nd)
Trading Day after the date on which the last to be satisfied or waived of the
conditions set forth in Sections 2.1, 2.2, 5.1 and 5.2 (other than those to be
satisfied at the Closing) shall have been satisfied or waived.

     

    “Commission”
has the meaning set forth in the Recitals.

     

    “Common
Stock” has the meaning set forth in the Recitals, and also includes any
securities into which the Common Stock may hereafter be reclassified or
changed.

     

    “Company”
has the meaning set forth in the Preamble.

     

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    “Company
Counsel” means Stoel Rives LLP.

    

     “Company
Deliverables” has the meaning set forth in Section 2.2(a).

    

     “Company’s
Knowledge” means with respect to any statement made to the knowledge of
the Company, that the statement is based upon the actual knowledge of any of the
officers of the Company or its Subsidiaries (or the knowledge such officers
would have after a reasonable inquiry into the matter in question) having
responsibility for the matter or matters that are the subject of the
statement.

    

    “Control”
(including the terms “controlling”, “controlled by” or “under common control
with”) means the possession, direct or indirect, of the power to direct or cause
the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

     

    “Deadline
Date” has the meaning set forth in Section 4.1(f).

    

    “Disclosure
Materials” has the meaning set forth in Section 3.1(h).

     

    “DTC” has
the meaning set forth in Section 4.1(c).

     

    “Effective
Date” means the date on which the initial Registration Statement required
by Section 2(a) of the Registration Rights Agreement is first declared effective
by the Commission.

     

    “Effectiveness
Deadline” means the date on which the initial Registration Statement is
required to be declared effective by the Commission under the terms of the
Registration Rights Agreement.

     

    “Engagement
Letter” has the meaning set forth in Section 6.1.

     

    “Environmental
Laws” has the meaning set forth in Section 3.1(l).

     

    “Escrow
Agent” has the meaning set forth in Section 2.1(d)(i).

    

    “Escrow Agent
Duties” has the meaning set forth in Section 2.1(d)(iii)(A).

    

    “Escrow
Amount” has the meaning set forth in Section 2.1(d)(i).

    

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

     

    “GAAP”
means U.S. generally accepted accounting principles, as applied by the
Company.

     

    “Indemnified
Person” has the meaning set forth in Section 4.7(b).

     

    “Intellectual
Property” has the meaning set forth in Section 3.1(r).

     

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    “Irrevocable
Transfer Agent Instructions” means, with respect to the Company, the
Irrevocable Transfer Agent Instructions, in the form of Exhibit D, executed
by the Company and delivered to and acknowledged in writing by the Transfer
Agent.

     

    “Legend Removal
Date” has the meaning set forth in Section 4.1(c).

     

    “Lien”
means any lien, charge, claim, encumbrance, security interest, right of first
refusal, preemptive right or other restrictions of any kind.

     

    “Material Adverse
Effect” means a material adverse effect on the results of operations,
assets, business, prospects, or financial condition of the Company, except that
any of the following, either alone or in combination with each other, shall not
be deemed a Material Adverse Effect: (i) effects caused by changes or
circumstances affecting general market conditions in the U.S. economy other than
those that disproportionately affect the industry in which the Company operates,
(ii) effects resulting from or relating to the execution, delivery, announcement
or performance of this Agreement or the announcement or disclosure of the sale
of the Securities or other transactions contemplated by this Agreement, (iii)
effects caused by any event, occurrence or condition resulting from or relating
to the taking of any action in accordance with this Agreement, (iv) any natural
disaster or any acts of terrorism, sabotage, military action or war or any
escalation or worsening thereof, or (v) effects resulting from changes in GAAP
or applicable laws.

     

    “Material
Contract” means any contract of the Company that has been filed or was
required to have been filed as an exhibit to the SEC Reports pursuant to Item
601(b)(4) or Item 601(b)(10) of Regulation S-K.

    

    “Material
Permits” has the meaning set forth in Section 3.1(p).

     

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

     

    “Outside
Date” means Friday,
February 29, 2008

     

    “Person”
means an individual, corporation, partnership, limited liability company, trust,
business trust, association, joint stock company, joint venture, sole
proprietorship, unincorporated organization, governmental authority or any other
form of entity not specifically listed herein.

     

    “Placement
Agent” has the meaning set forth in the Recitals.

     

    “Placement Agent
Fee” means the cash fee to be paid to the Placement Agent for services
rendered to the Company in connection with the offering of the
Shares.

     

    “Press
Release” has the meaning set forth in Section 4.5.

     

     “Principal Trading
Market” means the Trading Market on which the Common Stock is primarily
listed on and quoted for trading, which, as of the date of this Agreement and
the Closing Date, shall be the Nasdaq Global Market.

     

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

     

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

     

    “Purchase
Price” means $8.64 per share.

     

    “Purchaser”
and “Purchasers”
have the meaning set forth in the Preamble.

     

    “Purchaser
Deliverables” has the meaning set forth in Section 2.2(b).

     

    “Purchaser
Party” has the meaning set forth in Section 4.7(a).

     

    “Registration
Rights Agreement” has the meaning set forth in the Recitals.

     

    “Registration
Statement” means a registration statement meeting the requirements set
forth in the Registration Rights Agreement and covering the resale by the
Purchasers of the Registrable Securities (as defined in the Registration Rights
Agreement).

     

    “Regulation
D” has the meaning set forth in the Recitals.

     

    “Required
Approvals” has the meaning set forth in Section 3.1(e).

     

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

     

    “SEC
Reports” has the
meaning set forth in Section 3.1(h).

     

     “Secretary’s
Certificate” has the meaning set forth in Section 2.2(a)(v).

     

    “Shares”
has the meaning set forth in the Recitals.

     

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

     

    “Short
Sales” include, without limitation, (i) all “short sales” as defined in
Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not
against the box, and all types of direct and indirect stock pledges, forward
sale contracts, options, puts, calls, short sales, swaps, “put equivalent
positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar
arrangements (including on a total return basis), and (ii) sales and other
transactions through non-U.S. broker dealers or foreign regulated
brokers.

     

    “Stock
Certificates” has the meaning set forth in Section
2.2(a)(ii).

     

    “Subscription
Amount” means with respect to each Purchaser, the aggregate amount to be
paid for the Shares purchased hereunder as indicated on such Purchaser’s
signature page to this Agreement next to the heading “Aggregate Purchase Price
(Subscription Amount)”.

     

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

    “Subsidiary”
means any entity in which the Company, directly or indirectly, owns capital
stock or holds an equity or similar interest.

     

    “Trading
Affiliate” has the meaning set forth in Section 3.2(h).

     

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

     

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

     

    “Transaction
Documents” means this Agreement, the schedules and exhibits attached
hereto, the Registration Rights Agreement, the Irrevocable Transfer Agent
Instructions and any other documents or agreements executed in connection with
the transactions contemplated hereunder.

     

    “Transfer
Agent” means Continental Stock Transfer & Trust Company, or any
successor transfer agent for the Company.

     

    “VWAP”
means the daily volume weighted average price of the Company's Common Stock on
the Principal Market as reported by Bloomberg (based on a trading day from 9:30
am EST to 4:00 pm EST) using the VAP function

     

    ARTICLE
II.

    PURCHASE
AND SALE

     

    
      	
               
      

            	
              2.1

            	
              Closing.

            

    

     

    (a)           Amount.  Subject
to the terms and conditions set forth in this Agreement, at the Closing, the
Company shall issue and sell to each Purchaser listed on Annex A hereto, and
each Purchaser listed on Annex A hereto shall,
severally and not jointly, purchase from the Company, such number of Shares
equal to the quotient resulting from dividing (i) the aggregate purchase price
for such Purchaser, as indicated below such Purchaser’s name on the signature
page of this Agreement (the “Subscription
Amount”) by (ii) the Purchase Price, rounded up to the nearest whole
Share.

     

    (b)           Closing.  The
Closing of the purchase and sale of the Shares shall take place at the offices
of Stoel Rives LLP, 101 S. Capitol Blvd., Suite 1900, Boise, Idaho 83702 on the
Closing Date, or at such other location or remotely by facsimile transmission or
other electronic means as the parties may mutually agree.

     

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

     

    (c)           Form of
Payment.  On the Closing Date, (i) each Purchaser listed on
Annex A hereto
shall wire its Subscription Amount, in United States dollars and in immediately
available funds, in the amount set forth as the “Aggregate Purchase Price
(Subscription Amount)” indicated below such Purchaser’s name on the applicable
signature page hereto by wire transfer to the Company’s account and (ii) the
Company shall irrevocably instruct the Transfer Agent to deliver to each
Purchaser listed on Annex A hereto one or
more stock certificates, duly executed on behalf of the Company and registered
in the name of such Purchaser, evidencing the number of Shares such Purchaser is
purchasing as is set forth on such Purchaser’s signature page to this Agreement
next to the heading “Number of Shares to be Acquired”, within three (3) Business
Days after the Closing.

     

    (d)           Escrow.

    

    (i)           Simultaneously
with the execution and delivery of this Agreement by a Purchaser, such Purchaser
shall promptly cause a wire transfer of immediately available funds (U.S.
dollars) in an amount representing such Purchaser’s Subscription Amount to be
paid to a non-interest bearing escrow account of Lowenstein Sandler PC (the
“Escrow
Agent”) set forth on Exhibit G attached
hereto (the aggregate amounts received being held in escrow by the Escrow Agent
are referred to herein as the “Escrow
Amount”).  The Escrow Agent shall hold the Escrow Amount in
escrow in accordance with Section 2.1(d)(ii) below.  

    

    (ii)           The
Escrow Agent shall continue to hold the Escrow Amount in escrow in accordance
with and subject to this Agreement, from the date of its receipt of the funds
constituting the Escrow Amount until the soonest of: 

    

    (A)           the
termination of this Agreement in accordance with Section 6.17, in which case, if
the Escrow Agent then holds any portion of the Escrow Amount, then: (1) in the
event of a termination by the Company, the Escrow Agent shall return the portion
of the Escrow Amount received from each Purchaser which it then holds, to each
such Purchaser, and in the event of a termination by a Purchaser, the Escrow
Agent shall return the portion of the Escrow Amount received from such Purchaser
which it then holds, to such Purchaser, in accordance with written wire transfer
instructions received from the Purchaser; and (2) if the Escrow Agent has not
received written wire transfer instructions from any Purchaser before the 30th
day after such termination date, then the Escrow Agent may, in its sole and
absolute discretion, either (x) deposit that portion of the Escrow Amount to be
returned to such Purchaser in a court of competent jurisdiction on written
notice to such Purchaser, and the Escrow Agent shall thereafter have no further
liability with respect to such deposited funds, or (y) continue to hold such
portion of the Escrow Amount pending receipt of written wire transfer
instructions from such Purchaser or an order from a court of competent
jurisdiction; OR

    

    (B)           the
Closing, receipt of written instructions from the Company and the Placement
Agent that the Closing shall have been consummated, in which case, the Escrow
Agent shall release the Escrow Amount constituting the aggregate purchase price
as follows: (1) to the Placement Agent, the fees payable to such Placement Agent
(which fees shall be set forth in such instructions), and (2) the balance of the
aggregate purchase price to the Company.

    
      
         

      

      
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    (iii)           The
Company and the Purchasers acknowledge and agree for the benefit of the Escrow
Agent (which shall be deemed to be a third party beneficiary of this Section
2.1(d)) as follows: 

    

    (A)           The
Escrow Agent: (i) is not responsible for the performance by the Company, the
Purchasers or Placement Agent of this Agreement or any of the Transaction
Documents or for determining or compelling compliance therewith; (ii) is only
responsible for (A) holding the Escrow Amount in escrow pending receipt of
written instructions from the Company and the Placement Agent directing the
release of the Escrow Amount, and (B) disbursing the Escrow Amount in accordance
with the written instructions from the Company and the Placement Agent, each of
the responsibilities of the Escrow Agent in clause (A) and (B) is ministerial in
nature, and no implied duties or obligations of any kind shall be read into this
Agreement against or on the part of the Escrow Agent (collectively, the “Escrow Agent
Duties”); (iii) shall not be obligated to take any legal or other action
hereunder which might in its judgment involve or cause it to incur any expense
or liability unless it shall have been furnished with indemnification acceptable
to it, in its sole discretion; (iv) may rely on and shall be protected in acting
or refraining from acting upon any written notice, instruction (including,
without limitation, wire transfer instructions, whether incorporated herein or
provided in a separate written instruction), instrument, statement, certificate,
request or other document furnished to it hereunder and believed by it to be
genuine and to have been signed or presented by the proper Person, and shall
have no responsibility for making inquiry as to, or for determining, the
genuineness, accuracy or validity thereof, or of the authority of the Person
signing or presenting the same; and (v) may consult counsel satisfactory to it,
and the opinion or advice of such counsel in any instance shall be full and
complete authorization and protection in respect of any action taken, suffered
or omitted by it hereunder in good faith and in accordance with the opinion or
advice of such counsel.  Documents and written materials referred to
in this Section 2.1(d)(iii)(A) include, without limitation, e-mail and other
electronic transmissions capable of being printed, whether or not they are in
fact printed; and any such e-mail or other electronic transmission may be deemed
and treated by the Escrow Agent as having been signed or presented by a Person
if it bears, as sender, the Person’s e-mail address.

     

    (B)           The
Escrow Agent shall not be liable to anyone for any action taken or omitted to be
taken by it hereunder, except in the case of Escrow Agent’s gross negligence or
willful misconduct in breach of the Escrow Agent Duties.  IN NO EVENT
SHALL THE ESCROW AGENT BE LIABLE FOR INDIRECT, PUNITIVE, SPECIAL OR
CONSEQUENTIAL DAMAGE OR LOSS (INCLUDING BUT NOT LIMITED TO LOST PROFITS)
WHATSOEVER, EVEN IF THE ESCROW AGENT HAS BEEN INFORMED OF THE LIKELIHOOD OF SUCH
LOSS OR DAMAGE AND REGARDLESS OF THE FORM OF ACTION. 

    

    (C)           The
Company hereby indemnifies and holds harmless the Escrow Agent from and against
any and all loss, liability, cost, damage and expense, including, without
limitation, reasonable counsel fees and expenses, which the Escrow Agent may
suffer or incur by reason of any action, claim or proceeding brought against the
Escrow Agent arising out of or relating to the performance of the Escrow Agent
Duties, except to the extent such action, claim or proceeding is exclusively the
result of the willful misconduct, bad faith or gross negligence of the Escrow
Agent.  

    

    (D)           The
Escrow Agent has acted as legal counsel to the Placement Agent in connection
with this Agreement and the other Transaction Documents, is merely acting as a
stakeholder under this Agreement and is, therefore, hereby authorized to
continue acting as legal counsel to the Placement Agent including, without
limitation, with regard to any dispute arising out of this Agreement, the other
Transaction Documents, the Escrow Amount or any other matter.  The
Purchasers hereby expressly consent to permit the Escrow Agent to represent the
Placement Agent in connection with all matters relating to this Agreement,
including, without limitation, with regard to any dispute arising out of this
Agreement, the other Transaction Documents, the Escrow Amount or any other
matter, and hereby waives any conflict of interest or appearance of conflict or
impropriety with respect to such representation.  Each of the
Purchasers has consulted with its own counsel specifically about this Section
2.1(d) to the extent they deemed necessary, and has entered into this Agreement
after being satisfied with such advice.

    
      
         

      

      
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    (E)           The
Escrow Agent shall have the right at any time to resign for any reason and be
discharged of its duties as escrow agent hereunder (including without limitation
the Escrow Agent Duties) by giving written notice of its resignation to the
Company, the Placement Agent and the Purchasers at least ten (10) calendar days
prior to the specified effective date of such resignation.  All
obligations of the Escrow Agent hereunder shall cease and terminate on the
effective date of its resignation and its sole responsibility thereafter shall
be to hold the Escrow Amount, for a period of ten (10) calendar days following
the effective date of resignation, at which time,

    

    (I)           if
a successor escrow agent shall have been appointed and have accepted such
appointment in a writing to both the Company and the Purchasers, then upon
written notice thereof given to each of the Purchasers, the Escrow Agent shall
deliver the Escrow Amount to the successor escrow agent, and upon such delivery,
the Escrow Agent shall have no further liability or obligation; or

    

    (II)           if
a successor escrow agent shall not have been appointed, for any reason
whatsoever, the Escrow Agent shall at its option in its sole discretion, either
(A) deliver the Escrow Amount to a court of competent jurisdiction selected by
the Escrow Agent and give written notice thereof to the Company, the Placement
Agent and the Purchasers, or (B) continue to hold the Escrow Amount in escrow
pending written direction from the Company and the Placement Agent in form and
formality satisfactory to the Escrow Agent.

    

    (F)           In
the event that the Escrow Agent shall be uncertain as to its duties or rights
hereunder or shall receive instructions with respect to the Escrow Amount or any
portion thereunder which, in its sole discretion, are in conflict either with
other instructions received by it or with any provision of this Agreement, the
Escrow Agent shall have the absolute right to suspend all further performance of
its duties under this Agreement (except for the safekeeping of such Escrow
Amount) until such uncertainty or conflicting instructions have been resolved to
the Escrow Agent’s sole satisfaction by final judgment of a court of competent
jurisdiction, joint written instructions from the Company, the Placement Agent
and all of the Purchasers, or otherwise.  In the event that any
controversy arises between the Company and one or more of the Purchasers or any
other party with respect to this Agreement or the Escrow Amount, the Escrow
Agent shall not be required to determine the proper resolution of such
controversy or the proper disposition of the Escrow Amount, and shall have the
absolute right, in its sole discretion, to deposit the Escrow Amount with the
clerk of a court selected by the Escrow Agent and file a suit in interpleader in
that court and obtain an order from that court requiring all parties involved to
litigate in that court their respective claims arising out of or in connection
with the Escrow Amount.  Upon the deposit by the Escrow Agent of the
Escrow Amount with the clerk of such court in accordance with this provision,
the Escrow Agent shall thereupon be relieved of all further obligations and
released from all liability hereunder.

    
      
         

      

      
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    2.2           Closing
Deliveries.    (a)  On
or prior to the Closing with respect to the Purchasers listed on Annex A hereto, the
Company shall issue, deliver or cause to be delivered to such Purchaser the
following (the “Company
Deliverables”):

     

    (i)           this
Agreement, duly executed by the Company;

     

    (ii)          duly
executed Irrevocable Transfer Agent Instructions acknowledged in writing by the
Transfer Agent with the original stock certificates, evidencing the Shares
subscribed for by such Purchaser hereunder, registered in the name of such
Purchaser as set forth on the Stock Certificate Questionnaire included as Exhibit B-2 hereto
(the “Stock
Certificates”), delivered within three (3) Business Days of
Closing;

     

    (iii)         a
legal opinion of Company Counsel, dated as of the Closing Date and in the form
attached hereto as Exhibit C, executed
by such counsel and addressed to the Purchasers and the Placement
Agent;

     

    (iv)        the
Registration Rights Agreement, duly executed by the Company;

     

    (v)         a
certificate of the Secretary of the Company (the “Secretary’s
Certificate”), dated as of the Closing Date, (a) certifying the
resolutions adopted by the Board of Directors of the Company or a duly
authorized committee thereof approving the transactions contemplated by this
Agreement and the other Transaction Documents and the issuance of the Shares,
(b) certifying the current versions of the certificate of incorporation, as
amended, and by-laws of the Company and (c) certifying as to the signatures and
authority of persons signing the Transaction Documents and related documents on
behalf of the Company, in the form attached hereto as Exhibit
E;

     

    (vi)        the
Compliance Certificate referred to in Section 5.1(g);

     

    (vii)       a
certificate evidencing the formation and good standing of the Company issued by
the Secretary of State of the State of Delaware, as of a date within five (5)
days of the Closing Date;

     

    (viii)      a
certificate evidencing the Company’s qualification as a foreign corporation and
good standing issued by the Secretary of State of each State in which the
Company conducts its business as of a date within ten (10) days of the Closing
Date; and

     

    (ix)     lock-up
agreements, entered into by each of the Company’s directors and executive
officers, in the form attached hereto as Exhibit
H.

    
      
         

      

      
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    (b)           On
or prior to the Closing with respect to the Purchasers listed on Annex A hereto, each
such Purchaser shall deliver or cause to be delivered to the Company the
following (the “Purchaser
Deliverables”):

     

    (i)          this
Agreement, duly executed by such Purchaser;

     

    (ii)         its
Subscription Amount, in United States dollars and in immediately available
funds, in the amount set forth as the “Aggregate Purchase Price (Subscription
Amount)” indicated below such Purchaser’s name on the applicable signature page
hereto by wire transfer to the Company’s account;

     

    (iii)        the
Registration Rights Agreement, duly executed by such Purchaser;

     

    (iv)        a
fully completed and duly executed Selling Stockholder Questionnaire in the form
attached as Annex B to the Registration Rights Agreement; and

     

    (v)         a
fully completed and duly executed Accredited Investor Questionnaire and Stock
Certificate Questionnaire in the forms attached hereto as Exhibits B-1 and
B-2,
respectively.

     

    ARTICLE
III.

    REPRESENTATIONS
AND WARRANTIES

     

    3.1           Representations
and Warranties of the Company.  The Company
hereby represents and warrants as of the date hereof and as of the Closing Date
(except for the representations and warranties that speak as of a specific date,
which shall be made as of such date), to each of the Purchasers and to the
Placement Agent that, except as set forth in the Schedules delivered
herewith:

     

    (a)           Subsidiaries.  The
Company has no direct or indirect Subsidiaries, other than Hoku Materials, Inc.,
a Delaware corporation, Hoku Solar, Inc., a Delaware corporation, Hoku Materials
Holdings, Inc., a Delaware corporation, Hoku Power Investments LLC, a Hawaii
limited liability company, and Hoku Power Project 1 LLC, a Hawaii limited
liability company.

     

    (b)           Organization and
Qualification.  The Company and each of its Subsidiaries is an
entity duly incorporated, validly existing and in good standing under the laws
of the State of Delaware or the State of Hawaii, as applicable, with the
requisite corporate power and authority to own or lease and use its properties
and assets and to carry on its business as currently
conducted.  Neither the Company nor any Subsidiary is in violation of
any of the provisions of its respective certificate or articles of incorporation
(however denominated) or bylaws or other organizational or charter
documents.  The Company and each of its Subsidiaries is duly qualified
to conduct business and is in good standing (if the concept is applicable in the
relevant jurisdiction) as a foreign corporation or other entity in each
jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary, except where the failure to be so
qualified or in good standing, as the case may be, would not have a Material
Adverse Effect.  The Company has not received a written notification
that any proceeding has been instituted in any such jurisdiction, revoking,
limiting or curtailing, or seeking to revoke, limit or curtail, such power and
authority or qualification, and to the Company’s knowledge, no proceeding has
been instituted in any such jurisdiction, revoking, limiting or curtailing, or
seeking to revoke, limit or curtail, such power and authority or
qualification.

     

    
      
        
           

        

        
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    (c)           Authorization; Enforcement;
Validity.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents to which it is a party and otherwise to carry out
its obligations hereunder and thereunder.  The execution and delivery
of each of the Transaction Documents to which it is a party by the Company and
the consummation by it of the transactions contemplated hereby and thereby
(including, but not limited to, the sale and delivery of the Shares) have been
duly authorized by all necessary corporate action on the part of the Company,
and no further corporate action is required by the Company, its Board of
Directors or its stockholders in connection therewith other than in connection
with the Required Approvals.  Each of the Transaction Documents to
which it is a party has been (or upon delivery will have been) duly executed by
the Company and, assuming each of the Transaction Documents constitutes a valid
and binding obligation of the other parties thereto, is, or when delivered in
accordance with the terms hereof, will constitute the legal, valid and binding
obligation of the Company enforceable against the Company in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to,
or affecting generally the enforcement of, creditors’ rights and remedies or by
other equitable principles of general application. Except as set forth on Schedule 3.1(c)
hereto, there are no shareholder agreements, voting agreements, preferred
investment terms, preemptive rights for existing shareholders, or other similar
arrangements with respect to the Company’s capital stock to which the Company is
a party or, to the Company’s Knowledge, between or among any of the Company’s
stockholders.

     

    (d)           No
Conflicts.  The execution, delivery and performance by the
Company of the Transaction Documents to which it is a party and the consummation
by the Company of the transactions contemplated hereby or thereby (including,
without limitation, the issuance of the Shares) do not and will not (i) conflict
with or violate any provisions of the Company’s certificate of incorporation or
bylaws or otherwise result in a violation of the organizational documents of the
Company, (ii) conflict with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, result in the
creation of any Lien upon any of the properties or assets of the Company or give
to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any Material Contract or
(iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority
to which the Company is subject or decree (including federal and state
securities laws and regulations and the rules and regulations, assuming the
correctness of the representations and warranties made by the Purchasers herein,
of any self regulatory organization to which the Company or its securities are
subject , including all applicable Trading Markets), or by which any property or
asset of the Company is bound or affected), except in the case of clause (ii)
and (iii) such as would not, individually or in the aggregate, have a Material
Adverse Effect.

     

    (e)           Filings, Consents and
Approvals.  The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution,
delivery and performance by the Company of the Transaction Documents (including
the issuance of the Shares), other than (i) the filing with the Commission of
one or more Registration Statements in accordance with the requirements of the
Registration Rights Agreement, (ii) filings required by applicable state
securities laws, (iii) the filing of a Notice of Sale of Securities on Form D
with the Commission under Regulation D of the Securities Act, (iv) the filing of
any requisite notices and/or application(s) to the Principal Trading Market for
the issuance and sale of the Common Stock and the listing of the Common Stock
for trading or quotation, as the case may be, thereon in the time and manner
required thereby, (v) the filings required in accordance with Section 4.11 of
this Agreement and (vi) those that have been made or obtained prior to the date
of this Agreement (collectively, the “Required
Approvals”).   Subject to the accuracy of the
representations and warranties of each Purchaser set forth in Section 3.2
hereof, the Company has taken all action necessary to exempt (i) the issuance
and sale of the Shares and (ii) the other transactions contemplated by the
Transaction Documents from the provisions of any stockholder rights plan or
other “poison pill” arrangement, any anti-takeover, business combination or
control share law or statute binding on the Company or to which the Company or
any of its assets and properties may be subject and any provision of the
Company’s certificate of incorporation or bylaws that is or could reasonably be
expected to become applicable to the Purchasers as a result of the transactions
contemplated hereby, including without limitation, the issuance of the Shares
and the ownership, disposition or voting of the Shares by the Purchasers or the
exercise of any right granted to the Purchasers pursuant to this Agreement or
the other Transaction Documents.

     

    
      
        
           

        

        
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    (f)        
   Issuance of the
Shares.  The Shares have been duly authorized and, when issued
and paid for in accordance with the terms of the Transaction Documents, will be
duly and validly issued, fully paid and nonassessable and free and clear of all
Liens, other than restrictions on transfer provided for in the Transaction
Documents or imposed by applicable securities laws, and shall not be subject to
preemptive or similar rights of shareholders.  Assuming the accuracy
of the representations and warranties of the Purchasers in this Agreement, the
Shares will be issued in compliance with all applicable federal and state
securities laws.  Subject to the accuracy of the representations made
by the Purchasers in Section 3.2 hereof, the Shares will be issued and sold to
the Purchasers in compliance with applicable exemptions from (A) the
registration and prospectus delivery requirements of the Securities Act and (B)
the registration and qualification requirements of all applicable securities
laws of the states of the United States and any other jurisdiction represented
by a Purchaser in an Accredited Investor Questionnaire to be its jurisdiction of
residence.

     

    (g)           Capitalization.  The
number of shares and type of all authorized, issued and outstanding capital
stock, options and other securities of the Company (whether or not presently
convertible into or exercisable or exchangeable for shares of capital stock of
the Company) has been set forth in the SEC Reports and has changed since the
date of such SEC Reports only to reflect stock option exercises that do not,
individually or in the aggregate, have a material affect on the issued and
outstanding capital stock, options and other securities.  All of the
outstanding shares of capital stock of the Company are duly authorized, validly
issued, fully paid and non-assessable, have been issued in compliance in all
material respects with all applicable federal and state securities laws, and
none of such outstanding shares was issued in violation of any preemptive rights
or similar rights to subscribe for or purchase any capital stock of the
Company.  Except as specified in Schedule 3.1(g), (i) no shares of the
Company's capital stock are subject to preemptive rights or any other similar
rights or any liens or encumbrances suffered or permitted by the Company; (ii)
except for 854,600 shares subject to outstanding employee stock options and
restricted stock awards granted to employees of the Company or its Subsidiaries,
there are no outstanding options, warrants, scrip, rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities or rights
convertible into, or exercisable or exchangeable for, any shares of capital
stock of the Company, or contracts, commitments, understandings or arrangements
by which the Company is or may become bound to issue additional shares of
capital stock of the Company or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, or exercisable or exchangeable for, any shares of
capital stock of the Company; (iii) there are no outstanding debt securities,
notes, credit agreements, credit facilities or other agreements, documents or
instruments evidencing indebtedness of the Company or by which the Company is or
may become bound; (iv) there are no financing statements securing obligations in
any material amounts, either singly or in the aggregate, filed in connection
with the Company;  (v) there are no agreements or arrangements under
which the Company is obligated to register the sale of any of their securities
under the Securities Act (except the Registration Rights Agreement); (vi) there
are no outstanding securities or instruments of the Company or which contain any
redemption or similar provisions, and there are no contracts, commitments,
understandings or arrangements by which the Company is or may become bound to
redeem a security of the Company; (vii) there are no securities or instruments
containing anti-dilution or similar provisions that will be triggered by the
issuance of the Securities; (viii) the Company does not have any stock
appreciation rights or “phantom stock” plans or agreements or any similar plan
or agreement; and (ix) the Company has no liabilities or obligations required to
be disclosed in the SEC Reports (as defined herein) but not so disclosed in the
SEC Reports, other than those incurred in the ordinary course of the Company's
businesses and which, individually or in the aggregate, do not or would not have
a Material Adverse Effect.

     

    
      
         

      

      
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    (h)           SEC
Reports.  The Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it under the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, for twelve (12)
months preceding the date hereof (or such shorter period as the Company was
required by law or regulation to file such material) (the foregoing materials,
including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC
Reports” and together with this Agreement and the Schedules to this
Agreement (if any), the “Disclosure
Materials”), on a timely basis or has received a valid extension of such
time of filing and has filed any such SEC Reports prior to the expiration of any
such extension.   As of their respective filing dates, or to the
extent corrected by a subsequent restatement, the SEC Reports complied in all
material respects with the requirements of the Securities Act and the Exchange
Act and the rules and regulations of the Commission promulgated thereunder, and
none of the SEC Reports, when filed, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

     

    (i)           
Financial
Statements.  The financial statements of the Company included
in the SEC Reports comply in all material respects with applicable accounting
requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing (or to the extent corrected by a
subsequent restatement).  Such financial statements have been prepared
in accordance with GAAP applied on a consistent basis during the periods
involved, except as may be otherwise specified in such financial statements or
the notes thereto and except that unaudited financial statements may not contain
all footnotes required by GAAP, and fairly present in all material respects the
financial position of the Company and its consolidated Subsidiaries taken as a
whole as of and for the dates thereof and the results of operations and cash
flows for the periods then ended, subject, in the case of unaudited statements,
to normal, year-end audit adjustments.  Each of the Material Contracts
to which the Company or any of its Subsidiaries is a party or to which the
property or assets of the Company or any of its Subsidiaries is subject has been
filed as an exhibit to the SEC Reports. Except as set forth in the financial
statements of the Company included in the SEC Reports filed prior to the date
hereof or as described on Schedule 3.1(i), neither the Company nor any of its
Subsidiaries has incurred any liabilities, contingent or otherwise, except those
incurred in the ordinary course of business, consistent (as to amount and
nature) with past practices since the date of such financial statements, none of
which, individually or in the aggregate, have had or could reasonably be
expected to have a Material Adverse Effect.

     

    
      
        
           

        

        
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    (j)           Tax
Matters.  The Company and each of its Subsidiaries (i) has
prepared and filed all foreign, federal and state income and all other tax
returns, reports and declarations required by any jurisdiction to which it is
subject, (ii) has paid all taxes and other governmental assessments and charges
that are material in amount, shown or determined to be due on such returns,
reports and declarations, except those being contested in good faith, with
respect to which adequate reserves have been set aside on the books of the
Company and (iii) has set aside on its books provisions reasonably adequate for
the payment of all taxes for periods subsequent to the periods to which such
returns, reports or declarations apply, except, in the case of clauses (i) and
(ii) above, where the failure to so pay or file any such tax, assessment, charge
or return would not have a Material Adverse Effect. There are no tax liens or
claims pending or, to the Company’s Knowledge, threatened against the Company or
any Subsidiary or any of their respective assets or property. Except as
described on Schedule 3.1(j), there are no outstanding tax sharing agreements or
other such arrangements between the Company and any Subsidiary or other
corporation or entity.

     

    (k)           Material
Changes.  Since the date of the latest financial statements
included within the SEC Reports, except as specifically disclosed in the SEC
Reports, (i) there have been no events, occurrences or developments that have
had or would reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect, (ii) the Company has not incurred any
material liabilities (contingent or otherwise) other than (A) trade payables,
accrued expenses and other liabilities incurred in the ordinary course of
business consistent with past practice and (B) immaterial liabilities not
required to be reflected in the Company's financial statements pursuant to GAAP
or required to be disclosed in filings made with the Commission, (iii) the
Company has not materially altered its method of accounting or the manner in
which it keeps its accounting books and records, (iv) the Company has not
declared or made any dividend or distribution of cash or other property to its
stockholders or purchased, redeemed or made any agreements to purchase or redeem
any shares of its capital stock (other than in connection with repurchases of
unvested stock issued to employees of the Company), (v) the Company has not
issued any equity securities to any officer, director or Affiliate, except
Common Stock issued in the ordinary course as dividends on outstanding preferred
stock or pursuant to existing Company stock option or stock purchase plans or
executive and director corporate arrangements disclosed in the SEC Reports ,
(vi) there has not been any material change or amendment to, or any waiver of
any material right under, any Material Contract under which the Company or any
of its assets is bound or subject, (vii) the Company has not lost the services
of any key employee or experienced a material change in the composition or
duties of the senior management of the Company or any Subsidiary, and (viii)
there has been no change or amendment to the Company’s certificate of
incorporation or bylaws. Except for the issuance of the Securities contemplated
by this Agreement or as set forth on Schedule 3.1(k), no event, liability or
development has occurred or exists with respect to the Company or its business,
properties, operations or financial condition that would be required to be
disclosed by the Company under applicable securities laws at the time this
representation is made that has not been publicly disclosed at least one (1)
Trading Day prior to the date that this representation is made.

     

    
      
         

      

      
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    (l)           Environmental
Matters.  Neither the Company nor any of its Subsidiaries (i)
is in violation of any applicable statute, rule, regulation, decision or order
of any governmental agency or body or any court, domestic or foreign, relating
to the use, disposal or release of hazardous or toxic substances or relating to
the protection or restoration of the environment or human exposure to hazardous
or toxic substances, in each case as in effect at or prior to the Closing
(collectively, “Environmental
Laws”), (ii) owns or operates any real property contaminated with any
substance that is in violation of any Environmental Laws, (iii) is liable for
any off-site disposal or contamination pursuant to any Environmental Laws, or
(iv) is subject to any claim relating to any Environmental Laws; which
violation, contamination, liability or claim has had or would have, individually
or in the aggregate, a Material Adverse Effect; and there is no pending or, to
the Company’s Knowledge, threatened investigation that might lead to such a
claim.

     

    (m)           Litigation.  Except
as disclosed in the SEC Reports, there is no Action which (i) adversely affects
or challenges the legality, validity or enforceability of any of the Transaction
Documents or the Shares or (ii) would reasonably be expected to, if there were
an unfavorable decision, individually or in the aggregate, have a Material
Adverse Effect.  Neither the Company nor any Subsidiary, nor any
director or officer thereof, is or has been the subject of any Action involving
a claim of violation of or liability under federal or state securities laws or a
claim of breach of fiduciary duty.  There has not been, and to the
Company’s Knowledge, there is not pending any investigation by the Commission
involving the Company or any current or former director or officer of the
Company.

     

    (n)           Employment
Matters.  No material labor dispute exists or, to the Company’s
Knowledge, is imminent with respect to any of the employees of the Company or
any of its Subsidiaries which would have a Material Adverse
Effect.  None of the Company’s or any Subsidiary’s employees is a
member of a union that relates to such employee’s relationship with the Company
or one of its Subsidiaries, and neither the Company nor any of its Subsidiaries
is a party to a collective bargaining agreement, and the Company believes that
its relationship with its employees is good.     The
Company is, and at all times has been, in compliance in all material respects
with all applicable laws respecting employment (including laws relating to
classification of employees and independent contractors) and employment
practices, terms and conditions of employment, wages and hours, and immigration
and naturalization.  The Company has not violated in any material
respect any laws, regulations, orders or contract terms, affecting the
collective bargaining rights of employees, labor organizations or any laws,
regulations or orders affecting employment discrimination, equal opportunity
employment, or employees’ health, safety, welfare, wages and hours.

     

    (o)           Compliance.  Neither
the Company nor any of its Subsidiaries (i) is in default under or in violation
of (and no event has occurred that has not been waived that, with notice or
lapse of time or both, would result in a default by the Company or any of its
Subsidiaries under), nor has the Company or any of its Subsidiaries received
written notice of a claim that it is in default under or that it is in violation
of, any Material Contract (whether or not such default or violation has been
waived), (ii) is in violation of any order of any court, arbitrator or
governmental body having jurisdiction over the Company or its properties or
assets, or (iii) is  or has been in violation of, or in receipt of
notice that it is in violation of, any statute, rule or regulation of any
governmental authority applicable to the Company, except in each case as would
not, individually or in the aggregate, have a Material Adverse
Effect.

     

    
      
        
           

        

        
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    (p)           Regulatory
Permits.  The Company and each of its Subsidiaries possesses
all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct its business
as described in the SEC Reports, except where the failure to possess such
permits, individually or in the aggregate, has not and would not have,
individually or in the aggregate, a Material Adverse Effect (“Material
Permits”) and neither the Company nor any of its Subsidiaries has
received any notice of proceedings relating to the revocation or modification of
any such Material Permits and the Company is unaware of any facts or
circumstances that the Company would reasonably expect to give rise to the
revocation or modification of any Material Permits..

     

    (q)           Title to
Assets.  Except as set forth on Schedule 3.1(q), the Company
and each of its Subsidiaries has good and marketable title in fee simple to all
real property owned by it that is material to the business of the Company and
its Subsidiaries, taken as a whole, and good and marketable title to all
tangible personal property owned by it that is material to the business of the
Company, in each case free and clear of all liens, encumbrances and defects
except such as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property
by the Company and liens for the payment of federal, state or other taxes, the
payment of which is neither delinquent nor subject to penalties.  Any
real property and facilities held under lease by the Company are held by it
under valid, subsisting and enforceable leases with such exceptions as are not
material and do not interfere with the use made and proposed to be made of such
property and buildings by the Company and its Subsidiaries.

     

    (r)           Patents and
Trademarks.  The Company and each of its Subsidiaries owns,
possesses, licenses or has other rights to use all foreign and domestic patents,
patent applications, trade and service marks, trade and service mark
registrations, trade names, copyrights, licenses, inventions, trade secrets,
technology and other proprietary rights and processes (collectively, the “Intellectual
Property”) necessary for the conduct of its businesses as now
conducted.  The Company Intellectual Property is free and clear of any
pledge, lien, security interest, encumbrance, claim or equitable interest,
whether imposed by agreement, contract, understanding, law, equity or otherwise,
except where any failure to have such adequate licenses or other rights of use
to such Intellectual Property, individually or in the aggregate, would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect or except as described in the SEC Reports. Except where such
violations or infringements would not have, either individually or in the
aggregate, a Material Adverse Effect, (a) to the Company’s Knowledge, there
are no rights of third parties to any such Intellectual Property; (b) to the
Company’s Knowledge, there is no infringement by third parties of any such
Intellectual Property; (c) there is no pending or, to the Company’s Knowledge,
threatened action, suit, proceeding or claim by others challenging the Company’s
rights in or to any such Intellectual Property; (d) there is no pending or, to
the Company’s Knowledge, threatened action, suit, proceeding or claim by others
challenging the validity or scope of any such Intellectual Property; and (e)
there is no pending or, to the Company’s Knowledge, threatened action, suit,
proceeding or claim by others that the Company and/or any Subsidiary infringes
or otherwise violates any patent, trademark, copyright, trade secret or other
proprietary rights of others.

     

    
      
        
           

        

        
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    (s)           Insurance.  The
Company is insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as the Company believes to be
prudent  in the businesses and locations in which the Company is
engaged.  Neither the Company nor any of its Subsidiaries has received
any notice of cancellation of any such insurance, nor does the Company have any
Knowledge that it or any of its Subsidiaries will be unable to renew its
existing insurance coverage for the Company as and when such coverage expires or
to obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost.

     

    (t)             Questionable
Payments.  Neither the Company nor any Subsidiary nor, to the
Company’s Knowledge, any of their respective current or former stockholders,
directors, officers, employees, agents or other Persons acting on behalf of the
Company or any Subsidiary, has on behalf of the Company or any Subsidiary or in
connection with their respective businesses: (a) used any corporate funds for
unlawful contributions, gifts, entertainment or other unlawful expenses relating
to political activity; (b) made any direct or indirect unlawful payments to any
governmental officials or employees from corporate funds; (c) established or
maintained any unlawful or unrecorded fund of corporate monies or other assets;
(d) made any false or fictitious entries on the books and records of the Company
or any Subsidiary; (e) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment of any nature; or (f) taken any
actions that would violate the U.S. Foreign Corrupt Practices Act of 1977, as
amended.

     

    (u)           Transactions With Affiliates
and Employees.  Except as set forth in the SEC Reports, none of
the officers or directors of the Company and, to the Company’s Knowledge, none
of the employees of the Company, is presently a party to any transaction with
the Company or any Subsidiary (other than as holders of stock options and/or
warrants, and for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from,
or otherwise requiring payments to or from any officer, director or such
employee or, to the Company’s Knowledge, any entity in which any officer,
director, or any such employee has a substantial interest or is an officer,
director, trustee or partner.

     

    (v)           Internal Accounting
Controls. Except as disclosed in the SEC Reports, the Company maintains a
system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management's
general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to
maintain asset and liability accountability, (iii) access to assets or
incurrence of liabilities is permitted only in accordance with management's
general or specific authorization, and (iv) the recorded accountability for
assets and liabilities is compared with the existing assets and liabilities at
reasonable intervals and appropriate action is taken with respect to any
differences.

     

    (w)           Sarbanes-Oxley; Disclosure
Controls.  The Company has established and maintains disclosure
controls and procedures (as such term is defined in Rules 13a-15 and 15d-15
under the Exchange Act). Since the date of the most recent evaluation of such
disclosure controls and procedures, there have been no significant changes in
internal controls or in other factors that could significantly affect internal
controls, including any corrective actions with regard to significant
deficiencies and material weaknesses. The Company is in compliance in all
material respects with all of the provisions of the Sarbanes-Oxley Act of 2002
which are applicable to it, except where such noncompliance would not have,
individually or in the aggregate, a Material Adverse Effect.

     

    
      
        
           

        

        
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    (x)           
Certain Fees.
No person or entity will have, as a result of the transactions contemplated by
this Agreement, any valid right, interest or claim against or upon the Company
or a Purchaser for any commission, fee or other compensation pursuant to any
agreement, arrangement or understanding entered into by or on behalf of the
Company, other than the Placement Agent with respect to the offer and sale of
the Shares (which placement agent fees are being paid by the
Company).

     

    (y)           Private Placement.
Assuming the accuracy of the Purchasers’ representations and warranties set
forth in Section 3.2 of this Agreement and the accuracy of the information
disclosed in the Accredited Investor Questionnaires, no registration under the
Securities Act is required for the offer and sale of the Shares by the Company
to the Purchasers under the Transaction Documents.

     

    (z)           
Registration
Rights. Other than each of the Purchasers or as set forth in Schedule 3.1(z)
hereto, no Person has any right (including piggyback registration rights) to
cause the Company to effect the registration under the Securities Act of any
securities of the Company other than those securities which are currently
registered on an effective registration statement on file with the
Commission.

     

    (aa)          No Directed Selling Efforts
or General Solicitation. Neither the Company nor any Person acting on its
or its behalf has conducted any “general solicitation” or “general advertising”
(as those terms are used in Regulation D) in connection with the offer or sale
of any of the Shares.

     

    (bb)          No Integrated
Offering. Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3.2, none of the Company or its Subsidiaries nor
any Person acting on their behalf has, directly or indirectly, at any time
within the past six months, made any offers or sales of any Company security or
solicited any offers to buy any security under circumstances that would (i)
eliminate the availability of the exemption from registration under Regulation D
under the Securities Act in connection with the offer and sale by the Company of
the Shares as contemplated hereby or (ii) cause the offering of the Shares
pursuant to the Transaction Documents to be integrated with prior offerings by
the Company for purposes of any applicable law, regulation or shareholder
approval provisions, including, without limitation, under the rules and
regulations of any Trading Market on which any of the securities of the Company
are listed or designated.

     

    (cc)           No Manipulation of
Stock. Neither the Company nor, to its Knowledge, any Affiliate has
taken, directly or indirectly, any action designed to or which has constituted
or which would reasonably be expected to cause or result, under the Exchange Act
or otherwise, in the stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of the Securities.

     

    (dd)          Listing and Maintenance
Requirements. The Company’s Common Stock is registered pursuant to
Section 12(b) of the Exchange Act, and the Company has taken no action designed
to terminate the registration of the Common Stock under the Exchange Act nor has
the Company received any notification that the Commission is contemplating
terminating such registration.  The Company has not, in the 12 months
preceding the date hereof, received written notice  from any Trading
Market on which the Common Stock is or has been listed or quoted to the effect
that the Company is not in compliance with the listing or maintenance
requirements of such Trading Market.  The Company is in compliance in
all material respects with the listing and maintenance requirements for
continued trading of the Common Stock on the Principal Trading
Market.

     

    
      
        
           

        

        
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    (ee)           Investment Company.
The Company is not required to be registered as, and is not an Affiliate of, and
immediately following the Closing will not be required to register as, an
“investment company” within the meaning of the Investment Company Act of 1940,
as amended.

     

    (ff)           Application of Takeover
Protections; Rights Agreements. The Company and its board of directors
have taken all necessary action, if any, in order to render inapplicable any
control share acquisition, business combination, poison pill (including any
distribution under a rights agreement) or other similar anti-takeover provision
under the Company's charter documents or the laws of the State of Delaware that
is or could reasonably be expected to become applicable to any of the Purchasers
as a result of the Purchasers and the Company fulfilling their obligations or
exercising their rights under the Transaction Documents, including, without
limitation, the Company's issuance of the Shares and the Purchasers' ownership
of the Shares.

     

    (gg)          Disclosure.  The
Company confirms that neither it nor any of its officers or directors nor any
other Person acting on its or their behalf has provided, and it has not
authorized the Placement Agent to provide, any Purchaser or its respective
agents or counsel with any information that it believes constitutes or could
reasonably be expected to constitute material, non-public information except
insofar as the existence, provisions and terms of the Transaction Documents and
the proposed transactions hereunder may constitute such information, all of
which will be disclosed by the Company in the Press Release as contemplated by
Section 4.8 hereof. The Company understands and confirms that the Purchasers
will rely on the foregoing representations in effecting transactions in
securities of the Company.  No event or circumstance has occurred or
information exists with respect to the Company or any of its Subsidiaries or its
or their business, properties, operations or financial conditions, which, under
applicable law, rule or regulation, requires public disclosure or announcement
by the Company but which has not been so publicly announced or disclosed
(assuming for this purpose that the Company’s reports filed under the Exchange
Act are being incorporated into an effective registration statement filed by the
Company under the Securities Act), except for the announcement of this Agreement
and related transactions.

     

    (hh)          Acknowledgment Regarding
Purchasers’ Purchase of the Shares. The Company acknowledges and
agrees that each of the Purchasers is acting solely in the capacity of an arm’s
length purchaser with respect to the Transaction Documents and the transactions
contemplated hereby and thereby.  The Company further acknowledges that no
Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the
transactions contemplated thereby and any advice given by any Purchaser or any
of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the
Purchasers’ purchase of the Shares.    The Company
represents and warrants that no Purchase will, as a result of the transactions
contemplated by this Agreement, become an Affiliate of the Company.

     

    
      
        
           

        

        
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    (ii)           No Additional
Agreements. The Company does not have any agreement or understanding with
any Purchaser with respect to the transactions contemplated by the Transaction
Documents other than as specified in the Transaction Documents.

     

    (jj)           Form S-3 Eligibility.
As of the date hereof, the Company meets, and has no Company Knowledge of any
facts or circumstances that would cause it not to continue to meet, the
eligibility requirements contained in Section I.A. and in Section I.B.3 of the
General Instructions to Form S-3 to register securities with the SEC on a
registration statement on Form S-3 under the Securities Act.

     

    3.2           Representations
and Warranties of the Purchasers.  Each Purchaser
hereby, for itself and for no other Purchaser, represents and warrants as of the
date hereof and as of the Closing Date to the Company as follows:

     

    (a)           Organization;
Authority.  Such Purchaser is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization with the requisite corporate or partnership power and authority to
enter into and to consummate the transactions contemplated by the applicable
Transaction Documents and otherwise to carry out its obligations hereunder and
thereunder. The execution, delivery and performance by such Purchaser of the
transactions contemplated by this Agreement have been duly authorized by all
necessary corporate or, if such Purchaser is not a corporation, such
partnership, limited liability company or other applicable like action, on the
part of such Purchaser.  Each of this Agreement and the Registration
Rights Agreement has been duly executed by such Purchaser, and, assuming each
such agreement constitutes a valid and binding obligation of the other parties
thereto, when delivered by such Purchaser in accordance with the terms hereof,
will constitute the valid and legally binding obligation of such Purchaser,
enforceable against it in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally the enforcement of, creditors’ rights and remedies or by
other equitable principles of general application.

     

    (b)           No
Conflicts.  The execution, delivery and performance by such
Purchaser of this Agreement and the Registration Rights Agreement and the
consummation by such Purchaser of the transactions contemplated hereby and
thereby do not and will not (i) conflict with or result in a violation of the
organizational documents of such Purchaser, (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which
such Purchaser is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment  or decree (including federal and state
securities laws) applicable to such Purchaser, except in the case of clauses
(ii) and (iii) above, for such conflicts, defaults, rights or violations which
would not, individually or in the aggregate, reasonably be expected to have a
material adverse effect on the ability of such Purchaser to perform its
obligations hereunder.

     

    (c)           Investment
Intent.  Such Purchaser understands that the Shares are
“restricted securities” and have not been registered under the Securities Act or
any applicable state securities law and is acquiring the Shares as principal for
its own account and not with a view to, or for distributing or reselling such
Shares or any part thereof in violation of the Securities Act or any applicable
state securities laws, provided, however, that by
making the representations herein, such Purchaser does not agree to hold any of
the Shares for any minimum period of time and reserves the right, subject to the
provisions of this Agreement and the Registration Rights Agreement, at all times
to sell or otherwise dispose of all or any part of such Shares pursuant to an
effective registration statement under the Securities Act or under an exemption
from such registration and in compliance with applicable federal and state
securities laws.  Such Purchaser is acquiring the Shares hereunder in
the ordinary course of its business. Such Purchaser does not presently have any
agreement, plan or understanding, directly or indirectly, with any Person to
distribute or effect any distribution of any of the Shares (or any securities
which are derivatives thereof) to or through any person or entity; such
Purchaser is not a registered broker-dealer under Section 15 of the Exchange Act
or an entity engaged in a business that would require it to be so registered as
a broker-dealer.

     

    
      
        
           

        

        
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    (d)           Purchaser
Status.  At the time such Purchaser was offered the Shares, it
was, and at the date hereof it is, an “accredited investor” as defined in Rule
501(a) under the Securities Act.

     

    (e)           General
Solicitation.   Such Purchaser is not purchasing the
Shares as a result of any advertisement, article, notice or other communication
regarding the Shares published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general advertisement or general solicitation.

     

    (f)           Experience of Such
Purchaser.  Such Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Shares, and has so evaluated the merits and
risks of such investment.  Such Purchaser is able to bear the economic
risk of an investment in the Shares and, at the present time, is able to afford
a complete loss of such investment.

     

    (g)           Access to
Information.  Such Purchaser acknowledges that it has had the
opportunity to review the Disclosure Materials and has been afforded (i) the
opportunity to ask such questions as it has deemed necessary of, and to receive
answers from, representatives of the Company concerning the terms and conditions
of the offering of the Shares and the merits and risks of investing in the
Shares; (ii) access to information about the Company and its respective
financial condition, results of operations, business, properties, management and
prospects sufficient to enable it to evaluate its investment; and (iii) the
opportunity to obtain such additional information that the Company possesses or
can acquire without unreasonable effort or expense that is necessary to make an
informed investment decision with respect to the investment. Neither such
inquiries nor any other investigation conducted by or on behalf of such
Purchaser or its representatives or counsel shall modify, amend or affect such
Purchaser's right to rely on the truth, accuracy and completeness of the
Disclosure Materials and the Company's representations and warranties contained
in the Transaction Documents.  Such Purchaser has sought such
accounting, legal and tax advice as it has considered necessary to make an
informed decision with respect to its acquisition of the Shares.

     

    (h)            Certain Trading
Activities.  Other than with respect to the transactions
contemplated herein, since the time that such Purchaser was first contacted by
the Company, the Placement Agent or any other Person regarding the transactions
contemplated hereby, neither the Purchaser nor any Affiliate of such Purchaser
which (x) had knowledge of the transactions contemplated hereby, (y) has or
shares discretion relating to such Purchaser’s investments or trading or
information concerning such Purchaser’s investments, including in respect of the
Shares, and (z) is subject to such Purchaser’s review or input concerning such
Affiliate’s investments or trading (collectively, “Trading
Affiliates”) has
directly or indirectly, nor has any Person acting on behalf of or pursuant to
any understanding with such Purchaser or Trading Affiliate, effected or agreed
to effect any purchases or sales of the securities of the Company (including,
without limitation, any Short Sales involving the Company’s securities).
Notwithstanding the foregoing, in the case of a Purchaser and/or Trading
Affiliate that is, individually or collectively, a multi-managed investment
vehicle whereby separate portfolio managers manage separate portions of such
Purchaser's or Trading Affiliate’s assets and the portfolio managers have no
direct knowledge of the investment decisions made by the portfolio managers
managing other portions of such Purchaser's or Trading Affiliate’s assets, the
representation set forth above shall apply only with respect to the portion of
assets managed by the portfolio manager that have knowledge about the financing
transaction contemplated by this Agreement.  Other than to other
Persons party to this Agreement, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this transaction).
Notwithstanding the foregoing, and except as otherwise provided in Section 4.10,
no Purchaser makes any representation, warranty or covenant hereby that it will
not engage in Short Sales in the securities of the Company after the
effectiveness of the Registration Statement as described in Section
4.10.

     

    
      
        
           

        

        
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    (i)           Brokers and
Finders.  No Person will have, as a result of the transactions
contemplated by this Agreement, any valid right, interest or claim against or
upon the Company or any Purchaser for any commission, fee or other compensation
pursuant to any agreement, arrangement or understanding entered into by or on
behalf of the Purchaser.

     

    (j)           Independent Investment
Decision.  Such Purchaser has independently evaluated the
merits of its decision to purchase Shares pursuant to the Transaction Documents,
and such Purchaser confirms that it has not relied on the advice of any other
Purchaser’s business and/or legal counsel in making such
decision.  Such Purchaser understands that nothing in this Agreement
or any other materials presented by or on behalf of the Company to the Purchaser
in connection with the purchase of the Shares constitutes legal, tax or
investment advice.  Such Purchaser has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of the Shares.  Such
Purchaser understands that each of the Placement Agent has acted solely as the
agent of the Company in this placement of the Securities and such Purchaser has
not relied on the business or legal advice of each of the Placement Agent or any
of its agents, counsel or Affiliates in making its investment decision
hereunder, and confirms that none of such Persons has made any representations
or warranties to such Purchaser in connection with the transactions contemplated
by the Transaction Documents.

     

    (k)           Reliance on
Exemptions. Such Purchaser understands that the Shares being offered and
sold to it in reliance on specific exemptions from the registration requirements
of United States federal and state securities laws and that the Company is
relying in part upon the truth and accuracy of, and such Purchaser’s compliance
with, the representations, warranties, agreements, acknowledgements and
understandings of such Purchaser set forth herein in order to determine the
availability of such exemptions and the eligibility of such Purchaser to acquire
the Shares.

     

    
      
        
           

        

        
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    (l)           
 No Governmental
Review. Such Purchaser understands that no United States federal or state
agency or any other government or governmental agency has passed on or made any
recommendation or endorsement of the Shares or the fairness or suitability of
the investment in the Shares nor have such authorities passed upon or endorsed
the merits of the offering of the Shares.

     

    (m)           Regulation M. Such
Purchaser is aware that the anti-manipulation rules of Regulation M under the
Exchange Act may apply to sales of Common Stock and other activities with
respect to the Common Stock by the Purchasers.

     

    (n)           Residency.  Such
Purchaser’s principal executive offices are in the jurisdiction set forth
immediately below Purchaser’s name on the applicable signature page attached
hereto.

     

    The
Company and each of the Purchasers acknowledge and agree that no party to this
Agreement has made or makes any representations or warranties with respect to
the transactions contemplated hereby other than those specifically set forth in
this Article III and the Transaction Documents.

     

    ARTICLE
IV.

    OTHER
AGREEMENTS OF THE PARTIES

     

    
      	
               
      

            	
              4.1

            	
              Transfer
      Restrictions.

            

    

     

    (a)           Compliance with
Laws.  Notwithstanding any other provision of this Article IV,
each Purchaser covenants that the Shares may be disposed of only pursuant to an
effective registration statement under, and in compliance with the requirements
of, the Securities Act, or pursuant to an available exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act,
and in compliance with any applicable state and federal securities
laws.  In connection with any transfer of the Shares other than (i)
pursuant to an effective registration statement, (ii) to the Company, (iii) to
an Affiliate of a Purchaser, (iv) pursuant to Rule 144 (provided that the Purchaser
provides the Company with reasonable assurances (in the form of seller and
broker representation letters) that the Shares may be sold pursuant to such
rule) or Rule 144A or (v) pursuant to Rule 144(b)(1)(i) following the applicable
holding period or (vi) in connection with a bona fide pledge as part of a margin
account or other lending arrangement, the Company may require the transferor
thereof to provide to the Company an opinion of counsel selected by the
transferor and reasonably acceptable to the Company, the form and substance of
which opinion shall be reasonably satisfactory to the Company, to the effect
that such transfer does not require registration of such transferred Shares
under the Securities Act.  As a condition of transfer, any such
transferee shall agree in writing to be bound by the terms of this Agreement and
shall have the rights of a Purchaser under this Agreement and the Registration
Rights Agreement.

     

    (b)           Legends.  Certificates
evidencing the Shares shall bear any legend as required by the “blue sky” laws
of any state and a restrictive legend in substantially the following form until
such time as they are not required under Section 4.1(c): (and a stock transfer
order may be placed against transfer of the certificates for the
Shares):

     

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS
TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

     

    
      
        
           

        

        
          24

          
            

          

        

        
           

        

      

    

     

    In
addition, if any Purchaser is an Affiliate of the Company, certificates
evidencing the Shares issued to such Purchaser shall bear a customary
“affiliates” legend.

     

    (c)           Removal of
Legends.  The legend set forth in Section 4.1(b) above shall be
removed and the Company shall issue a certificate without such legend or any
other legend to the holder of the applicable Shares upon which it is stamped or
issue to such holder by electronic delivery at the applicable balance account at
the Depository Trust Company (“DTC”), if
(i) such Shares are registered for resale under the Securities Act (provided
that, if the Purchaser is selling pursuant to the effective registration
statement registering the Shares for resale, the Purchaser agrees only to sell
such Shares during such time that such registration statement is effective and
not withdrawn or suspended, and only as permitted by such registration
statement), (ii) such Shares are sold or transferred pursuant to Rule 144 (if
the transferor is not an Affiliate of the Company), or (iii) such Shares are
eligible for sale pursuant to the last sentence of Rule
144(b)(1)(i).  Following the earlier of (i) the Effective Date or (ii)
Rule 144(b)(1)(i) becoming available for the resale of the Shares, the Company
shall deliver to the Transfer Agent irrevocable instructions that the Transfer
Agent shall reissue a certificate representing the applicable Shares without
legend upon receipt by the Transfer Agent of the legended certificates for such
Shares or an Exercise Notice, as the case may be.  Any fees (with
respect to the Transfer Agent, Company Counsel or otherwise) associated with the
issuance of such opinion or the removal of such legend shall be borne by the
Company.  Following the Effective Date, or at such earlier time as a
legend is no longer required for certain Securities, the Company will no later
than three (3) Trading Days following the delivery by a Purchaser to the Company
or the Transfer Agent (with notice to the Company) of a legended certificate
representing such Shares (endorsed or with stock powers attached, signatures
guaranteed, and otherwise in form necessary to affect the reissuance and/or
transfer) (such third Trading Day, the “Legend Removal
Date”), deliver or cause to be delivered to such Purchaser, a certificate
representing such Shares that is free from all restrictive and other
legends.  The Company may not make any notation on its records or give
instructions to the Transfer Agent that enlarge the restrictions on transfer set
forth in this Section 4.1.  Certificates for Shares subject to legend
removal hereunder may be transmitted by the Transfer Agent to the Purchasers by
crediting the account of the transferee’s Purchaser’s prime broker with
DTC.

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    (d)           Irrevocable Transfer Agent
Instructions.   The Company shall issue irrevocable
instructions to its transfer agent, and any subsequent transfer agent, in the
form of Exhibit
D attached hereto (the “Irrevocable
Transfer Agent Instructions”). The Company represents and warrants that
no instruction other than the Irrevocable Transfer Agent Instructions or
instructions consistent therewith referred to in this Section 4.1(d) will be
given by the Company to its transfer agent in connection with this Agreement,
and that the Securities shall otherwise be freely transferable on the books and
records of the Company as and to the extent provided in this Agreement, the
other Transaction Documents and applicable law. The Company acknowledges that a
breach by it of its obligations under this Section 4.1(d) will cause irreparable
harm to a Purchaser. Accordingly, the Company acknowledges that the remedy at
law for a breach of its obligations under this Section 4.1(d) will be inadequate
and agrees, in the event of a breach or threatened breach by the Company of the
provisions of this Section 4.1(d), that a Purchaser shall be entitled, in
addition to all other available remedies, to an order and/or injunction
restraining any breach and requiring immediate issuance and transfer, without
the necessity of showing economic loss and without any bond or other security
being required.

    

    (e)           Acknowledgement.  Each
Purchaser hereunder acknowledges its primary responsibilities under the
Securities Act and accordingly will not sell or otherwise transfer the Shares or
any interest therein without complying with the requirements of the Securities
Act.  While the Registration Statement remains effective, each
Purchaser hereunder may sell the Shares in accordance with the plan of
distribution contained in the Registration Statement and, if it does so, it will
comply therewith and with the related prospectus delivery requirements unless an
exemption therefrom is available.  Each Purchaser, severally and not
jointly with the other Purchasers, agrees that if it is notified by the Company
in writing at any time that the Registration Statement registering the resale of
the Shares is not effective or that the prospectus included in such Registration
Statement no longer complies with the requirements of Section 10 of the
Securities Act, the Purchaser will refrain from selling such Shares until such
time as the Purchaser is notified by the Company that such Registration
Statement is effective or such prospectus is compliant with Section 10 of the
Exchange Act, unless such Purchaser is able to, and does, sell such Shares
pursuant to an available exemption from the registration requirements of Section
5 of the Securities Act.  Both the Company and its Transfer Agent, and
their respective directors, officers, employees and agents, may rely on this
subsection (e), and each Purchaser hereunder will indemnify and hold harmless
each of such persons from any breaches or violations of this
paragraph.

    

    (f)          
 Buy-In.  If
the Company shall fail for any reason or for no reason to issue to a Purchaser
unlegended certificates within three (3) Business Days of receipt of all
documents necessary for the removal of the legend set forth above (the “Deadline
Date”), then, in addition to all other remedies available to such
Purchaser, if on or after the Business Day immediately following such three (3)
Business Day period, such Purchaser purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
holder of shares of Common Stock that such Purchaser anticipated receiving from
the Company without any restrictive legend (a “Buy-In”),
then the Company shall, within three (3) Business Days after such Purchaser’s
request and in such Purchaser’s sole discretion, either (i) pay cash to the
Purchaser in an amount equal to such Purchaser’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased (the
“Buy-In
Price”), at which point the Company’s obligation to deliver such
certificate (and to issue such shares of Common Stock) shall terminate, or (ii)
promptly honor its obligation to deliver to such Purchaser a certificate or
certificates representing such shares of Common Stock and pay cash to the
Purchaser in an amount equal to the excess (if any) of the Buy-In Price over the
product of (a) such number of shares of Common Stock, times (b) the Average
Daily Price on the Deadline Date.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    4.2           Furnishing
of Information.  In order to
enable the Purchasers to sell the Shares under Rule 144 of the Securities Act,
for a period of two years from the Closing, the Company shall use its
commercially reasonable efforts to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be
filed by the Company after the date hereof pursuant to the Exchange
Act.  During such two year period, if the Company is not required to
file reports pursuant to such laws, it will prepare and furnish to the
Purchasers and make publicly available in accordance with Rule 144(c) such
information as is required for the Purchasers to sell the Shares under Rule
144.

     

    4.3            Form D
and Blue Sky.  The Company
agrees to timely file a Form D with respect to the Shares as required under
Regulation D and to provide a copy thereof to each Purchaser who requests a copy
in writing promptly after such filing.  The Company, on or before the
Closing Date, shall take such action as the Company shall reasonably determine
is necessary in order to obtain an exemption for or to qualify the Shares for
sale to the Purchasers at the Closing pursuant to this Agreement under
applicable securities or “Blue Sky” laws of the states of the United States (or
to obtain an exemption from such qualification), and shall provide evidence of
any such action so taken to the Purchasers who request in writing such evidence
on or prior to the Closing Date.  The Company shall make all filings
and reports relating to the offer and sale of the Shares required under
applicable securities or “Blue Sky” laws of the states of the United States
following the Closing Date.

     

    4.4           No
Integration.  The Company shall
not, and shall use its commercially reasonable efforts to ensure that no
Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or
otherwise negotiate in respect of any security (as defined in Section 2 of the
Securities Act) that will be integrated with the offer or sale of the Shares in
a manner that would require the registration under the Securities Act of the
sale of the Shares to the Purchasers, or that will be integrated with the offer
or sale of the Shares for purposes of the rules and regulations of any Trading
Market such that it would require shareholder approval prior to the closing of
such other transaction unless shareholder approval is obtained before the
closing of such subsequent transaction.

     

    4.5           Securities
Laws Disclosure; Publicity. By 9:00 a.m., New York City
time, on the Trading Day immediately following the execution of this Agreement,
the Company shall issue a press release (the “Press
Release”) reasonably acceptable to the Placement Agent disclosing all
material terms of the transactions contemplated hereby.  On or before
9:00 a.m., New York City time, on the second Trading Day immediately following
the execution of this Agreement, the Company will file a Current Report on Form
8-K with the Commission describing the terms of the Transaction Documents (and
including as exhibits to such Current Report on Form 8-K the material
Transaction Documents (including, without limitation, this Agreement and the
Registration Rights Agreement)). Notwithstanding the foregoing, the Company
shall not publicly disclose the name of any Purchaser or an Affiliate of any
Purchaser, or include the name of any Purchaser or an Affiliate of any Purchaser
in any press release or filing with the Commission (other than the Registration
Statement) or any regulatory agency or Trading Market, without the prior written
consent of such Purchaser, except (i) as required by federal securities law in
connection with (A) any registration statement contemplated by the Registration
Rights Agreement and (B) the filing of final Transaction Documents (including
signature pages thereto) with the Commission and (ii) to the extent such
disclosure is required by law, request of the Staff of the Commission or Trading
Market regulations, in which case the Company shall provide the Purchasers with
prior written notice of such disclosure permitted under this subclause (ii).
From and after the issuance of the Press Release, no Purchaser shall be in
possession of any material, non-public information received from the Company,
any Subsidiary or any of their respective officers, directors, employees or
agents, that is not disclosed in the Press Release unless a Purchaser shall have
executed a written agreement regarding the confidentiality and use of such
information.  Each Purchaser, severally and not jointly with the other
Purchasers, covenants that until such time as the transactions contemplated by
this Agreement are required to be publicly disclosed by the Company as described
in this Section 4.5, such Purchaser will maintain the confidentiality of all
disclosures made to it in connection with this transaction (including the
existence and terms of this transaction).

     

    
      
        
           

        

        
          27

          
            

          

        

        
           

        

      

    

     

    4.6           Non-Public
Information.  Except with
respect to the material terms and conditions of the transactions contemplated by
the Transaction Documents, the Company shall not and shall cause each of its
officers, directors, employees and agents, not to, provide any Purchaser with
any material, non-public information regarding the Company from and after the
filing of the Press Release without the express written consent of such
Purchaser, unless prior thereto such Purchaser shall have executed a written
agreement regarding the confidentiality and use of such
information.

     

    
      	
               
      

            	
              4.7

            	
              Indemnification.

            

    

     

    (a)           Indemnification of
Purchasers.  In addition to the indemnity provided in the
Registration Rights Agreement, the Company will indemnify and hold each
Purchaser and its directors, officers, shareholders, members, partners,
employees and agents (and any other Persons with a functionally equivalent role
of a Person holding such titles notwithstanding a lack of such title or any
other title), each Person who controls such Purchaser (within the meaning of
Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, shareholders, agents, members, partners or employees (and
any other Persons with a functionally equivalent role of a Person holding such
titles notwithstanding a lack of such title or any other title) of such
controlling person (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable, documented attorneys’
fees and costs of investigation that any such Purchaser Party may suffer or
incur, as a result of or relating to third party claims against such Purchaser
relating to any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction
Documents, provided that such a claim for indemnification relating to any breach
of any of the representations or warranties made by the Company in this
Agreement is made within two (2) years from the Closing.  The Company will
not be liable to any Purchaser Party under this Agreement to the extent, but
only to the extent that a loss, claim, damage or liability is attributable to
any Purchaser Party’s fraud, gross negligence, willful misconduct or breach of
any of the representations, warranties, covenants or agreements made by such
Purchaser Party in this Agreement or in the other Transaction
Documents.

     

    (b)           Conduct of Indemnification
Proceedings.  Promptly after
receipt by any Person (the “Indemnified
Person”) of notice of any demand, claim or circumstances which would or
might give rise to a claim or the commencement of any action, proceeding or
investigation in respect of which indemnity may be sought pursuant to Section 4.7(a), such
Indemnified Person shall promptly notify the Company in writing and the Company
shall assume the defense thereof, including the employment of counsel reasonably
satisfactory to such Indemnified Person, and shall assume the payment of all
fees and expenses; provided,
however, that the failure of any
Indemnified Person so to notify the Company shall not relieve the Company of its
obligations hereunder except to the extent that the Company is actually and
materially prejudiced by such failure to notify.  In any such
proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person unless: (i) the Company and the Indemnified Person shall
have mutually agreed in writing to the retention of such counsel; (ii) the
Company shall have failed promptly to assume the defense of such proceeding and
to employ counsel reasonably satisfactory to such Indemnified Person in such
proceeding; or (iii) in such action there is, in the reasonable opinion of such
separate counsel, a material conflict on any material issue between the position
of the Company and the position of such Indemnified Person, in which case the
Company shall be responsible for the reasonable, documented fees and expenses of
no more than one such separate counsel.  The Company shall not be
liable for any settlement of any proceeding effected without its written
consent, which consent shall not be unreasonably withheld, delayed or
conditioned.  Without the prior written consent of the Indemnified
Person, which consent shall not be unreasonably withheld, delayed or
conditioned, the Company shall not effect any settlement of any pending or
threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of
such Indemnified Person from all liability arising out of such
proceeding.

     

    
      
        
           

        

        
          28

          
            

          

        

        
           

        

      

    

     

    4.8           Listing
of Securities.  In the time and
manner required by the Principal Trading Market, the Company shall prepare and
file with such Trading Market an additional shares listing application covering
all of the Shares and shall use its commercially reasonable efforts to take all
steps necessary to maintain, so long as any other shares of Common Stock shall
be so listed, such listing.

     

    4.9           Use of
Proceeds.  The Company
intends to use the net proceeds from the sale of the Shares hereunder for
working capital and general corporate purposes.

     

    4.10          Dispositions
and Confidentiality After The Date Hereof. Each Purchaser shall
not, and shall cause its Trading Affiliates not to, engage in any transactions
in the Company’s securities (including, without limitation, any Short Sales
involving the Company’s securities) during the period from the date hereof until
the earlier of such time as (i) the transactions contemplated by this Agreement
are first publicly announced as described in Section 4.5 or (ii) this Agreement
is terminated in full pursuant to Section 6.17.  Notwithstanding the
foregoing, in the case of a Purchaser that is a multi-managed investment vehicle
whereby separate portfolio managers manage separate portions of such Purchaser's
assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such
Purchaser's assets, the representation set forth above shall apply only with
respect to the portion of assets managed by the portfolio manager that have
knowledge about the financing transaction contemplated by this
Agreement.  Each Purchaser understands and acknowledges, severally and
not jointly with any other Purchaser, that the Commission currently takes the
position that covering a short position established prior to effectiveness of a
resale registration statement with shares included in such registration
statement would be a violation of Section 5 of the Securities Act, as set forth
in Item 65, Section 5 under Section A, of the Manual of Publicly Available
Telephone Interpretations, dated July 1997, compiled by the Office of Chief
Counsel, Division of Corporation Finance.

     

    
      
        
           

        

        
          29

          
            

          

        

        
           

        

      

    

     

    ARTICLE
V.

    CONDITIONS
PRECEDENT TO CLOSING

    

    5.1           Conditions
Precedent to the Obligations of the Purchasers to Purchase Shares at the
Closing.  The obligation of
each Purchaser listed on Annex A hereto to
acquire Shares at the Closing is subject to the fulfillment to such Purchaser’s
satisfaction, on or prior to the Closing Date, of each of the following
conditions, any of which may be waived by such Purchaser (as to itself only) in
writing or deemed waived by such Purchaser’s proceeding with the
Closing:

     

    (a)           Representations and
Warranties.  The representations and warranties of the Company
contained herein shall be true and correct in all material respects as of the
date when made and as of the Closing Date, as though made on and as of such
date, except for such representations and warranties that speak as of a specific
date or time other than the Closing Date, which representations and warranties
shall be true and correct in all material respects as of such date or
time.

     

    (b)           Performance.  The
Company shall have performed, satisfied and complied in all material respects
with all covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by it at or prior to the
Closing.

     

    (c)           No
Injunction.  No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction that
prohibits the consummation of any of the transactions contemplated by the
Transaction Documents and which could, individually or in the aggregate, have a
Material Adverse Effect.

     

    (d)           Consents. The Company
shall have obtained any and all consents, permits, approvals, registrations and
waivers from any governmental authority or regulatory body of the United States
or any state required for consummation of the purchase and sale of the Shares at
the Closing (including all Required Approvals), all of which shall be and remain
so long as necessary in full force and effect.

     

    (e)           Adverse
Changes.  Since the date of the execution of this Agreement, no
event or series of events shall have occurred that has had or would reasonably
be expected to have a Material Adverse Effect.

     

    (f)         
  No
Suspensions of Trading in Common Stock; Listing.  The Common
Stock (i) shall be designated for quotation or listed on the Principal Trading
Market and (ii) shall not have been suspended, as of the Closing Date, by the
Commission or the Principal Trading Market from trading on the Principal Trading
Market, except for any suspensions of trading of not more than one Business Day
solely to permit dissemination of material information regarding the
Company.

     

    (g)           Company Deliverables.
The Company shall have delivered the Company Deliverables in accordance with
Section 2.2(a).

     

    (h)           Compliance
Certificate. The Company shall have delivered to each Purchaser a
certificate, dated as of the Closing Date and signed by its Chief Executive
Officer or its Chief Financial Officer, dated as of the Closing Date, certifying
to the fulfillment of the conditions specified in Sections 5.1(a) and (b) in the
form attached hereto as Exhibit
F.

     

    
      
        
           

        

        
          30

          
            

          

        

        
           

        

      

    

     

    (i)           Termination. This
Agreement shall not have been terminated as to such Purchaser in accordance with
Section 6.17 herein.

     

    5.2           Conditions
Precedent to the Obligations of the Company to sell Shares at the
Closing.  The Company's
obligation to sell and issue the Shares to each Purchaser listed on Annex A hereto at the
Closing is subject to the fulfillment to the satisfaction of the Company on or
prior to the Closing Date of the following conditions, any of which may be
waived by the Company in writing or deemed waived by the Company’s proceeding
with the Closing:

     

    (a)           Representations and
Warranties. The representations and warranties made by such Purchaser in
Section 3.2 hereof shall be true and correct in all material respects as of the
date when made, and as of the Closing Date as though made on and as of such
date, except for representations and warranties that speak as of a specific
date, which representations and warranties shall be true and correct in all
material respects as of such date or time.

     

    (b)           Performance. Such
Purchaser shall have performed, satisfied and complied in all material respects
with all covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by such Purchaser at or
prior to the Closing Date.

     

    (c)           No Injunction. No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction that prohibits the consummation of any of
the transactions contemplated by the Transaction Documents.

     

    (d)           Consents.  The
Company shall have obtained any and all consents, permits, approvals,
registrations and waivers from any governmental authority or regulatory body of
the United States or any state required for consummation of the purchase and
sale of the Shares, all of which shall be and remain so long as necessary in
full force and effect.

     

    (e)           Purchaser
Deliverables. Such Purchaser shall have delivered its Purchaser
Deliverables in accordance with Section 2.2(b).

     

    (f)           Termination. This
Agreement shall not have been terminated as to such Purchaser in accordance with
Section 6.17 herein.

     

    ARTICLE
VI.

    MISCELLANEOUS

     

    6.1           Fees and
Expenses.  At the Closing,
the Company shall reimburse the Placement Agent for the reasonable fees and
expenses in connection with the transactions contemplated by this Agreement
pursuant to its obligations under its engagement letter with the Placement Agent
dated as of January 14,
2008 (the “Engagement
Letter”), including, the expenses of counsel to the Placement Agent
(which fees shall include, without limitation, the fees and expenses associated
with the negotiation, preparation and execution and delivery of this Agreement
and the other Transaction Documents and any amendments, modifications or waivers
thereto), subject to the consent of the Company for fees and expenses in excess
of $50,000 in the
aggregate.  The Company and the Purchasers shall each pay the fees and
expenses of their respective advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such party in connection with the
negotiation, preparation, execution, delivery and performance of this
Agreement.  The Company shall pay all Transfer Agent fees, stamp taxes
and other taxes and duties levied in connection with the sale and issuance of
the Securities to the Purchasers. Each party acknowledges that Lowenstein
Sandler PC has rendered legal advice to the Placement Agent and not to such
party in connection with the transactions contemplated hereby, and that such
party has relied for such matters on the advice of its own respective
counsel.

     

    
      
        
           

        

        
          31

          
            

          

        

        
           

        

      

    

     

    6.2           Entire
Agreement.  The Transaction
Documents, together with the Exhibits and Schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and
supersede all prior agreements, understandings, discussions and representations,
oral or written, with respect to such matters, which the parties acknowledge
have been merged into such documents, exhibits and schedules.  At or
after the Closing, and without further consideration, the Company and the
Purchasers will execute and deliver to the other such further documents as may
be reasonably requested in order to give practical effect to the intention of
the parties under the Transaction Documents.

     

    6.3           Notices.  Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the earliest of (a) the date of transmission, if such notice or communication
is delivered via facsimile (provided the sender receives a machine-generated
confirmation of successful transmission) at the facsimile number specified in
this Section prior to 5:00 p.m., New York City time, on a Trading Day, (b) the
next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number specified in this Section on
a day that is not a Trading Day or later than 5:00 p.m., New York City time, on
any Trading Day, (c) the Trading Day following the date of mailing, if sent by
U.S. nationally recognized overnight courier service with next day delivery
specified, or (d) upon actual receipt by the party to whom such notice is
required to be given.  The address for such notices and communications
shall be as follows:

     

    
      	
            	
              If
      to the Company:

            	
              Hoku
      Scientific, Inc.

            

    

    1075
Opakapaka Street

    Kapolei,
HI

    Telephone
No.: (808) 682-7800

    Facsimile
No.:  (808) 682-7807

    Attention:  President
and Chief Executive Officer

    
 

    
      	
               
      

            	
              With
      a copy to:

            	
              Stoel
      Rives LLP

            

    

    101 S.
Capitol Blvd., Suite 1900

    Boise,
Idaho 83702

    Telephone
No.:   (208) 389-9000

    Facsimile
No.:   (208) 389-9040

    Attention:   Paul M. Boyd,
Esq.

    
      
         

      

      
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              If
      to a Purchaser:

            	
              To
      the address set forth under such Purchaser’s name on the signature page
      hereof;

            

    

    

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

    

    6.4           Amendments;
Waivers; No Additional Consideration.  No provision of
this Agreement may be waived or amended except in a written instrument signed,
in the case of an amendment, by the Company and the Purchasers holding or having
the right to acquire a majority of the Shares on a fully-diluted basis at the
time of such amendment or, in the case of a waiver, by the party against whom
enforcement of any such waiver is sought.  No waiver of any default
with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of either party to exercise any right hereunder in
any manner impair the exercise of any such right.  No consideration
shall be offered or paid to any Purchaser to amend or consent to a waiver or
modification of any provision of any Transaction Document unless the same
consideration is also offered to all Purchasers who then hold
Securities.

     

    6.5           Construction.  The headings
herein are for convenience only, do not constitute a part of this Agreement and
shall not be deemed to limit or affect any of the provisions
hereof.  The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.  This Agreement
shall be construed as if drafted jointly by the parties, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement or any of the Transaction
Documents.

     

    6.6           Successors
and Assigns.  The provisions of
this Agreement shall inure to the benefit of and be binding upon the parties and
their successors and permitted assigns.  This Agreement, or any rights
or obligations hereunder, may not be assigned by the Company without the prior
written consent of the Purchasers.  Any Purchaser may assign its
rights hereunder in whole or in part to any Person to whom such Purchaser
assigns or transfers any Shares in compliance with the Transaction Documents and
applicable law, provided such transferee shall agree in writing to be bound,
with respect to the transferred Shares, by the terms and conditions of this
Agreement that apply to the “Purchasers”.

     

    6.7            No
Third-Party Beneficiaries.  This Agreement is
intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person, except (i) the Placement Agent is an
intended third party beneficiary of Article III hereof , (ii) the Escrow Agent
is an intended third party beneficiary of Section 2.1(d), and (iii) each
Purchaser Party is an intended third party beneficiary of Section 4.7, and the
Placement Agent, the Escrow Agent, or each Purchaser Party, as the case may
be, may enforce the provisions of such Sections directly against the
parties with obligations thereunder.

     

    6.8           Governing
Law.  All questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed and enforced in accordance with the
internal laws of the State of New York, without regard to the principles of
conflicts of law thereof.  Each party agrees that all Proceedings
concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other Transaction Documents (whether
brought against a party hereto or its respective Affiliates, employees or
agents) shall be commenced exclusively in the New York Courts.  Each
party hereto hereby irrevocably submits to the exclusive jurisdiction of the New
York Courts for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents),
and hereby irrevocably waives, and agrees not to assert in any Proceeding, any
claim that it is not personally subject to the jurisdiction of any such New York
Court, or that such Proceeding has been commenced in an improper or inconvenient
forum.  Each party hereto hereby irrevocably waives personal service
of process and consents to process being served in any such Proceeding by
mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof.  Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law.  EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

     

    
      
        
           

        

        
          33

          
            

          

        

        
           

        

      

    

     

    6.9           Survival.  The
representations and warranties contained herein shall survive the Closing and
the delivery of the Shares for a period of two (2) years from the Closing
Date.  The agreements and covenants contained herein shall survive for
the applicable statute of limitations.

     

    6.10           Execution.  This Agreement
may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it
being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile signature page were an original thereof.

     

    6.11           Severability.  If any provision
of this Agreement is held to be invalid or unenforceable in any respect, the
validity and enforceability of the remaining terms and provisions of this
Agreement shall not in any way be affected or impaired thereby and the parties
will attempt to agree upon a valid and enforceable provision that is a
reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement.

     

    6.12           Replacement
of Shares.  If any
certificate evidencing any Shares is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and
upon cancellation thereof, or in lieu of and substitution therefor, a new
certificate, but only upon receipt of evidence reasonably satisfactory to the
Company and the Transfer Agent of such loss, theft or destruction and the
execution by the holder thereof of a customary lost certificate affidavit of
that fact and an agreement to indemnify and hold harmless the Company and the
Transfer Agent for any losses in connection therewith or, if required by the
Transfer Agent, a bond in such form and amount as is required by the Transfer
Agent.  The applicants for a new certificate under such circumstances
shall also pay any reasonable third-party costs associated with the issuance of
such replacement Shares.  If a replacement certificate evidencing any
Shares is requested due to a mutilation thereof, the Company may require
delivery of such mutilated certificate as a condition precedent to any issuance
of a replacement.

     

    
      
        
           

        

        
          34

          
            

          

        

        
           

        

      

    

     

    6.13           Remedies.  In addition to
being entitled to exercise all rights provided herein or granted by law,
including recovery of damages, each of the Purchasers and the Company will be
entitled to specific performance under the Transaction Documents.  The
parties agree that monetary damages may not be adequate compensation for any
loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agree to waive in any action for specific performance of any
such obligation (other than in connection with any action for a temporary
restraining order) the defense that a remedy at law would be
adequate.

     

    6.14           Payment
Set Aside.  To the extent
that the Company makes a payment or payments to any Purchaser pursuant to any
Transaction Document or a Purchaser enforces or exercises its rights thereunder,
and such payment or payments or the proceeds of such enforcement or exercise or
any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside, recovered from, disgorged by or are required to be
refunded, repaid or otherwise restored to the Company, a trustee, receiver or
any other person under any law (including, without limitation, any bankruptcy
law, state or federal law, common law or equitable cause of action), then to the
extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such enforcement or setoff had not
occurred.

     

    6.15           Adjustments
in Share Numbers and Prices. In the event of any stock
split, subdivision, dividend or distribution payable in shares of Common Stock
(or other securities or rights convertible into, or entitling the holder thereof
to receive directly or indirectly shares of Common Stock), combination or other
similar recapitalization or event occurring after the date hereof, each
reference in any Transaction Document to a number of shares or a price per share
shall be deemed to be amended to appropriately account for such
event.

     

    6.16           Independent
Nature of Purchasers' Obligations and Rights.  The obligations
of each Purchaser under any Transaction Document are several and not joint with
the obligations of any other Purchaser, and no Purchaser shall be responsible in
any way for the performance of the obligations of any other Purchaser under any
Transaction Document.  The decision of each Purchaser to purchase
Shares pursuant to the Transaction Documents has been made by such Purchaser
independently of any other Purchaser and independently of any information,
materials, statements or opinions as to the business, affairs, operations,
assets, properties, liabilities, results of operations, condition (financial or
otherwise) or prospects of the Company or any Subsidiary which may have been
made or given by any other Purchaser or by any agent or employee of any other
Purchaser, and no Purchaser and any of its agents or employees shall have any
liability to any other Purchaser (or any other Person) relating to or arising
from any such information, materials, statement or opinions.  Nothing
contained herein or in any Transaction Document, and no action taken by any
Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by the
Transaction Documents.  Each Purchaser acknowledges that no other
Purchaser has acted as agent for such Purchaser in connection with making its
investment hereunder and that no Purchaser will be acting as agent of such
Purchaser in connection with monitoring its investment in the Securities or
enforcing its rights under the Transaction Documents.  Each Purchaser
shall be entitled to independently protect and enforce its rights, including
without limitation the rights arising out of this Agreement or out of the other
Transaction Documents, and it shall not be necessary for any other Purchaser to
be joined as an additional party in any proceeding for such
purpose.  The Company acknowledges that each of the Purchasers has
been provided with the same Transaction Documents for the purpose of closing a
transaction with multiple Purchasers and not because it was required or
requested to do so by any Purchaser. The Company’s obligations to each Purchaser
under this Agreement are identical to its obligations to each other Purchaser
other than such differences resulting solely from the number of Shares purchased
by such Purchaser, but regardless of whether such obligations are memorialized
herein or in another agreement between the Company and a Purchaser.

     

    
      
        
           

        

        
          35

          
            

          

        

        
           

        

      

    

     

    6.17           Termination. This Agreement may be
terminated and the sale and purchase of the Shares abandoned at any time prior
to the Closing, by either the Company or any Purchaser listed on Annex A hereto (with
respect to itself only), upon written notice to the other, if the Closing has
not been consummated on or prior to 5:00 p.m., New York City time, on the
Outside Date; provided,
however, that the right to terminate this Agreement under this Section
6.17 shall not be available to any Person whose failure to comply with its
obligations under this Agreement has been the cause of or resulted in the
failure of the Closing to occur on or before such time.  Nothing in
this Section 6.17 shall be deemed to release any party from any liability for
any breach by such party of the terms and provisions of this Agreement or the
other Transaction Documents or to impair the right of any party to compel
specific performance by any other party of its obligations under this Agreement
or the other Transaction Documents.  In the event of a termination
pursuant to this Section, the Company shall promptly notify all non-terminating
Purchasers.  Upon a termination in accordance with this Section, the
Company and the terminating Purchaser(s) shall not have any further obligation
or liability (including arising from such termination) to the other, and no
Purchaser will have any liability to any other Purchaser under the Transaction
Documents as a result therefrom.

     

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

    [SIGNATURE
PAGES TO FOLLOW]

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

     

    
      	 
      	
              HOKU
      SCIENTIFIC, INC.

            
	 	 
	 	 
	 
      	
              By:

            	
              /s/ Dustin
      Shindo

            
	 
      	 
      	Name:
      	
              Dustin
      M. Shindo

            
	 
      	 
      	Title:
      	
              President
      and Chief Executive Officer

            
	 	 	 
	 	 	 
	 
      	LOWENSTEIN
      SANDLER PC
	 	 	 
	 	 	 
	 
      	
              By:

            	
              /s/ Lowenstein Sandler
      PC

            
	 
      	
               
    

            	Name:	
              Michael
      Maline

            
	 
      	
               
    

            	Title:	
              Member
      of the Firm

            
	 	 	 	 
	 
      	 
      	
              Solely
      for purposes of Section 2.1(d)

            

    

    

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

    [SIGNATURE
PAGES FOR PURCHASERS FOLLOW]

    

      
        
           

        

        
          37

          
            

          

        

        
           

        

      

    

     

    
      Suntech Power International
Co., Ltd.

    

    

    
      	 
      	
               NAME
      OF PURCHASER:

            	
              Suntech Power
      International Co., Ltd.

            

    

     

     

    
      	 
      	
              By:

            	
              /s/ Steven Chan

            
	 
      	
              Name:
      Steven Chan

            
	 
      	
              Title:
      Director

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/ Jeremy Stokes

            
	 
      	
              Name:
      Jeremy Stokes

            
	 
      	
              Title:
      Director

            

    

     

     

    
      	 
      	
              Aggregate
      Purchase Price (Subscription Amount):

            
	 
      	
              $20,000,000.00

            	 
      

    

    

    
      	 
      	
              Number
      of Shares to be Acquired:

            	
              2,314,815

            

    

    

    
      	 
      	
              Tax
      ID No.:

            	 
	 	 	 
	 
      	
              Address
      for Notice:

            

    

     

     

    
      	 
      	
              c/o Suntech America

            	 
      
	 
      	
              188 The Embarcadero, 8th Floor

            	 
      
	 
      	
              San Francisco, CA 94105

            	 
      

    

    

    
      	 
      	
              Telephone
      No.:

            	
              415-882-9922

            
	 
      	 
      	 
      
	 
      	
              Facsimile
      No.:

            	
              415-882-9923

            
	 	 	 
	 
      	
              Attention:

            	
              Steven Chan

            

    

    

    Delivery
Instructions:

    (if
different than above)

    

    
      	
              c/o

            	
               

            	 
      
	 
      	 
      	 
      
	
              Street:

            	
               

            	 
      
	 
      	 
      	 
      
	
              City/State/Zip:

            	
               

            	 
      
	 
      	 
      	 
      
	
              Attention:

            	
               

            	 
      
	 
      	 
      	 
      
	
              Telephone
      No.

            	
               

            	 
      

    

    

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

    

     

    
      	 
      	
              NAME
      OF PURCHASER:

            	
              Investcorp
      Interlachen

            
	 
      	 
      	
              Multi-Strategy Fund
      Limited

            
	 
      	 
      	
              By: Interlachen
      Capital Group LP,

            
	 
      	 
      	
              Authorized
      Signatory

            

    

    

    
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Gregg T. Colburn

            
	 
      	
              Name:
      Gregg T. Colburn

            
	 
      	
              Title:
      Authorized Signatory

            

    

    

    
      	 
      	 
      
	 
      	
              Aggregate
      Purchase Price (Subscription Amount):

            
	 
      	
              $3,500,003.52

            	 
      

    

    

    
      	 
      	
              Number
      of Shares to be Acquired:

            	
              405,093

            

    

    

    
      	 
      	
              Tax
      ID No.:

            	
              98-0472068

            
	 
      	 
      	 
      
	 
      	
              Address
      for Notice:

            

    

    

    
      	 
      	
              800 Nicolett Mall

            	 
      
	 
      	
              Suite
      2500

            	 
      
	 
      	
              Minneapolis,
      MN 55402

            	 
      

    

    

    

    
      	 
      	 
      	 
      
	 
      	
              Telephone
      No.:

            	
              612-659-4407

            
	 
      	 
      	 
      
	 
      	
              Facsimile
      No.:

            	
              612-659-4457

            
	 
      	 
      	 
      
	 
      	
              Attention:

            	
              Gregg Colburn /
      Legal

            

    

     

    
      Delivery
Instructions:

      (if
different than above)

       

    

    
      	
              c/o

            	
               

            	 
      
	 
      	 
      	 
      
	
              Street:

            	
               

            	 
      
	 
      	 
      	 
      
	
              City/State/Zip:

            	
               

            	 
      
	 
      	 
      	 
      
	
              Attention:

            	
               

            	 
      
	 
      	 
      	 
      
	
              Telephone
      No.

            	
               

            	 
      

    

    

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

     

    
      	 
      	
              NAME
      OF PURCHASER:

            	
              Capital Ventures
      International

            
	 
      	 
      	
              by: Heights Capital
      Management, Inc.

            
	 
      	 
      	
              its authorized
      agent

            
	 
      	 
      	 
      

    

    

    
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Martin Kobinger

            
	 
      	
              Name:
      Martin Kobinger

            
	 
      	
              Title:
      Investment Manager

            

    

    

    
      	 
      	
              Aggregate
      Purchase Price (Subscription Amount):

            
	 
      	
              $1,499,999.04

            	 
      

    

    

    
      	 
      	
              Number
      of Shares to be Acquired:

            	
              173,611

            

    

    

    
      	 
      	
              Tax
      ID No.:

            	
              51-0395477

            
	 
      	 
      	 
      
	 
      	
              Address
      for Notice:

            

    

    

    
      	 
      	
              c/o Heights Capital
    Management

            	 
      
	 
      	
              101 California Street, Suite
      3250

            	 
      
	 
      	
              San Francisco, CA 94111

            	 
      

    

    

    

    
      	 
      	 
      	 
      
	 
      	
              Telephone
      No.:

            	
              415-403-6500

            
	 
      	 
      	 
      
	 
      	
              Facsimile
      No.:

            	
              415-403-6525

            
	 
      	 
      	 
      
	 
      	
              Attention:

            	
              Martin Kobinger

            

    

    

    Delivery
Instructions:

    (if
different than above)

     

    
      	
              c/o

            	
               

            	 
      
	 
      	 
      	 
      
	
              Street:

            	
               

            	 
      
	 
      	 
      	 
      
	
              City/State/Zip:

            	
               

            	 
      
	 
      	 
      	 
      
	
              Attention:

            	
               

            	 
      
	 
      	 
      	 
      
	
              Telephone
      No.

            	
               

            	 
      

    

     

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    ANNEX A

    

    Purchasers

    

    Suntech
Power International, Ltd.

    Interlachen
Capital Group LP

    Heights
Capital Management, Inc.

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    EXHIBITS:

     

    
      	
              A:

            	
              Form
      of Registration Rights Agreement

            

    

    
      	
              B-1:

            	
              Accredited
      Investor Questionnaire

            

    

    
      	
              B-2:

            	
              Stock
      Certificate Questionnaire

            

    

    
      	
              C:

            	
              Form
      of Opinion of Company Counsel

            

    

    
      	
              D:

            	
              Irrevocable
      Transfer Agent Instructions

            

    

    
      	
              E:

            	
              Form
      of Secretary’s Certificate

            

    

    
      	
              F:

            	
              Form
      of Officer’s Certificate

            

    

    
      	
              G:

            	
              Wire
      Instructions

            

    

    
      	
              H:

            	
              Form
      of Lock-Up Agreements

            

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    FORM
OF REGISTRATION RIGHTS AGREEMENT

    

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    Instruction
Sheet

    (to be
read in conjunction with the entire Securities Purchase Agreement and
Registration Rights Agreement)

    

    A.           Complete
the following items in the Securities Purchase Agreement and/or Registration
Rights Agreement:

    

    
      	
               
      

            	
              1.

            	
              Provide
      the information regarding the Purchaser requested on the signature pages.
      The Securities Purchase Agreement and the Registration Rights Agreement
      must be executed by an individual authorized to bind the
      Purchaser.

            

    

    

    
      	
               
      

            	
              2.

            	
              Exhibit B-1 –
      Accredited Investor Questionnaire:

            

    

    

    
      	
               
      

            	
              Provide
      the information requested by the Accredited Investor
      Questionnaire

            

    

    

    
      	
               
      

            	
              3.

            	
              Exhibit B-2
      Stock Certificate Questionnaire:

            

    

    

    
      	
               
      

            	
              Provide
      the information requested by the Stock Certificate
      Questionnaire

            

    

    

    
      	
               
      

            	
              4.

            	
              Annex B to the
      Registration Rights Agreement -- Selling Securityholder Notice and
      Questionnaire

            

    

    

    
      	
               
      

            	
              Provide
      the information requested by the Selling Securityholder Notice and
      Questionnaire

            

    

    

    
      	
               
      

            	
              5.

            	
              Return
      the signed Securities Purchase Agreement and Registration Rights Agreement
      to:

            

    

    

    [                                   ]

    [                                   ]

    [                                   ]

    New York,
NY [       ]

    Tel:

    Fax:

    Email:

    

    

    
      	
              B.

            	
              Instructions
      regarding the transfer of funds for the purchase of Shares have been
      provided to the Purchasers.

            

    

    

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
B-1

    

    ACCREDITED
INVESTOR QUESTIONNAIRE

    

    (ALL
INFORMATION WILL BE TREATED CONFIDENTIALLY)

    

    To:           Hoku
Scientific, Inc.

    

    This
Investor Questionnaire (“Questionnaire”) must
be completed by each potential investor in connection with the offer and sale of
the shares of the common stock, par value $0.001 per share (the “Shares”), of Hoku
Scientific, Inc., a Delaware corporation (the “Corporation”).  The
Shares are being offered and sold by the Corporation without registration under
the Securities Act of 1933, as amended (the “Act”), and the
securities laws of certain states, in reliance on the exemptions contained in
Section 4(2) of the Act and on Regulation D promulgated thereunder and in
reliance on similar exemptions under applicable state laws.  The
Corporation must determine that a potential investor meets certain suitability
requirements before offering or selling Shares to such investor.  The
purpose of this Questionnaire is to assure the Corporation that each investor
will meet the applicable suitability requirements.  The information
supplied by you will be used  in determining whether you meet such
criteria, and reliance upon the private offering exemptions from registration is
based in part on the information herein supplied.

     

    This
Questionnaire does not constitute an offer to sell or a solicitation of an offer
to buy any security.  Your answers will be kept strictly
confidential.  However, by signing this Questionnaire, you will be
authorizing the Corporation to provide a completed copy of this Questionnaire to
such parties as the Corporation deems appropriate in order to ensure that the
offer and sale of the Shares will not result in a violation of the Act or the
securities laws of any state and that you otherwise satisfy the suitability
standards applicable to purchasers of the Shares.  All potential
investors must answer all applicable questions and complete, date and sign this
Questionnaire.  Please print or type your responses and attach
additional sheets of paper if necessary to complete your answers to any
item.

     

    PART
A.                      BACKGROUND
INFORMATION

    

    
      	
              Name
      of Beneficial Owner of the Shares:

            	 
      

    

    

    
      	
              Business
      Address:

            	 
      
	 
      	
              (Number
      and Street)

            

    

    

    
      	 
      	 
      	 
      
	
              (City)

            	
              (State)

            	
              (Zip
      Code)

            

    

    

    
      	
              Telephone
      Number:

            	(	
              )

            	 
      

    

    

    If
a corporation, partnership, limited liability company, trust or other
entity:

    

    
      	
              Type
      of entity:

            	 

    

    

    
      	
              State
      of formation:

            	
               

            	 
      	
              Approximate
      Date of formation:

            	
               

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Set forth
in the space provided below the (i) state(s), if any, in the United States
in which you maintained your principal office during the past two years and the
dates during which you maintained your office in each state, and
(ii) state(s), if any, in which you pay income taxes:

     

    
      

    

    
      
        
          

        

        
          

        

         

         Were you
formed for the purpose of investing in the securities being
offered?

      

    

    

    Yes
____                      No
____

    

    If an
individual:

    

    
      	
              Residence
      Address:

            	 
      
	 
      	
              (Number
      and Street)

            

    

    

    
      	 
      	 
      	 
      
	
              (City)

            	
              (State)

            	
              (Zip
      Code)

            

    

    

    
      	
              Telephone
      Number:

            	(	
              )

            	 
      

    

    

    
      	
              Age:

            	
               

            	 
      	
              Citizenship:

            	
               

            	 
      	
              Where
      registered to vote:

            	
               

            	 
      

    

    

    Set forth
in the space provided below the state(s), if any, in the United States in which
you maintained your residence during the past two years and the dates during
which you resided in each state:

     

    
 

    Are you a
director or executive officer of the Corporation?

    

    Yes
____                      No
____

     

    
      	
              Social
      Security or Taxpayer Identification No.

            	 
      

    

    

    

    PART
B.                      ACCREDITED INVESTOR
QUESTIONNAIRE

    

     

    In order for the Company to offer and
sell the Shares in conformance with state and federal securities laws, the
following information must be obtained regarding your investor status. Please
initial each
category applicable to you as a
Purchaser of Shares of the Company.

     

    
      	
               
      

            	
              __
      (1)

            	
              A
      bank as defined in Section 3(a)(2) of the Securities Act, or any savings
      and loan association or other institution as defined in Section 3(a)(5)(A)
      of the Securities Act whether acting in its individual or fiduciary
      capacity;

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              __
      (2)

            	
              A
      broker or dealer registered pursuant to Section 15 of the Securities
      Exchange Act of 1934;

            

    

    

    
      	
               
      

            	
              __
      (3)

            	
              An
      insurance company as defined in Section 2(13) of the Securities
      Act;

            

    

    

    
      	
               
      

            	
              __
      (4)

            	
              An
      investment company registered under the Investment Company Act of 1940 or
      a business development company as defined in Section 2(a)(48) of that
      Act;

            

    

    

    
      	
               
      

            	
              __
      (5)

            	
              A
      Small Business Investment Company licensed by the U.S. Small Business
      Administration under Section 301(c) or (d) of the Small Business
      Investment Act of 1958;

            

    

    

    
      	
               
      

            	
              __
      (6)

            	
              A
      plan established and maintained by a state, its political subdivisions, or
      any agency or instrumentality of a state or its political subdivisions,
      for the benefit of its employees, if such plan has total assets in excess
      of $5,000,000;

            

    

    

    
      	
               
      

            	
              __
      (7)

            	
              An
      employee benefit plan within the meaning of the Employee Retirement Income
      Security Act of 1974, if the investment decision is made by a plan
      fiduciary, as defined in Section 3(21) of such act, which is either a
      bank, savings and loan association, insurance company, or registered
      investment adviser, or if the employee benefit plan has total assets in
      excess of $5,000,000 or, if a self-directed plan, with investment
      decisions made solely by persons that are accredited
      investors;

            

    

    

    
      	
               
      

            	
              __
      (8)

            	
              A
      private business development company as defined in Section 202(a)(22) of
      the Investment Advisers Act of
1940;

            

    

    

    
      	
               
      

            	
              __
      (9)

            	
              An
      organization described in Section 501(c)(3) of the Internal Revenue Code,
      a corporation, Massachusetts or similar business trust, or partnership,
      not formed for the specific purpose of acquiring the Shares, with total
      assets in excess of $5,000,000;

            

    

     

    
      
        	
                 
      

              	
                __
      (10)

              	
                A
      trust, with total assets in excess of $5,000,000, not formed for the
      specific purpose of acquiring the Shares, whose purchase is directed by a
      sophisticated person who has such knowledge and experience in financial
      and business matters that such person is capable of evaluating the merits
      and risks of investing in the
Company;

              

      

       

    

    
      	
               
      

            	
              __
      (11)

            	
              A
      natural person whose individual net worth, or joint net worth with that
      person’s spouse, at the time of his purchase exceeds
      $1,000,000;

            

    

     

    
      
        	
                 
      

              	
                __
      (12)

              	
                      
                  A
      natural person who had an individual income in excess of $200,000 in each
      of the two most recent years, or joint income with that person’s spouse in
      excess of $300,000, in each of those years, and has a reasonable
      expectation of reaching the same income level in the current
      year;

                

              

      

      

        
          
             

          

          
            6

            
              

            

          

          
             

          

        

      

    

     

    
      	
               
      

            	
              ___(13)

            	
                An
      executive officer or director of the
Company;

            

    

    

    
      	
            	
              ___(14)

            	
              An
      entity in which all of the equity owners qualify under any of the above
      subparagraphs. If the undersigned belongs to this investor category only,
      list the equity owners of the undersigned, and the investor category which
      each such equity owner satisfies:

            

    

    

    (Continue
on a separate piece of paper, if necessary.)

    

    

    
      	
              A.

            	
              FOR
      EXECUTION BY AN INDIVIDUAL:

            	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
              By

            	 
      	 
	
               

            	 
      	 
      	 
      	 
      	 
	 
      	      
              Date

            	 
      	
              Print
      Name:

            	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	
              B.

            	
              FOR
      EXECUTION BY AN ENTITY:

            	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
              Entity
      Name:

            	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
              By

            	 
      	 
	
               

            	 
      	 
      	 
      	 
      	 
	 
      	      
              Date

            	 
      	
              Print
      Name:

            	 
      	 
	
               

            	 
      	 
      	Title:	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	
              C.

            	
              ADDITIONAL
      SIGNATURES (if required by partnership, corporation or trust
      document):

            	 
	 
      	 
      	 
      	 
      	 
      	 
	
               

            	 
      	 
      	
              Entity
      Name:

            	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
              By

            	 
      	 
	
               

            	 
      	 
      	 
      	 
      	 
	 
      	      
              Date

            	 
      	
              Print
      Name:

            	 
      	 
	
               

            	 
      	 
      	Title:	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
              Entity
      Name:

            	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
              By

            	 
      	 
	
               

            	 
      	 
      	 
      	 
      	 
	 
      	      
              Date

            	 
      	
              Print
      Name:

            	 
      	 
	 
      	 
      	 
      	
              Title:

            	 
      	 

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    EXHIBIT
B-2

     

    STOCK
CERTIFICATE QUESTIONNAIRE

     

    Pursuant
to Section 2.2(b) of the Agreement, please provide us with the following
information:

     

    
      	
              1.

            	
              The
      exact name that the Shares are to be registered in (this is the name that
      will appear on the stock certificate(s)).  You may use a nominee
      name if appropriate:

            	 	 
      
	 	 	 	 
	
              2.

            	
              The
      relationship between the Purchaser of the Shares and the Registered Holder
      listed in response to Item 1 above:

            	 	 
      
	 	 	 	 
	
              3.

            	
              The
      mailing address, telephone and telecopy number of the Registered Holder
      listed in response to Item 1 above:

            	 	 
      
	 
      	 
      	 	
               
      

               

            
	 
      	 
      	 	
               
      

               

            
	 
      	 
      	 	
               
      

               

            
	 
      	 
      	 	
               
      

               

            
	
              4.

            	
              The
      Tax Identification Number (or, if an individual, the Social Security
      Number) of the Registered Holder listed in response to Item 1
      above:

            	 	 
      

    

    

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
C

     

    FORM
OF OPINION OF COMPANY COUNSEL

     

    [To
Come.]

    

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

     

    SCHEDULE
A

    

    Opinion
Addressees

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
B

    

    Material
Agreements

    

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
D

     

    FORM
OF IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    As of
[MM/DD], 2008

     

    Continental
Stock Transfer & Trust Company

    17
Battery Place, 8th
Floor

    New York,
NY 10004

    Attn:  Greg
Denman

     

     

    Ladies
and Gentlemen:

     

    Reference
is made to that certain Securities Purchase Agreement, dated as of [MM/DD], 2008
(the “Agreement”), by
and among Hoku Securities, Inc., a Delaware corporation (the “Company”), and the purchasers
named on the signature pages thereto (collectively, and including permitted
transferees, the “Holders”), pursuant to which
the Company is issuing to the Holders shares (the “Shares”) of Common Stock of
the Company, par value $0.001 per share (the “Common Stock”).

     

    This
letter shall serve as our irrevocable authorization and direction to you
(provided that you are the transfer agent of the Company at such time and the
conditions set forth in this letter are satisfied), subject to any stop transfer
instructions that we may issue to you from time to time, if any to issue
certificates representing shares of Common Stock upon transfer or resale of the
Shares.

     

    You
acknowledge and agree that so long as you have received (a) written
confirmation from the Company’s legal counsel that EITHER (1) a registration
statement covering resales of the Shares has been declared effective by the
Securities and Exchange Commission (the “Commission”) under the
Securities Act of 1933, as amended (the “Securities Act”), or (2) the
Shares have been sold in conformity with Rule 144 under the Securities Act
(“Rule 144”) or
are eligible for sale under with Rule 144(b)(1)(i) if applicable, a copy of
such registration statement, then, unless otherwise required by law, within
three (3) business days of your receipt of a notice of transfer or Shares,
you shall issue the certificates representing the Shares registered in the names
of such Holders or transferees, as the case may be, and such certificates shall
not bear any legend restricting transfer of the Shares thereby and should not be
subject to any stop-transfer restriction; provided, however, that if such Shares
are not registered for resale under the Securities Act, or able to be sold under
Rule 144, then the certificates for such Shares shall bear the following
legend:

    

     

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS
TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

                    Please
be advised that the Holders are relying upon this letter as an inducement to
enter into the Agreement and, accordingly, each Holder is a third party
beneficiary to these instructions.

     

                    Please
execute this letter in the space indicated to acknowledge your agreement to act
in accordance with these instructions.

     

    

    
      	 
      	
              Very
      truly yours,

            	 
	 
      	 
      	 
      	 
	 
      	
              HOKU
      SCIENTIFIC, INC.

            	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	
              Name:

            	 
      	 
	 
      	
              Title:

            	 
      	 

    

    

    

    Acknowledged
and Agreed:

    

    
      	
              [

            	
              ]

            	 
      	 
	 
      	 
      	 
      	 
	
              By:

            	 
      	 
      	 
	
              Name:

            	 
      	 
      	 
	
              Title:

            	 
      	 
      	 

    

    

    Date:  [MM/DD],
2008

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Annex
II

    FORM OF
NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

    

      
        	
                [NAME
      OF TRANSFER AGENT]

              
	
                [Address]

              
	
                [Address]

              
	
                Attn:

              	
                 

              	 
      
	 
      	 
      
	 
      	
                Re:
      Hoku Scientific, Inc.

              

      

    

    Ladies
and Gentlemen: 

    Hoku
Scientific, Inc., a Delaware corporation (the “Company”) has entered into that
certain Securities Purchase Agreement, dated as of _____________, 2008, entered
into by and among the Company and the buyers named therein (collectively, the
“Purchasers”) pursuant to which the Company issued to the Purchasers shares of
the Company’s common stock, $0.001 par value per share (the “Common
Stock”).  Pursuant to that certain Registration Rights Agreement of
even date, the Company agreed to register the resale of the Common Stock (the
“Registrable Securities”), under the Securities Act of 1933, as amended (the
“Securities Act”). In connection with the Company’s obligations under the
Registration Rights Agreement,
on                     ,
____, the Company filed a Registration Statement on Form S-3 (File No.
333-                    )
(the “Registration Statement”) with the Securities and Exchange Commission (the
“Commission”) relating to the Registrable Securities which names each of the
Purchasers as a selling stockholder thereunder. 

    

    In
connection with the foregoing, we advise you that a member of the Commission’s
staff has advised us by telephone that the Commission has entered an order
declaring the Registration Statement effective under the Securities Act at ____
[a.m.][p.m.] on __________, ____, and we have no knowledge, after telephonic
inquiry of a member of the staff, that any stop order suspending its
effectiveness has been issued or that any proceedings for that purpose are
pending before, or threatened by, the Commission and the Registrable Securities
are available for resale under the Securities Act pursuant to the Registration
Statement.

     

    This
letter shall serve as our standing notice to you that the Common Stock may be
freely transferred by the Purchasers pursuant to the Registration Statement. You
need not require further letters from us to effect any future legend-free
issuance or reissuance of shares of Common Stock to the Purchasers or the
transferees of the Purchasers, as the case may be, as contemplated by the
Company’s Irrevocable Transfer Agent Instructions dated __________, ____,
provided at the time of such reissuance, the Company has not otherwise notified
you that the Registration Statement is unavailable for the resale of the
Registrable Securities. This letter shall serve as our standing instructions
with regard to this matter. 

    

    
      	 
      	 
      
	 
      	
              Very
      truly yours,

            
	 
      	 
      
	 
      	
              HOKU
      SCIENTIFIC, INC.

            
	 
      	 
      
	 
      	
              By:

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
E

     

    FORM
OF SECRETARY’S CERTIFICATE

    

    The
undersigned hereby certifies that he is the duly elected, qualified and acting
Secretary of Hoku Scientific, Inc., a Delaware corporation (the "Company"),
and that as such he is authorized to execute and deliver this certificate in the
name and on behalf of the Company and in connection with the Securities Purchase
Agreement, dated as of [MM/DD], 2008, by and among the Company and the investors
party thereto (the "Securities
Purchase Agreement"), and further certifies in
his official capacity, in the name and on behalf of the Company, the items set
forth below.  Capitalized terms used but not otherwise defined herein
shall have the meaning set forth in the Securities Purchase
Agreement.

     

    
      	
              1.

            	
              Attached
      hereto as Exhibit A is a
      true, correct and complete copy of the resolutions duly adopted by the
      Board of Directors of the Company at a meeting of the Board of Directors
      held on [MM/DD], 2008.  Such resolutions have not in any way
      been amended, modified, revoked or rescinded, have been in full force and
      effect since their adoption to and including the date hereof and are now
      in full force and effect.

            

    

     

    
      	
              2.

            	
              Attached
      hereto as Exhibit B is a
      true, correct and complete copy of the Amended and Restated Certificate of
      Incorporation of the Company, together with any and all amendments thereto
      currently in effect, and no action has been taken to further amend, modify
      or repeal such Certificate of Incorporation, the same being in full force
      and effect in the attached form as of the date
  hereof.

            

    

     

    
      	
              3.

            	
              Attached
      hereto as Exhibit C is a
      true, correct and complete copy of the Amended and Restated Bylaws of the
      Company and any and all amendments thereto currently in effect, and no
      action has been taken to further amend, modify or repeal such Bylaws, the
      same being in full force and effect in the attached form as of the date
      hereof.

            

    

     

    
      	
              4.

            	
              Each
      person listed below has been duly elected or appointed to the position(s)
      indicated opposite his name and is duly authorized to sign the Securities
      Purchase Agreement and each of the Transaction Documents on behalf of the
      Company, and the signature appearing opposite such person’s name below is
      such person’s genuine signature.

            

    

     

    

    
      	
              Name

            	
              Position

            	
              Signature

            
	
              Dustin
      M. Shindo

            	
              President
      and Chief Executive Officer

            	
               

            
	 
      	 
      	 
      
	
              Darryl
      S. Nakamoto

            	
              Chief
      Financial Officer, Treasurer and Secretary

            	
               

            

    

    

    

    IN
WITNESS WHEREOF, the undersigned has hereunto set his hand as of this ____ day
of ________, 2008.

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      	 
      	 
      
	 
      	
              Darryl
      S. Nakamoto

            
	 
      	
              Secretary

            

    

    

     

    I, Dustin
M. Shindo, President and Chief Executive Officer, hereby certify that Darryl S.
Nakamoto is the duly elected, qualified and acting Secretary of the Company and
that the signature set forth above is his true signature.

     

     

    
      	 
      	 
      
	 
      	
              Dustin
      M. Shindo

            
	 
      	
              President
      and Chief Executive Officer

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    Resolutions

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
B

     

    Amended
and Restated Certificate of Incorporation

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
C

     

    Amended
and Restated Bylaws

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
F

     

     

    FORM
OF OFFICER’S CERTIFICATE

     

    

    The
undersigned, the President and Chief Executive Officer of Hoku Scientific, Inc.,
a Delaware corporation (the "Company"),
pursuant to Section 5.1(g) of the Securities Purchase Agreement, dated as of
[MM/DD], 2008, by and among the Company and the investors signatory thereto (the
"Securities
Purchase Agreement"), hereby represents, warrants and certifies to such
investors as follows (capitalized terms used but not otherwise defined herein
shall have the meaning set forth in the Securities Purchase
Agreement):

    

    
      	
              1.

            	
              The
      representations and warranties of the Company contained herein are true
      and correct in all material respects as of the date when made and as of
      the Closing Date, as though made on and as of such date, except for such
      representations and warranties that speak as of a specific date or time
      other than the Closing Date, which representations and warranties shall be
      true and correct in all material respects as of such date or
      time.

            

    

    

    
      	
              2.

            	
              The
      Company have been performed, satisfied and complied in all material
      respects with all covenants, agreements and conditions required by the
      Transaction Documents to be performed, satisfied or complied with by it at
      or prior to the Closing.

            

    

    

    

    IN WITNESS WHEREOF, the
undersigned has executed this certificate this ___ day of __________,
2008.

    

    

    

    
      	 
      	 
      	 
      
	 
      	
              Dustin
      M. Shindo

            	 
      
	 
      	
              President
      and Chief Executive Officer

            	 
      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
G

     

    WIRE
INSTRUCTIONS

     

    
      	
              Wire
      Room of:

            	
              PNC
      Bank New Jersey

            

    

    Caldwell,
NJ

    ABA #
031207607

    
      	
              For
      credit to:

            	
              Lowenstein
      Sandler PC

            

    

    Special
Trust Account I

    Account #
8025720174

    

    For
International wires please use SWIFT Code: PNCCUS33

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
H

    FORM
OF LOCK-UP AGREEMENT

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