Document:

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                                                                    CONFIDENTIAL

                                                                    Exhibit 4.39

     [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED FROM PUBLIC FILING PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT SUBMITTED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED INFORMATION, WHICH HAS BEEN IDENTIFIED WITH THE SYMBOL "[*]," HAS
BEEN FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

                   SECOND AMENDED & RESTATED SUPPLY AGREEMENT

This Second Amended & Restated Supply Agreement ("AGREEMENT") is made as of the
last date set forth on the signature page hereto (the "EFFECTIVE DATE") between
Solarfun Power Hong Kong Limited, a company registered in Hong Kong (hereinafter
"SOLARFUN") and Hoku MATERIALS, INC., a Delaware corporation (hereinafter
"HOKU"). HOKU and SOLARFUN are sometimes referred to in the singular as a
"PARTY" or in the plural as the "PARTIES".

                                    RECITALS

Whereas, Hoku Scientific, Inc. ("HOKU SCIENTIFIC") and SOLARFUN are parties that
certain First Amended & Restated Supply Agreement dated as of January 7, 2008
(the "SUPPLY AGREEMENT"), pursuant to which Hoku Scientific agreed to sell to
SOLARFUN, and SOLARFUN agreed to purchase from Hoku Scientific, polysilicon for
SOLARFUN'S general use beginning in calendar year 2009 for a continuous period
of eight years from the date of the first shipment.

Whereas, Hoku Scientific has assigned all of its right, title and interest in
the Supply Agreement to HOKU, its wholly-owned subsidiary, pursuant to that
certain Second Assignment and Assumption Agreement dated as of February 4, 2008,
by and between Hoku Scientific and HOKU.

Whereas, HOKU and SOLARFUN desire to amend and restate the Supply Agreement as
hereinafter set forth.

Whereas, HOKU desires to supply polysilicon to SOLARFUN for its general use
beginning in calendar year 2009 for a continuous period of eight years from the
date of the first shipment.

Whereas, in exchange for HOKU's agreement to allocate the supply of polysilicon,
SOLARFUN desires to provide HOKU with a firm order for polysilicon upon the
terms and conditions provided herein.

NOW, THEREFORE, in furtherance of the foregoing Recitals and in consideration of
the mutual covenants and obligations set forth in this Agreement, the Parties
hereby agree as follows:

1.   Definitions.

The following terms used in this Agreement shall have the meanings set forth
below:

     1.1. "AFFILIATE" shall mean, with respect to either Party to this
Agreement, any entity that is controlled by or under common control with such
Party.

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
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     1.2. "AGREEMENT" shall mean this Second Amended & Restated Supply Agreement
and all appendices annexed to this Agreement as the same may be amended from
time to time in accordance with the provisions hereof.

     1.3. "FACILITY" shall mean any facility used by HOKU for the production of
the Product.

     1.4. "FINANCING" shall mean HOKU's receipt of gross aggregate proceeds of
at least $75 million U.S. Dollars from bank debt, equity financing (including
the $25 million in proceeds from HOKU's private placement of common stock on
February 29, 2008), customer prepayments actually received in cash by HOKU for
Products (not including commitments for future prepayments, or amounts placed in
escrow or secured by letters of credit), or any combination of the foregoing.
For purposes of this Agreement, the terms "bank debt" and "equity financing"
shall have the broadest meaning possible to include, without limitation, bonds,
debentures, credit lines, convertible debt, common and preferred stock,
equity-linked securities, options and warrants; and HOKU's "receipt" of such
proceeds shall include, without limitation, the receipt of a binding and legally
enforceable commitment from a lender to provide the Financing (or a portion
thereof).

     1.5. "FIRST SHIPMENT DATE" shall mean the first day of the calendar month
in which HOKU commences deliveries to SOLARFUN of Products pursuant to this
Agreement.

     1.6. "MINIMUM ANNUAL QUANTITY OF PRODUCT" means [*] ([*] kilograms) of
Product during the first Year and [*] metric tons ([*] kilograms) during each of
the second through tenth Year, inclusive.

     1.7. "PRODUCT" shall mean the raw polysilicon in chunk form manufactured by
HOKU and sold to SOLARFUN pursuant to this Agreement.

     1.8. "PRODUCT SPECIFICATIONS" shall mean the quality and other
specifications set forth on Appendix 2 to this Agreement.

     1.9. "TERM" shall mean the period during which this Agreement is in effect,
as more specifically set forth in Section 9 of this Agreement.

     1.10. "TOTAL DEPOSIT" shall mean all deposits or prepayments made by
SOLARFUN to HOKU hereunder including without limitation the Initial Deposit and
the Main Deposit.

     1.11. "YEAR" shall mean each of the ten (10) twelve-month periods
commencing on the First Shipment Date.

2.   Ordering. Starting on the First Shipment Date and each Year during the term
of this Agreement  thereafter,  SOLARFUN  agrees to purchase from HOKU, and HOKU
agrees to sell to SOLARFUN, the Minimum Annual Quantity of Product at the prices
set  forth on  Appendix  1 to this  Agreement  (the  "Pricing  Schedule").  This
Agreement  constitutes a firm order from SOLARFUN for [*] metric tons of Product
that cannot be cancelled during the term of this Agreement,  except as set forth
in Section 9 below.

3.   Supply Obligations.

     3.1. HOKU shall deliver each Year pursuant to this Agreement starting on
the First Shipment Date at least the Minimum Annual Quantity of Product in
approximately equal monthly

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
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shipments pursuant to Section 4.1 below; provided however, that if HOKU
fails to deliver a monthly shipment, then HOKU may deliver any deficiency within
[*] days without breaching this section or incurring any purchase price
adjustment (pursuant to Section 3.3 below). At any time during the term of this
Agreement, HOKU may ship to SOLARFUN any additional amount up to the full
cumulative balance of Minimum Annual Quantity of Product to be shipped through
the end of this Contract (an "EXCESS SHIPMENT") subject to SOLARFUN's written
consent. This shipment will be credited against each subsequent Minimum Annual
Quantity of Product. For example, if the Minimum Annual Quantity of Product for
a given Year is [*] metric tons, and if HOKU delivers [*] metric tons in
January, then the next shipment of [*] metric tons is not required until the
following Year.

     3.2. HOKU intends to manufacture the Products at its Facility; however,
notwithstanding anything to the contrary herein, HOKU may deliver to SOLARFUN
Products that are manufactured by a third party other than HOKU, where HOKU is
acting only as a reseller or distributor of such Products; and provided that the
Products meet the Product Specifications and price set forth in this Agreement.

     3.3. Except in the case of a force majeure pursuant to Section 12 below, if
at any time after [*], HOKU does not supply any Products pursuant to Section 3.1
or 3.2 within [*] days of the scheduled delivery date, HOKU will provide
SOLARFUN with a purchase price adjustment. Such purchase price adjustment shall
be [*] percent ([*]%) of the value of the respective delayed Products for each
week or part thereof that the Product shipment (or part thereof) is delayed
beyond the [*] day grace period. Any purchase price adjustment as a result of
this Section 3.3 will be paid by HOKU at the end of the term of the applicable
calendar quarter. In lieu of making a cash payment to SOLARFUN pursuant to this
Section 3.3, HOKU may, at its option, pay for such purchase price adjustment in
the form of a credit issued for future shipments of Products. Notwithstanding
anything to the contrary, the maximum amount of such purchase price adjustment
shall not exceed [*] percent ([*]%) of the value of the respective delayed
Products. Monthly shipments which are delayed beyond one hundred fifty (150)
days shall be deemed to constitute a material breach of this Agreement pursuant
to Section 9.2.1 below. Notwithstanding the foregoing, if SOLARFUN fails to make
a payment to HOKU for Products actually shipped by HOKU within the 30-day period
set forth in Section 5.4 below, HOKU shall not be required to supply any
additional Product to SOLARFUN until HOKU has received the past due amount
including any interest payable thereon pursuant to this Agreement. For the
avoidance of doubt, SOLARFUN's right to reduce the purchase price pursuant to
this Section 3.3 shall not apply if HOKU is not fulfilling its supply
obligations for this reason.

     3.4. If HOKU delivers any Products to SOLARFUN prior to [*], then SOLARFUN
shall pay HOKU a premium equal to [*]% of the applicable purchase price for the
Products shipped prior to October 1, 2009.

4.   Shipping & Delivery.

     4.1. Except as provided in Section 3.2 above, shipments shall be made from
the Facility on a monthly basis in accordance with a shipment schedule that will
be provided by HOKU each Year under this Agreement (the "SHIPMENT SCHEDULE") no
later than sixty (60) days prior to the applicable year. The Shipment Schedule
shall provide for approximately equal monthly shipments that add up to the
Minimum Annual Quantity of Products.

     4.2. HOKU agrees that it will not enter into any additional supply contract
with, or make any supply commitment to, any third party (not including the long
term supply contracts that have been signed prior to the Effective Date (the
"PRE-EXISTING COMMITMENTS")) if the aggregate of HOKU's delivery obligations
under all of its supply contracts (including those with SOLARFUN and its
Pre-existing Commitments) and such additional supply contract/commitment during
any month would exceed the rated monthly production capacity of all polysilicon
reactors at all HOKU Facilities, as certified by

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
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the manufacturer thereof. Subject to the foregoing, this Section 4.2 shall not
preclude HOKU from (A) entering into supply contracts for additional capacity
from Facility expansion, including pre-sales of potential Facility expansions,
or from increased productivity of the Reactors, or (B) selling on the spot
market or entering into long-term contracts for the sale of polysilicon that
does not meet the Product Specifications at any time during the term of this
Agreement, provided that HOKU uses commercially reasonable efforts to meet the
Product Specifications with respect to such polysilicon and that HOKU does not
manufacture polysilicon for the purpose of making such spot market sales or
fulfilling such long term contracts

     4.3. HOKU will use commercially reasonable efforts to make its first
shipment of Products to SOLARFUN on or before July 1, 2009.

5.   Payments & Advances.

     5.1. HOKU acknowledges that as of the date of this Agreement, SOLARFUN has
provided HOKU with a deposit of Eleven Million U.S. Dollars (US$11,000,000) via
wire transfer of immediately available funds (the "FIRST DEPOSIT") as advance
payment for Products to be delivered under this Agreement.

     5.2. SOLARFUN shall pay in cash to HOKU the additional sum of Forty-Four
Million U.S. Dollars (USD $44,000,000.00) (the "MAIN DEPOSIT") as an advance
payment for Products to be delivered under this Agreement in accordance with the
payment schedule set forth below.

          5.2.1. Nineteen Million U.S. Dollars ($19,000,000) of the Main Deposit
(the "SECOND DEPOSIT") shall be paid to HOKU on September 30, 2008 (the "SECOND
DEPOSIT DATE"); provided, however, that the Second Deposit Date shall be
extended until such time as HOKU has completed the Financing.

          5.2.2. Provided that this Agreement has not been terminated pursuant
to Section 9.3, Twenty Million U.S. Dollars (USD $20,000,000) of the Main
Deposit (the "THIRD DEPOSIT") shall be paid to HOKU on March 31, 2009 (the
"THIRD DEPOSIT DATE"); provided, however, that the Third Deposit Date shall be
extended until such time as HOKU has completed the Financing (unless this
Agreement has been terminated pursuant to Section 9.3).

          5.2.3. Provided that this Agreement has not been terminated pursuant
to Section 9.3, Five Million U.S. Dollars (USD $5,000,000.00) of the Main
Deposit (the "FOURTH DEPOSIT") shall be paid to HOKU on March 31, 2010 (the
"FOURTH DEPOSIT DATE"); provided, however, that the Fourth Deposit Date shall be
extended until such time as HOKU has completed the Financing (unless this
Agreement has been terminated pursuant to Section 9.3).

     5.3. Letter of Credit.

          5.3.1. HOKU acknowledges receipt of the irrevocable stand-by letter of
credit attached hereto as APPENDIX 3 (the "CITIBANK LETTER OF CREDIT")
in the amount of the Main Deposit. Within ten (10) days after the Effective
Date, SOLARFUN shall provide an amended Citibank Letter of Credit in
substantially the form of APPENDIX 4 attached hereto (the "AMENDED LETTER OF
CREDIT"). Payment to HOKU of the Second Deposit, Third Deposit and Fourth
Deposit shall be made under the Amended Letter of Credit upon its receipt of (A)
written notice from HOKU that SOLARFUN has failed to make such payment on the
Second Deposit Date, the Third Deposit Date or the Fourth Deposit Date, as
applicable; and (B) written confirmation from HOKU that HOKU has completed its
Financing. The Amended Letter of Credit shall expire on the later of the date
when (i) the Main Deposit has been paid in

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
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full to HOKU by SOLARFUN, or (ii) the Main Deposit has been paid in full to HOKU
from the Amended Letter of Credit.

     5.4. HOKU shall invoice SOLARFUN at or after the time of each shipment of
Products to SOLARFUN. Taxes, customs and duties, if any, will be identified as
separate items on HOKU invoices. All invoices shall be sent to SOLARFUN's
address as provided herein. Payment terms for all invoiced amounts shall be [*]
days from date of shipment. All payments shall be made in U.S. Dollars. Unless
HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to
Section 11 below, shipments to SOLARFUN shall be credited against the Total
Deposit beginning in the second Year, as set forth in APPENDIX 1 (Pricing
Schedule).

     5.5. The prices for the Products do not include any excise, sales, use,
import, export or other similar taxes, such taxes will not include income taxes
or similar taxes, which taxes will be invoiced to and paid by SOLARFUN, provided
that SOLARFUN is legally or contractually obliged to pay such taxes. SOLARFUN
shall be responsible for all transportation charges, duties or charges,
liabilities and risks for shipping and handling (and hereby indemnifies HOKU for
such costs, liabilities and risks); thus, the price for the Products shall not
include any such charges.

     5.6. Late payments and outstanding balances shall accrue interest at the
lesser of [*]% per annum or the maximum allowed by law.

6.   Security Interest.

     6.1. Subject to receipt of the Initial Deposit and or payment of any
portion of the Main Deposit HOKU hereby grants to SOLARFUN a security interest
to secure the repayment by HOKU to SOLARFUN of the Total Deposit following any
of the events set forth in Section 9.6 below, which shall be subordinated in
accordance with Section 6.2 below, in all of the tangible and intangible assets
related to HOKU's polysilicon business (the "COLLATERAL").

     6.2. SOLARFUN acknowledges and agrees that the security interests and liens
in the Collateral will not be first priority security interests, will only be
subordinated to HOKU's third-party lenders (the "SENIOR LENDERS") that provide
debt financing for the construction of any HOKU Facility, and may be
subordinated as a matter of law to other security interests, and to security
interests that are created and perfected prior to the security interest granted
to SOLARFUN hereby. SOLARFUN shall enter into subordination agreements with the
Senior Lenders on terms and conditions reasonably acceptable to the Senior
Lenders.

     6.3. In addition, SOLARFUN shall enter into collateral, intercreditor and
other agreements (the "COLLATERAL AGREEMENTS") with HOKU's Senior Lenders, and
with SANYO Electric Co., Ltd., Suntech Power Holding Co., Ltd., Global Expertise
Wafer Division, Ltd., and HOKU's other customers who provide prepayments for
Products (collectively, "HOKU'S OTHER CUSTOMERS"), as may be reasonably
necessary to ensure that the security interest granted hereby is pari passu with
the security interests that may be granted to HOKU's Other Customers. SOLARFUN
may not unreasonably refuse to sign any such Collateral Agreement, provided that
such Collateral Agreement grants SOLARFUN a pari passu priority with respect to
HOKU's Other Customers, and is expressly subordinated to the Senior Lenders.

     6.4. The security interest granted hereby shall continue so long as HOKU
continues to maintain any amount of the Total Deposit, and only to the extent of
such remaining amount of the Total Deposit being held by HOKU, which has not
been credited against the shipment of Products pursuant to this Agreement, or
otherwise repaid to SOLARFUN. Notwithstanding anything to the contrary contained

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
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in this Agreement, the Collateral consisting of real property shall secure only
the obligations of HOKU to refund any portion of the Total Deposit to SOLARFUN
in accordance with the terms of this Agreement. When the Total Deposit is no
longer held by HOKU, SOLARFUN will sign such documents as are necessary to
release its security interests.

     6.5. HOKU and SOLARFUN each agree to act in good faith to execute and
deliver any additional document or documents that may be required in furtherance
of the foregoing provisions of this Section 6, including the Collateral
Agreements. Neither HOKU nor SOLARFUN may unreasonably refuse to sign any such
document.

7.   Product Quality Guarantee.

     7.1. HOKU warrants to SOLARFUN that the Products shall meet the Product
Specifications. For each shipment, this warranty shall survive for [*] days
after the applicable shipment date (the "WARRANTY PERIOD"). Upon release of the
Products to a common carrier or freight forwarder, FOB origin, HOKU warrants
that the Products shall be free of all liens, mortgages, encumbrances, security
interests or other claims or rights. HOKU will, upon prompt notification and
compliance with HOKU's instructions, refund or replace, at SOLARFUN's sole
option, any Product which does not meet the Product Specifications, and SOLARFUN
shall comply with the inspection and return goods policy described in Section 8
below with respect to such Products. No employee, agent or representative of
HOKU has the authority to bind HOKU to any oral representation or warranty
concerning the Products. Any oral representation or warranty made prior to the
purchase of any Product and not set forth in writing and signed by a duly
authorized officer of HOKU shall not be enforceable by SOLARFUN. HOKU makes no
warranty and shall have no obligation with respect to damage caused by or
resulting from accident, misuse, neglect or unauthorized alterations to the
Products.

     7.2. HOKU EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS,
IMPLIED OR STATUTORY, INCLUDING THE WARRANTIES OF MERCHANTABILITY, AND FITNESS
FOR A PARTICULAR PURPOSE. HOKU's sole responsibility and SOLARFUN's exclusive
remedy for any claim arising out of the purchase of any Product is a refund or
replacement, as described above. In no event shall HOKU's liability exceed the
purchase price paid therefore; nor shall HOKU be liable for any claims, losses
or damages of any individual or entity or for lost profits or any special,
indirect, incidental, consequential, or exemplary damages, howsoever arising,
even if HOKU has been advised of the possibility of such damages.

     7.3. HOKU shall, at its own expense, indemnify and hold SOLARFUN and its
Affiliates harmless from and against any expense or loss resulting from any
actual or alleged infringement of any patent, trademark, trade secret,
copyright, mask work or other intellectual property related to the Products, and
shall defend at its own expense, including attorneys fees, any suit brought
against SOLARFUN or SOLARFUN's Affiliates alleging any such infringement.
SOLARFUN agrees that: (i) SOLARFUN shall give HOKU prompt notice in writing of
any such suit; (ii) if HOKU provides evidence reasonably satisfactory to
SOLARFUN of HOKU's financial ability to defend the matter vigorously and pay any
reasonably foreseeable damages, SOLARFUN shall permit HOKU, through counsel of
HOKU's choice, to answer the charge of infringement and defend such suit (but
SOLARFUN, or SOLARFUN's Affiliate may be represented by counsel and participate
in the defense at its own expense); and (iii) SOLARFUN shall give HOKU all
needed information, assistance, and authority, at HOKU's expense, to enable HOKU
to defend such suit. In case of a final award of damages in any such suit HOKU
shall pay such award, but shall not be responsible for any settlement made
without its prior consent. Except as otherwise expressly set forth herein, HOKU
disclaims any obligation to defend or indemnify SOLARFUN, its officers, agents,
or employees, from any losses, damages, liabilities, costs or expenses which may
arise out of the acts of omissions of HOKU.

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
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8.   Inspection and Return Goods Policy.

     8.1. An inspection of appearance of each shipment of Product shall be made
by SOLARFUN in accordance with sound business practice upon the delivery of the
Product, and in no case later than [*] after delivery at SOLARFUN's factory.
SOLARFUN shall inform HOKU promptly, and in no case later than [*] after
delivery of Product, in case of any obvious damages or other obvious defects to
the Product which SOLARFUN discovers under the inspection of appearance.

     8.2. SOLARFUN shall perform final inspection of the Product upon
introducing the Product into SOLARFUN's production process. Such inspection
shall take place during the Warranty Period. If the Product does not meet the
Product Specifications, SOLARFUN shall notify HOKU in writing without undue
delay after the inspection and, together with the notification, submit
documentary evidence of the result of the final inspection whereupon HOKU shall
have the right to undertake its own inspection prior to any return of the
Products pursuant to Section 8.3 below.

     8.3. Products may be returned to HOKU within the later of (a) [*] after
discovery of a defect consistent with Sections 8.1 and 8.2 above; and (b) [*]
after HOKU completes its inspection and confirms the defect pursuant to Section
8.2 above, for replacement or a refund including all return shipment expenses.
To assure prompt handling, HOKU shall provide SOLARFUN a return goods
authorization number within 48 hours of SOLARFUN's request. Provided that HOKU
communicates this number to SOLARFUN within such timeframe, SOLARFUN will
reference this number on return shipping documents. Returns made without the
authorization number provided by HOKU in accordance with the foregoing may be
subject to HOKU's reasonable charges due to HOKU's additional handling costs.
HOKU reserves the right to reverse any credit issued to SOLARFUN if, upon
return, such Product is determined by a predetermined third party not to be
defective.

9.   Term and Termination.

     9.1. The term of this Agreement shall begin on the Effective Date and
provided that the first delivery of the Product under this Agreement shall occur
in 2009 or earlier, and unless previously terminated as hereinafter set forth,
shall remain in force for a period of ten Years beginning with the First
Shipment Date.

     9.2. Each Party may, at its discretion, upon written notice to the other
Party, and in addition to its rights and remedies provided under this Agreement
or any other agreement executed in connection with this Agreement and at law or
in equity, terminate this Agreement in the event of any of the following:

          9.2.1. Upon a material breach of the other Party of any material
provision in this Agreement, and failure of the other Party to cure such
material breach within sixty (60) days after written notice thereof; provided,
however, that such cure period shall not modify or extend the 150-day cure
period for HOKU's delivery obligations pursuant to Section 3.3 above; and
provided, further that such sixty (60) day cure period shall not apply to
SOLARFUN's failure to make any payment to HOKU pursuant to this Agreement. In
the event of SOLARFUN's failure to make payment on the 30-day payment terms set
forth in Section 5.4 hereof, termination by HOKU shall require the issuance of a
written notice of default containing the threat of immediate termination if
payment is not made within an additional grace period of not less than ten (10)
business days. Notwithstanding the foregoing, HOKU is not required to produce
Products for SOLARFUN while a payment default by SOLARFUN on an invoice for
products actually shipped by HOKU has occurred and is continuing. For purposes
of this Section 9.2.1, a "material breach" means a monthly shipment which is
delayed beyond one hundred fifty (150)

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
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days, a payment default or any other material breach of this Agreement which
materially and adversely affects a Party or which occurs on multiple occasions.

          9.2.2. Upon the voluntary or involuntary initiation of bankruptcy or
insolvency proceedings against the other Party; provided, that for an
involuntary bankruptcy or insolvency proceeding, the Party subject to the
proceeding shall have sixty (60) working days within which to dissolve the
proceeding or demonstrate to the terminating Party's satisfaction the lack of
grounds for the initiation of such proceeding;

          9.2.3. If the other Party (i) becomes unable, or admits in writing its
inability, to pay its debts generally as they mature, (ii) becomes insolvent (as
such term may be defined or interpreted under any applicable statute); or

          9.2.4. In accordance with the provisions of Section 12 (Force Majeure)
below.

          9.2.5. Without limiting the foregoing, SOLARFUN shall have the right
to terminate this Agreement if the First Shipment Date does not occur on or
before December 31, 2009.

     9.3. HOKU and SOLARFUN shall each have the right to terminate this
Agreement if HOKU has not completed the Financing on or before December 31,
2008.

     9.4. In the event that SOLARFUN does not provide the Amended Letter of
Credit within ten (10) days after the Effective Date, then this Agreement shall
be null and void, and the Supply Agreement shall survive in accordance with its
terms.

     9.5. Upon the expiration or termination of this Agreement howsoever
arising, the following Sections shall survive such expiration or termination:
Sections 1 (Definitions); Section 7 (Product Quality Guarantee), Section 8
(Inspection and Return Goods Policy); Section 9 (Term and Termination); Section
10 (Liability); Section 11 (Liquidated Damages); and Section 13 (General
Provisions).

     9.6. If SOLARFUN terminates this Agreement pursuant to Section 9.2.1,
9.2.2, 9.2.3, 9.2.4, 9.2.5, 9.3, or 12 then any funds remaining on the Total
Deposit on such date of termination (including, without limitation, the First
Deposit and any portion of the Main Deposit that has been paid to HOKU against
the Amended Letter of Credit) shall be returned to SOLARFUN, and to the extent
that the Amended Letter of Credit has not expired, HOKU shall return the
original of the Amended Letter of Credit to SOLARFUN for cancellation; provided
however that if SOLARFUN is in material breach of this Agreement at the time it
terminates this Agreement, then HOKU shall not be required to repay any
remaining amount of the Total Deposit or return the Amended Letter of Credit up
to the amounts of HOKU's direct loss from such material breach (unless SOLARFUN
cures such breach within the applicable cure period) or SOLARFUN's other
outstanding and unpaid obligations hereunder (including, without limitation,
obligations under Section 11). If HOKU terminates this Agreement pursuant to
Sections 9.2.1, 9.2.2, 9.2.3, 9.2.4, or 12, then HOKU shall be entitled to
retain the Total Deposit and the Amended Letter of Credit including any funds
remaining on the Total Deposit on such date of termination in accordance with
Section 11. "FUNDS REMAINING" on the Total Deposit are funds not applied against
SOLARFUN's purchase of Product, pursuant to Section 5.4 above, for Product
actually shipped to SOLARFUN hereunder.

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
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10.  Liability.

     10.1. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES OR FOR EXEMPLARY OR PUNITIVE DAMAGES, EVEN
IF SOLARFUN OR HOKU HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

     10.2. NEITHER PARTY'S TOTAL LIABILITY TO THE OTHER FOR ANY KIND OF LOSS,
DAMAGE OR LIABILITY ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT, UNDER
ANY THEORY OF LIABILITY, SHALL EXCEED IN THE AGGREGATE THE TOTAL DEPOSIT, EXCEPT
WITH RESPECT TO SOLARFUN'S CONTINUING OBLIGATION TO PURCHASE THE PRODUCTS AS SET
FORTH HEREIN.

11.  Liquidated Damages. THE PARTIES ACKNOWLEDGE AND AGREE THAT ANY BREACH OF
THIS AGREEMENT BY SOLARFUN MAY CAUSE IRREPARABLE AND IMMEASURABLE DAMAGE TO
HOKU. BECAUSE IT IS DIFFICULT TO MEASURE THESE DAMAGES, IN THE EVENT THAT THIS
AGREEMENT IS TERMINATED BY HOKU PURSUANT TO SECTION 9.2.1, 9.2.2, 9.2.3, 9.2.4,
or 12, THEN HOKU SHALL BE ENTITLED TO RETAIN AS LIQUIDATED DAMAGES, THE TOTAL
DEPOSIT (INCLUDING ANY REMAINING PORTION THEREOF NOT CREDITED AGAINST PRODUCT
SHIPMENTS). ANY AMOUNTS DUE FOR UNDELIVERED PRODUCT UNDER THIS AGREEMENT ARE
STILL DUE, UNLESS OTHERWISE AGREED BY BOTH PARTIES IN WRITING.

12.  Force Majeure. Neither Party shall be liable to the other Party for failure
of or delay in performance of any obligation under this Agreement, directly, or
indirectly, owing to acts of God, war, war-like condition, embargoes, riots,
strike, lock-out and other events beyond its reasonable control which were not
reasonably foreseeable and whose effects are not capable of being overcome
without unreasonable expense and/or loss of time to the affected Party (i.e.,
the Party that is unable to perform). If such failure or delay occurs, the
affected Party shall notify the other Party of the occurrence thereof as soon as
possible, and the Parties shall discuss the best way to resolve the event of
force majeure. If the conditions of Force Majeure continue to materially impede
performance of any material obligation under this Agreement for a period of more
than three (3) consecutive calendar months, then the non-affected Party shall be
entitled to terminate this Agreement by 30 days' prior written notice to the
other Party.

13.  General Provisions.

     13.1. This Agreement shall be construed under and governed by the laws of
the State of California, U.S.A.

     13.2. Upon notice from one Party to the other of a dispute hereunder, the
Parties agree to hold a meeting within thirty (30) days of receipt of such
notice with at least one (1) representative from each Party who has
decision-making authority for such company. At this meeting, the Parties will
attempt to resolve the dispute in good faith. If, after the meeting, the dispute
has not been resolved, only then may a Party resort to litigation. Any
proceeding to enforce or to resolve disputes relating to this Agreement shall be
brought in California, USA. In any such proceeding, neither Party shall assert
that such a court lacks jurisdiction over it or the subject matter of the
proceeding.

     13.3. HOKU may assign this Agreement to any of its Affiliates, and may
assign its rights under this Agreement to any collateral agent as collateral
security for HOKU's secured obligations in connection with the financing a HOKU
Facility, without the consent of SOLARFUN. Except as stated in the previous
sentence, neither HOKU nor SOLARFUN may assign this Agreement to a third party

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
PAGE 9 of 21
<PAGE>

                                                                    CONFIDENTIAL

without the prior written consent of the other Party, which consent shall not be
unreasonably withheld. Notwithstanding the foregoing, an assignment of this
Agreement by either Party in connection with a merger, acquisition, or sale of
all or substantially all of the assets or capital stock of such Party shall not
require the consent of the other Party. If this Agreement is assigned
effectively to a third party, this Agreement shall bind upon successors and
assigns of the Parties hereto.

     13.4. Except as provided elsewhere in this Agreement, a notice is effective
only if the Party giving or making the notice has complied with this Section
13.4 and if the addressee has received the notice. A notice is deemed to have
been received as follows:

     (a)  If a notice is delivered in person, or sent by registered or certified
          mail, or nationally or internationally recognized overnight courier,
          upon receipt as indicated by the date on the signed receipt; or

     (b)  If a notice is sent by facsimile, upon receipt by the Party giving the
          notice of an acknowledgment or transmission report generated by the
          machine from which the facsimile was sent indicating that the
          facsimile was sent in its entirety to the addressee's facsimile
          number.

Each Party giving a notice shall address the notice to the appropriate person at
the receiving Party at the address listed below or to a changed address as the
Party shall have specified by prior written notice:

SOLARFUN:

SOLARFUN POWER HONG KONG LIMITED
In care of: JIANGSU LINYANG SOLARFUN CO., LTD.
No. 666 Linyang Rd.,
Qidong Jiangsu Province 226200
People's Republic of China
Tel: +86-21-6393-8326
Fax: +86-21-6393-3099
Attn: William Sien, VP of Business Development
E-Mail: [*]

HOKU:

HOKU MATERIALS, INC.
1075 Opakapaka Street
Kapolei, HI 96707
Attn: Mr. Dustin Shindo, CEO
E-mail: [*]
Facsimile: +1 (808) 682-7807

     13.5. The waiver by either Party of the remedy for the other Party's breach
of or its right under this Agreement will not constitute a waiver of the remedy
for any other similar or subsequent breach or right.

     13.6. If any provision of this Agreement is or becomes, at any time or for
any reason, unenforceable or invalid, no other provision of this Agreement shall
be affected thereby, and the remaining provisions of this Agreement shall
continue with the same force and effect as if such unenforceable or invalid
provisions had not been inserted in this Agreement.

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
PAGE 10 of 21
<PAGE>

                                                                    CONFIDENTIAL

     13.7. No changes, modifications or alterations to this Agreement shall be
valid unless reduced to writing and duly signed by respective authorized
representatives of the Parties.

     13.8. No employment, agency, trust, partnership or joint venture is created
by, or shall be founded upon, this Agreement. Each Party further acknowledges
that neither it nor any Party acting on its behalf shall have any right, power
or authority, implied or express, to obligate the other Party in any way.

     13.9. Neither Party shall make any announcement or press release regarding
this Agreement or any terms thereof without the other Party's prior written
consent; provided, however, that the Parties will work together to issue a joint
press release within two (2) days after execution of this Agreement.
Notwithstanding the foregoing, either Party may publicly disclose the material
terms of this Agreement pursuant to the United States Securities Act of 1933, as
amended, the United States Securities Exchange Act of 1934, as amended, or other
applicable law; provided, however, that the Party being required to disclose the
material terms of this Agreement shall provide reasonable advance notice to the
other Party, and shall use commercially reasonable efforts to obtain
confidential treatment from the applicable governing entity for all pricing and
technical information set forth in this Agreement.

     13.10. This Agreement constitutes the entire agreement between the Parties
and supersedes all prior proposal(s), discussions and agreements, including,
without limitation, the Supply Agreement, relative to the subject matter of this
Agreement and neither of the Parties shall be bound by any conditions,
definitions, warranties, understandings or representations with respect to such
subject matter other than as expressly provided herein. No oral explanation or
oral information by either Party hereto shall alter the meaning or
interpretation of this Agreement. Notwithstanding the foregoing, if SOLARFUN
fails to provide the Amended Letter of Credit within ten (10) days after the
Effective Date, then this Agreement shall be null and void, and the Supply
Agreement shall continue to be binding on the Parties as the final agreement
between the Parties regarding the purchase and sale of Products.

     13.11. The headings are inserted for convenience of reference and shall not
affect the interpretation and or construction of this Agreement.

     13.12. Words expressed in the singular include the plural and vice-versa.

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
PAGE 11 of 21
<PAGE>

                                                                    CONFIDENTIAL

IN WITNESS WHEREOF, the Parties have executed this Second Amended & Restated
Supply Agreement as of the date last set forth below.

<Table>

<Caption>
SOLARFUN:                                              HOKU:
--------                                               ----

<S>                                                    <C>
SOLARFUN POWER HONG KONG LIMITED                       HOKU MATERIALS, INC.

By:       /s/ WILLIAM SIEN                             By:       /s/ DUSTIN SHINDO
          -----------------------------------                    -----------------------------------

Name:     William Sien                                 Name:     Dustin Shindo
          -----------------------------------                    -------------

Title:    VP of Business Development                   Title:   Chairman & CEO
          -----------------------------------                   --------------
Authorized Signatory                                   Authorized Signatory

Date:     May 13, 2008                                 Date:    May 13, 2008
          -----------------------------------                   -----------------------------------
</Table>

                               CORPORATE GUARANTY

As an inducement for HOKU to enter into this Agreement with SOLARFUN, it is
hereby agreed that the undersigned does hereby guaranty to HOKU the prompt,
punctual and full payment of all monies now or hereinafter due HOKU from
SOLARFUN, and agrees to the following:

     a)   Until termination, this guaranty is unlimited as to amount or duration
          and shall remain in full force and effect notwithstanding any
          extension, compromise, adjustment, forbearance, waiver, release or
          discharge of any party obligor or guarantor.

     b)   The obligations of the undersigned shall be at the election of HOKU,
          shall be primary and not necessarily secondary, and HOKU shall not be
          required to exhaust its remedies as against SOLARFUN prior to
          enforcing its rights under this guaranty against the undersigned.

     c)   The guaranty hereunder shall be unconditional and absolute and the
          undersigned waives all rights of subrogation and set-off until all
          sums under this guaranty are fully paid. The undersigned further
          waives all suretyship defenses or defenses in the nature thereof,
          generally.

     d)   The guaranty shall be valid and continuing during the term of this
          Agreement.

     e)   The undersigned warrants and represents it has full authority to enter
          into this guaranty.

     f)   This guaranty shall be binding upon and inure to the benefit of the
          parties, their successors, assigns and personal representatives.

     g)   This guaranty shall be construed and enforced under the laws of the
          State of California, USA

JIANGSU LINYANG SOLARFUN CO., LTD.

<TABLE>
<CAPTION>
<S>                                                    <C>
By:       /s/ WILLIAM SIEN                             Date:      May 13, 2008
          -----------------------------------                     -----------------------------------

Name:     William Sien
          -----------------------------------

Title:    VP of Business Development
          -----------------------------------
Authorized Signatory
</TABLE>

          SIGNATURE PAGE TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
                                 PAGE 12 of 21
<PAGE>

                                                                    CONFIDENTIAL

                                   APPENDIX 1
                                PRICING SCHEDULE

                                      [*]

If there is uncertainty in price between the delivery period and the total
quantity for that period based on the table above, the price assigned to the
quantity shall prevail. For example, the first [*] MT shall be invoiced at $[*].

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
            APPENDIX 1 TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
PAGE 13 of 21
<PAGE>

                                   APPENDIX 2
                             PRODUCT SPECIFICATIONS

                                      [*]

The size distribution of the Products shipped shall be as follows:

                                       [*]

Product Specifications shall be tested in accordance with the following
procedures: graphite furnace atomic absorption spectroscopy, inductively coupled
plasma-mass spectroscopy and Fourier transform infrared absorption spectroscopy.

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
            APPENDIX 2 TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
PAGE 14 of 21
<PAGE>

                                   APPENDIX 3
                            Citibank Letter of Credit

                                 (See attached)

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
            APPENDIX 3 TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
PAGE 15 of 21
<PAGE>

                                   APPENDIX 4
                            Amended Letter of Credit

AT THE REQUEST CITIBANK (CHINA) CO., LTD. SHANGHAI BRANCH AND FOR THE ACCOUNT OF
JIANGSU LINYANG SOLARFUN CO., LTD. ("APPLICANT") WITH ADDRESS AT NO. 666 LINYANG
RD., QIDONG JIANGSU PROVINCE 226200, THE PEOPLE'S REPUBLIC OF CHINA, WE ISSUE
OUR IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER...... IN FAVOR OF : HOKU
SCIENTIFIC, INC. AND/OR HOKU MATERIALS INC. ("BENEFICIARY"), 1075 OPAKAPAKA
STREET, KAPOLEI, HAWAII 96707 USA, ATTN: MR. DUSTIN SHINDO, CEO FOR AN AMOUNT
NOT TO EXCEED IN THE AGGREGATE USD44,000,000.00 (FORTY FOUR MILLION UNITED
STATES DOLLARS AND 00/100 CENTS), EFFECTIVE IMMEDIATELY AND EXPIRING AT
CITIBANK, N.A., C/O ITS SERVICER CITICORP NORTH AMERICA, INC., 3800 CITIBANK
CENTER, GLOBAL TRADE SERVICE CENTER, BUILDING B, 3RD FLOOR, , TAMPA, FL 33610,
ON APRIL 15, 2010.

..
THIS STANDBY LETTER OF CREDIT IS ISSUED RELATIVE TO A CONTRACT ("SUPPLY
AGREEMENT") PLACED IN _________________ 2008 BETWEEN HOKU SCIENTIFIC, INC.
("SUPPLIER") AND SOLARFUN POWER HONG KONG LTD. ("BUYER") FOR THE DELIVERY OF
POLYCRYSTALLINE SILICON PRODUCTS ("GOODS") TO JIANGSU LINYANG SOLARFUN CO., LTD.

FUNDS UNDER THIS STANDBY LETTER OF CREDIT ARE AVAILABLE TO THE BENEFICIARY BY
SIGHT PAYMENT WITH CITIBANK, N.A., NEW YORK AGAINST PRESENTATION OF A WRITTEN
STATEMENT SIGNED BY THE BENEFICIARY MENTIONING THEREON OUR STANDBY LETTER OF
CREDIT NUMBER........... AND CERTIFYING THAT "APPLICANT HAS FAILED TO PERFORM
ITS CONTRACTUAL OBLIGATION UNDER THE POLYCRYSTALLINE SILICON CONTRACT. WE
CERTIFY THAT WE HAVE COMPLIED FULLY WITH THE TERMS AND CONDITIONS OF THE
UNDERLYING AGREEMENT."

WE HEREBY UNDERTAKE WITH BENEFICIARY TO HONOR EACH PRESENTATION MADE IN
COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS STANDBY LETTER OF CREDIT ON OR
BEFORE THE STATED EXPIRATION DATE, WHEN DULY PRESENTED TO US BY FACSIMILE
TRANSMISSION OR EXPRESS COURIER, AT OUR ADDRESS STATED ABOVE.

IF PRESENTATION OF SUCH DRAFT AND CERTIFICATE IS MADE BY FAX TRANSMISSION, IT
SHALL BE FAXED TO FAX NO. 813-604-7187 OR SUCH OTHER FAX NUMBER IDENTIFIED BY
CITIBANK IN A WRITTEN NOTICE TO YOU. TO THE EXTENT A PRESENTATION IS MADE BY FAX
TRANSMISSION, YOU MUST (I) PROVIDE TELEPHONE NOTIFICATION THEREOF TO CITIBANK
(PHONE NO. 813-604-7101) PRIOR TO OR SIMULTANEOUSLY WITH THE SENDING OF SUCH FAX
TRANSMISSION AND (II) SEND THE ORIGINAL OF SUCH DRAFT AND CERTIFICATE TO
CITIBANK BY OVERNIGHT COURIER, AT THE ADDRESS PROVIDED ABOVE FOR PRESENTATION OF
DOCUMENTS, PROVIDED HOWEVER, THAT CITIBANK'S RECEIPT OF SUCH TELEPHONE NOTICE OR
ORIGINAL DOCUMENTS SHALL NOT BE A CONDITION TO PAYMENT HEREUNDER.

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
            APPENDIX 4 TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
PAGE 16 of 21
<PAGE>

PAYMENT WILL BE MADE BY US FOUR (4) BANKING DAYS FOLLOWING OUR DETERMINATION
THAT DOCUMENTS PRESENTED ARE IN FULL COMPLIANCE WITH THE TERMS AND CONDITIONS OF
THE LETTER OF CREDIT.

ALL PAYMENTS UNDER THIS STANDBY LETTER OF CREDIT SHALL BE MADE IN UNITED STATES
DOLLARS, FOR VALUE, IN IMMEDIATELY AVAILABLE FUNDS BY WIRE TRANSFER TO SUCH
ACCOUNT AS MAY BE DESIGNATED BY THE BENEFICIARY IN THE APPLICABLE DEMAND.

IN THE EVENT THAT A DEMAND FAILS TO COMPLY WITH THE TERMS OF THIS STANDBY LETTER
OF CREDIT, WE SHALL PROVIDE THE BENEFICIARY PROMPT NOTICE OF THE SAME STATING
THE REASONS THEREFOR AND SHALL UPON INSTRUCTIONS FROM BENEFICIARY HOLD ANY
NON-CONFORMING DEMAND AND OTHER DOCUMENTS AT BENEFICIARY'S DISPOSAL OR RETURN
THE NON-CONFORMING DEMAND AND OTHER DOCUMENTS TO THE BENEFICIARY AT THE ADDRESS
SET FORTH ABOVE BY OVERNIGHT COURIER. UPON BEING NOTIFIED THAT THE DEMAND WAS
NOT EFFECTED IN COMPLIANCE WITH THIS STANDBY LETTER OF CREDIT, THE BENEFICIARY
MAY ATTEMPT TO CORRECT SUCH NON-COMPLYING DEMAND IN ACCORDANCE WITH THIS STANDBY
LETTER OF CREDIT.

..
PARTIAL DRAWINGS ARE ALLOWED UNDER THIS LETTER OF CREDIT. EACH PRESENTATION
HONORED BY US SHALL IMMEDIATELY REDUCE THE AMOUNT AVAILABLE TO BE DRAWN
HEREUNDER BY THE AMOUNT OF THE PAYMENT MADE IN RESPECT OF SUCH PRESENTATION.

THIS LETTER OF CREDIT SHALL AUTOMATICALLY BECOME NULL AND VOID UPON THE EXPIRY
DATE, WHETHER IT IS RETURNED TO US OR NOT; PROVIDED, HOWEVER, THAT IN THE EVENT
OF AN ACT OF GOD, RIOT, CIVIL COMMOTION, INSURRECTION, WAR OR ANY OTHER CAUSE
BEYOND OUR CONTROL THAT INTERRUPTS OUR BUSINESS AND CAUSES THE PLACE FOR
PRESENTATION OF THIS STANDBY LETTER OF CREDIT TO BE CLOSED FOR BUSINESS ON THE
LAST DAY FOR PRESENTATION, THE EXPIRY DATE WILL BE AUTOMATICALLY EXTENDED
WITHOUT AMENDMENT TO A DATE FIFTEEN CALENDAR DAYS AFTER THE PLACE FOR
PRESENTATION REOPENS FOR BUSINESS.

ALL BANK CHARGES ARE FOR ACCOUNT OF THE APPLICANT.

ALL PARTIES TO THIS STANDBY LETTER OF CREDIT ARE ADVISED THAT THE U.S.GOVERNMENT
HAS IN PLACE SANCTIONS AGAINST CERTAIN COUNTRIES, RELATED ENTITIES AND
INDIVIDUALS. UNDER THESE SANCTIONS CITIBANK N.A.IS/WILL BE PROHIBITED FROM
ENGAGING IN TRANSACTIONS THAT MAY FALL WITHIN THE GUIDELINES OF SUCH SANCTIONS.

ANY ONE BENEFICIARY OR COMBINATION OF BENEFICIARIES, ACTING INDIVIDUALLY OR
COLLECTIVELY, MAY DRAW ON THIS LETTER OF CREDIT IN FULL OR IN PART, AND ANY
ACTION TAKEN BY ANY OR ALL BENEFICIARIES HEREUNDER SHALL BIND EACH OF

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
            APPENDIX 4 TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
PAGE 17 of 21
<PAGE>

THEM EXCEPT THE REQUEST FOR THE TRANSFER OF THE LETTER OF CREDIT WHICH MUST BE
JOINTLY SIGNED BY BOTH BENEFICIARIES.

IT IS CONDITION OF THIS LETTER OF CREDIT THAT IT IS TRANSFERABLE AND MAY BE
TRANSFERRED IN ITS ENTIRETY, BUT NOT IN PART, AND MAY BE SUCCESSIVELY
TRANSFERRED BY YOU OR ANY TRANSFEREE HEREUNDER TO A SUCCESSOR TRANSFEREE(S).
TRANSFER UNDER THIS LETTER OF CREDIT TO SUCH TRANSFEREE MUST BE JOINTLY SIGNED
BY BOTH BENEFICIARIES AND SHALL BE EFFECTED UPON PRESENTATION TO US OF THE
ORIGINAL OF THIS LETTER OF CREDIT AND ANY AMENDMENTS HERETO ACCOMPANIED BY A
REQUEST DESIGNATING THE TRANSFEREE IN THE FORM OF ANNEX _A__, ATTACHED HERETO,
APPROPRIATELY COMPLETED

THIS STANDBY LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES
1998, ICC PUBLICATION NO. 590 ("ISP98"), AND AS TO MATTERS NOT ADDRESSED BY
ISP98, SHALL BE GOVERNED BY THE LAWS OF NEW YORK STATE AND APPLICABLE UNITED
STATES FEDERAL LAWS.

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
            APPENDIX 4 TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
PAGE 18 of 21
<PAGE>

                                    ANNEX A
                            REQUEST FOR FULL TRANSFER
                    RELINQUISHING ALL RIGHTS AS BENEFICIARIES

(THIS FORM IS TO BE USED WHEN THE LETTER OF CREDIT IS TO BE TRANSFERRED IN ITS
ENTIRETY AND , NO SUBSTITUTION OF INVOICES IS INVOLVED AND, NO RIGHTS ARE TO BE
RETAINED BY THE UNDERSIGNED BENEFICIARY)

CITICORP NORTH AMERICA INC.,                               DATE:
AS SERVICER FOR CITIBANK, N.A.
3800 CITIBANK CENTER, BLDG. B, 3RD FL.
TAMPA, FL 33610

       RE: L/C NO. _________

       ISSUED BY: CITIBANK, N.A.

GENTLEMEN:

RECEIPT IS ACKNOWLEDGED OF THE ORIGINAL INSTRUMENT WHICH YOU FORWARDED TO US
RELATIVE TO THE ISSUANCE OF A LETTER OF CREDIT (HEREIN CALLED THE "CREDIT")
BEARING YOUR REFERENCE NUMBER AS ABOVE IN FAVOR OF OURSELVES AND/OR TRANSFEREES
AND WE HEREBY REQUEST YOU TO TRANSFER THE SAID LETTER OF CREDIT, IN ITS
ENTIRETY, TO:

________________________________________________________________________________

WHOSE ADDRESS
IS______________________________________________________________________________

________________________________________________________________________________

(OPTIONAL) PLEASE ADVISE BENEFICIARY THROUGH THE BELOW INDICATED ADVISING BANK:

________________________________________________________________________________

________________________________________________________________________________

WE ARE RETURNING THE ORIGINAL INSTRUMENT TO YOU HEREWITH IN ORDER THAT YOU MAY
DELIVER IT TO THE TRANSFEREES TOGETHER WITH YOUR CUSTOMARY LETTER OF TRANSFER.

IT IS UNDERSTOOD THAT ANY AMENDMENTS TO THE LETTER OF CREDIT WHICH YOU MAY
RECEIVE ARE TO BE ADVISED BY YOU DIRECTLY TO THE TRANSFEREES AND THAT THE DRAFTS
AND DOCUMENTS OF THE TRANSFEREES, IF ISSUED IN ACCORDANCE WITH THE CONDITIONS OF
THE LETTER OF CREDIT, ARE TO BE FORWARDED BY YOU DIRECTLY TO THE PARTY FOR WHOSE
ACCOUNT THE CREDIT WAS OPENED (OR ANY INTERMEDIARY) WITHOUT OUR INTERVENTION.
(CONTINUED ON PAGE 2)

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
            APPENDIX 4 TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
PAGE 19 of 21
<PAGE>

PAGE 2     REQUEST FOR FULL TRANSFER RELINQUISHING ALL RIGHTS AS BENEFICIARIES

                              CITIBANK, N.A. REFERENCE _________________________

<TABLE>
<CAPTION>
SIGNATURE GUARANTEED                                              SINCERELY YOURS,

<S>                                                     <C>
THE BENEFICIARIES SIGNATURES WITH
TITLES CONFORMS WITH THAT ON FILE
WITH US AND SUCH IS/ARE AUTHORIZED
FOR THE EXECUTION OF THIS INSTRUMENT.

____________________________________
        ____________________________________
(NAME OF BANK)                                                  HOKU SCIENTIFIC, INC

____________________________________
        ____________________________________
(BANK ADDRESS)                                                  (TELEPHONE NUMBER)

____________________________________
        ____________________________________
(CITY, STATE, ZIP CODE)                                 (AUTHORIZED NAME AND TITLE)

____________________________________
        ____________________________________
(TELEPHONE NUMBER)                                      (AUTHORIZED SIGNATURE)

____________________________________
        ____________________________________
(AUTHORIZED NAME AND TITLE)                             HOKU MATERIALS INC.

____________________________________
        ____________________________________
(AUTHORIZED SIGNATURE)                                          (TELEPHONE NUMBER)

                                                        ____________________________________
                                                        (AUTHORIZED NAME AND TITLE)

                                                        ____________________________________
                                                        (AUTHORIZED SIGNATURE)
</TABLE>

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
            APPENDIX 4 TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
PAGE 20 of 21
<PAGE>

SOLARFUN Initials & Date WS May 13, 2008    HOKU Initials & Date DS May 13, 2008
                         ---------------                         ---------------
            APPENDIX 4 TO SECOND AMENDED & RESTATED SUPPLY AGREEMENT
PAGE 21 of 21<PAGE>
                                                                    Exhibit 4.41

                           CONTRACT NO. 32-000108-01

made between

THE BUYER
JIANGSU YANGGUANG CRYSTAL SCI. & TECH. CO., LTD.
ADDRESS:  Westside of XinGang Road
Dapu Industrial Area,
LianYunGang Eco & Tech. Development Zone
Jiangsu, China
Fax: +86-518-8515-9211     Tel: +86-518-8515-9266

and

THE SELLER:
ALD VACUUM TECHNOLOGIES GMBH
ADDRESS:  Wilhelm-Rohn-Strasse 35, 63450 Hanau, Germany
Fax: +49-6181-307-3299     Tel: +49-6181-307-3078

This contract is made by and between the Buyer and Seller, whereby the Buyer
agrees to buy and the Seller agrees to sell the under mentioned commodity
according to the terms and conditions stipulated below:

1

<TABLE>
<CAPTION>
                                                                                        ALL AMOUNTS
                                                                                             in
ITEM      COMMODITIES SPECIFICATIONS                                                        US $
----      --------------------------                                                 ------------------
<S>       <C>                                                                        <C>
1         Fifty (50) Silicon Crystallisation Units Type SCU 400
          capable of Melting, Crystallising, Annealing and Cooling Down
          of Photovoltaic Grade Silicon Ingots, scope of supply and service as
          per Annex 1

          -hereafter referred to as the Equipment or the Goods-

          CIF LianYunGang China Seaport according to Incoterms 2000.

          TOTAL CONTRACT PRICE                                                       US $ 35,500,000,--
                                                                                     ==================
</TABLE>

in words: US $: Thirty Five Million Five Hundred Thousand only.

As agreed by the Buyer, the Seller has sold futures of the US $ to be received
as per this contract. This business has been fixed with the Bank of the Seller
at the date the contract has been signed. The Buyer agrees to refund to Seller
of all cost which might arise due to non- or late payment and/or opening or
increasing the L/C(s)

2    COUNTRY OF ORIGIN AND MANUFACTURERS: European Community:
     ALD Vacuum Technologies GmbH, Germany

3    PACKING:
     To be packed in new strong wooden cases and suitable for long distance
     ocean transportation and to change of climate, well protected against rough
     handling, moisture, rain, corrosion, and shocks. The Seller shall be liable
     -- to the extent as covered by Seller's transport insurance -- for any
     direct damage of the commodity and direct expenses incurred on account of
     improper packing and for any rust attributable to inadequate or improper
     protective measures taken by the Seller in regard to the packing

4    SHIPPING MARK:
     The Seller shall mark on the four adjacent sides of each package with
     fadeless painting the package number, gross weight, net weight,
     measurement, Contract No., port of destination, consignee code and the
     wordings "KEEP AWAY FROM MOISTURE", "HANDLE WITH CARE", "THIS SIDE UP", the
     lifting position, gravity centre and the shipping mark:

                           LianYunGang Seaport China
                           Jiangsu Yangguang Crystal Sci. & Tech. Co., Ltd.
                           Contract No. 32-000108-01

                       Contract no 32-000108-01 30 10 07

                                  Page 1 of 6
<PAGE>
5    TIME OF SHIPMENT (DATE OF BILL OF LADING)
        1ST LOT CONSISTING OF 12 FURNACES:
        -   4 Furnaces will be delivered April 30, 2008 and
        -   4 Furnaces will be delivered May 31, 2008 and
        -   4 Furnaces will be delivered June 30, 2008 and
        2ND LOT CONSISTING OF 22 FURNACES:
        -   6 Furnaces will be delivered July 31, 2008 and
        -   8 Furnaces will be delivered August 31, 2008 and
        -   8 Furnaces will be delivered September 30, 2008 and
        3RD LOT CONSISTING OF 16 FURNACES:
        -   8 Furnaces will be delivered October 31, 2008 and
        -   8 Furnaces will be delivered November 30, 2008 and
        SPARE PARTS:
        -   Spare Parts which might be delivered in other sequences as the
            furnaces but in any case on or before November 30, 2008

     Provided the Seller has received the down payment(s) as per chapter 10.1.
     and 10.2.

     2007 and the irrevocable documentary L/C in an acceptable wording as per
     section 10.3. on or before:
        -   for the 1st lot Down payment 10.1 and 10.2: NOVEMBER 06, 2007 and
            the L/C: NOVEMBER 14, 2007
        -   for the 2nd lot Down payment 10.2. and L/C as per 10.3: FEBRUARY
            14, 2008
        -   for the 3rd lot Down payment 10.2. and L/C as per 10.3: MAY 15, 2008

     In case receipt of any of the down payments and/or the opening of the
     L/C(s) is delayed
        -   the delivery time will be postponed by a period of time to be
            advised by the Seller and
        -   the Buyer will refund the cost to the Seller caused by such delay,
            i.e. cost for the fulfilment of the futures business Seller has
            concluded with his Bank.

6    LATE DELIVERY AND LIQUIDATED DAMAGES:
     Should the Seller fail to make delivery (i.e. shipment on board the vessel
     as per Clause 5. above) on time as stipulated in the contract, with
     exception of Force Majeure causes specified in Clause 16 of this contract
     or delays not imputable to Seller, the Buyer shall agree to postpone the
     delivery on condition that the Buyer is entitled to claim from Seller
     Liquidated Damages. After an initial grace period of 3 (three) weeks, the
     rate of Liquidated Damages is charged at 0.50% of the value of the goods
     being in delay for every complete week of delay. Such Liquidated Damages,
     however, shall not exceed 5.0% of the total value of the Goods involved in
     the late delivery. Further liabilities of the Seller for delay are
     excluded.

7    PORT OF SHIPMENT: European North-Sea Port

8    PORT OF DESTINATION: LianYunGang Seaport China

9    TRANSPORT INSURANCE: Under CIF terms transport insurance for 110% of the
     invoice value shall be arranged by the Seller

10   PAYMENT TERMS:

10.1 5% of the total contract amount as down payment to be paid against
     presentation of
     -   a down payment invoice showing the same amount in favour of ALD's
         account no. 366829849 with Bayerische Hypo und Vereinsbank,
         Aschaffenburg, Bank Code 795 200 70, SWIFT HYVE DE MM 407
     -   a down payment guarantee issued by Euler Hermes, Hamburg in favor of
         the Customer as per Annex 4 to be presented until November 05, 2007
         (Fax copy will be send in advance)
     to be credited not later than November 06, 2007.

10.2 20% within
     -   from the value of 12 Furnaces including spare parts on November 6, 2007
         and
     -   from the value of 22 Furnaces including spare parts on February 14,
         2008 and
     -   from the value of 16 Furnaces including spare parts on May 15, 2008.

     - details as per the payment scheduled outlined in Annex 1 -- as down
     payment to be paid against presentation of down payment invoice(s) showing
     the same amount in favour of ALD's account no. 366829849 with Bayerische
     Hypo und Vereinsbank, Aschaffenburg, Bank Code 795 200 70, SWIFT HYVE DE MM
     407 to be credited not later than the date fixed above.

     The Seller shall provide a Down Payment Gurantee issued by Euler Hermes for
     the 1st down payment under this article covering the value of the 12
     Furnaces in the wording as per Annex 5. The 2nd and 3rd payment under this
     article shall be released by the Buyer without presentation of a down
     payment guarantee.

10.3 The Buyer shall open an irrevocable, documentary Letter of Credit with a
     first class Chinese Bank in favour of the Seller not later than November
     14, 2007 for 75% of the contract value for the value of 12 Furnaces
     including spare parts.

                       Contract no 32-000108-01 30 10 07

                                  Page 2 of 6

<PAGE>
     The amount of this Letter of Credit shall be increased latest on February
     14, 2008 by 75% of the value of 22 Furnaces including spare parts and shall
     be further increased latest on May 15, 2008 by 75% of the value of 16
     Furnaces.

     The Letter of Credit shall be advised and confirmed by and payable at a
     first class German Bank to be designated by the Seller, not expiring before
     the last payment rate has been paid out.

     The latest date of shipment in the initial L/C shall be the agreed date of
     delivery of the 12th furnace plus 2 months. The time of shipment shall be
     extended latest on February 14, 2008 to agreed date of delivery of the 34th
     Furnace plus 2 months and shall be further extended latest on May 15, 2008
     to the agreed date of delivery of the 50th Furnace plus 2 months.

     Details as per the payment and delivery schedule as per Annex 1. Partial
     shipment and trans-shipment allowed. Period for presentation of documents
     shall be not less than 21 days. The Letter of Credits shall be payable as
     follows:

     75 %   of the contract amount pro rata delivery against Seller's
            presentation of:
        -   Seller's commercial invoice signed in 1 original and 4 Copies,
            indicating the contract no. and shipping mark.
        -   Full set of 3/3 original clean on board Bills of Lading marked
            "Freight pre-paid", indicating Contract No. and shipping mark made
            out to order and blank endorsed, notifying the Buyer.
        -   Packing List in 2 originals and 2 copies issued by the Seller with
            indication of gross weight, net weight, dimension of each package,
            number of packages and content of each package.
        -   Certificate of Quality and Quantity issued by the Seller, in one
            original and two copies
        -   Certificate of Origin in one original and two copies
        -   One copy of a fax to the Buyer, advising particulars of shipment
            within 8 working days after date of B/L is made

        For the L/C of the 1st covering 12 Furnaces:
        -   a Performance Bond for 10% of the value of the partial shipment
            issued by a first class German Bank in favour of the Buyer

        For the L/C of the 2nd and 3rd lot covering 22 and 16 Furnaces:
        -   a Performance Bond for 5% of the value of the partial shipment
            issued by a first class German Bank in favour of the Buyer

     All the banking charges incurred in China shall be borne by the Buyer while
     all the banking charges incurred outside China shall be borne by the
     Seller.

11   INSPECTION AND TESTING:

11.1 The seller shall invite the Buyer in time to attend the inspection and test
     procedure in Germany as described in Chapter 5 of Appendix 2 or one partial
     shipment of furnaces  mutually decided by Buyer and Seller.

11.2 The Inspection and testing period is scheduled to be completed in two (2)
     weeks time. If the Buyer decides not to attend the testing procedure the
     test will be done by the Seller only.

11.3 After arrival of the goods on Buyer's site, the Buyer, with the Seller's
     representatives (if requested by the Seller and if Seller's representative
     arrives in time), has the right apply to the China Entry-Exit Inspection
     and Quarantine (hereinafter referred to as the Entry-Exit Inspection) for a
     preliminary inspection in respect of the quality, specifications and
     quantity/weight of the goods and a Survey Report shall be issued therefore.
     If discrepancies are found by the Entry-Exit Inspection regarding
     specifications of the quantity or both, except when the responsibilities
     lie with insurance company or shipping company, the Buyer shall, within 90
     days after arrival of the goods on Buyer's site, have the right to claim
     against the Seller.

     Should the quality and specifications of the goods be not in conformity
     with contract or should the goods prove defective within the warranty
     period stipulated in Clause 14 for any reason imputable to Seller, the
     Buyer shall arrange for a survey to be carried out by the Entry-Exit
     Inspection and have the right to claim against the Seller on the strength
     of the Survey Report.

12   SHIPMENT:

     The Seller shall ship all the Goods as per scope of supply defined above
     within the time of shipment form the port of shipment to the port of
     destination. Trans shipment and Partial shipments are allowed.

                        Contract no 32-000108-01 30 10 07

                                   Page 3 of 6

<PAGE>
13 SHIPPING ADVICE

13.1 The Seller shall, after the furnace has been successfully tested, arrange
     the shipment of the equipment as soon as possible and shall advise the
     Buyer by fax or e-mail about the details of the shipping

13.2 The Seller shall, within 8 working days after B/L -- date, advise the Buyer
     by fax of the Contract No. commodity, quantity, number of package, invoiced
     value, gross weight, name of vessel, date of B/L and B/L-number, and
     estimated date of arrival etc

14 WARRANTY AND QUALITY:

Seller warrants that the equipment will be constructed in a workmanlike manner,
that it is free from defects in material and manufacture and that, at the time
Seller tenders delivery at the destination point, it will conform substantially
to the Specifications and Designs.

If within 12 months after this first start-up at Buyer's site or within 17
months from FOB delivery or notification that the equipment is ready for
dispatch, whichever is earlier, any item of the equipment proves to be defective
by reason of wrong choice of material, bad workmanship or faulty design, and
such reasons are attributable to Seller, Seller at his choice and expense, and
upon Buyer's prompt written notice - which is to be given at the latest within
fourteen (14) days from the discovery of such defect - shall replace the
defective item by a new one or repair it within a reasonable time after receipt
of buyer's notice. In case more than one furnace is contracted, it is agreed and
understood that each of the furnace will be accepted independently and the
warranty period starts and ends of each of the delivered furnaces independently.

It is clearly understood that Seller's responsibility for parts fabricated
locally and / or bought by Buyer according to Seller's engineering instructions
is limited to the submitted design and engineering.

Seller shall not be responsible for damages arising from natural wear and tear,
corrosion, crucible problems or overloads, damages resulting from improper
handling or faulty operation of the equipment by Buyer or third parties not
hired by Seller, processing of unsuitable materials, damages resulting from the
application of hardware and/or software not supplied by Seller, nor any natural
or other influence not traceable to the Seller. Wear and tear parts, such as
seals, packing, heating elements, gaskets, lubricants, fluids and other working
agents are not covered under the warranty.

The foregoing warranties are definite and Seller makes no other warranties with
respect to the equipment, expressed or implied, including no warranty of
merchantability or of fitness for a particular purpose.

15 CLAIMS:

Within 30 days after the arrival of the goods at the destination should the
specifications, or quantity be found not in conformity with the stipulations of
the contract except those claims for which the insurance company or the owners
of the vessel are liable, the Buyer shall, on strength of the Inspection
Certificate issued by the China Commodity Inspection Bureau, have the right to
claim for repair or for replacement of the defective parts if no repair is
possible and all the direct expenses (i.e. inspection charges and direct cost
for sending the replacement parts of the defective parts, if any , insurance
premium, storage and loading and unloading charges, etc. ) shall be borne by the
Seller, if the Seller is responsible.

In case of any damage occurred by reason imputable to the Seller due to inferior
quality or bad material or bad workmanship during the warranty period of this
contract as per clause 15, the Buyer shall notify the Seller immediately in
writing, but latest within 48 hours after the damage occurred. Upon receipt of
such claim, the Seller shall respond to this claim within 24 hours and shall be
responsible for start of elimination of defects within as soon as possible at
Seller's discretion and at Seller's own cost and risk if the Seller is
responsible. The Seller shall give his opinion to the Buyer within 2 weeks after
he has been informed as mentioned above. If the Seller gives no response after
these 2 weeks period the claim shall be deemed accepted by the Seller. Where
necessary and agreed to by Seller, the Buyer shall be at liberty to eliminate
the defect(s) himself at the Seller's direct expenses on actual and unavoidable
costs.

16 FORCE MAJEURE:

The contract parties shall be released from liability for partial or complete
non-fulfilment of their obligations hereunder if due to Acts of God/Force
Majeure, including but not limited to war, fire, flood, typhoon, earthquake,
strike, embargo or governmental acts or interference's. In such an event, the
contract party suffering from such event shall promptly notify the other
contract party in writing of the beginning and cessation of the circumstances
preventing performance, and the time for fulfillment of the contractual
obligations shall be extended for a period of time equal to that during which
such circumstances have lasted, or for such other reasonable period as the
contract parties may agree upon. In addition, within fourteen days after the
party's notification of a Force Majeure event, such party shall send by airmail
to the other party a certificate issued by the Competent Government Authorities
or Chamber of Commerce where the event occurs as evidence thereof.

Should the Force Majeure period exceed 40 consecutive weeks, either contract
party shall have the right to

                       Contract no. 32-000108-01 30:10.07

                                  Page 4 of 6
<PAGE>

cancel that part of contract under which not shipments have been made. No
liability or penalty shall be imposed on the party suffering from such an event
for damages of any kind incurred or sustained by the other party from delays in
the performance of this contract for the reasons stated above.

17 ARBITRATION:

All disputes in connection with this contract or the execution thereof shall be
settled through friendly negotiations. In case no settlement can be reached, the
case may then be submitted for arbitration in Stockholm in accordance with the
arbitral rules promulgated by the Arbitration Commission (ICC, Paris rules). The
arbitration shall take place in Stockholm, Sweden and the decision of the
Arbitration Commission shall be final and binding upon both parties, neither
party shall seek recourse to a law court nor other authorities to appeal for
revision of the decision. Or the arbitration may be settled in a third country
mutually agreed upon by both parties. Arbitration fee shall be borne by the
losing party. The contract shall be governed by the substantive law of Sweden.

18 EFFECTIVENESS OF CONTRACT:

This contract shall come into force upon its signature by the parties.

Should the Seller not having received the down payments as per Article 10.1 and
10.2 and L/C as per Article 10.3 by November 25, 2007, the delivery time and
price might be increased as advised by the Seller in case payment(s) and/or
opening of the L/C (s) are delayed by more than 2 (two) months, the Seller has
the right to cancel the respective portion of the contract and demand refund of
the cost caused by such delay from the Buyer, if no other agreement is reached
by the parties on a mutual basis.

19 TAXES AND DUTIES:

19.1 All taxes in connection with the execution of this contract levied by the
     Chinese Government on the Buyer in accordance with the tax laws in effect
     shall be borne by the Buyer.

19.2 All taxes arising outside of China in connection with the execution of this
     contract shall be borne by the Seller.

20 GENERAL LIABILITY:

Liability for damage to persons or property is accepted by the Seller only to
the extent covered by the existing insurance (third party liability insurance)
concluded by the Seller. This third party liability insurance for any one
insured event and annual aggregate shall provide insurance cover up to a limit
of (euro)5,000,000 -- for bodily injury and property damage.

Liability of the Seller for delay is limited to the amount of penalty due to
paid to the Buyer as per article 6 whereas further liabilities for delay are
excluded.

Any liability by Seller for consequential damages, loss of profit, or any other
indirect losses or damages is expressly excluded, to the extent that the Seller
does not infringe on compulsory law

21 PASSAGE OF RISK

The risk of loss passes to the Buyer according to the provisions of the
Incoterms 2000, applicable for the delivery condition as stipulated in this
contract.

22 PASSING OF TITLE

The Seller reserves the right of ownership for all deliveries made and services
rendered under the contract until payment of the contract price has been made in
full by the BUYER. The Buyer shall co-operate in any measures necessary for the
protection of Buyer's title, in particular reservation of title in the required
form in public registers or similar records, all in accordance with relevant
laws.

23 SECRECY

It is agreed that all information, data, drawings, etc including the contract
documents itself, which have been submitted or will be submitted in connection
with this contract and also the equipment to be delivered under this contract
are to be considered as Proprietary Information of ALD shall not be divulged to
third parties. The copyright and any and all rights of all such information
shall remain with Seller. In particular, Buyer shall not neither directly nor
indirectly use Seller's design, or Seller's intended design, to build or have
built similar or identical goods neither for himself nor for third parties. It
is agreed that the stipulations under this paragraph survive the expiration of
the contract.

The Buyer shall not allow any competitor of the Seller to have access to
equipment delivered by the Seller.

                       Contract no 32-000108-01 30. 10. 07

                                   Page 5 of 6

<PAGE>

Furthermore the parties have agreed for a period of 10 years after end of the
warranty period under this contract that the information which will be exchanged
in writing and verbally (to be confirmed in writing within a reasonable time)
during the execution of the contract shall be treated confidential by the
receiving Party and shall not be released to any third Party. These undertakings
of secrecy shall not apply to such Information which by reasonable proof.

(a)  is in the possession of the receiving party with free right of disposal
     prior to receipt, or

(b)  is or becomes publicly available through no fault of the receiving party,
     or

(c)  is obtained from a source other than the releasing party in good faith and
     without similar restriction as to its use or disclosure, or

(d)  is agreed in writing by the releasing party to be disclosed by the
     receiving party to customer, potential customer or sub-contractor, or

(e)  is independently developed by the receiving party

24 APPENDICES

The following Appendices form an integral party of this contract:

<TABLE>
<CAPTION>
<S>               <C>
Appendix 1        Price sheet
Appendix 2        Technical Specification No 32-000108-01
Appendix 3        Draft of Performance Bond
Appendix 4        Down Payment Guarantee for the 5% Down payment
Appendix 5        Down Payment Guarantee for the 20% Down payment for the 12 Furnaces
</TABLE>

IN WITNESS THEREOF, this contract is signed by all parties in two original
copies, each party holds one copy. The Appendices of this contract shall be an
integral party of the contract and have the same validity as the contract. In
case of any discrepancies, the wording of this contract shall govern. The
contract is Chinese and English language, in case of conflict the English
version shall govern.

<TABLE>
<CAPTION>
<S>                                                             <C>

                THE BUYER:                                              THE SELLER:
JIANGSU YANGGUANG CRYSTAL SCI. & TECH. CO., LTD                ALD VACUUM TECHNOLOGIES GMBH
              Lianyungang                                               63450 Hanau
             Jiangsu, China                                               Germany

             /s/ PETER YANG                                            /s/ MELNUT BERG
          ---------------------                                  ----------------------------
             MR PETER YANG                                            PPA, MELNUT BERG

      LIANYUNGANG, OCTOBER 30, 2007                              LIANYUNGANG, OCTOBER 30, 2007
</TABLE>

                       Contract no 32-000108-01 30. 10. 07

                                   Page 6 of 6

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