Document:

exhibit10-80.htm

Exhibit 10.80

Singapore Themed Hotel & Eco-City Development Project

Joint-Venture Agreement

Party A : JiaSheng Property Development Company

Located: Chongqing Hechuan Ruishan Road

Legal Rep:Zhang Xiao Dong

Party B: Trio-Tech (Chongqing) Co.,Ltd

Location: Chongqing Beipei District

Legal Rep: Ting Hock Ming

Party A and Party B shall on this date 01 December, 2010, enter into an agreement to jointly develop a Singapore themed Hotel and Eco-City project in Hechuan Nanjing Street XiaoAnXi district, HouXi Village whereby:

1.  Details of Co-Operation

1.1  Project Name: Singapore Themed Hotel Resort and Eco City (hereinafter referred to as: ”Project” )

1.2  Project Description Low carbon sanitoriums and wellness center, South East Asian themed shopping belt, commercial hotels, tourist resorts, eco-residences etc .

1.3  Location; The project shall be located at Hechuan XiaoAnXi district,north of HouXi Village TongXi Town

2.  Mode of Co-operation

2.1  In order to execute the agreement “Development of a Singapore themed Hotel and Eco-City Project “Party B signed with the Hechuan government, both Party A and Party B agreed to form a joint venture company to execute the Project. All financial and legal responsibilities related to the Project will be transferred to the newly formed company.

2.2  Party A will contribute an initial capital of RMB 40 million and Party B will contribute an initial capital of RMB 10 million towards the registered share capital of the Joint Venture Company.

3.  Responsibilities for Investment Expenses

3.1  All expenses and costs incurred after the signing of the agreement between Party B and the HeChuan government pertaining to the Project shall be borne by the newly formed joint venture.

4.  Project and Financial Management, Financing Matters:

4.1  The joint-venture company shall set up a bank account and the capital contribution by both Parties A and B shall be credited into this amount. The bank account shall be jointly managed by both Parties A and B.

4.2  Party B shall delegate 1 to 2 management staff to the Joint-venture and all costs incurred shall be borne by the newly formed joint venture.

4.3  Party A shall be responsible for the sources of funds and all funds raised under this Project shall solely be used for the purpose of the Project.

  

  

  

 

5.  Sharing of Profits and losses

 

5.1  Both Parties agree to share the profit and losses incurred by the joint-venture according to their actual shareholding in the  joint-venture.

6.  Responsibilities for Income Tax

6.1  Party A and Party B shall each bear their respective income tax payable on profits distributed by the joint-venture.

7.  Management Fees

7.1 Party A shall pay Party B RMB 10 million as management fee and the payment shall be arranged as :

i)     The first RMB 5 million shall be paid by Party A to Party B within 10 working days upon the signing of the agreement between Party B and HeChuan government on Singapore Themed Hotel and Eco-City Project.

ii)   The second RMB 5 million shall be paid 36 months in installments of RMB 70,000 per month after Party B has secured the Project mentioned herein.

8.  Dispute Resolution

8.1  Any matters not covered within this agreement can be discussed covered under a supplementary agreement and the supplementary agreement shall have the same legal effect as this agreement.

8.2  In the event of a dispute arising from this agreement, both parties should first seek resolution via mutual discussion. In the event that mutual discussion fails, either party can bring the dispute matter up to the local court for resolution.

9.  Legal Effect

9.1  This agreement shall be in two original copies. Party A and Party B shall each hold one original. Both agreements shall have the same legal effect

9.2  This agreement is signed and sealed by both parties herein.

Party A: JiaSheng Property Co, Ltd

Legal Rep:

Date:

Place:

Party B: JiaSheng Property Co, Ltd

Legal Rep:

Date:

Place:ex10-10.htm

Exhibit 10.10

 

NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the Registrant to the Securities and Exchange Commission (the “Commission”).  Such portions have been redacted and are marked with a “[***]” in the place of the redacted language.  The redacted information has been filed separately with the Commission.

 

August 17, 2010

 

JH KELLY LLC

831 3rd Avenue

Longview, WA  98632

Attn:  Mason Evans, President

 

Dear Mason:

 

Pursuant to Article 8.1 of the Cost Plus Incentive Construction Contract dated August 8, 2007, by and between Hoku Materials, Inc. (“Owner”) and JH Kelly LLC (“Contractor”), as modified by Change Order No. 1 dated October 3, 2007 (“Change Order No. 1), Change Order No. 2 dated April 7, 2008 (“Change Order No. 2”), Change Order No. 3 dated March 27, 2009 (“Change Order No. 3”) and Change Order No. 4 dated September 18, 2009 (“Change Order No. 4”, and collectively with Change Order No. 1, Change Order No. 2, Change Order No. 3 and the Cost Plus Incentive Contract, the “Contract”), Owner and Contractor hereby agree to the following Change (as defined in the Contract). Capitalized terms not otherwise defined in this Change are defined in the Contract.

 

(1)      Contractor acknowledges payment received from Owner for Contractor’s July 7, 2010 invoice in the amount of $7,590,095 and Contractor’s August 4, 2010 invoice in the amount of $17,741,235.71, and further acknowledges that it has previously commenced hiring additional Project personnel and currently has at least three hundred. (300) personnel on site.

 

(2)      The date for completion of “Partial Commercial Operation” (“PCO”) as described in Exhibit B to the Contract (including the Schedule Incentive Completion Dates as amended and restated in Change Order Nos. 3 & 4) is hereby modified and, subject to the provisions herein, now scheduled to be accomplished on or before December 31, 2010 for schedule and bonus purposes. In connection therewith, both Contractor and Owner agree to use their best efforts to attain PCO by that date with incremental funding from the Owner in the amount ~$55.8MM (said amount as further defined in Contractor’s Transmittal #JHK1006 to Owner dated July 30, 2010); provided however, that nothing herein shall (a) fix the Contract amount or guarantee that PCO will be obtained for the above referenced funding amount or (b) in any way alter or diminish the provisions of Section 3.11.3 of the Contract, (and said provisions shall also apply to the mutually developed Monthly Milestones referenced below).

 

(3)      The Owner and Contractor agree to the monthly Project milestones for the month of August, as set forth in Exhibit A attached hereto (the “August Milestones”). The Owner and Contractor shall immediately begin mutually developing monthly Project milestones for the months of September through December, 2010, including the budget allocated to each such milestone (the “Monthly Milestones”). In connection therewith, Owner will hire a qualified independent engineer (the “IE”) to help the parties develop the Monthly Milestones and to assess whether or not each of the Monthly Milestones has been achieved. Contractor will continue to provide monthly billings based on forecasted cost and manpower levels relative to the Monthly Milestones. The monthly billings thereafter (beginning in September) will be paid via wire transfer within 10 days after achievement of the Monthly Milestones for that month (for example, if the September Monthly Milestones are deemed complete on September 30, then the payment must be made by October 10). In connection therewith, once Contractor has completed a given Monthly Milestone, it shall provide written notice to Owner of the same. Owner agrees to review (along with the IE) all completed Monthly Milestones within forty-eight (48) hours of receipt of Contractor’s notice. If Owner determines that a Monthly Milestone has not been met, the matter will be reviewed by the IE. If the IE concurs with the Owner that the particular Monthly Milestone(s) has not been met, Owner may withhold the monthly payment budgeted for the unmet Monthly Milestone(s) until it is deemed complete by Owner or the IE. Upon the Monthly Milestone(s) being deemed complete by Owner or the IE, Owner shall remit payment for the withheld Monthly Milestone in the next monthly billing cycle (e.g., if a September Monthly Milestone is deemed complete in October, payment for that Monthly Milestone shall be paid in November with the October Monthly Milestone payment). Monthly Milestone completion disputes not resolved hereunder shall be subject to the dispute resolution provisions within the Contract.

 

  

  

  

 

		
Mason Evans

JH KELLY LLC

August 17, 2010

Page 2 of 3

 

 

(4)      The Parties acknowledge and agree that Contractor has successfully completed and earned the $1,500,000 bonus for the Preliminary Reactor Installation. Rather than deferring payment of said bonus until the completion of the Contract, Owner hereby agrees to pay Contractor $375,000 per month upon completion of all Monthly Milestones in September, October, November and December in full satisfaction of this bonus payment obligation (i.e., when September Monthly Milestones are deemed achieved, the $375,000 shall be paid by Owner with the September Monthly Milestone payment, with the same procedure in October, November and December).

 

(5)      To provide Contractor with a greater degree of certainty and security with respect to Owner’s ability to pay for the Work, on or before August 31, 2010, Tianwei New Energy Holdings Co. LTD (“Tianwei”) and/or Owner, will secure a standby letter of credit in the amount of $20MM for the benefit of Contractor (the “LOC”). The LOC will be drawn on a mutually agreeable bank with ties to the United States and be accessible by Contractor in the event Owner is ten (10) days’ past due on any payment owing.

 

(6)      Except for the Modifications specifically set forth above, this Change Order No. 5 does not amend the Contract, and all such terms and conditions shall remain in full force and effect. Please sign below to acknowledge your agreement with this Change.

 

Sincerely yours,

 

/s/ Scott B. Paul                                                      

HOKU MATERIALS, INC.

Scott B. Paul, CEO

 

Attachments

 

Acknowledged and agreed as of this 17 day of August 2010.

 

JH KELLY LLC

 

/s/ Mark Fleischauer                                                      

Mark Fleischauer, Vice President

 

  

  

  

 

Exhibit A

 

August Milestones

 

[***]

 

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

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