Document:

ex10-55.htm

    Exhibit
10.55

     

    

     

    
      [*]
= 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.

      

      HOKU CHANGE ORDER
4.0

      

      February
10, 2010

      

      Stone
& Webster, Inc.

      Shaw
Energy and Chemicals Group

      1430
Enclave Parkway

      Houston,
TX 77077

      Attn:  Mr.
Ric Sorbo, Sr. VP - Olefins

      

      Dear
Ric:

      

      Pursuant
to Article 8.2 of the Engineering and Procurement Agreement (the “Agreement”) dated
August 7, 2007, by and between Hoku Materials, Inc. (“Owner”) and Stone
& Webster, Inc. (“Contractor”), as
supplemented and amended by Change Order No. 1 dated October 3, 2007, Change
Order No. 2 dated April 1, 2008, and Change Order No. 3, dated February 19, 2009
(collectively, the “Prior Change
Orders”), Owner and Contractor hereby agree to the following Change Order
(as defined in the Agreement).  Capitalized terms not otherwise
defined in this Change Order are defined in the Agreement or the Prior Change
Orders, as applicable.

       

      
        	
                 
      

              	
                1.

              	
                Owner
      and Contractor agree that this Change Order 4 is a complete and final
      settlement and shall serve as an accord and satisfaction for all change
      notices, Change Orders, Modifications, and representations made and
      submitted by Contractor since Change Order 3, and prior to the effective
      date of this Change Order.  Except for the matters specifically
      set forth herein, this Change Order does not amend the Agreement or the
      Prior Change Orders.  In the event of any disagreement between
      the terms of this Change Order, the Agreement, and the Prior Change
      Orders, the terms of this Change Order shall be
    controlling.

              

      

       

      
        	
                 
      

              	
                2.

              	
                Exhibit
      D to the Agreement is hereby amended such
that:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Effective
      immediately, Contractor’s Payroll Burdens and Overhead will be billed at
      [*] times all Base Wages actually expended by Contractor’s employees on
      the Work, and Contractor’s Fee rate shall be [*]%  for all work
      performed by Contractor after the effective date of this Change Order No.
      4.  Effective immediately, contract (agency) personnel used in
      the performance of the Work shall be billed to Owner at [*] times the
      invoice amount received from agency plus a fee of [*] percent, which shall
      be applied for all work performed by Contractor after the effective date
      of this Change Order No. 4.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Once
      Contractor’s total hours expended for all Work performed after the
      effectiveness of this Change Order reach [*] (the “PCO Hours”),
      Contractor’s Payroll Burdens and Overhead will be billed at: (i) [*] times
      all Base Wages for the hours in excess of the PCO Hours (the “Excess Hours”)
      that are actually expended by Contractor’s employees on the Work, and
      Contractor’s Fee for the Excess Hours shall be [*]%; and (ii) [*] times
      the invoice amount received from agency for any contract (agency)
      personnel used in the performance of the Work, and Contractor’s Fee for
      the Excess Hours shall be [*]%.

              

      

       

       

      
        One Hoku
Way · Pocatello, Idaho 83204 · Tel 808-682-7800 · Fax 808-440-0357 ·
www.hokumaterials.com

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
      

       

      
        	 	

                Mr.
      Ric Sorbo

                Stone
      & Webster, Inc.

                February
      10, 2010

                Page
      2 of 4

              

      

       

       

      
        	
                 
      

              	
                (c)

              	
                Contractor
      shall not charge Owner for any premium for overtime, whether or not
      Contractor is legally obligated to pay its employees overtime pay (e.g.
      1.5 times salary).  For avoidance of any doubt, Owner, agrees to
      pay Contractor for overtime worked at the agreed upon straight time rate
      for all actual hours worked.

              

      

       

      
        	
                 
      

              	
                3.

              	
                The
      third paragraph of Section 10.1.1 regarding payment of invoices is hereby
      deleted in its entirety and replaced with the
  following:

              

      

       

      The Owner
shall make payment to the Contractor not later than the [*] day after receipt of
each Application for Payment.  Contractor shall have the right to
terminate this Agreement if payment is not made by such date, provided that
Owner may cure such payment default within 48 hours after Contractor’s written
notification (including by email) of its intention to terminate this Agreement
for non-payment.

       

      
        	
                 
      

              	
                4.

              	
                Effective
      upon submission of the next Application for Payment following the
      execution of this Change Order, Owner shall withhold [*] percent retainage
      pursuant to Section 10.1.1.2 of the Agreement from only those amounts
      invoiced by Contractor after the effective date of this Change Order;
      provided, however, that all retainage amounts so withheld shall be paid to
      Contractor not later than July 31,
2010.

              

      

       

      
        	
                 
      

              	
                5.

              	
                Owner
      and Contractor acknowledge and agree that Owner has a past due balance
      owing to Contractor of $1,797,000 (the “Prior Invoice”)
      and retainage shall not be withheld on such amount.  As soon as
      practicable after Owner receives payment of an aggregate of $50 million in
      loan proceeds from Tianwei New Energy Holdings Co., Ltd., but not later
      than March 15, 2010,  Owner shall initiate the remittance to
      Contractor of $1 million of the Prior Invoice via wire
      transfer.  The balance of the Prior Invoice will be paid in
      increments of $400,000 within 30 days thereafter, and $397,000 within
      sixty days after payment of the $1
million.

              

      

       

      
        	
                 
      

              	
                6.

              	
                Provided
      that payment of the Prior Invoice is made in accordance with the schedule
      described in Paragraph 5 above, Contractor agrees
  to:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                waive
      any and all interest, fees, and expenses related to the Prior Invoice to
      which it may otherwise be entitled pursuant to the
    Agreement.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                waive
      any and all fees, costs, and expenses for Work performed since the Prior
      Invoice through December 1, 2009.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Forebear
      from foreclosing on any liens it may have filed with respect to the Prior
      Invoice.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        
          	 	

                  Mr.
      Ric Sorbo

                  Stone
      & Webster, Inc.

                  February
      10, 2010

                  Page
      3 of 4

                

        

         

      

      
        	
                 
      

              	
                7.

              	
                Pursuant
      to a letter dated July 14, 2009, Owner suspended all Work under the
      Agreement.  Accordingly, the scheduled dates stipulated in
      Exhibit B to the Agreement are no longer valid.  Therefore, the
      liquidated damages specified in Addendum 1 to Exhibit D of the amended
      Agreement are hereby waived by Owner and Contractor shall have no
      liability for any failure to achieve such dates listed in the schedule or
      Agreement.

              

      

       

      
        	
                 
      

              	
                8.

              	
                Owner
      acknowledges that a majority of Contractor’s Work will be transferred from
      Cambridge, Massachusetts to Toronto, Canada.  Contractor will
      use commercially reasonable efforts to meet Owner’s personnel requirements
      as follows:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                [*]
      will be assigned as the Engineering Manager.  [*],
      Civil/Structural Lead, and [*], Electrical Lead, who are currently
      assigned to other projects, will be made available on an as-required basis
      to supervise the work of lead engineers in Contractor’s Toronto office,
      where Civil/Structural, Electrical, I&C and Piping discipline
      activities are expected to be transferred for completion.  [*],
      as the Chief in Cambridge, will travel to, and support the efforts in,
      Toronto. [*] and [*] will be assigned to Owner’s activities in Toronto.
      [*] will be Procurement Lead.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                In
      addition, [*] will be Civil/Structural Lead, [*] will be Electrical Lead,
      [*] will be I&C Lead and [*] will be Piping Lead. [*],
      Civil/Structural Chief who has an Idaho PE stamp, will also be available
      for the Project.

              

      

       

      
        	
                 
      

              	
                9.

              	
                At
      Owner’s request, Contractor will use commercially reasonable efforts to
      assign the necessary personnel to Pocatello, Idaho, for on-site
      engineering services.

              

      

       

      
        	
                 
      

              	
                10.

              	
                Owner
      will use commercially reasonable efforts to cause its general construction
      contractor, JH Kelly LLC, to assign one or more of its key personnel to
      Contractor’s office in Cambridge, Massachusetts or Toronto, Canada, to
      coordinate construction engineering, and to cooperatively manage the
      coordinated Project schedule.

              

      

       

      
        	
                 
      

              	
                11.

              	
                Owner
      hereby covenants and agrees that Contractor shall be given an opportunity
      to submit a bid to complete the Work related to the TCS Functional Areas
      before Owner awards a contract for such Work to any third
      party.  Owner shall provide Contractor with no less than four
      weeks’ prior written notice to submit such bid.  Notwithstanding
      anything to the contrary herein, Owner shall have no obligation to award
      any contract for Work related to the TCS Functional Areas to
      Contractor.

              

      

       

      
        	
                 
      

              	
                12.

              	
                Owner’s
      payment of $1 million pursuant to Paragraph 5
      above shall constitute Owner’s direction to Contractor to immediately
      resume the Work for the Functional Areas, in accordance with the
      Agreement, the Prior Change Orders, and this Change
  Order.

              

      

       

      
        	
                 
      

              	
                13.

              	
                This
      Change Order shall, at the sole option of Contractor, become voidable in
      the event that Owner fails to pay Contractor $1 million by March 15, 2010,
      pursuant to Paragraph 5
  above.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        
          	 	

                  Mr.
      Ric Sorbo

                  Stone
      & Webster, Inc.

                  February
      10, 2010

                  Page
      4 of 4

                

        

         

      

      Please
sign below to acknowledge your agreement with this Change Order
4.0.

      

      Sincerely
yours,

      

      HOKU
MATERIALS, INC.

      

      

      By:           /s/ Scott
Paul

      

      Name:           Scott
Paul

      

      Title:           COO   2/16/2010

      

      

      Acknowledged
and agreed as of February 10, 2010.

      

      STONE
& WEBSTER, INC.

      

      By:           /s/ Harvey
Vigneault

      

      Name:           Harvey
Vigneault

      

      Title:           EVP – Worldwide
Opsex10-56.htm

    Exhibit 10.56

     

    
      [*]
= 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.

       

      Amendment
No. 4 to

       

      Second
Amended & Restated Supply Agreement

       

      This
Amendment No. 4 to Second Amended & Restated Supply Agreement (this “Amendment”)
is entered into as of the last date set forth on the signature page hereto, by
and between Hoku Materials, Inc., a Delaware corporation (“HOKU”),
and Solarfun Power Hong Kong Limited, a company registered in Hong Kong (“SOLARFUN”).  HOKU
and SOLARFUN are each a “Party” and together the “Parties” to this
Amendment.

       

      Recitals

       

      Whereas,
HOKU and SOLARFUN are Parties to that certain Second Amended & Restated
Supply Agreement dated as of May 13, 2008, (the “Supply Agreement”) as amended
by that certain Amendment No. 1 to Second Amended & Restated Supply
Agreement dated as of October 22, 2008, that certain Amendment No. 2 to Second
Amended & Restated Supply Agreement dated as of March 26, 2009, and that
certain Amendment No. 3 to Second Amended & Restated Supply Agreement dated
as of November 15, 2009 (collectively, the “Agreement”);

       

      Whereas,
SOLARFUN has paid $45 million to HOKU as a prepayment for future Product
shipments pursuant to the Agreement;

       

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

       

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

       

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

       

      Agreement

       

      1.           Effectiveness.  This
Amendment shall become effective upon HOKU’s receipt of Four Million U.S.
Dollars (USD $4,000,000.00) pursuant to Section 5.2.2 of the
Agreement.  Solarfun will process the payment as soon as
possible.  If such payment is not received on or before March 1, 2010,
then this Amendment shall be voidable at HOKU’s sole and absolute
discretion.  In the event that this Amendment is voided by HOKU, then
the Agreement shall continue in full force and effect.

       

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

       

      3.           Amendment of Section
3.3.  The reference to March 31, 2010 in Section 3.3 of the
Agreement (as amended by Amendment No. 2) is hereby changed to September 30,
2010.

       

      4.           Amendment of Section
3.4.  Section 3.4 of the Agreement is hereby deleted in its
entirety, and replaced with the following:

       

      3.4.           [Reserved].

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      5.           Amendment of Section
4.3.  The reference to January 1, 2010 in Section 4.3 of the
Agreement (as amended by Amendment No. 2) is hereby changed to July 1,
2010.

       

      6.           Amendment of Section
5.2.3.  Section 5.2.3 of the Agreement is hereby amended and
restated to read as follows:

       

      5.2.3           Six
Million U.S. Dollars (USD $6,000,000.00) of the Main Deposit (the “Fourth
Deposit”) shall be paid to Hoku in accordance with the following
schedule:

      

      (a) One Million Five Hundred Thousand
U.S. Dollars (USD $1,500,000.00) of the Main Deposit shall be paid to HOKU on
the First Shipment Date.

      

      (b)  One Million Five Hundred
Thousand U.S. Dollars (USD $1,500,000.00) of the Main Deposit shall be paid to
HOKU one month after the First Shipment Date. with each such portion of the
Fourth Deposit being invoiced separately on the date of shipment, and being
payable to HOKU within fifteen (15) calendar days after receipt of the
applicable invoice (the “Fourth Deposit
Date”).

      

      (c)   Three Million U.S.
Dollars (USD $3,000,000.00) of the Main Deposit shall be paid to HOKU three
months after the First Shipment Date.

      

      (d)   For
purposes of triggering the release of any portion of the Fourth Deposit pursuant
to Subsection (a), (b), or (c) above, HOKU must ship Product to SOLARFUN that is
manufactured by HOKU at HOKU’s Facility.

       

      7.           Reduction in
Pricing.

       

      7.1.               Subject
to the effectiveness of this Amendment, pursuant to Section 1 above, the price per kilogram of Products
to be shipped during the first Year of the Agreement shall be reduced to
[*].

       

      7.2.               Effective
only upon HOKU’s receipt in full of the Fourth Deposit pursuant to Section 5.2.3
(c) of the Agreement (as added by Section 6 above), the price per kilogram of
Products to be shipped during the second Year of the Agreement shall be reduced
to [*].

       

      For the
avoidance of doubt, in the event that SOLARFUN fails to make any payment when
due pursuant to Section 5.2.3 of the Agreement, in addition to any other rights
and remedies that HOKU may pursue pursuant to the Agreement, the pricing
reduction shall not be effective, and the pricing on Appendix 1 of the Agreement
shall continue to be in effect.

       

      8.           Increase in Term and
Volume.  Subject to the effectiveness of the reduction in
pricing pursuant to Section 7 above,
HOKU and SOLARFUN agree to add one additional Year to the term of the Agreement,
such that the term is increased to eleven (11) Years.  The aggregate
volume to be shipped to SOLARFUN during the eleventh Year is [*] metric tons,
and the price per kilogram of Product delivered during such Year shall be [*],
or the price as determined according to the quarterly business reviews per
Section 11 below.

       

      9.           Amendment of Section
9.1.  The reference to June 30, 2010 in Section 9.1 of the
Agreement (as amended by Amendment No. 2) is hereby changed to December 31,
2010.

       

      10.           Amendment of Section
9.2.5.  The reference to June 30, 2010 in Section 9.2.5 of the
Agreement (as amended by Amendment No. 2) is hereby changed to December 31,
2010.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      11.           Semi-Annual / Quarterly
Business Reviews.  Starting on September 30, 2010 and for the
following two years, HOKU and SOLARFUN will hold semi-annual business reviews to
discuss current market conditions, each company’s business plans and finances,
and other relevant issues, such as current developments in market pricing and
the difference between the current market price and the contract
price.  From the third year until the end of the contract, these
reviews will be held on a quarterly basis.  These reviews will be held
with the intention of assuring that each company is supporting the other as a
long-term customer or supplier, as applicable.

       

      12.           Time & Location for
Performance.  All dates and times set forth in this Amendment
shall be the day and time in New York, USA.

       

      13.           Integration &
Survival.  Except for the amendments specifically set forth
above, the terms of the Agreement shall continue in full force and effect mutatis
mutandis.  This Amendment and the Agreement constitute the
entire agreement between the Parties concerning the subject matter
hereof.

       

      14.           Miscellaneous.  Except
where the terms of this Amendment conflict with the Agreement, the “General
Provisions” set forth in Section 13 of the Agreement, including, without
limitation, provisions concerning the choice of law and means for dispute
resolution between HOKU and SOLARFUN, shall apply to this
Amendment.  In the event of any conflict between the terms of this
Amendment and the Agreement, the terms of this Amendment shall
control.

       

      IN
WITNESS WHEREOF, the Parties have executed this Amendment No. 4 to Second
Amended & Restated Supply Agreement as of the last date set forth
below.

       

      
        	
                SOLARFUN:

                 

                SOLARFUN
      POWER HONG KONG LIMITED

                 

                By:         
      /s/ Ping Peter Xie

                 

                Name:     Ping Peter Xie

                 

                Title:       President

                 

                Date:       March 1, 2010

              	
                HOKU:

                 

                HOKU
      MATERIALS, INC.

                 

                By:        /s/ Scott Paul

                 

                Name:    Scott Paul

                 

                Title:      Chief Operating Officer

                 

                Date:      March 1, 2010

                 

              
	 
      	 
      

      

      

       

       

      3

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