Document:

Unassociated Document

    
      Exhibit
        10.71

       

      [*]
        =
        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.

       

      EQUIPMENT
        PURCHASE & SALE AGREEMENT

       

      This
        Equipment Purchase & Sale Agreement (this “Agreement”),
        entered into as of April 8, 2008 (the “Effective
        Date”),
        by
        and between PVA TEPLA DANMARK, a corporation organized and existing under
        the
        laws of the Kingdom of Denmark (hereinafter “SELLER”),
        and
        HOKU MATERIALS, INC., a corporation organized and existing under the laws
        of the
        State of Delaware (hereinafter “BUYER”).
        SELLER
        and BUYER are each a “Party”
and
        together, the “Parties.”

       

      Recitals

       

      WHEREAS,
        SELLER is a manufacturer and provider of equipment and related services for
        the
        polycrystalline silicon industry; 

       

      WHEREAS,
        BUYER is building a manufacturing facility for the production of polycrystalline
        silicon in Idaho, USA; and 

       

      WHEREAS,
        subject to the terms and conditions set forth in this Agreement, BUYER intends
        to purchase from SELLER and SELLER intends to sell to BUYER, the equipment
        and
        other Deliverables (as defined below) for use in BUYER’s polycrystalline silicon
        production plant; 

       

      NOW,
        THEREFORE, pursuant to the terms and conditions and the mutual consideration
        set
        forth herein, and for other good and valuable consideration, the receipt
        and
        sufficiency of which are acknowledged hereby, BUYER and SELLER agree as
        follows:

       

      Agreement

       

      1. Definitions.
        The
        following capitalized terms used in this Agreement shall have the meanings
        set
        forth below: 

       

      1.1. “Certificate
        of Commissioning”
shall
        mean the certificate, in substantially the form of Appendix
        7
        attached
        to this Agreement, to be signed by an officer of BUYER and an officer of
        SELLER
        after the successful completion of the Commissioning Test.

       

      1.2. “Commissioning
        Test”
shall
        mean the test to be completed by SELLER in the presence of BUYER at the Work
        Site that follows the procedures described in Appendix
        5
        to
        confirm that all Equipment meets the Technical Specifications.

       

      1.3. “Deliverables”
shall
        mean, collectively, all Equipment, Technical Documentation and Technical
        Services to be provided by SELLER to BUYER pursuant to this
        Agreement.

       

      1.4. “Equipment”
shall
        mean the following items of equipment as more fully described in Appendices
        1-2:

       

      
        
          
            	
                    SELLER
                      Initials & Date        
                      25/3-08
                      JB                                  
                      

                  	 	
                    BUYER
                      Initials & Date   DN
                      4/8/08                                  

                  

          

        

      

    

     

    
      
        
        

      

      
        Page
          1 of
          21

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Item

              	 	
                Quantity

              	 	
                Price
                  Each

              	 	
                Total

              	 
	
                SR-110
                  Slim rod pullers, as described in Appendix
                  1

              	 	 	
                
                  [*]

                

              	
                 

              	 	
                
                  [*]

                

              	
                 

              	 	
                
                  [*]

                

              	
                 

              
	
                FZ-14M
                  analytic Float zone crystal puller, as described in Appendix
                  2

              	 	 	
                
                  [*]

                

              	
                 

              	 	
                [*]

              	
                 

              	 	
                
                  [*]

                

              	
                 

              
	
                 

              	 	 	 	 	 	
                Total 

              	 	
                $

              	
                6,359,995.00

              	 

      

       

      SELLER
        will utilize its best efforts to acquire slim rods on behalf of
        BUYER.

       

      1.5. “Factory
        Acceptance Certificate”
shall
        mean the certificate, in substantially the form of Appendix
        6
        attached
        to this Agreement, to be signed by an officer of BUYER and an officer of
        SELLER
        after the successful completion of the Factory Acceptance Test. 

       

      1.6. “Factory
        Acceptance Test”
shall
        mean the test to be completed by SELLER in the presence of BUYER at the SELLER
        Facility that follows the procedures described in Appendix
        4
        to
        confirm that all Equipment meets the Technical Specifications.

       

      1.7. “Port
        of Shipment”
shall
        mean Copenhagen, Denmark. 

       

      1.8. “Port
        of Unloading”
shall
        mean a port in the USA to be determined by the BUYER.

       

      1.9. “SELLER
        Facility”
shall
        mean the facility where SELLER is manufacturing the Equipment, located at
        Smedetoften 4, DK-3600 Frederikssund, Denmark.

       

      1.10. “Technical
        Documentation”
shall
        mean the documentation (in English language) that includes the technical
        data,
        specifications, drawings, inspection, erection, commissioning, performance
        testing, operating and maintenance of Equipment, as specified in Appendix
        3.

       

      1.11. “Technical
        Services”
shall
        have the meaning set forth in Section 6
        below.

       

      1.12. “Technical
        Specifications”
means
        the operating and other specifications of the Equipment set forth on
Appendices
        1 and 2 attached
        hereto.

       

      1.13. “Warranty
        Period”
shall
        mean the period beginning on the Effective Date and ending twelve (12) months
        after the Certificate of Commissioning has been signed by BUYER and
        SELLER. 

       

      1.14. “Work
        Site”
shall
        mean the BUYER’s polysilicon plant located in Pocatello, Idaho USA.

       

      2. Purchase
        & Sale Commitment

       

      2.1. Subject
        to the terms and conditions set forth herein, BUYER agrees to buy from SELLER,
        and SELLER agrees to sell to BUYER, the Deliverables.

       

      3. Payment
        Terms

       

      3.1. BUYER
        shall pay to SELLER the aggregate purchase price for the Equipment ordered
        pursuant to this Agreement at the per-unit price set forth in
        Section 1.4
        above as
        the total payment for all Deliverables under this Agreement (the “Agreement
        Price”)
        in
        accordance with the following schedule: 

       

      
        
          
            
              	
                      SELLER
                        Initials & Date        
                        25/3-08
                        JB                                  
                        

                    	 	
                      BUYER
                        Initials & Date   DN
                        4/8/08                                  

                    

            

          

        

      

       

    

    
      
        
        

      

      
        Page
          2 of
          21

        
          

        

      

      
        
        

      

    

     

    
        
        3.1.1. Within
        one hundred and twenty (120) days after the Effective Date, BUYER shall pay
        to
        SELLER 30% of the Agreement Price as an initial payment (the “Initial
        Payment”).
        Notwithstanding anything to the contrary in this Agreement, BUYER may terminate
        this Agreement at any time prior to making the Initial Payment, and shall
        thereupon have no liability or further obligation to SELLER pursuant to this
        Agreement.

       

      3.1.2. Within
        thirty (30) days after BUYER and SELLER sign the Factory Acceptance Certificate,
        and upon receipt of an invoice from SELLER, BUYER shall pay to SELLER 50%
        of the
        Agreement Price. SELLER shall not be required to ship the Equipment until
        such
        payment has been received by SELLER.

       

      3.1.3. Within
        thirty (30) days after BUYER and SELLER sign the Certificate of Commissioning,
        and upon receipt of an invoice from SELLER, BUYER shall pay to SELLER 15%
        of the
        Agreement Price Following receipt of such payment, title to the Equipment
        shall
        pass to BUYER, free and clear of all liens, third party claims and
        encumbrances.

       

      3.1.4. Within
        thirty (30) days after the later of (A) the expiration of the Warranty Period
        (as defined in Section 1.13
        above),
        and (B) the final settlement or adjudication of all outstanding warranty
        claims
        pursuant to Section 7.3
        below,
        BUYER shall pay to SELLER a final payment of 5% of the Agreement Price less
        all
        amounts that have been validly deducted to satisfy warranty claims pursuant
        to
        Section 7.3
        below.

       

      3.2. The
        Agreement Price includes all excise, sales, use, import, export or other
        similar
        taxes (collectively “Taxes”)
        levied
        by Germany, Denmark, the European Union, or any other authority in Europe,
        which
        shall be for SELLER’s account; provided that the Agreement Price does not
        include Taxes levied by the United States, the State of Idaho, or any other
        authority in the United States, which shall be for BUYER’s account.

       

      3.3. BUYER
        shall provide SELLER with five (5) copies of each invoice for the applicable
        payment pursuant to Section 3.1
        above.
        Shipping costs and expenses, Taxes, customs and duties, if any, will be
        identified as separate items on SELLER’s invoices. All invoices shall be sent to
        BUYER’s address specified in Section 15.4
        below,
        unless an alternate address is provided. All payments shall be made in U.S.
        Dollars. 

       

      3.4. BUYER
        shall be responsible for all transportation charges, duties or other charges
        for
        shipping and handling; thus, the price for the Deliverables shall not include
        any such charges; provided, however, that the Equipment shall be in one lot
        suitably packed for sea transport to the Work Site, FOB Port of Shipment,
        according to Incoterms 2000; and provided, further, that SELLER shall pay
        for
        all shipping, insurance, and related costs and expenses incurred in transporting
        the Equipment from the SELLER Facility to the Port of Shipment until the
        Equipment is transferred FOB to the common carrier. 

       

      3.5. All
        payments to SELLER shall be effected by wire transfer to SELLER’s bank pursuant
        to the following account information: 

       

      Danske
        Bank

      Holmens
        Kanal 2-12

      DK-1092
        Copenhagen K

      Denmark

      Telex
        27000-SWIFT-BIC: DABAKKK

      IBAN
        No.
        DK 1530003430288997

      Account
        no. 3430 288997

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        Page
          3 of
          21

        
          

        

      

      
        
        

      

    

     

    PVA
      TePla
      Danmark

     

    4. Shipment;
      Documentation & Packing

     

    4.1. Timing
      of Shipment.
      Provided that SELLER has been paid in the aggregate 80% of the Agreement Price,
      all Equipment shall be delivered FOB to the Port of Shipment, within ten (10)
      months after BUYER pays to SELLER the Initial Payment (the “Shipment
      Date”);
      provided, however, that SELLER shall use its best efforts to deliver one (1)
      SR-110 Slim rod puller (as described in Appendix 1) FOB to the Port of Shipment
      within six (6) months after BUYER pays to SELLER the Initial Payment (and
      provided that, prior to shipment, SELLER has been paid in the aggregate 80%
      of
      the applicable purchase price for such one (1) Slim rod puller prior to
      shipment), except that SELLER shall not be liable for paying liquidated damages
      pursuant to Section 4.4
      below if
      SELLER is unable to meet this six-month delivery date.

     

    4.2. Shipping
      Documentation.
      Prior
      to shipment, SELLER shall remit to BUYER the following
      documentation:

     

    4.2.1. At
      least
      fourteen (14) days prior to shipment of the Equipment, SELLER shall notify
      BUYER
      by Fax of the following information:

     

    
      	 	
              (a)

            	
              Total
                volume

            

    

    
      	 	
              (b)

            	
              Total
                gross weight of packages

            

    

    
      	 	
              (c)

            	
              Total
                number of packages

            

    

    
      	 	
              (d)

            	
              Port
                of Shipment

            

    

    
      	 	
              (e)

            	
              Port
                of Unloading

            

    

    
      	 	
              (f)

            	
              Name,
                weight, IMCO No. (as per International Maritime Dangerous Goods Code)
                of
                the dangerous and/or inflammable
                goods

            

    

     

    4.2.2. At
      least
      fourteen (14) days prior to shipment of the Equipment, SELLER shall send to
      BUYER via international courier at least six (6) copies of the
      following:

     

    
      	 	
              (a)

            	
              Detailed
                packing list describing with specificity all Equipment included with
                the
                applicable shipment, including Equipment specification, type, quantity,
                unit/total price, unit weight, unit/total volume, the overall dimensions
                of each package (length x width x height), and the total number of
                packages

            

    

    
      	 	
              (b)

            	
              Description
                of any dangerous and/or inflammable goods indicating names, properties,
                special protective measures and handling methods in case of
                accident

            

    

    
      	 	
              (c)

            	
              Description
                of the special precautions for the Equipment that requires special
                storage
                and transportation.

            

    

     

    4.2.3. Within
      ten (10) calendar days before the expected departure date of the carrying vessel
      from the Port of Shipment, SELLER shall notify BUYER the nationality of the
      carrying vessel, estimated date of shipment, estimated date of arrival at the
      Port of Unloading, name of the Equipment, Equipment item no., quantity, weight,
      volume and other relevant matters.

     

    4.2.4. Within
      two (2) days after the loading of the Equipment on the ocean vessel, SELLER
      shall airmail one (1) duplicate copy of the Bill of Lading, signed commercial
      invoice, ex-works quality certificate of origin and packing list to
      BUYER.

     

    4.3. Risk
      of Loss.
      Risk of
      loss shall pass to BUYER FOB Port of Shipment; provided, however, that in the
      case of (A) the Equipment is shipped on deck or via transshipment; or (B) the
      Equipment is not insured in time by BUYER because SELLER has failed to provide
      the documentation required by Section 4.2
      above,
      then SELLER shall be liable for any and all damage to the Equipment.
      Notwithstanding anything to the contrary in this Agreement, if the Equipment
      is
      lost or damaged during ocean transportation, SELLER shall upon the request
      from
      BUYER, provide replacement Equipment and Technical Documentation for the same
      Agreement Price and pursuant to the same terms and conditions described in
      this
      Agreement.

    
       

      
        
          
            
              
                	
                        SELLER
                          Initials & Date        
                          25/3-08
                          JB                                  
                          

                      	 	
                        BUYER
                          Initials & Date   DN
                          4/8/08                                  

                      

              

            

          

        

      

    

     

    
      
        
          
          

        

        
          Page
            4 of
            21

          
            

          

        

        
          
          

        

      

    

     

    4.4. Damages
      for Late Delivery; Liquidated Damages.
      SELLER
      shall pay to BUYER liquidated damages (the “Liquidated
      Damages”)
      if (A)
      the Factory Acceptance Certificate has not been signed by SELLER and BUYER,
      or
      (B) the Equipment has not been delivered FOB to the Port of Shipment on or
      before the Shipment Date. The Liquidated Damages shall be calculated as
      follows:

     

    
      	 	
              a)

            	
              If
                the Equipment is delivered within four weeks after the Shipment Date,
                the
                liquidated damages shall be zero point 5 percent (0.5%) of the Agreement
                Price per week beyond the Shipment
                Date.

            

    

    
      	 	
              b)

            	
              If
                the Equipment is delivered after the fourth week, then, in addition
                to the
                Liquidated Damages pursuant to sub-paragraph (a) above, the Liquidated
                Damages shall be one percent (1%) of the Agreement Price for each
                week
                after the fourth week from the Shipment
                Date.

            

    

    
      	 	
              c)

            	
              Less
                than one week shall not be counted as a complete week for calculation
                of
                the Liquidated Damages.

            

    

    
      	 	
              d)

            	
              The
                total amount of the Liquidated Damages shall not exceed five percent
                (5.0%) of the Agreement Price.

            

    

    

    Notwithstanding
      anything to the contrary in this Agreement: (A) the payment of Liquidated
      Damages shall not release SELLER from its obligation to deliver the
      Deliverables; and (B) any delay beyond sixty (60) days from the Shipment Date
      shall constitute a material breach of this Agreement by SELLER.

     

    4.5. Packing
      and Marking

     

    4.5.1. Unless
      otherwise specified in the Agreement, the Equipment shall be packed by SELLER
      in
      new wooden cases, and all packing expenses shall be for SELLER’s account.
      Necessary measures shall be taken to protect the Equipment from damages caused
      by moisture, rain, rust, corrosion, shock and to ensure the Equipment will
      withstand handling, loading and unloading as well as long distance ocean and
      inland transportation for the safe arrival of the Equipment at the Work
      Site.

     

    4.5.2. The
      loose
      accessories in all packages and bundles shall be labeled by SELLER indicating
      the name of the Equipment to which such accessories are related, the name of
      the
      accessories and their position number, and any accessory number marked on
      assembly drawings. Spare parts and tools shall be marked with the word “Spare
      parts or tools” in addition to the above mentioned particulars.

     

    4.5.3. SELLER
      shall, on four (4) adjacent sides of each crate, conspicuously mark the
      following information in English with indelible paint:

     

    
      	 	
              (a)

            	
              Shipping
                mark

            

    

    
      	 	
              (b)

            	
              Destination

            

    

    
      	 	
              (c)

            	
              Consignee

            

    

    
      	 	
              (d)

            	
              Name
                of Equipment and item No.

            

    

    
      	 	
              (e)

            	
              Case/bale
                No.

            

    

    
      	 	
              (f)

            	
              Gross/net
                weight

            

    

    
      	 	
              (g)

            	
              Measurement

            

    

     

    
      
        
          
            
              
                	
                        SELLER
                          Initials & Date        
                          25/3-08
                          JB                                  
                          

                      	 	
                        BUYER
                          Initials & Date   DN
                          4/8/08                                  

                      

              

            

          

        

      

    

    

    
      
        
          
          

        

        
          Page
            5 of
            21

          
            

          

        

        
          
          

        

      

    

     

    
      
        4.5.4.
          Should
          the Equipment weigh more than 2 metric tons, the weight, gravity and hoisting
          positions shall be marked in English with international trade transportation
          marks on the four adjacent sides on each case so as to facilitate unloading
          and
          handling. In accordance with different requirements in loading, unloading
          and
          shipping, the package shall be conspicuously marked with “Handle with care,
          right side up, keep dry” in English and with appropriate international trade
          marks.

      

    

     

    4.5.5. The
      following documents shall be enclosed in each package of the
      Equipment:

     

    
      	 	
              (a)

            	
              Two
                (2) duplicate copies of detailed packing
                list

            

    

    
      	 	
              (b)

            	
              Two
                (2) duplicate copies of quality
                certificate

            

    

    
      	 	
              (c)

            	
              Two
                duplicate copies of Technical Documentation for relevant
                Equipment

            

    

     

    4.5.6. Sufficient
      shores or chocks shall be provided in order to prevent the Equipment from moving
      inside the containers. SELLER shall be liable for any damage to the Equipment
      thus incurred due to the negligence of SELLER.

     

    4.5.7. In
      case
      of container transportation, SELLER shall examine the condition of the
      containers, so that only those in good condition shall be used for delivery
      of
      the Equipment. SELLER shall use wooden crates free from any insect infestation.
      Should insect infestation be found in quarantine inspection, SELLER shall bear
      the cost incurred in fumigation or replacement of the creates at the Port of
      Unloading, and the liquidated damages provision of Section 4.4
      above
      shall apply to any delay in shipment caused by such quarantine
      inspection.

     

    4.5.8. If
      the
      Equipment is damaged or lost due to improper packing or inadequate protective
      measure, SELLER shall be responsible for repair, replacement or compensation
      in
      accordance with the Agreement. If the Equipment is mis-transported due to
      mistake or ambiguousness in package or shipping marks, SELLER shall bear
      additional expenses thus incurred.

     

    5. Standards
      & Inspections

     

    5.1. Standards.
      SELLER
      shall engineer, design and construct the Equipment according to the Appendices
      attached hereto, using professional engineering, construction and procurement
      practices. All Equipment shall be engineered and constructed to meet all
      applicable standards for operation in Idaho, USA, including, without limitation,
      ASME, NEC, UL, and any others required to meet standards in Pocatello, Idaho
      and
      the United States as determined by the BUYER. 

     

    5.2. Factory
      Acceptance Test.
      

     

    5.2.1. SELLER
      shall inspect the Equipment to confirm that it meets the Technical
      Specifications, and shall thereupon send the ex-works quality certificate to
      BUYER, with notification of the planned date for the Factory Acceptance Test.
      The date for the Factory Acceptance Test must be no earlier than two (2) weeks
      from the date when the notification is received by BUYER, and shall be no later
      than nine (9) months after BUYER pays the Initial Payment to
      SELLER.

     

    5.2.2. BUYER
      will send its technical representatives and inspectors to SELLER’s Facility to
      complete the Factory Acceptance Test together with SELLER’s technical
      representatives and inspectors. In addition to BUYER’s inspectors, BUYER’s
      lenders and shareholders may also send their inspectors. The expenses of sending
      BUYER’s inspectors, or the inspectors of BUYER’s lenders and shareholders, shall
      be for BUYER’s account. 

     

    
      
        
          
            
              
                	
                        SELLER
                          Initials & Date        
                          25/3-08
                          JB                                  
                          

                      	 	
                        BUYER
                          Initials & Date   DN
                          4/8/08                                  

                      

              

            

          

        

      

    

     

    
      
        
          
          

        

        
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    5.2.3. Prior
      to
      commencement of the Factory Acceptance Test, SELLER shall provide BUYER with
      technical instruction in the operation and maintenance of the Equipment as
      described in Appendix
      4.
      After
      completing the technical instruction, SELLER shall commence the Factory
      Acceptance Test, and provided that the Equipment meets the Technical
      Specifications, BUYER and SELLER shall sign the Factory Acceptance Certificate.
      SELLER shall ship the Equipment to BUYER as soon as practicable after successful
      completion of the Factory Acceptance Test, as evidenced by the Factory
      Acceptance Certificate signed by SELLER and BUYER; provided, however, that
      the
      SELLER may not ship the Equipment until the Factory Acceptance Certificate
      has
      been signed by BUYER; provided, however, that if BUYER does not attend the
      Factory Acceptance Test after having been given notification in accordance
      with
      Section 5.2.1
      above,
      and if SELLER conducts the Factory Acceptance Test in BUYER’s absence, and
      confirms that the Equipment meets the Technical Specifications, then SELLER
      may
      sign the Factory Acceptance Certificate and the Factory Acceptance Test shall
      have been deemed completed without the Factory Acceptance Certificate being
      signed by BUYER.

     

    5.2.4. In
      addition to the foregoing, BUYER, its authorized representatives and its
      lenders, shareholders and their respective authorized representatives, may
      inspect the Equipment at any time prior to delivery of the Equipment FOB to
      the
      Port of Shipment. The expenses of any such inspection shall be for BUYER’s
      account. 

     

    5.2.5. The
      Factory Acceptance Test shall not be a substitute for the inspection of the
      Equipment at the Port of Unloading or the Work Site, or as a substitute for
      the
      Commissioning Test, and the Factory Acceptance Test shall not release SELLER
      from its warranty obligations as further specified in this
      Agreement.

     

    5.3. Installation
      and Commissioning Test.

     

    5.3.1. Equipment
      installation and servicing shall be carried out by BUYER under the supervision
      of SELLER at the Work Site, and SELLER’s qualified technical representatives
      shall provide technical instruction to BUYER during installation and prior
      to
      completion of the Commissioning Test as described in Appendix
      5
      to this
      Agreement. 

     

    5.3.2. BUYER
      and
      SELLER shall conduct the Commissioning Test to confirm that the Equipment
      operates in accordance with the Technical Specifications. Provided that all
      of
      the Technical Specifications for the Equipment are satisfied, BUYER and SELLER
      shall each sign the Certificate of Commissioning; provided, however, that if
      BUYER does not attend the Commissioning Test, and if SELLER conducts the
      Commissioning Test in BUYER’s absence, and confirms that the Equipment meets the
      Technical Specifications, then SELLER may sign the Certificate of Commissioning
      and the Commissioning Test shall have been deemed completed without the
      Certificate of Commissioning being signed by BUYER. 

     

    5.4. Notwithstanding
      anything to the contrary in this Agreement, BUYER or SELLER’s execution of the
      Factory Acceptance Certificate or the Certificate of Commissioning shall not
      release SELLER from its warranty for the Equipment as described in
      Section 7
      below.

     

    6. Technical
      Services. SELLER agrees to provide technical information regarding the
      Equipment to BUYER, and to BUYER’s designated engineering and construction
      contractors (the “Contractors”),
      and
      to attend meetings in the USA with the Contractors, participate in telephone
      conference calls with BUYER and the Contractors, and draft and respond to
      written correspondence, including e-mail to and from BUYER and the Contractors
      (collectively, the “Technical Services”).
      The
      scope of the technical information to be provided to the Contractors shall
      be
      limited to the information that is required for the Contractors to perform
      the
      engineering design work for the Work Site. The
      cost
      and expense of the Technical Services is included in the Agreement
      Price.

    
       

      
        
          
            
              
                	
                        SELLER
                          Initials & Date        
                          25/3-08
                          JB                                  
                          

                      	 	
                        BUYER
                          Initials & Date   DN
                          4/8/08                                  

                      

              

            

          

        

      

    

     

    
      
        
          
          

        

        
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    7. Representations
      and Warranties. 

     

    7.1. General.
      SELLER
      represents, warrants, and covenants that: 

     

    7.1.1. SELLER
      will not, in the course of performing its obligations under this Agreement,
      infringe or misappropriate, and neither the Deliverables nor any element thereof
      will infringe or misappropriate, any intellectual property right of any other
      person or entity;

     

    7.1.2. neither
      the Deliverables nor any element thereof will be subject to any restriction,
      mortgage, lien, claim, pledge, security interest, or encumbrance when delivered
      by SELLER to BUYER FOB Port of Shipment;

     

    7.1.3. SELLER
      will not grant, directly or indirectly, any right or interest in the
      Deliverables to any other person;

     

    7.1.4. SELLER
      has full right, power, and authority to enter into and perform this Agreement
      without the consent of any third party, including the right to grant all
      licenses granted by SELLER (if any) in this Agreement;

     

    7.1.5. All
      individuals who contribute to or participate in the conception, creation, or
      development of the Deliverables will have unconditionally and irrevocably
      assigned all of their right, title, and interest in and to the Deliverables
      (and
      all intellectual property rights thereto) to SELLER (or directly to BUYER)
      before being allowed to begin performing work pursuant to this
      Agreement;

     

    7.1.6. SELLER
      will comply with all laws, regulations, and ordinances applicable to SELLER’s
      performance of its obligations under this Agreement, including export control
      laws, and has obtained (or before performing its obligations under this
      Agreement will obtain) all governmental permits and licenses required for SELLER
      to perform its obligations under this Agreement; and

     

    7.1.7. SELLER
      will take all necessary or reasonable precautions to prevent injury to any
      person (including BUYER employees) or damage to any property (including BUYER
      property) during the term of this Agreement.

     

    7.2. Performance.
      SELLER
      further represents and warrants that: (A) during the Warranty Period, the
      Deliverables will fully conform to the requirements, and other terms in the
      Appendices and elsewhere in this Agreement, including, without limitation,
      the
      Technical Specifications; (B) the Technical Documentation shall be to its best
      knowledge, complete, clear and correct so as to meet the requirements of design,
      inspection, erection, commissioning, performance test, operation and maintenance
      of the Equipment; and (C) the Equipment shall be completely brand new and comply
      in materials, workmanship in all respects with the quality and Technical
      Specifications. 

     

    7.3. Warranty
      Claims. 

     

    7.3.1. Notice
      of Claim.
      Claims
      by BUYER for breach of any of SELLER’s warranties set forth in this Agreement
      shall be made without undue delay after the discovery thereof. 

     

    7.3.2. SELLER’s
      Responsibilities.
      In the
      event of SELLER’s breach of any warranty during the Warranty Period, without
      limiting any other rights or remedies BUYER may have, and provided that BUYER
      has provided notice pursuant to Section 7.3.1
      above,
      SELLER will at its discretion promptly repair or replace the Deliverables at
      no
      additional charge to BUYER. In the event that the warranty claim applies to
      Equipment, BUYER and SELLER shall attempt to fix the problem through BUYER’s
      remote technical assistance; provided, however, that if the Equipment cannot
      be
      fixed within 48 hours, then SELLER shall dispatch qualified technical
      representatives to the Work Site within 48 hours thereafter to provide on-site
      professional and technical service. IF
      SELLER DOES NOT ARRIVE AT BUYER’S WORK SITE WITHIN ONE WEEK AFTER CONFIRMATION
      FROM SELLER OF SUCH A NOTIFICATION, THEN SELLER SHALL PAY BUYER $5,000 PER
      DAY
      FOR EACH DAY THAT THE EQUIPMENT IS NOT OPERATIONAL DUE TO THE BREACH OF
      WARRANTY.

     

    
      
        
          
            
              
                	
                        SELLER
                          Initials & Date        
                          25/3-08
                          JB                                  
                          

                      	 	
                        BUYER
                          Initials & Date   DN
                          4/8/08                                  

                      

              

            

          

        

      

    

     

    
      
        
        

      

      
        Page
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      8. Indemnification.
        Notwithstanding Section 12
        hereof,
        SELLER will indemnify and hold harmless BUYER and its affiliates, employees,
        and
        agents from and against any and all liabilities, losses, damages, costs,
        and
        other expenses (including attorneys’ and expert witnesses’ costs and fees)
        arising from or relating to any breach of any representation, warranty,
        covenant, or obligation of SELLER in this Agreement or any intentional
        misconduct or negligence by SELLER or any of SELLER’s agents or subcontractors
        in performing its obligations under this Agreement. In the event of any
        third-party claim, demand, suit, or action (a “Claim”)
        for
        which BUYER (or any of its affiliates, employees, or agents) is or may be
        entitled to indemnification hereunder, BUYER may, at its option, require
        SELLER
        to defend such Claim at SELLER’s sole expense. SELLER may not agree to settle
        any such Claim without BUYER’s express prior written consent.

       

      9. Non-solicitation.
        During the term of this Agreement and for twelve (12) months thereafter,
        SELLER
        will not directly or indirectly solicit, induce, or attempt to induce any
        employee or independent contractor to terminate or breach any employment,
        contractual, or other relationship with BUYER.

       

      10. Termination
        & Cancellation

       

      10.1. The
        term
        of this Agreement shall begin on the Effective Date and, unless previously
        terminated as hereinafter set forth, shall remain in force until the expiration
        of the Warranty Period. 

       

      10.2. 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: 

       

      10.2.1. 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 one hundred
        eighty (180) days after written notice thereof; provided, however, that such
        cure period shall not modify or extend the sixty (60) day cure period for
        SELLER’s delivery obligations pursuant to Section 4.4
        above;
        and provided, further that such one hundred eighty (180) day cure period
        shall
        not apply to BUYER’s failure to make any payment to SELLER pursuant to this
        Agreement. In the event of BUYER’s failure to make payment on the 30-day payment
        terms set forth in Section 3.1 hereof, termination by SELLER 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.

       

      10.2.2. 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; 

      
         

        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

       

      
        
          
          

        

        
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      10.2.3. 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 

       

      10.2.4. In
        accordance with the provisions of Section 11
        below.

       

      10.3. In
        addition to BUYER’s termination rights pursuant to Section 10.2
        above,
        BUYER may terminate this Agreement upon written notice to SELLER, and without
        any further obligation or liability to SELLER, for any of the following
        reasons:

       

      10.3.1. For
        BUYER’s convenience at any time prior to payment of the Initial Payment to
        SELLER;

       

      10.3.2. If
        SELLER
        does not sign the Consent or provide the Legal Opinion pursuant to
        Section 13
        below;

       

      10.3.3. If
        at any
        time prior to delivery of the Equipment, FOB Port of Shipment, BUYER has
        a
        justifiable reason to believe that SELLER will be more than sixty (60) days
        late
        in the delivery of the Equipment, BUYER may immediately cancel this agreement
        and shall, in addition to all other rights and remedies available in law
        and
        equity, be entitled to a refund of the Initial Payment plus the maximum amount
        of liquidated damages payable pursuant to Section 4.4
        above.

       

      10.4. SELLER
        may terminate this Agreement without any further obligation or liability
        to
        BUYER if BUYER has not paid the Initial Payment within one hundred eighty
        (180)
        days after the Effective Date. Upon such termination, each of BUYER and SELLER
        shall be released from any further obligations or liability to the other
        Party
        under this Agreement.

       

      10.5. Upon
        the
        expiration or termination of this Agreement howsoever arising, the following
        Sections shall survive such expiration or termination:
        Sections 1
        (Definitions), 7.3
        (Warranty Claims), 8
        (Indemnification), 9
        (Non-solicitation), 10
        (Termination & Cancellation), 11
        (Force
        Majeure), 12
        (Limitations of Liability), and 14
        (General
        Provisions).

       

      11. 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 performance of SELLER is delayed for Force Majeure
        for a
        cumulative period of thirty (30) days or more, SELLER will use commercially
        reasonable efforts to transition its production of the Equipment for the
        duration of the Force Majeure to an alternate source. 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 (and, only if SELLER is the affected Party, SELLER has not used
        commercially reasonable efforts to transition its production of the Deliverables
        as provided in the immediately preceding sentence), then the non-affected Party
        shall be entitled to terminate this Agreement by 30 days prior written notice
        to
        the other Party. 

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

    

     

    
      
        
          
          

        

        
          Page
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      12. Limitations
        of Liability

       

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

       

       

      12.2. EXCEPT
        FOR BUYER’S OBLIGATION TO PAY THE AGREEMENT PRICE, 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 FIFTY PERCENT (50%) OF THE AGREEMENT PRICE.

       

      13. Financing.
        SELLER acknowledges that BUYER will be financing the construction of its
        polysilicon production plant, including the Work Site, through a combination
        of
        debt, equity and prepayments from BUYER’s customers. SELLER hereby acknowledges
        and consents to BUYER’s assignment, in connection with BUYER’s financing of the
        construction, development and operation of improvements to the Work Site,
        as
        collateral security for its obligations relating thereto, of all of BUYER’s
        rights, title and interest in, to and under this Agreement (the “Assigned
        Interests”)
        to the
        financial institution named as Collateral Agent for the Secured Parties (as
        defined below) (together with its successors, designees and assigns in such
        capacity, the “Agent”)
        pursuant to a Security Agreement to be made by BUYER in connection with such
        financing in favor of the Agent for the benefit of certain secured parties
        described therein (the “Secured
        Parties”)
        and in
        that certain Collateral Agency and Intercreditor Agreement (as amended,
        restated, supplemented or otherwise modified from time to time, the
“Intercreditor
        Agreement”)
        to be
        made in connection with such financing among BUYER, Hoku Materials Holdings,
        Inc., the Agent, and the other Secured Parties party thereto. SELLER shall
        not
        unreasonably withhold consent to the transfer of BUYER’s interest under this
        Agreement to the Agent or any purchaser, successor, assignee and/or designee
        (a
“Subsequent
        Transferee”)
        of the
        Assigned Interests at a foreclosure sale or by a conveyance by BUYER in lieu
        of
        foreclosure and agrees that, notwithstanding any provision hereof to the
        contrary, upon such foreclosure, sale or conveyance, the Agent or such
        Subsequent Transferee shall be substituted for BUYER under this Agreement
        and
        SELLER shall perform its obligations hereunder in favor of the Agent or the
        Subsequent Transferee, as the case may be.

       

      14. SELLER’s
        Representations & Warranties. SELLER hereby represents and warrants to
        BUYER that the following are true and correct:

       

      14.1. SELLER
        is
        a corporation duly incorporated and validly existing in good standing under
        the
        laws of the Kingdom of Denmark. 

       

      14.2. This
        Agreement has been duly authorized by all requisite corporate action and
        duly
        executed and delivered by authorized officers of SELLER, and constitutes
        the
        valid obligations of SELLER, legally binding upon and enforceable against
        SELLER
        in accordance with its terms, except as such enforceability may be limited
        by
        (a) bankruptcy, insolvency, reorganization or other similar laws affecting
        the
        enforcement of creditors’ rights generally, and (b) general principles of equity
        (regardless of whether such enforceability is considered in a proceeding
        in
        equity or at law). 

       

      14.3. The
        execution and delivery of this Agreement, and fulfillment of and compliance
        with
        the respective provisions of this Agreement, does not conflict with, or result
        in a breach of the terms, conditions or provisions of, or constitute a default
        under, or result in any violation of, or result in the creation of any lien
        upon
        any of the properties or assets of SELLER pursuant to, or require any
        authorization, consent, approval, exemption, or other action by or notice
        to or
        filing with any court, administrative or governmental body or other person
        or
        entity pursuant to, the charter or by-laws of SELLER, any applicable law,
        statute,
        rule or
        regulation or (insofar as is known to us after having made due inquiry with
        respect thereto) any agreement, instrument, order, judgment or decree to
        which
        SELLER is a party or otherwise subject.

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

      
         

        
          
          

        

        
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      15. General
        Provisions.

       

      15.1. Governing
        Law; Venue.
        This
        Agreement is governed by the laws of the State of Idaho, USA, without reference
        to any conflict of laws principles that would require the application of
        the
        laws of any other jurisdiction. The United Nations Convention on Contracts
        for
        the International Sale of Goods does not apply to this Agreement. SELLER
        irrevocably consents to the personal jurisdiction of the state and federal
        courts located in the State of Idaho, USA, for any suit or action arising
        from
        or related to this Agreement, and waives any right SELLER may have to object
        to
        the venue of such courts. SELLER further agrees that these courts will have
        exclusive jurisdiction over any such suit or action initiated by SELLER against
        BUYER. SELLER also irrevocably waives any right SELLER may have to a jury
        trial.

       

      15.2. Severability.
        If any
        provision of this Agreement is, for any reason, held to be invalid or
        unenforceable, the other provisions of this Agreement will be unimpaired
        and the
        invalid or unenforceable provision will be deemed modified so that it is
        valid
        and enforceable to the maximum extent permitted by law.

       

      15.3. No
        Assignment.
        Except
        for assignment of payments due to SELLER pursuant to this Agreement, as
        collateral security for SELLER’s payment obligations to a third party financial
        lender, this Agreement and SELLER’s rights and obligations under this Agreement
        may not be assigned, delegated, or otherwise transferred, in whole or in
        part,
        by operation of law or otherwise, by SELLER without BUYER’s express prior
        written consent. Any attempted assignment, delegation, or transfer in violation
        of the foregoing will be null and void. BUYER may assign this Agreement,
        or any
        of its rights under this Agreement to any third party with or without SELLER’s
        consent.

       

      15.4. Notices.
        Each
        Party must deliver all notices, consents, and approvals required or permitted
        under this Agreement in writing to the other Party at the address listed
        below
        by courier, by certified or registered mail (postage prepaid and return receipt
        requested), or by a nationally-recognized overnight carrier. Notice will
        be
        effective upon receipt or refusal of delivery. Each Party may change such
        Party’s address for receipt of notice by giving notice of such change to the
        other Party.

       

      BUYER:
        

      HOKU
        MATERIALS, INC.

      One
        Hoku
        Way

      Pocatello,
        Idaho 83204 USA

      Attn:
        Mr.
        Karl Taft, CTO

      E-mail:
        [*]

      Facsimile:
        +1 (808) 682-7807

      

      With
        a
        copy to:

      

      HOKU
        SCIENTIFIC, INC.

      1075
        Opakapaka Street

      Kapolei,
        Hawaii 96707, USA

      Attn:
        Mr.
        Dustin Shindo, CEO

      E-mail:
        [*]

      Facsimile:
        +1 (808) 682-7807

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

       

      
        
          
          

        

        
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      SELLER:
        

      

      PVA
        TEPLA
        Danmark

      Smedetoften
        4

      DK-3600
        Frederikssund

      Denmark

      Attn:
        Jens Borregaard

      E-mail:
        [*]

      Facsimile:
        +45 4733 7099

       

      15.5. Legal
        Fees.
        The
        prevailing Party in any litigation between the Parties relating to this
        Agreement will be entitled to recover such Party’s reasonable attorneys’ fees
        and court costs, in addition to any other relief that such Party may be
        awarded.

       

      15.6. Publicity.
        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 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, any rules of the
        German Stock Exchange that are applicable to SELLER, 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 technical information set forth
        in
        this Agreement.

       

      15.7. Remedies.
        BUYER’s
        remedies for any breach of this Agreement by SELLER will include damages,
        injunctive relief, specific performance, and restitution. SELLER acknowledges
        that any breach of this Agreement by SELLER would cause irreparable injury
        to
        BUYER for which monetary damages would not be an adequate remedy and, therefore,
        BUYER will be entitled to injunctive relief (including specific performance).
        The rights and remedies provided to each Party in this Agreement are cumulative
        and in addition to any other rights and remedies available to such Party
        at law
        or in equity.

       

      15.8. Construction.
        Section
        headings are included in this Agreement merely for convenience of reference;
        they are not to be considered part of this Agreement or used in the
        interpretation of this Agreement. When used in this Agreement, “including” means
“including without limitation.” Whenever BUYER’s consent or approval is required
        under this Agreement, BUYER may grant or deny its consent or approval in
        its
        sole and absolute discretion. No rule of strict construction will be applied
        in
        the interpretation or construction of this Agreement.

       

      15.9. Waiver.
        All
        waivers must be in writing and signed by the Party to be charged. Any waiver
        or
        failure to enforce any provision of this Agreement on one occasion will not
        be
        deemed a waiver of any other provision or of such provision on any other
        occasion.

       

      15.10. Entire
        Agreement; Amendments.
        This
        Agreement is the final, complete, and exclusive agreement of the Parties
        with
        respect to the subject matter hereof and supersedes and merges all prior
        or
        contemporaneous communications and understandings between the Parties. No
        modification of or amendment to this Agreement will be effective unless in
        writing and signed by the Party to be charged.

       

      [This
        space intentionally left blank.]

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

      

      
        
          
            
            

          

          
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              of 21

            
              

            

          

          
            
            

          

        

      

       

      IN
        WITNESS WHEREOF, the parties have executed this Equipment Purchase & Sale
        Agreement as of the date first set forth above.

       

      
        	
                SELLER:

              	 	
                BUYER:

              
	 	 	 
	
                PVA
                  TEPLA AG

              	 	
                HOKU
                  MATERIALS, INC.

              
	 	 	 
	
                By:

              	
                /s/
                  JENS BORREGAARD

              	 	
                By:

              	
                /s/
                  DARRYL NAKAMOTO

              
	 	 	 
	
                Name:

              	
                Jens
                  Borregaard

              	 	
                Name:

              	
                Darryl
                  Nakamoto

              
	 	 	 
	
                Title:

              	
                Branch
                  Manager

              	 	
                Title:

              	
                CFO

              
	
                Authorized
                  Signatory

              	 	
                Authorized
                  Signatory

              

      

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

       

      
        
          
            
            

          

          
            Page
              14
              of 21

            
              

            

          

          
            
            

          

        

      

       

      APPENDIX
        1 

       

      Technical
        Specification for SR-110 Slim Rod Puller

       

      [*]

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

       

      
        
          
          

        

        
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      APPENDIX
        2

       

      Technical
        Specifications of FZ-14M analytical puller

       

      [*]

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

       

      
        
          
          

        

        
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      APPENDIX
        3

       

      Specification
        of Documents

       

      For
        the
        Equipment, detailed information will be given in the form of text, diagrams
        and
        drawings.

       

      In
        general the documents will contain:

       

      General
        Description

       

      Installation
        Instructions

       

      Operation
        Instructions

       

      Troubleshooting
        Instructions

       

      Maintenance
        Instructions

       

      Assembly
        Drawings

       

      Electrical
        Diagrams

       

      Hydraulic
        Diagrams

       

      Pneumatic
        Diagrams

       

      Gas
        Diagrams

       

      Complete
        Part Lists

       

      Especially
        for crystal growth, very detailed information will be given. Each process
        step
        will be explained with text and drawings, and guidelines for the proper setting
        of all adjustable growth parameters will be given for each set of diameter
        of
        input polysilicon and diameter of output Silicon single crystal.

       

      Furthermore
        general information on handling, preparation and cleaning of Silicon will
        be
        given.

       

      Schedule

       

      
        	
                Documentation
                  for preparation of installation sites:

              	
                4
                  weeks from effective date of Agreement

              
	 	 
	
                Final
                  documentation as mentioned above:

              	
                2
                  weeks after shipment

              

      

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

       

      
        
          
            
            

          

          
            Page
              17
              of 21

            
              

            

          

          
            
            

          

        

      

       

      APPENDIX
        4

       

      Procedure
        for Factory Acceptance Test

       

      1.
        Technical Training in Operation and Maintenance of
        Equipment.

       

      Prior
        to
        commencement of the Factory Acceptance Test at the SELLER Facility SELLER
        shall
        provide BUYER with the following training in the operation and maintenance
        of
        the Equipment:

       

      The
        training will fall in two parts: first in PVA TePla workshop in Denmark in
        relation to FAT (factory acceptance tests) and later in Hoku plant in relation
        to installation, commissioning and final acceptance. For each type of equipment
        the topics will be: Overall description of equipment, installation, operation,
        and maintenance. The total time spent during FAT for this purpose two week
        and
        the total at Hoku-site 6 weeks incl. time for installation supervision. The
        reason it is taken together is that the installation process is often quite
        practical also used for demonstration of certain aspects of the
        equipment.

       

      The
        FAT
        will include 2 weeks of training for the BUYER at the SELLER
        Facility.

       

      2.
        Factory Acceptance Test. 

       

      Phase
        I.
        In the first part of the test it will be shown that the Equipment complies
        with
        the Technical Specifications with respect to movement of spindles (precision
        and
        range of rotation and vertical movement), alignment and end vacuum.

       

      Phase
        II.
        In the second part of the tests, the operational performance will be proven
        as
        follows:

       

      [*]

       

      SELLER
        will for the purpose of these tests supply the following poly
        silicon:

       

      Two
        source rods Ø45 x 900 mm, two poly rods Ø 80 – 85 mm x 800 mm and 4 core
        rods Ø 20 x 100 mm.

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

      

      
        
          
            
            

          

          
            Page
              18
              of 21

            
              

            

          

          
            
            

          

        

      

       

      Appendix
        5

       

      Procedures
        for Commissioning Test

       

      1.
        Technical Training in Operation and Maintenance of
        Equipment.

       

      Prior
        to
        commencement of the Commissioning Test at the Work Site, SELLER shall provide
        BUYER with the following training in the operation and maintenance of the
        Equipment:

       

      [Describe
        amount of time for training, and topics to be covered with some specificity.]
        

       

      The
        training will fall in two parts: first in PVATePla workshop in Denmark in
        relation to FAT (factory acceptance tests) and later in Hoku plant in relation
        to installation, commissioning and final acceptance. For each type of equipment
        the topics will be: Overall description of equipment, installation, operation,
        and maintenance. The total time spent during FAT for this purpose is two
        weeks
        and the total at Hoku-site is 6 weeks incl. time for installation supervision.
        The reason it is taken together is that the installation process is often
        quite
        practical also used for demonstration of certain aspects of the
        equipment.

       

      The
        6
        weeks for commissioning shall include a minimum of 750 hours of Technical
        Services from qualified SELLER personnel.

       

      2.
        Commissioning Test Certificate. 

       

      Phase
        I.
        In the first part of the test it will be shown that the Equipment complies
        with
        the Technical Specifications with respect to movement of spindles (precision
        and
        range of rotation and vertical movement), alignment and end vacuum.

       

      Phase
        II.
        In the second part of the tests, the operational performance will be proven
        as
        follows:

       

      [*]

       

      SELLER
        will for the purpose of these tests supply the following poly
        silicon:

       

      Two
        source rods Ø45 x 900 mm, two poly rods Ø 80 – 85 mm x 800 mm and 4 core
        rods Ø 20 x 100 mm.

       

      Additional
        silicon for training of BUYER’s personnel will be supplied by BUYER

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

       

      
        
          
            
            

          

          
            Page
              19
              of 21

            
              

            

          

          
            
            

          

        

      

       

      Appendix
        6

       

      Factory
        Acceptance Certificate

       

      This
        Factory Acceptance Certificate is being signed pursuant to
        Section 5.2.2
        of the
        Equipment Purchase & Sale Agreement (the “Agreement”)
        dated
        _______________, 2007, by and between HOKU MATERIALS, INC., and PVA TEPLA
        AG.
        Capitalized terms not otherwise defined herein have the meaning set forth
        in the
        Agreement.

       

      By
        signing below, each party hereby certifies to the successful completion of
        the
        Factory Acceptance Test and confirms the following: 

       

      
        	
                1.

              	
                Each
                  of the seven (7) SR-110 Slim Rod Pullers with the serial numbers
                  listed
                  below meets the Technical Specifications set forth on Appendix
                  1 to the
                  Agreement. 

              

      

      

      Serial
        Number:                                         
    

      Serial
        Number:                                        
  

      Serial
        Number:                                        
  

      Serial
        Number:                                        
  

      Serial
        Number:                                          

      Serial
        Number:                                        
  

      Serial
        Number:                                        
  

      

      
        	
                2.

              	
                The
                  FZ-14M analytic float zone crystal puller with the serial number
                  listed
                  below meets the Technical Specifications set forth on Appendix
                  2 to the
                  Agreement.

              

      

       

      Serial
        Number:                                           

       

      
        	
                PVA
                  TEPLA AG

              	 	
                HOKU
                  MATERIALS, INC.

              
	 	 	 
	
                By:

              	    
 	 	
                By:

              	     

	 	 	 
	
                Name:

              	   
	 	
                Name:

              	     

	 	 	 
	
                Title:

              	  
	 	
                Title:

              	     

	
                Authorized
                  Signatory

              	 	
                Authorized
                  Signatory

              

      

       

      
        
          
            
              
                
                  
                    	
                            SELLER
                              Initials & Date        
                              25/3-08
                              JB                                  
                              

                          	 	
                            BUYER
                              Initials & Date   DN
                              4/8/08                                  

                          

                  

                

              

            

          

        

      

       

      
        
          
            
            

          

          
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              20
              of 21

            
              

            

          

          
            
            

          

        

      

       

      Appendix
        7

       

      Certificate
        of Commissioning

       

      This
        Certificate of Commissioning is being signed pursuant to
        Section 5.3.2
        of the
        Equipment Purchase & Sale Agreement (the “Agreement”)
        dated
        _______________, 2007, by and between HOKU MATERIALS, INC., and PVA TEPLA
        AG.
        Capitalized terms not otherwise defined herein have the meaning set forth
        in the
        Agreement.

       

      By
        signing below, each party hereby certifies to the successful completion of
        the
        Commissioning Test and confirms the following: 

       

      
        	
                1.

              	
                Each
                  of the seven (7) SR-110 Slim Rod Pullers with the serial numbers
                  listed
                  below meets the Technical Specifications set forth on Appendix
                  1 to the
                  Agreement. 

              

      

      

      
        Serial
          Number:                                         
    

        Serial
          Number:                                        
  

        Serial
          Number:                                        
  

        Serial
          Number:                                        
  

        Serial
          Number:                                          

        Serial
          Number:                                        
  

        Serial
          Number:                                                                              
          

      

       

      
        	
                2.

              	
                The
                  FZ-14M analytic float zone crystal puller with the serial number
                  listed
                  below meets the Technical Specifications set forth on Appendix
                  2 to the
                  Agreement.

              

      

       

      Serial
        Number:                                          

       

      
        
          	
                  PVA
                    TEPLA AG

                	 	
                  HOKU
                    MATERIALS, INC.

                
	 	 	 
	
                  By:

                	    
 	 	
                  By:

                	     

	 	 	 
	
                  Name:

                	   
	 	
                  Name:

                	     

	 	 	 
	
                  Title:

                	  
	 	
                  Title:

                	     

	
                  Authorized
                    Signatory

                	 	
                  Authorized
                    Signatory

                

        

      

       

      
        
          
            
              
                
                  	
                          SELLER
                            Initials & Date        
                            25/3-08
                            JB                                  
                            

                        	 	
                          BUYER
                            Initials & Date   DN
                            4/8/08                                  

                        

                

              

            

          

        

      

      
         

        
          
            
            

          

          
            Page
              21
              of 21Exhibit
        10.72

       

      [*]
        = 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.

       

      FIRST
        AMENDED & RESTATED SUPPLY AGREEMENT 

       

      (Suntech
        Contract No. ____________)

       

      This
        First Amended & Restated Supply Agreement is made as of May 12, 2008 (the
“Effective
        Date”)
        between WUXI SUNTECH POWER CO., LTD.,
        a
        People’s
        Republic of China company (hereinafter
        “SUNTECH”)
        and
HOKU
        MATERIALS, INC., a
        Delaware corporation (hereinafter “HOKU”).
        SUNTECH and HOKU are each referred to in this Agreement as a “Party”
and
        collectively as the “Parties.”
        

       

      Recitals
        

       

      Whereas,
        HOKU and SUNTECH are parties that certain Supply Agreement (Suntech Contract
        No.
        PUR1-0706092) dated as of June 13, 2007 (the “Supply
        Agreement”),
        pursuant to which HOKU agreed to sell to SUNTECH, and SUNTECH agreed to purchase
        from HOKU, polysilicon for SUNTECH’S general use beginning in calendar year 2009
        for a continuous period of either seven or ten years from the date of the
        first
        shipment.

       

      Whereas,
        HOKU and SUNTECH desire to amend and restate the Supply Agreement as hereinafter
        set forth to confirm the ten year term of the Supply Agreement, and such
        other
        terms as set forth herein.

       

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

       

      Whereas,
        in exchange for HOKU’s agreement to allocate the supply of polysilicon, SUNTECH
        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:

       

      Agreement

       

      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, any entity that controls, is controlled
        by
        or under common control with such Party, where “control” of an entity means
        ownership of more than fifty percent (50%) of the stock or equity of such
        entity
        entitled to vote for the election of directors (or, if such entity is not
        a
        corporation, the corresponding managing authority).

       

      
        	
                SUNTECH
                  Initials & Date ZS May 12, 2008

              	
                HOKU
                  Initials & Date DS May 12,
                  2008

              

      

      
        
          
          

        

        
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      1.2. “Agreement”
shall
        mean this First Amended & Restated Supply Agreement and all appendices
        annexed to this Agreement as the same may be amended by the Parties from
        time to
        time in accordance with the provisions hereof. 

       

      1.3. “Business
        Day”
shall
        mean a day (other than a Saturday or Sunday) on which banks are open for
        general
        business in the United States.

       

      1.4. “Facility”
shall
        mean HOKU’s manufacturing facility in Pocatello, Idaho, including all buildings
        and other improvements now or hereafter owned, developed, constructed, or
        leased
        by HOKU at such facility and used in the development, manufacture, processing,
        storage, or distribution of Products, together with all machinery and equipment
        used or usable in the operation of such buildings and improvements.

       

      1.5. “First
        Shipment Month”
shall
        mean the first month in calendar year 2009 when HOKU ships the Primary Monthly
        Quantity of Product to SUNTECH.

       

      1.6. “Guaranteed
        Monthly Quantity of Product”
shall
        mean [*] metric tons of Product during the [*] through [*] Years, and [*]
        metric
        tons of Product during the [*] Years, if applicable.

       

      1.7. “Hoku
        Competitor”
shall
        mean any commercial producer or vendor of raw polysilicon, polysilicon ingots
        or
        wafers, or solar cells or modules. 

       

      1.8. “Initial
        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 mean straight
        bonds or debentures, credit lines, convertible debt, common and preferred
        stock,
        and warrants; and HOKU’s “receipt” of such proceeds shall mean the receipt of a
        binding and legally enforceable commitment from a lender to provide the Initial
        Financing (or a portion thereof); provided, however, that HOKU must have
        received, in cash, at least 66.7% of the proceeds of such financing by December
        31, 2008. HOKU shall provide to Suntech written certification that it has
        obtained Initial Financing, together with (in the event HOKU has not otherwise
        publicly disclosed the components of such financing), reasonable documentary
        evidence thereof. 

       

      1.9. “Minimum
        TCS Volume”
shall
        mean [*] metric tons of TCS.

       

      1.10. “Officer’s
        Closing Certificate”
shall
        mean the certificate in substantially the form of Appendix 8 attached hereto
        wherein an executive officer of HOKU shall certify to the satisfaction of
        certain conditions precedent as set forth therein.

       

      1.11. “Officer’s
        Compliance Certificate”
shall
        mean a certificate in substantially the form of Appendix 9 attached hereto
        wherein an executive officer of HOKU shall certify to the satisfaction of
        certain conditions precedent as set forth therein.

       

      1.12. “Primary
        Monthly Quantity of Product”
shall
        mean [*] metric tons of Product during the [*] through [*] Years, and [*]
        metric
        tons of Product during the [*] Years. 

      

        
          	
                  SUNTECH
                    Initials & Date ZS
                    May 12, 2008

                	
                  HOKU
                    Initials & Date DS
                    May 12, 2008

                

        

      

       

      
        
          
            
            

          

          
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      1.13. “Product”
shall
        mean raw polysilicon in chunk form conforming to the Product Specifications
        to
        be sold by HOKU to SUNTECH pursuant to this Agreement.

       

      1.14. “Product
        Specifications”
shall
        mean the quality and other specifications for the Product set forth on
Appendix
        2
        to this
        Agreement. 

       

      1.15. “Qualified
        Engineering Firm”
means
        any engineering firm listed on Appendix 3
        that (A)
        has more than five hundred (500) employees, and (B) is not a HOKU
        Competitor.

       

      1.16. “Reactor”
shall
        mean a polysilicon deposition reactor.

       

      1.17. “Secondary
        Monthly Quantity of Product”
shall
        mean [*] metric tons of Product during the [*] through [*] Years, and [*]
        metric
        tons of Product during the [*] Years.

       

      1.18. “TCS”
shall
        mean trichlorosilane.

       

      1.19. “Term”
shall
        mean the 10-year period during which this Agreement is in effect, as more
        specifically set forth in Section 10
        of this
        Agreement.

       

      1.20. “Total
        Deposit”
shall
        mean the Initial Deposit and the Main Deposit. 

       

      1.21. “Wafer”
means
        a
        silicon wafer that can be processed into a photovoltaic cell.

       

      1.22. “Years”
shall
        mean consecutive twelve (12) calendar month periods commencing on the First
        Shipment Month. For avoidance of doubt, the first Year is the twelve (12)
        calendar month period commencing on the First Shipment Month, the second
        Year is
        the twelve (12) calendar month period commencing on the first anniversary
        of the
        First Shipment Month, etc.

       

      2. Ordering;
        Pricing.  

       

      2.1. During
        each calendar month of each Year, SUNTECH agrees to purchase from HOKU, and
        HOKU
        agrees to sell to SUNTECH, the Guaranteed Monthly Quantity of Product at
        the
        prices set forth on Appendix 1 to this Agreement (the “Pricing
        Schedule”).
        This
        Agreement constitutes a firm order from SUNTECH, and a firm supply commitment
        from HOKU, for [*] metric tons of Product that cannot be cancelled or changed
        by
        either Party during the term of this Agreement, except as set forth in Section
        10
        below
        and the next sentence of this Section 2.1.
        At any
        time during the Term of this Agreement, HOKU may reduce its supply commitment
        to
        SUNTECH in writing for Years [*] to [*] metric tons per year. In the event
        that
        HOKU exercises such option, the definition of “Guaranteed Monthly Quantity of
        Product” shall be reduced to [*] metric tons; and the definition of “Secondary
        Monthly Quantity of Product” shall be reduced to [*] metric tons. Any such
        option must be exercised by HOKU in writing at least one hundred eighty (180)
        days prior to the expected delivery date for such Products. 

       

      2.2. If,
        prior
        to the end of the [*] Year, all of the following conditions have been satisfied:
        (A) HOKU has materially increased its production capacity of Products, (B)
        HOKU
        has paid all of its indebtedness to the Senior Lenders (as defined in
        Section 7.2
        below);
        and (C) HOKU and SUNTECH have signed a contract providing for the purchase
        and
        sale of additional volume of Products that is in addition to the volume being
        sold under this Agreement, then the Pricing Schedule for the remaining term
        of
        this Agreement shall be amended and the prices for the Products being sold
        pursuant to this Agreement shall be adjusted to match the pricing for Products
        in such new contract. Notwithstanding the foregoing, HOKU shall have no
        obligation under this Agreement to increase its production capacity, to pay
        its
        Senior Secured Indebtedness or to enter into a new contract with SUNTECH,
        and
        SUNTECH shall have no obligation under this Agreement to enter into a new
        contract with HOKU.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

       

      
        
          
            
            

          

          
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      3. Supply
        Obligations. 

       

      3.1. HOKU
        shall deliver, in each calendar month during each Year pursuant to this
        Agreement starting on the First Shipment Month, the Guaranteed Monthly Quantity
        of Product; provided however, that if HOKU fails to deliver the Primary Monthly
        Quantity of Product for any given calendar month in such calendar month,
        then
        HOKU may deliver the deficiency within [*] days after the end of such calendar
        month (“Primary
        Delivery Grace Period”)
        without breaching this section or incurring any purchase price reduction
        pursuant to Section 3.3
        below;
        and provided further, that if HOKU fails to deliver the Secondary Monthly
        Quantity of Product for any given calendar month in such calendar month,
        then
        HOKU may deliver any deficiency within [*] days after the end of such calendar
        month (“Secondary
        Delivery Grace Period”)
        without breaching this section or incurring any purchase price reduction
        pursuant to Section 3.3
        below.
        For the avoidance of doubt, all shipments for any given month shall be applied
        first to the Primary Monthly Quantity of Product and then to the Secondary
        Monthly Quantity of Product, and if there is more than one shipment deficiency,
        each shipment shall be applied to satisfy the oldest deficiency. At any time
        during the term of this Agreement, HOKU may ship to SUNTECH the Guaranteed
        Monthly Quantity of Product for any calendar month in advance of such calendar
        month, but only with SUNTECH’s prior written consent.

       

      3.1.1. During
        calendar year 2009, HOKU shall ship to SUNTECH a minimum of [*] metric tons
        of
        its output Products over and above the supply commitments set forth in
        Section 3.1
        above.
        After HOKU delivers such [*] metric tons of Products to SUNTECH in 2009,
        HOKU
        may sell the next [*] metric tons of unallocated Products to any customer
        of its
        choosing (including, without limitation, HOKU’s Other Customers (as defined in
        Section 7.3
        below)
        and sales on the spot market). Thereafter, and provided that SUNTECH has
        secured
        the Minimum TCS Volume for HOKU pursuant to Section 13.1
        below,
        HOKU shall ship to SUNTECH a minimum of [*] percent ([*]%) of its remaining
        unallocated Products in 2009. For purposes of this Section 3.1.1,
        HOKU’s
“unallocated Products” are limited to Products produced by HOKU that are not
        subject to a pre-existing contractual shipment obligation to HOKU’s Other
        Customers. The net EXW price for such unallocated Products sold to SUNTECH
        shall
        be the greater of (A) $[*] per kilogram, and (B) the sum of (x)
        the
        multiple of (the gross price per kilogram of TCS (including all shipping,
        handling, insurance, export, and similar costs) that is purchased by HOKU
        pursuant to Section 13.1)
        times
        ([*]) and (y)
        $[*].

       

      3.1.2. In
        any
        event, notwithstanding the foregoing, HOKU may not sell or deliver any Product
        on the spot market, or otherwise sell or deliver Product to any third parties
        other than pursuant to long term supply contracts entered into by HOKU with
        such
        third parties in compliance with Section 3.1.3
        below,
        in any given calendar month during the term of this Agreement unless and
        until
        HOKU has fulfilled its Product shipment obligations to SUNTECH for such calendar
        month and all preceding calendar months.

       

      3.1.3. During
        the first [*] Years, 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 contract that HOKU and SANYO entered into
        prior
        to the Effective Date) if the aggregate of HOKU’s delivery obligations under all
        of its supply contracts (including those with SUNTECH and SANYO) and such
        additional supply contract/commitment during any month would exceed the rated
        monthly production capacity of all Reactors as certified by the manufacturer
        thereof. Subject to the foregoing, this Agreement 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. 

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

       

      
        
          
            
            

          

          
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      3.1.4. Notwithstanding
        anything to the contrary, nothing in this Section 3.1
        is
        intended by the Parties, or shall be deemed, to waive, limit or otherwise
        affect
        any other rights and remedies that SUNTECH may have in connection with any
        HOKU
        failures to fulfill, or delays in fulfilling, its Product supply obligations
        under this Agreement. 

       

      3.2. HOKU
        intends to manufacture the Products at the Facility; however, notwithstanding
        anything to the contrary herein, HOKU may deliver to SUNTECH Products that
        are
        manufactured by a third party, provided that the Products meet the Product
        Specifications and price set forth in this Agreement.
        HOKU
        shall manufacture the Products only in the Facility, or in other adequate,
        qualified manufacturing facilities that have access to all necessary labor
        and
        equipment. In the event that more than [*] of the polysilicon shipped to
        SUNTECH
        during any calendar quarter fails to meet the Product Specifications (which
        may
        be determined through testing of batches/samples), such facilities shall
        be
        subject to inspection and/or re-qualification audits by SUNTECH and/or its
        representatives from time to time and upon reasonable prior written notice
        to
        HOKU, and the polysilicon produced at such facilities shall be subject to
        third
        party quality testing at a mutually agreeable location (such agreement not
        to be
        unreasonably withheld or delayed) and at HOKU’s sole expense. HOKU shall bear
        such expense until less than [*] of HOKU’s polysilicon shipments in a quarter do
        not meet Product Specifications. HOKU shall have the right to pre-approve
        any
        third party inspector selected by SUNTECH that is not a Qualified Engineering
        Firm (such approval not to be unreasonably withheld or delayed), which must
        not
        be a HOKU Competitor, and such inspector shall be obligated to sign a
        commercially reasonable non-disclosure agreement with HOKU. HOKU shall
        continuously make available the necessary capacity at such manufacturing
        facilities to meet Guaranteed Monthly Quantity of Products and shall provide
        all
        labor, materials and other items necessary to perform its obligations hereunder.
        For the sake of clarity, the foregoing sentence is not a guaranty of shipment;
        all Product delivery guaranties are specifically set forth in Sections
2.1,
        and 3.1
        above,
        and Sections 3.3,
        and 5
        below.

       

      3.3. If
        HOKU
        does not complete shipment of the Primary Monthly Quantity of Products or
        the
        Secondary Monthly Quantity of Products for any month on or before the end
        of the
        applicable Primary Delivery Grace Period or Secondary Delivery Grace Period,
        the
        purchase price for the delayed Products shall be reduced by [*] of the original
        purchase price for each week or part thereof that the Product shipment is
        delayed beyond the applicable Primary Delivery Grace Period or Secondary
        Delivery Grace Period. Notwithstanding anything to the contrary, the maximum
        amount of the cumulative purchase price reduction shall not exceed [*] of
        the
        original price of the respective delayed Products.
        Notwithstanding the foregoing, the purchase price reductions shall not apply
        (i)
        while a force majeure is continuing pursuant to Section 14
        and (ii)
        in the event HOKU is not delivering Product due to a payment default of SUNTECH
        pursuant to Section 10.2.1.

       

      4. Wafers.
        During
        the Term of this Agreement, SUNTECH shall offer HOKU a continuing right of
        first
        refusal to process the Products into Wafers (which may include the use of
        a
        third party facility for such processing) and supply Wafers to SUNTECH in
        lieu
        of Products on commercial terms and Wafer specifications that are no less
        favorable to SUNTECH than the terms and specifications which it is able to
        receive from other third party wafer manufacturers at such time. If HOKU
        utilizes a third party that is not an affiliate of HOKU to process the Wafers,
        then SUNTECH shall have the right to pre-approve (such approval not to be
        unreasonably withheld) such third party and the specification of the Wafers
        being provided by the third party. Until such time as HOKU and SUNTECH have
        mutually agreed and entered into an agreement for the purchase and sale of
        Wafers, and, if applicable, SUNTECH has approved the third party Wafer
        manufacturing company, HOKU shall continue to deliver Product to SUNTECH
        pursuant to the terms of this Agreement.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

       

      
        
          
            
            

          

          
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      5. Shipping
        & Delivery. 

       

      5.1. The
        first
        shipment of the Guaranteed Monthly Quantity of Product is due on or before
        December 31, 2009; provided, however, that HOKU shall provide at least thirty
        (30) days’ prior written notice if the first shipment will occur prior to July
        31, 2009; and, provided, further that HOKU shall deliver a minimum of [*]
        metric
        tons of Products to SUNTECH in calendar year 2009 (subject to the provisions
        of
        Section 3.1.1
        above,
        including the provision that may reduce such volume requirement to [*] metric
        tons), and any deficiency shall be subject to the purchase price adjustment
        pursuant to Section 3.3
        without
        any grace period beyond December 31, 2009, except that if more than [*] percent
        ([*]%) of the first [*] metric tons (subject to the reduction of such shipment
        requirement to [*] metric tons pursuant to Section 3.1.1
        above)
        is shipped after December 1, 2009, then the price per kilogram of each such
        shipment shall be the calendar year 2010 price as set forth on Appendix
        1
        hereto.

       

      5.2. Shipments
        shall be made from the Facility (or from a third party facility if applicable
        pursuant to Section 3.2
        above)
        on a monthly basis. On or around the first day of each calendar month, an
        estimated Product shipment schedule will be provided by HOKU to SUNTECH covering
        such month and the following eleven (11) months thereafter (the “Shipment
        Schedule”).
        All
        Product shipments shall include a quality control certificate from HOKU
        certifying that the Products have been tested pursuant to HOKU’s quality control
        testing procedures to ensure that the Products being shipped meet the Product
        Specifications.

       

      6. Payments
        & Advances.

       

      6.1. HOKU
        acknowledges that as of the date of this Agreement, SUNTECH has provided
        HOKU
        with an initial deposit of Two Million U.S. Dollars (US$2,000,000.00) (the
        “Initial
        Deposit”)
        as
        advance payment for Products to be delivered under this Agreement.

       

      6.2. Subject
        to HOKU’s completion of the Initial Financing, SUNTECH shall pay in cash to HOKU
        the additional sum of Forty-Five Million U.S. Dollars (US$45,000,000.00)
        (the
“Main
        Deposit”)
        as an
        advance payment for Products to be delivered under this Agreement in accordance
        with the milestone schedule set forth below. 

       

      6.2.1. [*]
        of
        the Main Deposit (the “[*]
        Installment”)
        shall
        be paid to HOKU within fifteen (15) Business Days after HOKU’s successful
        completion of one [*] (as defined in the next sentence) and HOKU’s delivery to
        SUNTECH of an Officer’s Compliance Certificate dated as of the date of such
        completion. For
        purposes of this Agreement, a “[*]” means [*]. SUNTECH understands that the [*]
        is not meant to produce solar purity polysilicon. SUNTECH shall, at its expense,
        attend the [*]. SUNTECH may, at its option and expense, invite a third party
        technical advisor to attend the [*] with or in lieu of SUNTECH. HOKU shall
        provide written notice to SUNTECH no less than ten (10) Business Days prior
        to
        the [*]. Any third party technical advisor that SUNTECH requests to view
        the [*]
        must not be a Hoku Competitor, and must sign a reasonable confidentiality
        agreement prior to participating in the [*]. Upon completion of the [*],
        HOKU
        and SUNTECH shall sign the [*] Certificate attached hereto as Appendix 5
        (the
“[*]
        Certificate”)
        to
        indicate whether or not the [*] was successfully completed. 

       

      6.2.2. [*]
        of
        the Main Deposit (the “[*]
        Installment”)
        shall
        be paid to HOKU within fifteen (15) Business Days after HOKU’s successful
        completion of the “[*]” (as defined below) and HOKU’s delivery to SUNTECH of an
        Officer’s Compliance Certificate dated as of the date of such completion. For
        purposes of this Agreement, a “[*]” means [*]. SUNTECH shall, at its expense,
        attend the [*]. SUNTECH may, at its option and expense, invite a third party
        technical advisor to attend the [*] with or in lieu of SUNTECH. HOKU shall
        provide written notice to SUNTECH no less than ten (10) Business Days prior
        to
        the [*]. Any third party technical advisor that SUNTECH requests to view
        the [*]
        must not be a HOKU Competitor, and must sign a reasonable confidentiality
        agreement prior to participating in the [*]. Upon completion of the [*],
        HOKU
        and SUNTECH shall sign the [*] Certificate attached hereto as Appendix 6
        (the
“[*]
        Certificate”)
        to
        indicate whether or not the [*] was successfully completed.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

       

      
        
          
            
            

          

          
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      6.2.3. [*]
        of
        the Main Deposit (the “[*]
        Installment”)
        shall
        be paid to HOKU within fifteen (15) Business Days after the later of the
        date
        when [*]. Upon completion of the [*], HOKU and SUNTECH shall sign the [*]
        Certificate attached hereto as Appendix 7 (the “[*]
        Certificate”)
        to
        indicate whether or not the [*] was successfully completed.

       

      6.2.4. In
        the
        event that the Parties cannot resolve a dispute as to whether a milestone
        has
        been achieved under Sections 6.2.1,
        6.2.2,
        and
6.2.3,
        the
        Parties cannot resolve the dispute in accordance with the first two (2)
        sentences of Section 15.2,
        then
        the Parties agree to appoint an independent engineer (the “Independent
        Engineer”)
        to
        make the final determination regarding the success or failure of the [*],
        the
        [*], or the [*], as applicable. The Independent Engineer shall be selected
        by
        and reasonably acceptable to the Collateral Agent, the Senior Secured Parties
        (as that term is defined in the Intercreditor Agreement), HOKU and SUNTECH;
        provided, however, that if the Collateral Agent, the Senior Secured Parties,
        HOKU and SUNTECH cannot agree on the Independent Engineer within ten (10)
        days,
        the Independent Engineer shall be selected solely by the Collateral Agent
        and
        the Senior Secured Parties among all Qualified Engineering Firms. The conclusion
        of the Independent Engineer shall be final for, binding upon and non-appealable
        by HOKU and SUNTECH with respect to the success or failure of the applicable
        milestone. The fees and expenses of such Independent Engineer shall be shared
        by
        HOKU and SUNTECH if the Independent Engineer was hired to resolve a reasonable
        disagreement between HOKU and SUNTECH regarding the success or failure of
        the
        applicable milestone; such fees and expenses shall be paid solely by SUNTECH
        if
        the Independent Engineer was hired because SUNTECH or its third party designee
        either did not attend the applicable demonstration (after notice having been
        provided pursuant to Section 6.2.1
        or
6.2.2,
        as
        applicable), or did not confirm to HOKU in writing either the success or
        failure
        of the applicable milestone; and such fees and expenses shall be paid solely
        by
        HOKU if the Independent Engineer was hired because HOKU did not confirm to
        SUNTECH in writing either the success or failure of the applicable milestone,
        HOKU did not perform the applicable demonstration in accordance with the
        terms
        of Section 6.2.1
        or
6.2.2,
        as
        applicable, or HOKU did not provide sufficient advance notice of the applicable
        demonstration as specified in Section 6.2.1
        or
6.2.2,
        as
        applicable.

       

      6.2.5. HOKU
        shall use commercially reasonable efforts to complete each of the milestones
        by
        its respective Target Date listed in the table below. HOKU may attempt to
        achieve each milestone any number of times, provided that the procedures
        set
        forth in Section 6.2.1,
        6.2.2,
        or
6.2.3,
        as
        applicable, are followed; and, provided, further that if any milestone is
        not
        completed by the respective Final Date listed in the table below, SUNTECH
        shall
        have the right to terminate the Agreement in accordance with Section
10.3.2.
        Notwithstanding anything to the contrary in this Agreement, HOKU may achieve
        the
        [*], the [*] and the [*] in any order; for example, HOKU may complete the
        [*],
        and SUNTECH shall pay to HOKU the [*] Installment, as applicable, prior to
        HOKU
        successfully completing the [*].

      

      
        	
                Milestone

              	 	
                Target Date

              	 	
                Final Date

              	 
	
                [*]

              	 	 	
                [*]

              	
                 

              	 	
                [*]

              	
                 

              
	
                [*]

              	 	 	
                [*]

              	
                 

              	 	
                [*]

              	
                 

              
	
                [*]

              	 	 	
                [*]

              	
                 

              	 	
                [*]

              	
                 

              

      

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

       

      
        
          
            
            

          

          
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      6.3. Stand-by
        Letter of Credit.

       

      6.3.1. HOKU
        acknowledges that as of the date of this Agreement, SUNTECH has opened an
        irrevocable stand-by letter of credit with ABN AMRO NV that is attached hereto
        as Appendix
        4
        (the
“Stand-by
        Letter of Credit”)
        in
        favor of HOKU in an amount equal to the Main Deposit against SUNTECH’s failure
        to pay the Main Deposit (as defined above). 

       

      6.4. HOKU
        shall invoice SUNTECH at or after the time of each shipment of Products to
        SUNTECH. Taxes, customs and duties, if any, will be identified as separate
        items
        on HOKU invoices. All invoices shall be sent to the attention of SUNTECH’s
        Financial Controller at SUNTECH’s address set forth in Section 15.4
        or to
        such other address as SUNTECH may specify to HOKU in writing. Payment terms
        for
        all invoiced amounts shall be [*] days from date of invoice receipt. All
        payments shall be made in U.S. Dollars. 

       

      6.5. [*].

       

      6.6. At
        least
        fifteen (15) days prior to each quarter in the sixth and seventh Years of
        this
        Agreement, SUNTECH shall provide an advance cash payment to HOKU (each such
        payment, a “Supplemental
        Deposit”)
        that
        is equal to (a) [*] of the net purchase price of all Products scheduled to
        be
        shipped during such quarter at the then-applicable price, less (b) the amount
        of
        the Supplemental Deposits paid by SUNTECH for previous quarters (if any)
        that
        were not applied against invoices for shipments of Products. Each Supplemental
        Deposit shall be applied on a pro rata basis as a credit against each shipment
        made during the applicable quarter. To clarify, each Supplemental Deposit
        shall
        be applied on a straight-line basis against each invoice for shipments of
        Products made in the applicable quarter by a fraction where (x) the numerator
        is
        equal to the total amount (in metric tons) of the applicable shipment plus
        the
        total amount (in metric tons) of any outstanding shipments that were due
        in such
        quarter prior to the shipment date of the applicable shipment; and (y) the
        denominator is equal to [*] metric tons, such that the net amount due on
        the
        applicable invoice shall be reduced by the product of the Supplemental Deposit
        multiplied by such fraction. [*]

       

      6.7. The
        prices for the Products do not include any excise, sales, use, import, export
        or
        other similar taxes, which taxes (which, for clarity do not include income
        taxes
        or similar taxes) will be invoiced to and paid by SUNTECH, provided that
        SUNTECH
        is legally or contractually obliged to pay such taxes. HOKU and SUNTECH will
        work together to eliminate the possibility of taxes, but if there are any
        assessed, HOKU shall promptly remit to SUNTECH in full any such taxes paid
        by
        SUNTECH which are refunded or credited to HOKU, or offset, claimed or otherwise
        used by HOKU, in whole or in part. 

       

      6.8. SUNTECH
        shall be responsible for all transportation charges, duties or charges for
        shipping and handling incurred after HOKU’s delivery of the Products; thus, the
        price for the Products shall not include any such charges. HOKU shall provide
        reasonable assistance in managing shipping logistics and timing of pick-up
        with
        the freight forwarder to arrange for shipping ex works from the Facility.
        Notwithstanding the foregoing, if no freight train rail spur is available
        to
        connect the Facility to a main rail line used for freight shipments, HOKU
        shall
        deliver the Products FOB the nearest available maritime port (Incoterms 2000).
        SUNTECH shall bear all costs, liabilities and risks involved in loading and
        transporting the Products from HOKU’s production facility to the freight
        forwarder or the nearest available maritime port, as applicable (and hereby
        indemnifies HOKU for such costs, liabilities and risks). Title and risk of
        loss
        shall pass to SUNTECH FOB origin.

       

      
        	
                SUNTECH
                  Initials & Date ZS May 12, 2008

              	
                HOKU
                  Initials & Date DS May 12,
                  2008

              

      

    

    
      

      
        
          
            
            

          

          
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      6.9. Late
        payments and outstanding balances shall accrue interest at the lesser of
        18% per
        annum or the maximum allowed by law. 

       

      7. Security
        Interest. 

       

      7.1. Subject
        to receipt of the Initial Deposit or payment of any portion of the Main Deposit,
        pursuant a separate security agreement and related collateral documents,
        HOKU
        hereby grants to SUNTECH a security interest in all of the tangible and
        intangible assets, properties and undertaking of HOKU, wherever located,
        including without limitation such assets and properties related to HOKU’s
        polysilicon business (the “Collateral”)
        for
        the purpose of securing the repayment obligations of HOKU to SUNTECH of the
        Total Deposit (and any portion thereof) set forth in this Agreement.

       

      7.2. SUNTECH
        acknowledges and agrees that the security interests and liens in the Collateral
        will not be first priority security interests, will be expressly 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 SUNTECH hereby. SUNTECH shall enter into subordination agreements with
        the
        Senior Lenders on terms and conditions reasonably acceptable to the Senior
        Lenders. 

       

      7.3.  In
        addition, SUNTECH shall enter into collateral, intercreditor and other
        agreements (the “Collateral
        Agreements”)
        with
        [*] 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. SUNTECH may not unreasonably refuse to sign any such Collateral
        Agreement, provided that such Collateral Agreement grants SUNTECH a pari
        passu
        priority with respect to HOKU’s Other Customers, and is expressly subordinated
        to the Senior Lenders. 

       

      7.4. 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 SUNTECH. When the Total Deposit is no longer held by
        HOKU,
        SUNTECH will sign such documents as are necessary to release its security
        interests. Notwithstanding anything to the contrary contained 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 SUNTECH in accordance
        with
        the terms of this Agreement.

       

      7.5. HOKU
        and
        SUNTECH 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 7,
        including the Collateral Agreements. Neither HOKU nor SUNTECH may unreasonably
        refuse to sign any such document.

       

      7.6. At
        the
        time when the Total Deposit is no longer held by HOKU in accordance with
        this
        Agreement, SUNTECH will sign such documents as are necessary to release its
        security interests in the Collateral.

       

      8. Product
        Quality Guarantee. 

       

      8.1. HOKU
        warrants to SUNTECH that the polysilicon supplied by HOKU to SUNTECH shall
        meet
        the Product Specifications. For each shipment that is shipped in a timely
        manner, this warranty shall survive for [*] days after the applicable shipment
        date, and for each shipment that is not shipped in a timely manner (including,
        without limitation, each shipment that is shipped during a Primary Delivery
        Grace Period or Secondary Delivery Grace Period, as applicable), this warranty
        shall survive for [*] days after the applicable shipment date (in each case,
        the
“Warranty
        Period”).
        Upon
        delivery of the Products to SUNTECH as set forth in Section 6.8,
        HOKU
        warrants that the Products shall be free of all liens, mortgages, encumbrances,
        security interests and other claims and rights. HOKU will, upon prompt
        notification and compliance with HOKU’s instructions, promptly refund or
        replace, at SUNTECH’s sole option and at HOKU’s cost, any polysilicon which does
        not meet the Product Specifications, and SUNTECH shall comply with the
        inspection and return goods policy described in Section 9
        below with
        respect to such polysilicon. 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 SUNTECH. 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 not committed
        by
        HOKU, its Affiliates or any of its or their representatives.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

      

      
        
          
            
            

          

          
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      8.2. 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 SUNTECH’s exclusive remedy for any claim
        arising out of a breach of the warranty set forth in the first sentence of
        Section 8.1
        is a
        refund or replacement, as described in Section 8.1
        above.
        With respect to any such breach, HOKU shall not 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.

       

      8.3. HOKU
        shall, at its own expense, indemnify and hold SUNTECH, SUNTECH’s Affiliates and
        SUNTECH’s customers 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 SUNTECH, SUNTECH’s customers or SUNTECH’s Affiliates alleging any such
        infringement. SUNTECH agrees that: (i) SUNTECH shall give HOKU prompt notice
        in
        writing of any such suit; (ii) if HOKU provides evidence reasonably satisfactory
        to SUNTECH of HOKU’s financial ability to defend the matter vigorously and pay
        any reasonably foreseeable damages, SUNTECH shall permit HOKU, through counsel
        of HOKU’s choice, to answer the charge of infringement and defend such suit (but
        SUNTECH, SUNTECH’s customer or SUNTECH’s Affiliate may be represented by counsel
        and participate in the defense at its own expense); and (iii) SUNTECH 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,
        each Party disclaims any obligation to defend or indemnify the other Party,
        its
        officers, agents, or employees, from any losses, damages, liabilities, costs
        or
        expenses which may arise out of the acts of omissions of the disclaiming
        Party.

       

      9. Inspection
        and Return Goods Policy.

       

      9.1. If
        a
        visual inspection of appearance by SUNTECH of any shipment of Product upon
        the
        delivery of the Product to SUNTECH reveals any obvious and significant damage
        to
        the Product or packaging, then SUNTECH shall inform HOKU promptly, and in
        no
        case later than [*]
        after
        discovery of such damage. For the avoidance of doubt, this
        Section 9.1
        shall
        not limit SUNTECH’s rights or obligations with respect to such shipment,
        including, without limitation, SUNTECH’s right to make a claim during the
        Warranty Period in accordance with Section 9.2
        below.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

      

      
        
          
            
            

          

          
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      9.2. Each
        claim for breach of Warranty must be submitted during the applicable Warranty
        Period, and the Products that are the subject of such claim may be returned
        to
        HOKU promptly after HOKU’s written request for the return of such Products,
        which may be submitted after HOKU completes its inspection of such Products
        and
        confirms the defect pursuant to Section 9.3
        below.
        HOKU may specify the mode of transportation for such returned Products and
        shall
        bear all third party shipping costs and expenses incurred for all defective
        Products that are returned in accordance with Section 9
        of this
        Agreement. To assure prompt handling, HOKU shall provide SUNTECH a return
        goods
        authorization number within 48 hours of SUNTECH’s request. Provided that HOKU
        communicates this number to SUNTECH within such timeframe, SUNTECH 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 equal to HOKU’s actual additional handling
        costs. HOKU reserves the right to reverse any credit issued to SUNTECH if,
        upon
        return, such Product is determined by a predetermined third party mutually
        selected by both Parties not to be defective.

       

      9.3. HOKU
        shall have the right to undertake its own inspection prior to any return
        of the
        Products pursuant to Section 9.2
        above.

       

      10. Term
        and Termination. 

       

      10.1. The
        term
        of this Agreement shall begin on the Effective Date, and unless previously
        terminated as hereinafter set forth, shall remain in force until the end
        of the
        tenth Year.

       

      10.2. 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: 

       

      10.2.1. 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 receiving written notice thereof.
        Notwithstanding the foregoing, HOKU shall have the right to terminate this
        Agreement if SUNTECH
        fails to make payment
        on the [*]
        payment
        terms set forth in Section 6.4
        hereof
        or fails to make any prepayment pursuant to Section 6.6
        hereof
        when due, and SUNTECH fails to make such payment or prepayment within thirty
        (30) days after receiving written notice of default containing the threat
        of
        immediate termination if payment or prepayment is not made within such thirty
        (30) day period.
        For the
        avoidance of doubt, HOKU shall have no obligation to deliver Products to
        SUNTECH
        while a payment default by SUNTECH has occurred and is continuing. For the
        purposes of this Section 10.2.1,
        a
“material breach” means a payment default or any other material breach of this
        Agreement which materially and adversely affects a Party or which occurs
        on
        multiple occasions. 

       

      10.2.2. 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; 

       

      10.2.3. 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 

       

      10.2.4. In
        accordance with the provisions of Section 14
        below.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

      

      
        
          
            
            

          

          
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      10.3. Without
        limiting SUNTECH’s right to terminate this Agreement pursuant to Section
10.2,
        SUNTECH
        shall have the right to terminate this Agreement in the event of the
        following:

       

      10.3.1. If
        the
        shipment for the First Shipment Month is not made by HOKU on or before December
        31, 2009. 

       

      10.3.2. If
        HOKU
        fails to complete a milestone by the Final Date therefor set forth in Section
        6.2.5. 

       

      10.4. Without
        limiting either Party’s right to terminate this Agreement pursuant to Section
10.2,
        HOKU
        and SUNTECH shall each have the right to terminate this Agreement if HOKU
        has
        not completed the Initial Financing on or before December 31, 2008.

       

      10.5. Upon
        the
        expiration or termination of this Agreement howsoever arising and subject
        always
        to the provisions of Section 10.6
        below,
        the following Sections shall survive such expiration or termination:
        Sections 1
        (Definitions); Section 8
        (Product
        Quality Guarantee), Section 9
        (Inspection and Return Goods Policy); Sections 10.6
        and 10.7
        (Term
        and Termination); Section 11
        (Liability); and Section 15
        (General
        Provisions). 

       

      10.6. Upon
        expiration or termination of this Agreement for any reason, all Product
        shipments that were due prior to such expiration or termination shall be
        completed by HOKU and for this purpose and to that extent, the provisions
        of
        this Agreement shall continue in full force and effect. 

       

      10.7. If
        this
        Agreement expires at the end of the Term or if SUNTECH terminates this Agreement
        pursuant to any provision of this Agreement, then any funds remaining on
        the
        Total Deposit or any Supplemental Deposits on such date of termination shall
        be
        returned promptly to SUNTECH. “Funds
        remaining” on the Total Deposit or any Supplemental Deposits are funds not
        applied (pursuant to Section 6.4
        or 6.6
        above,
        as applicable) against SUNTECH’s purchase of Product actually delivered to
        SUNTECH hereunder.

       

      11. Liability.
        

       

      11.1. IN
        NO
        EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL OR
        CONSEQUENTIAL DAMAGES OR FOR EXEMPLARY OR PUNITIVE DAMAGES, OR ANY DAMAGES
        FOR
        LOST PROFITS OR LOST REVENUES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
        POSSIBILITY OF SUCH DAMAGES.

       

      11.2. EXCEPT
        FOR HOKU’S OBLIGATIONS UNDER SECTION 8.3
        AND
        HOKU’S OBLIGATION TO REPAY THE TOTAL DEPOSIT AND SUPPLEMENTAL DEPOSITS PURSUANT
        TO SECTION 10.7
        ABOVE,
        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 ALL REMAINING AMOUNTS PAYABLE
        (INCLUDING SUMS OWED BUT NOT PAID) PURSUANT TO THIS AGREEMENT AT THE TIME
        THE
        CLAIM IS MADE. 

       

      11.3. In
        the
        event of a payment default by SUNTECH, HOKU may, in addition to all other
        remedies available to HOKU, refuse to ship any Products to SUNTECH until
        HOKU
        has received the past due amount including any interest payable thereon pursuant
        to this Agreement. For the avoidance of doubt, SUNTECH’s right to reduce the
        purchase price of Products pursuant to Section 3.3
        above
        shall not apply if HOKU is not fulfilling its supply obligations for this
        reason.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      
        
          
            
            

          

          
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      11.4. In
        addition to HOKU’s rights under Section 11.3
        above,
        in the event that SUNTECH fails to make a payment within the 45-day period
        set
        forth in Section 6.4
        above,
        HOKU may (but is not obligated to) off-set the amount of any funds remaining
        on
        or credited to the Total Deposit or any Supplemental Deposits by applying
        the
        Total Deposit or Supplemental Deposit, as applicable on a pro rata basis
        against
        the past due amount for the applicable shipment of Products, including any
        interest payable thereon; provided, however, that HOKU shall notify SUNTECH,
        in
        writing, prior to exercising such rights. For the avoidance of doubt, the
        interest payable set forth above shall accrue from the due date to the date
        when
        HOKU exercises the right to off-set. In case of such set-off by HOKU, SUNTECH
        shall be required to replenish within thirty (30) business days after HOKU’s
        receipt of such notification any additional deposit in order to return the
        Total
        Deposit or Supplemental Deposit, as applicable, to the level it should be
        as
        described in Section 6.4
        or
6.6,
        as
        applicable.

       

      12. HOKU
        Representations & Warranties.
        HOKU
        makes the following representations and warranties to SUNTECH: 

       

      12.1. HOKU
        is
        duly organized, validly existing and in good standing under the laws of the
        State of Delaware, and has the lawful power to own its properties and to
        engage
        in the business it conducts.

       

      12.2. The
        execution and performance of this Agreement will not immediately, or with
        the
        passage of time or the giving of notice, or both, (a) violate any law or
        result
        in a default under any contract, agreement, or instrument to which HOKU is
        a
        party or by which HOKU or its property is bound, or (b) result in the creation
        or imposition of any security interest in, or lien or encumbrance on, any
        of the
        assets of HOKU, except for the security interest granted or to be granted
        to
        SUNTECH pursuant to this Agreement. 

       

      12.3. HOKU
        has
        the power and authority to incur and perform its obligations under this
        Agreement, and HOKU has taken all corporate action necessary to authorize
        the
        execution and delivery of this Agreement and its incurring of such
        obligations.

       

      12.4. Except
        to
        the extent that the failure to comply would not materially interfere with
        the
        conduct of the business of HOKU, HOKU has complied and will comply with all
        applicable laws, and has obtained and will obtain all necessary permits,
        licenses and other governmental authorizations, in respect of: (a) restrictions,
        specifications, or other requirements pertaining to products that HOKU sells
        or
        to the services it performs; (b) the conduct of its business; and (c) the
        construction, use, maintenance, and operation of the Facility and HOKU’s other
        properties (except to the extent that such permits, licenses or other
        governmental authorizations are not yet necessary to be obtained by or on
        behalf
        of HOKU at such time in light of the stage of development, construction or
        operation of the Facility to enable HOKU to construct, test, operate, maintain,
        repair, own its interest in, or use the Facility) as contemplated by this
        Agreement, sell polysilicon from the Facility, or consummate and/or perform
        any
        obligation contemplated hereby, including all environmental, regulatory and
        other permits and approvals.

       

      12.5. HOKU
        has
        not entered into any additional supply contract with, or made any supply
        commitment to, any third party (not including each of the long term supply
        contracts that HOKU and SANYO, Global Expertise Wafer Division Ltd., and
        Solarfun Power Hong Kong Limited, respectively, entered into prior to the
        Effective Date) where the aggregate of HOKU’s delivery obligations under all of
        its supply contracts (including those with SUNTECH and SANYO) and such
        additional supply contract/commitment during any month exceeds the rated
        monthly
        production capacity of all Reactors as certified by the manufacturer thereof,
        except for (A) supply contracts for additional capacity from Facility expansion,
        including pre-sales of potential Facility expansions, or from increased
        productivity of the Reactors, and (B) sales on the spot market or long-term
        contracts for the sale of polysilicon that does not meet the Product
        Specifications, provided that HOKU has used commercially reasonable efforts
        to
        meet the Product Specifications with respect to such polysilicon and that
        HOKU
        is not manufacturing polysilicon for the purpose of making such spot market
        sales or fulfilling such long term contracts. 

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      
        
          
            
            

          

          
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      13. SUNTECH
        Covenants.
        SUNTECH
        hereby covenants and agrees to the following:

       

      13.1. During
        calendar years 2008 and 2009, SUNTECH shall use its reasonable best efforts
        to
        obtain from a third party supplier, on behalf of HOKU, the Minimum TCS Volume
        per year of TCS that is at least [*] pure, and which can be transported from
        such supplier to HOKU’s Facility. Notwithstanding the foregoing, HOKU shall have
        no obligation to order any quantities of TCS from any such third party pursuant
        to this Section 13.1;
        provided, however, that HOKU shall be solely responsible for paying for
        (including arranging and paying for delivery of) the TCS from such third
        party
        supplier for all quantities of TCS that are ordered by HOKU pursuant to this
        Section 13.1.

       

      14. Force
        Majeure.
        Neither
        Party shall be liable for damages 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, terrorism, 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 performance of HOKU is delayed for Force Majeure for
        a
        cumulative period of thirty (30) days or more, HOKU will use commercially
        reasonable efforts to transition its production of the Products for the duration
        of the Force Majeure to an alternate source (which may be a HOKU Competitor).
        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 (and, only if HOKU is the affected Party, HOKU
        has
        not transitioned its production of the Products as provided in the immediately
        preceding sentence), then the non-affected Party shall be entitled to terminate
        this Agreement by written notice to the other Party. Upon such termination,
        any
        funds remaining on the Total Deposit or any Supplemental Deposit shall be
        refunded to SUNTECH.
        Notwithstanding the foregoing, the inability of SUNTECH to receive or accept
        delivery of the Products that have been produced by HOKU in accordance with
        this
        Agreement shall not constitute an event of force majeure.

       

      15. General
        Provisions.
        

       

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

       

      15.2. 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 such
        dispute shall be finally settled by arbitration in San Francisco County or
        Santa
        Clara County, California, in accordance with the then current Commercial
        Arbitration Rules of the American Arbitration Association, and judgment upon
        the
        award rendered by the arbitrators may be entered in any court having
        jurisdiction thereof. Notwithstanding any of the foregoing, either Party
        may
        seek injunctive or other equitable relief at any time in any court of competent
        jurisdiction. This Section does not limit the right of any Party (or its
        collateral agent) to: (i) exercise self-help remedies, such as but not limited
        to, setoff; (ii) initiate judicial or non-judicial foreclosure against any
        real
        or personal property collateral; (iii) exercise any judicial or power of
        sale
        rights, or (iv) act in a court of law to obtain an interim remedy, such as
        but
        not limited to, injunctive relief, writ of possession or appointment of a
        receiver, or additional or supplementary remedies. In furtherance of this
        Section 15.2,
        any
        arbitration proceedings held by the Parties shall (i) be conducted by three
        arbitrators and such arbitrators must have relevant industry expertise and
        be
        impartial and (ii) apply rules of law.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      
        
          
            
            

          

          
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      15.3. Neither
        HOKU nor SUNTECH may assign this Agreement to a third party without the prior
        written consent of the other Party, which consent shall not be unreasonably
        withheld; provided however that either Party may assign this Agreement, together
        with all of its rights and obligations hereunder, to an Affiliate without
        the
        consent of the other Party. Notwithstanding the foregoing, an assignment
        of this
        Agreement (together with all of its rights and obligations hereunder) by
        either
        Party to a third party in connection with a merger with such third party
        or sale
        of all or substantially all of the assets of the assigning Party to such
        third
        party shall not require the consent of the non-assigning Party. Subject to
        the
        other provisions of this Section 15.3,
        this
        Agreement shall bind upon permitted successors and assigns of the Parties
        hereto. In the event of any assignment of this Agreement by HOKU in compliance
        with this Section 15.3,
        including, without limitation, an assignment through merger, acquisition
        or sale
        of assets, all obligations of HOKU that were required to be performed by
        HOKU at
        or from the Facility, including, without limitation, HOKU’s obligation to ship
        Products that were manufactured at the Facility, shall become the binding
        obligations of HOKU’s successor or assign; provided, however, that such
        successor or assign, as applicable, shall no longer be obligated to perform
        such
        obligation at or from the Facility, but may instead perform the obligation
        at or
        from its own polysilicon production facility, wherever it may be located,
        provided that (a) such performance complies with all other terms of this
        Agreement, including, without limitation, pricing, volume, quality, timing,
        shipping and warranty terms and (b) in the case of HOKU, such successor or
        assign, as applicable, provides SUNTECH with reasonable assistance with shipping
        logistics. For avoidance of doubt, such assistance shall include coordination
        and information regarding shipping, but exclude freight cost, insurance,
        or
        other incremental shipping costs.

       

      15.4. 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 15.4
        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: 

       

      SUNTECH:
        

       

      WUXI
        SUNTECH POWER CO., LTD.

      17-6
        CHANG JIANG SOUTH ROAD

      NEW
        DISTRICT WUXI 214028

      CHINA

      Attn:
        Zhengrong Shi Ph. D.

      E-mail:
        [*]

      Facsimile:
        [*]

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      
        
          
            
            

          

          
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      With
        a
        copy to:

      

      WUXI
        SUNTECH POWER CO., LTD.

      17-6
        CHANG JIANG SOUTH ROAD

      NEW
        DISTRICT WUXI 214028

      CHINA

      Attn:
        Steven Chan

      E-mail: [*]

      Facsimile:
        [*]

      

      HOKU:
        

       

      HOKU
        MATERIALS, INC.

      One
        Hoku
        Way

      Pocatello,
        Idaho 83201 USA

      Attn:
        Mr.
        Dustin Shindo, CEO

      E-mail:
        [*]

      Facsimile:
        

      

      With
        a
        copy to:

      

      HOKU
        SCIENTIFIC, INC.

      1075
        Opakapaka Street

      Kapolei,
        Hawaii 96707, USA

      Attn:
        Mr.
        Dustin Shindo, CEO

      E-mail:
        [*]

      Facsimile:
        +1 (808) 682-7800

       

      15.5. 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. 

       

      15.6. 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. 

       

      15.7. 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. 

       

      15.8. 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. 

       

      15.9. 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) business 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 to the other Party reasonable advance
        notice and a reasonable opportunity to review the proposed disclosure and
        comment thereon, and shall use commercially reasonable efforts to obtain
        confidential treatment from the applicable governing entity for all pricing,
        technical and other sensitive information set forth in this
        Agreement.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      
        
          
            
            

          

          
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      15.10. This
        Agreement constitutes the entire agreement between the Parties and supersedes
        all prior and contemporaneous agreements, proposal(s) and discussions, 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. 

       

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

       

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

       

      15.13. HOKU
        shall allow SUNTECH visitation rights to the Facility after the date of this
        Agreement and until the first delivery of Products upon reasonable advanced
        notice, at mutually agreeable times, and not to areas of the Facility that
        are
        outside the scope of this Agreement; provided, however, that SUNTECH shall
        be
        limited to two visits per calendar quarter, and SUNTECH shall bear all of
        its
        costs and expenses incurred in connection with such visitation. 

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      
        
          
            
            

          

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

       

      
        	
                SUNTECH:

              	 	
                HOKU:

              
	 	 	 
	
                WUXI
                  SUNTECH POWER CO., LTD.

              	 	
                HOKU
                  MATERIALS, INC.

              
	 	 	 
	
                By:
                  

              	
                /s/
                  ZHENGRONG SHI

              	 	
                By:
                  

              	
                /s/
                  DUSTIN SHINDO

              
	 	 	 	 	 
	
                Name:
                  

              	
                Zhengrong
                  Shi

              	 	
                Name:
                  

              	
                Dustin
                  Shindo

              
	 	 	 	 	 
	
                Title:
                  

              	
                Chairman
                  & CEO

              	 	
                Title:
                  

              	
                Chairman
                  & CEO

              
	
                Authorized
                  Signatory 

              	 	
                Authorized
                  Signatory

              

      

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      
        
          
            
            

          

          
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      Appendix
        1

      Pricing
        Schedule

       

      
        	
                Planned
                  Delivery Period

              	 	
                Quantity

              	 	
                Price / kg
                  

              	 
	
                July
                  1, 2009 – December 31, 2009

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                January
                  1, 2010 – December 31, 2010

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                January
                  1, 2011 – December 31, 2011

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                January
                  1, 2012 – December 31, 2012

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                January
                  1, 2013 – December 31, 2013

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                January
                  1, 2014 – December 31, 2014

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                January
                  1, 2015 – December 31, 2015

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                 

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                January
                  1, 2016 – December 31, 2016

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                January
                  1, 2017 – December 31, 2017

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                January
                  1, 2018 – December 31, 2019

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              

      

      

      For
        avoidance of doubt, the price applicable to any shipment of Products shall
        be
        the price set forth above corresponding to the actual date of shipment, without
        regard to the date on which such shipment was due or was scheduled for
        shipment.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

        Appendix 1
          to Supply Agreement

      

      
        
          
            
            

          

          
            Pate
              19
              of 27

            
              

            

          

          
            
            

          

        

      

      

      Appendix
        2

      Product
        Specifications

       

      
        	
                Type
                  

              	 	
                 Bulk elements

              	 	
                Value

              	 	
                Unit

              	 
	
                Acceptors

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                Donors

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                Carbon
                  Levels (first 6 months)

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                Carbon
                  Levels (after 6 months)

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              
	
                Total
                  Metals 

              	 	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              	 	
                [*

              	
                ]

              

      

      

      Product
        Specifications shall be tested in accordance with the following procedures:
        [*].

      

      Product
        shall be packaged in a virgin polyethylene (no additives) bag. A double bag
        system shall be used to be compatible with clean room requirements. Products
        shall be palletized.

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

        Appendix 2
          to Supply Agreement

      

      
        
          
            
            

          

          
            Pate
              20
              of 27

            
              

            

          

          
            
            

          

        

      

      

      Appendix
        3

       

      Potential
        Qualified Engineering Firms

      

      [*]

      [*]

      [*]

      [*]

      [*]

      [*]

      [*]

      [*]

      [*]

      [*]

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

        
        

        Appendix 3
          to Supply Agreement

      

      
        
          
            
            

          

          
            Pate
              21
              of 27

            
              

            

          

          
            
            

          

        

      

      

      APPENDIX
        4

      Stand-by
        Letter of Credit

       

      [Attached]

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

        Appendix 4
          to Supply Agreement

      

      
        
          
            
            

          

          
            Pate
              22
              of 27

            
              

            

          

          
            
            

          

        

      

      

       

      APPENDIX
        5

      [*]
        Certificate 

       

      This
        [*]
        Certificate is being signed and notarized pursuant to Section 6.2.1 of
        the
        First Amended & Restated Supply Agreement dated ______________, 2008 by and
        between HOKU MATERIALS, INC. and WUXI SUNTECH POWER CO., LTD. (the “Agreement”).
        Capitalized terms not otherwise defined herein have the meaning set forth
        in the
        Agreement.

      

      By
        signing below, each party hereby certifies to the successful completion of
        the
        [*] and confirms the following: 

      

      
        	
                [*]:

              	 
	 	 
	
                [*]:

              	 
	 	 
	
                [*]:

              	 
	 	 
	
                [*]:

              	 
	 	 
	
                [*]:

              	 
	 	 
	
                [*]:

              	 
	 	 
	
                [*]:

              	 
	 	 
	
                [*]
                  (circle “yes” or “no”)

              	
                YES
                  / NO

              
	 	 
	
                [*]
                  (Circle “yes” or “no” below.)

              	 

      

       

      
        
          	YES
                  / NO	HOKU
                  Initials and Date _______________________________________
	 	 
	
                  YES
                    / NO

                	
                  SUNTECH
                    Initials and Date
                    ____________________________________

                

        

      

       

      
        	
                SUNTECH:

              	 	
                HOKU:

              
	 	 	 
	
                WUXI
                  SUNTECH POWER CO., LTD.

              	 	
                HOKU
                  MATERIALS, INC.

              
	 	 	 
	
                By:
                  

              	 	 	
                By:
                  

              	 
	 	 	 	 	 
	
                Name:
                  

              	 	 	
                Name:
                  

              	 
	 	 	 	 	 
	
                Title:
                  

              	 	 	
                Title:
                  

              	 
	
                Authorized
                  Signatory 

              	 	
                Authorized
                  Signatory

              

      

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

        Appendix 5
          to Supply Agreement

      

      
        
          
            
            

          

          
            Pate
              23
              of 27

            
              

            

          

          
            
            

          

        

      

       

      

      

      APPENDIX
        6

      [*]
        Certificate

      

      This
        [*]
        Certificate is being signed and notarized pursuant to Section 6.2.2
        of the
        First Amended & Restated Supply Agreement dated _______ __, 2008 by and
        between HOKU MATERIALS, INC. and
        WUXI
        SUNTECH POWER CO., LTD. (the
        “Agreement”).
        Capitalized terms not otherwise defined herein have the meaning set forth
        in the
        Agreement.

      

      By
        signing below, each party hereby certifies to the successful completion of
        the
        [*] and confirms the following: 

      

      
        	
                [*]:
                  

              	 
	 	 
	
                [*]:

              	 
	 	 
	
                [*]:

              	 
	 	 
	
                [*]:

              	 
	 	 
	
                [*]:

              	 
	
                [*]

              	 
	 	 
	
                [*]
                  (Circle “yes” or “no” below.)

              	 

      

      

      
        	
                YES
                  / NO 

              	
                HOKU
                  Initials and
                  Date                                                                                        
                  

              
	 	 
	
                YES
                  / NO 

              	
                SUNTECH
                  Initials and
                  Date                                                                                 
                   

              

      

      

      
        	
                SUNTECH:

              	 	
                HOKU:

              
	 	 	 
	
                WUXI
                  SUNTECH POWER CO., LTD.

              	 	
                HOKU
                  MATERIALS, INC.

              
	 	 	 
	
                By:
                  

              	 	 	
                By:
                  

              	 
	 	 	 	 	 
	
                Name:
                  

              	 	 	
                Name:
                  

              	 
	 	 	 	 	 
	
                Title:
                  

              	 	 	
                Title:
                  

              	 
	
                Authorized
                  Signatory 

              	 	
                Authorized
                  Signatory

              

      

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

        Appendix 6
          to Supply Agreement

      

      
        
          
            
            

          

          
            Pate
              24
              of 27

            
              

            

          

          
            
            

          

        

      

      

      Appendix
        7

       

      [*]
        Certificate

       

      This
        [*]
        Certificate is being signed and notarized pursuant to Section 6.2.3
        of the
        First Amended & Restated Supply Agreement dated ______________, 2008 by and
        between HOKU MATERIALS, INC. and WUXI
        SUNTECH POWER CO., LTD.
        (the
“Agreement”).
        Capitalized terms not otherwise defined herein have the meaning set forth
        in the
        Agreement.

      

      By
        signing below, each party hereby certifies to the successful completion of
        the
        [*] and confirms the following: 

      

      
        	 	
                1.

              	
                [*].

              

      

      
        	 	
                2.

              	
                [*].
                  

              

      

      
        	 	
                3.

              	
                [*].

              

      

      
        	 	
                4.

              	
                [*].

              

      

      

      
        	
                SUNTECH:

              	 	
                HOKU:

              
	 	 	 
	
                WUXI
                  SUNTECH POWER CO., LTD.

              	 	
                HOKU
                  MATERIALS, INC.

              
	 	 	 
	
                By:
                  

              	 	 	
                By:
                  

              	 
	 	 	 	 	 
	
                Name:
                  

              	 	 	
                Name:
                  

              	 
	 	 	 	 	 
	
                Title:
                  

              	 	 	
                Title:
                  

              	 
	
                Authorized
                  Signatory 

              	 	
                Authorized
                  Signatory

              

      

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

      

        Appendix 7
          to Supply Agreement

      

      
        
          
            
            

          

          
            Pate
              25
              of 27

            
              

            

          

          
            
            

          

        

      

      

      Appendix
        8

       

      Form
        of Officer’s Closing Certificate

       

      Pursuant
        to the Supply Agreement (the “Supply Agreement”) dated _____________, 2007
        between HOKU MATERIALS, INC., (“HOKU”) and SUNTECH POWER CO., LTD., the person
        signing below hereby certifies that the following statements are true and
        correct as of [date].

       

      
        	 	
                i.

              	
                I
                  am the [executive officer title] of
                  HOKU.

              

      

       

      
        	 	
                ii.

              	
                HOKU
                  has performed all obligations that were required to have been performed
                  by
                  it pursuant to the Agreement as of the date of this
                  Certificate.

              

      

       

      
        	 	
                iii.

              	
                The
                  representations and warranties set forth in Section 12
                  of
                  the Agreement are true and correct in all material respects as
                  of the date
                  of this Certificate. 

              

      

       

      All
        capitalized terms not otherwise defined herein have the meaning set forth
        in the
        Supply Agreement.

       

      In
        witness whereof, I hereby certify to the truth of the above
        statements.

       

      
        	
                By:

              	 
	 	 
	
                Name:

              	 
	 	 
	
                Title:

              	 
	 	 
	
                Date:

              	 

      

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

      

      

        Appendix
          8 to Supply Agreement

      

      
        
          
            
            

          

          
            Pate
              26
              of 27

            
              

            

          

          
            
            

          

        

      

      

      Appendix
        9

      Form
        of Officer’s Compliance Certificate

       

      Pursuant
        to the Supply Agreement (the “Supply Agreement”) dated _____________, 2007
        between HOKU MATERIALS, INC., (“HOKU”) and SUNTECH POWER CO., LTD., the person
        signing below hereby certifies that the following statements are true and
        correct as of [date].

       

      
        	 	
                i.

              	
                I
                  am the [executive officer title] of
                  HOKU.

              

      

       

      
        	 	
                ii.

              	
                HOKU
                  has performed all obligations that were required to have been performed
                  by
                  it pursuant to the Agreement as of the date of this
                  Certificate.

              

      

       

      
        	 	
                iii.

              	
                The
                  representations and warranties set forth in Section 0
                  of
                  the Agreement are true and correct in all material respects as
                  of the date
                  of this Certificate. 

              

      

       

      
        	 	
                iv.

              	
                HOKU
                  has granted to SUNTECH a valid, enforceable and perfected subordinated
                  security interest in all Collateral for the purpose of security
                  the
                  repayment obligations of HOKU to SUNTECH of the Total Deposit (and
                  any
                  portion thereof) set forth in the
                  Agreement.

              

      

       

      
        	 	
                v.

              	
                HOKU
                  has completed the Initial
                  Financing.

              

      

       

      
        	 	
                vi.

              	
                HOKU
                  is not in material default of any material third party loan or
                  credit
                  agreement that cannot be cured within the applicable cure
                  period.

              

      

       

      All
        capitalized terms not otherwise defined herein have the meaning set forth
        in the
        Supply Agreement.

       

      In
        witness whereof, I hereby certify to the truth of the above
        statements.

       

      
        	
                By:

              	 
	 	 
	
                Name:

              	 
	 	 
	
                Title:

              	 
	 	 
	
                Date:

              	 

      

      

        
          	
                  SUNTECH
                    Initials & Date ZS May 12, 2008

                	
                  HOKU
                    Initials & Date DS May 12,
                    2008

                

        

        Appendix 9
          to Supply Agreement

      

      
        
          
            
            

          

          
            Pate
              27
              of 27

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