Common use of Escrow Agreement; Letter of Credit Clause in Contracts

Escrow Agreement; Letter of Credit. 5.3.1. On or before February 15, 2008, either (A) SOLARFUN shall provide to HOKU an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) in the amount of the Main Deposit, or (B) SOLARFUN, HOKU and the Escrow Agent shall sign an escrow agreement in substantially the form of Appendix 4 (the “Escrow Agreement”), and SOLARFUN shall deposit into the Escrow Account the amount of the Main Deposit. (a) If the Letter of Credit is provided pursuant to Section 5.3.1(A) above, then such Letter of Credit shall be issued to HOKU by a bank domiciled in and organized under the laws of one of the fifty states of the United States of America, and which is reasonably acceptable to HOKU (the “Issuing Bank”). The Letter of Credit shall be issued in US Dollars for the full amount of the Main Deposit, and shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 13.3 below. Payment to HOKU of the Second Deposit, Third Deposit and Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that SOLARFUN has failed to make such payment on the Second Deposit Date, the Third Deposit Date or the Fourth Deposit Date, as applicable. The Letter of Credit shall expire on the later of the date when (A) the Main Deposit has been paid in full to HOKU by SOLARFUN, or (B) the Main Deposit has been paid in full to HOKU by the Issuing Bank. (b) If the Escrow Agreement is entered into pursuant to Section 5.3.1(B) above, then the Main Deposit may be deposited into the Escrow Account in US Dollars or Chinese RMB; provided, however, that all payments to HOKU pursuant to this Agreement shall be in US Dollars. Payment of the Second Deposit, Third Deposit and Fourth Deposit shall automatically be made to HOKU from the Escrow Account pursuant to the Escrow Agreement on the Second Deposit Date, Third Deposit Date and Fourth Deposit Date, as applicable. Notwithstanding anything to the contrary, all payments from the Escrow Account to HOKU shall be made in US Dollars, unless HOKU and SOLARFUN otherwise agree in writing. In the event that the amount of any payment from the Escrow Account to HOKU in US Dollars is less than the Second Deposit, Third Deposit, or Fourth Deposit, as applicable, due to currency exchange rates from Chinese RMB to US Dollars, then SOLARFUN shall be obligated to immediately pay HOKU in US Dollars the difference between the actual payment from the Escrow Account and the Second Deposit, Third Deposit or Fourth Deposit, as applicable. The final form of the Escrow Agreement may be different from the form attached as Appendix 4, acceptance of which by the Parties shall be evidenced by HOKU and SOLARFUN’s execution thereof.

Escrow Agreement; Letter of Credit. 5.3.1. On or before February 15, 2008, either (A) SOLARFUN shall provide to HOKU an irrevocable stand-by letter of credit in substantially the form of Appendix APPENDIX 3 attached hereto (the “Letter of Credit”"LETTER OF CREDIT") in the amount of the Main Deposit, or (B) SOLARFUN, HOKU and the Escrow Agent shall sign an escrow agreement in substantially the form of Appendix APPENDIX 4 (the “Escrow Agreement”"ESCROW AGREEMENT"), and SOLARFUN shall deposit into the Escrow Account the amount of the Main Deposit. (a) If the Letter of Credit is provided pursuant to Section 5.3.1(A) above, then such Letter of Credit shall be issued to HOKU by a bank domiciled in and organized under the laws of one of the fifty states of the United States of America, and which is reasonably acceptable to HOKU (the “Issuing Bank”"ISSUING BANK"). The Letter of Credit shall be issued in US Dollars for the full amount of the Main Deposit, and shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 13.3 below. Payment to HOKU of the Second Deposit, Third Deposit and Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that SOLARFUN has failed to make such payment on the Second Deposit Date, the Third Deposit Date or the Fourth Deposit Date, as applicable. The Letter of Credit shall expire on the later of the date when (A) the Main Deposit has been paid in full to HOKU by SOLARFUN, or (B) the Main Deposit has been paid in full to HOKU by the Issuing Bank.. 5.3.1 (b) If the Escrow Agreement is entered into pursuant to Section 5.3.1(B) above, then the Main Deposit may be deposited into the Escrow Account in US Dollars or Chinese RMB; provided, however, that all payments to HOKU pursuant to this Agreement shall be in US Dollars. Payment of the Second Deposit, Third Deposit and Fourth Deposit shall automatically be made to HOKU from the Escrow Account pursuant to the Escrow Agreement on the Second Deposit Date, Third Deposit Date and Fourth Deposit Date, as applicable. Notwithstanding anything to the contrary, all payments from the Escrow Account to HOKU shall be made in US Dollars, unless HOKU and SOLARFUN otherwise agree in writing. In the event that the amount of any payment from the Escrow Account to HOKU in US Dollars is less than the Second Deposit, Third Deposit, or Fourth Deposit, as applicable, due to currency exchange rates from Chinese RMB to US Dollars, then SOLARFUN shall be obligated to immediately pay HOKU in US Dollars the difference between the actual payment from the Escrow Account and the Second Deposit, Third Deposit or Fourth Deposit, as applicable. The final form of the Escrow Agreement may be different from the form attached as Appendix 4, acceptance of which by the Parties shall be evidenced by HOKU and SOLARFUN’s 's execution thereof.

Escrow Agreement; Letter of Credit. 5.3.15.4.1. On or before February 15January 10, 2008, either (A) SOLARFUN shall provide to HOKU an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) in the amount of the Main Deposit, or (B) SOLARFUN, HOKU and the Escrow Agent shall sign an escrow agreement in substantially the form of Appendix 4 (the “Escrow Agreement”), and SOLARFUN shall deposit into the Escrow Account the amount of the Main Deposit. (a) If the Letter of Credit is provided pursuant to Section 5.3.1(A5.4.1(A) above, then such Letter of Credit shall be issued to HOKU by a bank domiciled in and organized under the laws of one of the fifty states of the United States of America, and which is reasonably acceptable to HOKU (the “Issuing Bank”). The Letter of Credit shall be issued in US Dollars for the full amount of the Main Deposit, and shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 13.3 below. Payment to HOKU of the Second Third Deposit, Third Fourth Deposit and Fourth Fifth Deposit shall be made by the Issuing Bank upon its receipt of written notice that SOLARFUN has failed to make such payment on the Second Third Deposit Date, the Third Fourth Deposit Date or the Fourth Fifth Deposit Date, as applicable. The Letter of Credit shall expire on the later of the date when (A) the Main Deposit has been paid in full to HOKU by SOLARFUN, or (B) the Main Deposit has been paid in full to HOKU by the Issuing Bank. 5.4.1 (b) If the Escrow Agreement is entered into pursuant to Section 5.3.1(B5.4.1(B) above, then the Main Deposit may be deposited into the Escrow Account in US Dollars or Chinese RMB; provided, however, that all payments to HOKU pursuant to this Agreement shall be in US Dollars. Payment of the Second Third Deposit, Third Fourth Deposit and Fourth Fifth Deposit shall automatically be made to HOKU from the Escrow Account pursuant to the Escrow Agreement on the Second Third Deposit Date, Third Fourth Deposit Date and Fourth Fifth Deposit Date, as applicable. Notwithstanding anything to the contrary, all payments from the Escrow Account to HOKU shall be made in US Dollars, unless HOKU and SOLARFUN otherwise agree in writing. In the event that the amount of any payment from the Escrow Account to HOKU in US Dollars is less than the Second Deposit, Third Deposit, Fourth Deposit, or Fourth Fifth Deposit, as applicable, due to currency exchange rates from Chinese RMB to US Dollars, then SOLARFUN shall be obligated to immediately pay HOKU in US Dollars the difference between the actual payment from the Escrow Account and the Second Third Deposit, Third Fourth Deposit or Fourth Fifth Deposit, as applicable. The final form of the Escrow Agreement may be different from the form attached as Appendix 4, acceptance of which by the Parties shall be evidenced by HOKU and SOLARFUN’s execution thereof.

Escrow Agreement; Letter of Credit. 5.3.15.4.1. On or before February 15January 10, 2008, either (A) SOLARFUN shall provide to HOKU an irrevocable stand-by letter of credit in substantially the form of Appendix APPENDIX 3 attached hereto (the “Letter of Credit”"LETTER OF CREDIT") in the amount of the Main Deposit, or (B) SOLARFUN, HOKU and the Escrow Agent shall sign an escrow agreement in substantially the form of Appendix APPENDIX 4 (the “Escrow Agreement”"ESCROW AGREEMENT"), and SOLARFUN shall deposit into the Escrow Account the amount of the Main Deposit. (a) If the Letter of Credit is provided pursuant to Section 5.3.1(A5.4.1(A) above, then such Letter of Credit shall be issued to HOKU by a bank domiciled in and organized under the laws of one of the fifty states of the United States of America, and which is reasonably acceptable to HOKU (the “Issuing Bank”"ISSUING BANK"). The Letter of Credit shall be issued in US Dollars for the full amount of the Main Deposit, and shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 13.3 below. Payment to HOKU of the Second Third Deposit, Third Fourth Deposit and Fourth Fifth Deposit shall be made by the Issuing Bank upon its receipt of written notice that SOLARFUN has failed to make such payment on the Second Third Deposit Date, the Third Fourth Deposit Date or the Fourth Fifth Deposit Date, as applicable. The Letter of Credit shall expire on the later of the date when (A) the Main Deposit has been paid in full to HOKU by SOLARFUN, or (B) the Main Deposit has been paid in full to HOKU by the Issuing Bank. (b) If the Escrow Agreement is entered into pursuant to Section 5.3.1(B5.4.1(B) above, then the Main Deposit may be deposited into the Escrow Account in US Dollars or Chinese RMB; provided, however, that all payments to HOKU pursuant to this Agreement shall be in US Dollars. Payment of the Second Third Deposit, Third Fourth Deposit and Fourth Fifth Deposit shall automatically be made to HOKU from the Escrow Account pursuant to the Escrow Agreement on the Second Third Deposit Date, Third Fourth Deposit Date and Fourth Fifth Deposit Date, as applicable. Notwithstanding anything to the contrary, all payments from the Escrow Account to HOKU shall be made in US Dollars, unless HOKU and SOLARFUN otherwise agree in writing. In the event that the amount of any payment from the Escrow Account to HOKU in US Dollars is less than the Second Deposit, Third Deposit, Fourth Deposit, or Fourth Fifth Deposit, as applicable, due to currency exchange rates from Chinese RMB to US Dollars, then SOLARFUN shall be obligated to immediately pay HOKU in US Dollars the difference between the actual payment from the Escrow Account and the Second Third Deposit, Third Fourth Deposit or Fourth Fifth Deposit, as applicable. The final form of the Escrow Agreement may be different from the form attached as Appendix 4, acceptance of which by the Parties shall be evidenced by HOKU and SOLARFUN’s 's execution thereof.