Common use of Payments & Advances Clause in Contracts

Payments & Advances. 5.1. HOKU acknowledges receipt from TIANWEI of the prepayment of Fifteen Million U.S. Dollars (US$15,000,000) via wire transfer of immediately available funds (the “Initial Deposit”). TIANWEI Initials & Date ___________________________ HOKU Initials & Date ___________________________ 5.2. HOKU acknowledges receipt from TIANWEI of an additional sum of Fifteen Million U.S. Dollars (US$15,000,000) (the “Second Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.3. HOKU acknowledges receipt from TIANWEI of an additional sum of Ten Million U.S. Dollars (US$10,000,000) (the “Third Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.4. HOKU acknowledges receipt from TIANWEI of an additional sum of Four Million U.S. Dollars (US$4,000,000), and TIANWEI agrees that it shall pay in cash to HOKU the additional sum of One Million U.S. Dollars (US$1,000,000) (collectively, the “Fourth Deposit” and together with the Second Deposit and the Third Deposit, the “Main Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Fourth Deposit shall be made when HOKU completes the shipment to TIANWEI of a cumulative aggregate of [*] metric tons of Products pursuant to Section 4 of this Agreement (including Products shipped in calendar year 2009). 5.5. HOKU acknowledges receipt from TIANWEI of an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) by the issuing bank (the “Issuing Bank”) in the amount of the Main Deposit. The Letter of Credit shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 14.4 below. Payment to HOKU of the Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that TIANWEI has failed to make the payment of the Fourth Deposit. The Letter of Credit shall expire after the Main Deposit has been paid in full. 5.6. HOKU shall invoice TIANWEI at or after the time of each shipment of Products to TIANWEI. Taxes, customs and duties, if any, will be identified as separate items on HOKU invoices. All invoices shall be sent to TIANWEI’s address as provided herein. Payment terms for all invoiced amounts shall be [*] days from date of shipment. All payments shall be made in U.S. Dollars. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11 below, shipments to TIANWEI shall be credited against the Total Deposit on a pro rata basis during the first through tenth Year from the First Shipment Date. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11, shipments to TIANWEI shall be credited against the Total Deposit in accordance with the Credit Schedule on Appendix 1. 5.7. The prices for the Products do not include any excise, sales, use, import, export or other similar taxes, such taxes will not include income taxes or similar taxes, which taxes will be invoiced to and paid by TIANWEI, provided that TIANWEI is legally or contractually obliged to pay such taxes. HOKU and TIANWEI shall work together to eliminate the possibility of taxes, but if there are any assessed, HOKU shall promptly remit to TIANWEI in full any such taxes paid by TIANWEI which are refunded to HOKU in whole or in part. TIANWEI shall be responsible for all transportation charges, duties or charges, liabilities and risks for shipping and handling (and hereby indemnifies HOKU for such costs, liabilities and risks); thus, the price for the Products shall not include any such charges. 5.8. Late payments and outstanding balances shall accrue interest at the lesser of 18% per annum or the maximum allowed by law.

Payments & Advances. 5.1The Total Deposit shall be used only by HOKU for polysilicon facilities construction, operation, administration, and other expenses and investments related to HOKU’s polysilicon business. 6.1. HOKU acknowledges receipt of fifteen million U.S. dollars ($15,000,000) from TIANWEI JINKO (the “Initial Deposit”), plus five million U.S. dollars ($5,000,000) from ALEX. JINKO acknowledges and agrees that, upon the effectiveness of this Agreement pursuant to Section 1 above, it shall have no rights or claims against HOKU with respect to the ALEX Contribution, including, without limitation, any rights to a refund of the prepayment ALEX Contribution upon any past, present, or future breach of Fifteen Million this Agreement by HOKU. 6.2. On or before March 25, 2009, JINKO shall provide HOKU with a deposit of three million U.S. Dollars dollars (US$15,000,000$3,000,000) via wire transfer of immediately available funds (the “Initial Deposit”). TIANWEI Initials & Date ___________________________ HOKU Initials & Date ___________________________ 5.2. HOKU acknowledges receipt from TIANWEI of an additional sum of Fifteen Million U.S. Dollars (US$15,000,000) (the “Second Third Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.36.3. On or before June 24, 2009, JINKO shall provide HOKU acknowledges receipt from TIANWEI with a deposit of an additional sum two million U.S. dollars ($2,000,000) via wire transfer of Ten Million U.S. Dollars (US$10,000,000) immediately available funds (the “Fourth Deposit” and together with the Initial Deposit and the Third Deposit, the “Total Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.4. HOKU acknowledges receipt from TIANWEI of an additional sum of Four Million U.S. Dollars (US$4,000,000), and TIANWEI agrees that it shall pay in cash to HOKU the additional sum of One Million U.S. Dollars (US$1,000,000) (collectively, the “Fourth Deposit” and together with the Second Deposit and the Third Deposit, the “Main Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Fourth Deposit shall be made when HOKU completes the shipment to TIANWEI of a cumulative aggregate of [*] metric tons of Products pursuant to Section 4 of this Agreement (including Products shipped in calendar year 2009). 5.5. HOKU acknowledges receipt from TIANWEI of an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) by the issuing bank (the “Issuing Bank”) in the amount of the Main Deposit. The Letter of Credit shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 14.4 below. Payment to HOKU of the Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that TIANWEI has failed to make the payment of the Fourth Deposit. The Letter of Credit shall expire after the Main Deposit has been paid in full. 5.66.4. HOKU shall invoice TIANWEI JINKO at or after the time of each shipment of Products to TIANWEIJINKO. Taxes, customs and duties, if any, will be identified as separate items on HOKU invoices. All invoices shall be sent to TIANWEIJINKO’s address as provided herein. Payment terms for all invoiced amounts shall be [*] *** days from date of shipment. All payments shall be made in U.S. Dollarsdollars. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11 12 below, shipments to TIANWEI JINKO shall be credited against the Total Deposit on a pro rata straight-line basis during the first second through tenth Year from the First Shipment Date. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11, shipments to TIANWEI shall be credited against the Total Deposit in accordance with the Credit Schedule on Appendix 1Year. 5.76.5. The prices are EXW prices (INCOTERMS 2000). The prices for the Products do not include any excise, sales, use, import, export or other similar taxes, such taxes will not include income taxes or similar taxes, which taxes will be invoiced to and paid by TIANWEIJINKO, provided that TIANWEI JINKO is legally or contractually obliged to pay such taxes. HOKU and TIANWEI shall work together to eliminate the possibility of taxes, but if there are any assessed, HOKU shall promptly remit to TIANWEI in full any such taxes paid by TIANWEI which are refunded to HOKU in whole or in part. TIANWEI JINKO shall be responsible for all transportation charges, duties or charges, liabilities and risks for shipping and handling (and hereby indemnifies HOKU for such costs, liabilities and risks); thus, the price for the Products shall not include any such charges. 5.86.6. Late payments and outstanding balances shall accrue interest at the lesser of 18% **** per annum or the maximum allowed by law.

Payments & Advances. 5.16.1. On or before April 10, 2009, CUSTOMER shall initiate remittance in full to HOKU acknowledges receipt from TIANWEI of the prepayment of Fifteen Seven Million U.S. Dollars (US$15,000,0007,000,000) as an advance payment for Products to be delivered under this Agreement, via wire transfer of immediately available funds (the “Initial Deposit”). TIANWEI CUSTOMER Initials & Date ___________________________ /s/ YIH HOKU Initials & Date ___________________________/s/ DS 2 April 2009 5.26.2. HOKU acknowledges receipt from TIANWEI of an additional sum of Fifteen Million U.S. Dollars (US$15,000,000) (the “Second Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.3. HOKU acknowledges receipt from TIANWEI of an additional sum of Ten Million U.S. Dollars (US$10,000,000) (the “Third Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.4. HOKU acknowledges receipt from TIANWEI of an additional sum of Four Million U.S. Dollars (US$4,000,000), and TIANWEI agrees that it CUSTOMER shall pay in cash to HOKU the additional sum of One Thirteen Million Two Hundred Thousand U.S. Dollars (US$1,000,00013,200,000) (collectively, the “Fourth Deposit” and together with the Second Deposit and the Third Deposit, the “Main Deposit”) as an advance payment for Products to be delivered under this Agreement in equal monthly installments (each, a “Monthly Deposit”) within ten (10) business days from each of the Remittance Dates set forth below: June 10, 2009 $3.3 million August 10, 2009 $3.3 million October 10, 2009 $3.3 million December 10, 2009 $3.3 million 6.3. CUSTOMER shall pay in cash to HOKU the additional sum of Two Hundred Thousand U.S. Dollars ($200,000) (the “Final Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment Initiation of the Fourth remittance in the full amount of the Final Deposit shall be made within ten (10) business days of when HOKU completes the shipment to TIANWEI CUSTOMER of a cumulative aggregate of [*] seven and one-half (7.5) metric tons of Products Product pursuant to Section 4 of this Agreement (including Products shipped in calendar year 2009)agreement. 5.5. HOKU acknowledges receipt from TIANWEI of an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) by the issuing bank (the “Issuing Bank”) in the amount of the Main Deposit. The Letter of Credit shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 14.4 below. Payment to HOKU of the Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that TIANWEI has failed to make the payment of the Fourth Deposit. The Letter of Credit shall expire after the Main Deposit has been paid in full. 5.66.4. HOKU shall invoice TIANWEI CUSTOMER at or after the time of each shipment of Products to TIANWEICUSTOMER. Taxes, customs and duties, if any, will be identified as separate items on HOKU invoices. All invoices shall be sent to TIANWEICUSTOMER’s address as provided herein. Payment terms for all invoiced amounts shall be [*] days from date of shipment. All payments shall be made in U.S. Dollars. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11 12 below, shipments to TIANWEI CUSTOMER shall be credited against the Total Deposit according to the schedule of credits in Appendix 1 until there are no Funds Remaining on a pro rata basis during the first through tenth Year from the First Shipment Date. Unless HOKU is entitled to retain the Total Deposit (as liquidated damages pursuant to defined in Section 11, shipments to TIANWEI shall be credited against the Total Deposit in accordance with the Credit Schedule on Appendix 110.5). 5.76.5. The prices for the Products do not include any excise, sales, use, import, export or other similar taxes, such taxes will not include income taxes or similar taxes, which taxes will be invoiced to and paid by TIANWEICUSTOMER, provided that TIANWEI CUSTOMER is legally or contractually obliged to pay such taxes. HOKU and TIANWEI shall work together to eliminate the possibility of taxes, but if there are any assessed, HOKU shall promptly remit to TIANWEI in full any such taxes paid by TIANWEI which are refunded to HOKU in whole or in part. TIANWEI CUSTOMER shall be responsible for all transportation charges, duties or charges, liabilities and risks for shipping and handling (and hereby indemnifies HOKU for such costs, liabilities and risks); thus, the price for the Products shall not include any such charges. 5.86.6. Late payments and outstanding balances balances, shall accrue interest at a rate per annum equal to the lesser of 18% [*] per annum or the maximum allowed by law, accruing daily and calculated on the basis of a 365-day year and the actual number of days.

Payments & Advances. 5.1. Within fifteen (15) days after the Effective Date, TIANWEI shall provide HOKU acknowledges receipt from TIANWEI of the with a prepayment of Fifteen Million U.S. Dollars (US$15,000,000) via wire transfer of immediately available funds (the “Initial Deposit”). TIANWEI Initials & Date ___________________________ HOKU Initials & Date ___________________________. 5.2. TIANWEI shall pay in cash to HOKU acknowledges receipt from TIANWEI of an the additional sum of Fifteen Million U.S. Dollars (US$15,000,000) (the “Second Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Second Deposit shall be made on or before November 15, 2008. 5.3. TIANWEI shall pay in cash to HOKU acknowledges receipt from TIANWEI of an the additional sum of Ten Million U.S. Dollars (US$10,000,000) (the “Third Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Third Deposit shall be made on or before January 15, 2009. 5.4. HOKU acknowledges receipt from TIANWEI of an additional sum of Four Million U.S. Dollars (US$4,000,000), and TIANWEI agrees that it shall pay in cash to HOKU the additional sum of One Five Million U.S. Dollars (US$1,000,0005,000,000) (collectively, the “Fourth Deposit” and together with the Second Deposit and the Third Deposit, the “Main Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Fourth Deposit shall be made when HOKU completes the shipment to TIANWEI of a cumulative aggregate of [*] metric tons of Products pursuant to Section 4 of this Agreement (including Products shipped in calendar year 2009). 5.5. Within thirty (30) days after the Effective Date, TIANWEI shall provide to HOKU acknowledges receipt from TIANWEI of an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) by the issuing bank (the “Issuing Bank”) in the amount of the Main Deposit, with such changes as may be mutually acceptable to the Issuing Bank (defined in the next sentence) and HOKU. The Letter of Credit shall be issued to HOKU by the Hong Kong branch of China Construction Bank, or such other bank that is acceptable to HOKU in its sole discretion (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 14.4 below. Payment to HOKU of the Third Deposit and the Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that TIANWEI has failed to make such payment on the payment of the Fourth Depositapplicable date. The Letter of Credit shall expire after the Main Deposit has been paid in full.. TIANWEI Initials & Date AX Xxxxxx 0, 0000 XXXX Initials & Date DS August 4, 2008 5.6. HOKU shall invoice TIANWEI at or after the time of each shipment of Products to TIANWEI. Taxes, customs and duties, if any, will be identified as separate items on HOKU invoices. All invoices shall be sent to TIANWEI’s address as provided herein. Payment terms for all invoiced amounts shall be [*] days from date of shipment. All payments shall be made in U.S. Dollars. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11 below, shipments to TIANWEI shall be credited against the Total Deposit on a pro rata straight-line basis during the first second through tenth Year from the First Shipment Date. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11, shipments to TIANWEI shall be credited against the Total Deposit in accordance with the Credit Schedule on Appendix 1. 5.7. The prices for the Products do not include any excise, sales, use, import, export or other similar taxes, such taxes will not include income taxes or similar taxes, which taxes will be invoiced to and paid by TIANWEI, provided that TIANWEI is legally or contractually obliged to pay such taxes. HOKU and TIANWEI shall work together to eliminate the possibility of taxes, but if there are any assessed, HOKU shall promptly remit to TIANWEI in full any such taxes paid by TIANWEI which are refunded to HOKU in whole or in part. TIANWEI shall be responsible for all transportation charges, duties or charges, liabilities and risks for shipping and handling (and hereby indemnifies HOKU for such costs, liabilities and risks); thus, the price for the Products shall not include any such charges. 5.8. Late payments and outstanding balances shall accrue interest at the lesser of 18% [*] per annum or the maximum allowed by law.

Payments & Advances. 5.1. Within fifteen (15) days after the Effective Date, TIANWEI shall provide HOKU acknowledges receipt from TIANWEI of the with a prepayment of Fifteen Ten Million U.S. Dollars (US$15,000,00010,000,000) via wire transfer of immediately available funds (the “Initial Deposit”). TIANWEI Initials & Date ___________________________ HOKU Initials & Date ___________________________. 5.2. TIANWEI shall pay in cash to HOKU acknowledges receipt from TIANWEI of an the additional sum of Fifteen Twelve Million U.S. Dollars (US$15,000,00012,000,000) (the “Second Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Second Deposit shall be made on or before December 15, 2008. 5.3. TIANWEI shall pay in cash to HOKU acknowledges receipt from TIANWEI of an the additional sum of Ten Twelve Million U.S. Dollars (US$10,000,00012,000,000) (the “Third Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Third Deposit shall be made on or before April 30, 2009. 5.4. HOKU acknowledges receipt from TIANWEI of an additional sum of Four Million U.S. Dollars (US$4,000,000), and TIANWEI agrees that it shall pay in cash to HOKU the additional sum of One Two Million U.S. Dollars (US$1,000,0002,000,000) (collectively, the “Fourth Deposit” and together with the Second Deposit and the Third Deposit, the “Main Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Fourth Deposit shall be made when HOKU completes the shipment to TIANWEI of a cumulative aggregate of [*] metric tons of Products pursuant to Section 4 of this Agreement (including Products shipped in calendar year 2009).. TIANWEI Initials & Date AG September 14, 2008 HOKU Initials & Date DS September 14, 2008 5.5. HOKU acknowledges receipt from TIANWEI of an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) by the issuing bank (the “Issuing Bank”) in the amount of the Main Deposit. The Letter of Credit shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 14.4 below. Payment to HOKU of the Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that TIANWEI has failed to make the payment of the Fourth Deposit. The Letter of Credit shall expire after the Main Deposit has been paid in full. 5.6. HOKU shall invoice TIANWEI at or after the time of each shipment of Products to TIANWEI. Taxes, customs and duties, if any, will be identified as separate items on HOKU invoices. All invoices shall be sent to TIANWEI’s address as provided herein. Payment terms for all invoiced amounts shall be [*] days from date of shipment. All payments shall be made in U.S. Dollars. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11 below, shipments to TIANWEI shall be credited against the Total Deposit on a pro rata straight-line basis during the first second through tenth Year from the First Shipment Date. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11, shipments to TIANWEI shall be credited against the Total Deposit in accordance with the Credit Schedule on Appendix 1. 5.75.6. The prices for the Products do not include any excise, sales, use, import, export or other similar taxes, such taxes will not include income taxes or similar taxes, which taxes will be invoiced to and paid by TIANWEI, provided that TIANWEI is legally or contractually obliged to pay such taxes. HOKU and TIANWEI shall work together to eliminate the possibility of taxes, but if there are any assessed, HOKU shall promptly remit to TIANWEI in full any such taxes paid by TIANWEI which are refunded to HOKU in whole or in part. TIANWEI shall be responsible for all transportation charges, duties or charges, liabilities and risks for shipping and handling (and hereby indemnifies HOKU for such costs, liabilities and risks); thus, the price for the Products shall not include any such charges. 5.85.7. Late payments and outstanding balances shall accrue interest at the lesser of 18% [*] per annum or the maximum allowed by law.

Payments & Advances. 5.1. HOKU acknowledges receipt from TIANWEI of the prepayment of Fifteen Ten Million U.S. Dollars (US$15,000,00010,000,000) via wire transfer of immediately available funds (the “Initial Deposit”). TIANWEI Initials & Date ___________________________ HOKU Initials & Date ___________________________. 5.2. HOKU acknowledges receipt from TIANWEI of an additional sum of Fifteen Twelve Million U.S. Dollars (US$15,000,00012,000,000) (the “Second Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.3. HOKU acknowledges receipt from TIANWEI of an additional sum of Ten Twelve Million U.S. Dollars (US$10,000,00012,000,000) (the “Third Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.4. HOKU acknowledges receipt from TIANWEI of an additional sum of Four One Million U.S. Dollars (US$4,000,0001,000,000), and TIANWEI agrees that it shall pay in cash to HOKU the additional sum of One Million U.S. Dollars (US$1,000,000) (collectively, the “Fourth Deposit” and together with the Second Deposit and the Third Deposit, the “Main Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Fourth Deposit shall be made when HOKU completes the shipment to TIANWEI of a cumulative aggregate of [*] metric tons of Products pursuant to Section 4 of this Agreement (including Products shipped in calendar year 2009). 5.5. HOKU acknowledges receipt from TIANWEI of an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) by the issuing bank (the “Issuing Bank”) in the amount of the Main Deposit. The Letter of Credit shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 14.4 below. Payment to HOKU of the Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that TIANWEI has failed to make the payment of the Fourth Deposit. The Letter of Credit shall expire after the Main Deposit has been paid in full. 5.6. HOKU shall invoice TIANWEI at or after the time of each shipment of Products to TIANWEI. Taxes, customs and duties, if any, will be identified as separate items on HOKU invoices. All invoices shall be sent to TIANWEI’s address as provided herein. Payment terms for all invoiced amounts shall be [*] days from date of shipment. All payments shall be made in U.S. Dollars. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11 below, shipments to TIANWEI shall be credited against the Total Deposit on a pro rata basis during the first through tenth TIANWEI Initials & Date ___________________________ HOKU Initials & Date ___________________________ Year from the First Shipment Date. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11, shipments to TIANWEI shall be credited against the Total Deposit in accordance with the Credit Schedule on Appendix 1. 5.75.6. The prices for the Products do not include any excise, sales, use, import, export or other similar taxes, such taxes will not include income taxes or similar taxes, which taxes will be invoiced to and paid by TIANWEI, provided that TIANWEI is legally or contractually obliged to pay such taxes. HOKU and TIANWEI shall work together to eliminate the possibility of taxes, but if there are any assessed, HOKU shall promptly remit to TIANWEI in full any such taxes paid by TIANWEI which are refunded to HOKU in whole or in part. TIANWEI shall be responsible for all transportation charges, duties or charges, liabilities and risks for shipping and handling (and hereby indemnifies HOKU for such costs, liabilities and risks); thus, the price for the Products shall not include any such charges. 5.85.7. Late payments and outstanding balances shall accrue interest at the lesser of 18% per annum or the maximum allowed by law.

Payments & Advances. 5.1. HOKU acknowledges receipt from TIANWEI of the prepayment of Fifteen Ten Million U.S. Dollars (US$15,000,00010,000,000) via wire transfer of immediately available funds (the “Initial Deposit”). TIANWEI Initials & Date ___________________________ HOKU Initials & Date ___________________________. 5.2. HOKU acknowledges receipt from TIANWEI of an additional sum of Fifteen Twelve Million U.S. Dollars (US$15,000,00012,000,000) (the “Second Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.3. HOKU acknowledges receipt from TIANWEI of an additional sum of Ten Twelve Million U.S. Dollars (US$10,000,00012,000,000) (the “Third Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.4. HOKU acknowledges receipt from TIANWEI of an additional sum of Four One Million U.S. Dollars (US$4,000,0001,000,000), and TIANWEI agrees that it shall pay in cash to HOKU the additional sum of One Million U.S. Dollars (US$1,000,000) (collectively, the “Fourth Deposit” and together with the Second Deposit and the Third Deposit, the “Main Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Fourth Deposit shall be made when HOKU completes the shipment to TIANWEI of a cumulative aggregate of [*] metric tons of Products pursuant to Section 4 of this Agreement (including Products shipped in calendar year 2009). 5.5. HOKU acknowledges receipt from TIANWEI of an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) by the issuing bank (the “Issuing Bank”) in the amount of the Main Deposit. The Letter of Credit shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 14.4 below. Payment to HOKU of the Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that TIANWEI has failed to make the payment of the Fourth Deposit. The Letter of Credit shall expire after the Main Deposit has been paid in full. 5.6. HOKU shall invoice TIANWEI at or after the time of each shipment of Products to TIANWEI. Taxes, customs and duties, if any, will be identified as separate items on HOKU invoices. All invoices shall be sent to TIANWEI’s address as provided herein. Payment terms for all invoiced amounts shall be [*] days from date of shipment. All payments shall be made in U.S. Dollars. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11 below, shipments to TIANWEI shall be credited against the Total Deposit on a pro rata basis during the first through tenth Year from the First Shipment Date. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11, shipments to TIANWEI shall be credited against the Total Deposit in accordance with the Credit Schedule on Appendix 1.. TIANWEI Initials & Date ___________________________ HOKU Initials & Date ___________________________ 5.75.6. The prices for the Products do not include any excise, sales, use, import, export or other similar taxes, such taxes will not include income taxes or similar taxes, which taxes will be invoiced to and paid by TIANWEI, provided that TIANWEI is legally or contractually obliged to pay such taxes. HOKU and TIANWEI shall work together to eliminate the possibility of taxes, but if there are any assessed, HOKU shall promptly remit to TIANWEI in full any such taxes paid by TIANWEI which are refunded to HOKU in whole or in part. TIANWEI shall be responsible for all transportation charges, duties or charges, liabilities and risks for shipping and handling (and hereby indemnifies HOKU for such costs, liabilities and risks); thus, the price for the Products shall not include any such charges. 5.85.7. Late payments and outstanding balances shall accrue interest at the lesser of 18% per annum or the maximum allowed by law.

Payments & Advances. 5.1. Within fifteen (15) days after the Effective Date, CUSTOMER shall provide HOKU acknowledges receipt from TIANWEI with a payment of the prepayment of Fifteen Twenty Two Million U.S. Dollars (US$15,000,00022,000,000) as an advance payment for Products to be delivered under this Agreement, via wire transfer of immediately available funds (the “Initial Deposit”); provided, however, that in the event applicable law or the requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited shall require the approval of this Agreement at an Extraordinary General Meeting of CUSTOMER’s shareholders, then CUSTOMER may delay such payment of the Initial Deposit for up to an additional 60 calendar days. TIANWEI If such approval is not obtained, and if HOKU exercises its right to terminate this Agreement pursuant to Section 0, then CUSTOMER shall be obligated to pay HOKU a break-up fee equal to [*]. 5.2. CUSTOMER shall pay in cash to HOKU the additional sum of Twenty-one Million U.S. Dollars (US$21,000,000) (the “Second Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Second Deposit shall be made on or before December 20, 2008. 5.3. CUSTOMER shall pay in cash to HOKU the additional sum of Twenty Million U.S. Dollars (US$20,000,000) (the “Third Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Third Deposit shall be made on or before March 31, 2009. 5.4. CUSTOMER shall pay in cash to HOKU the additional sum of Five Million U.S. Dollars ($5,000,000) (the “Fourth Deposit” and together with the Second Deposit and the Third Deposit, the “Main Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Fourth Deposit shall be made when HOKU completes the shipment to CUSTOMER of a cumulative aggregate of [*] metric tons of product pursuant to Section 4 of this agreement (including Products shipped prior to March 2010). CUSTOMER Initials & Date ___________________________ HOKU Initials & Date ___________________________ 5.25.5. HOKU acknowledges receipt from TIANWEI of an additional sum of Fifteen Million U.S. Dollars On or before sixtieth (US$15,000,00060th) (day after the “Second Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.3. HOKU acknowledges receipt from TIANWEI of an additional sum of Ten Million U.S. Dollars (US$10,000,000) (the “Third Deposit”) as an advance payment for Products to be delivered under this Agreement. 5.4. HOKU acknowledges receipt from TIANWEI of an additional sum of Four Million U.S. Dollars (US$4,000,000)Effective Date, and TIANWEI agrees that it CUSTOMER shall pay in cash provide to HOKU the additional sum of One Million U.S. Dollars (US$1,000,000) (collectively, the “Fourth Deposit” and together with the Second Deposit and the Third Deposit, the “Main Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Fourth Deposit shall be made when HOKU completes the shipment to TIANWEI of a cumulative aggregate of [*] metric tons of Products pursuant to Section 4 of this Agreement (including Products shipped in calendar year 2009). 5.5. HOKU acknowledges receipt from TIANWEI of an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) together with such additional restrictions consistent with this Agreement in substitution of the terms currently set forth on Appendix 3, and reasonable modifications proposed by the issuing bank (the “Issuing Bank”) bank, in the amount of the Main Deposit. The Letter of Credit shall be issued to HOKU by a bank which has a credit rating that is acceptable to HOKU in its sole discretion, or such other bank as may be approved by HOKU and CUSTOMER (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 14.4 0 below. Payment to HOKU of the Second Deposit, the Third Deposit, and the Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that TIANWEI CUSTOMER has failed to make such payment on the applicable date. If CUSTOMER terminates this Agreement pursuant to Section 0, 0, 0, 0, 0, 0, or 0 then HOKU shall not have the right to request payment from the Issuing Bank of funds remaining on the Fourth Main Deposit. The Letter of Credit shall expire after on June 30, 2010, but shall be renewable for an additional one-year period if the entire amount of the Main Deposit has not been paid in fullto HOKU as of such expiration date. 5.6. HOKU shall invoice TIANWEI CUSTOMER at or after the time of each shipment of Products to TIANWEICUSTOMER. Taxes, customs and duties, if any, will be identified as separate items on HOKU invoices. All invoices shall be sent to TIANWEICUSTOMER’s address as provided herein. Payment terms for all invoiced amounts shall be [*] days from date of shipment. All payments shall be made in U.S. Dollars. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11 0 below, shipments to TIANWEI CUSTOMER shall be credited against the Total Deposit according to the schedule of credits in Appendix 1 until there are no Funds Remaining on a pro rata basis during the first through tenth Year from the First Shipment Date. Unless HOKU is entitled to retain the Total Deposit (as liquidated damages pursuant to defined in Section 11, shipments to TIANWEI shall be credited against the Total Deposit in accordance with the Credit Schedule on Appendix 10). 5.7. The prices for the Products do not include any excise, sales, use, import, export or other similar taxes, such taxes will not include income taxes or similar taxes, which taxes will be invoiced to and paid by TIANWEICUSTOMER, provided that TIANWEI CUSTOMER is legally or contractually obliged to pay such taxes. HOKU and TIANWEI shall work together to eliminate the possibility of taxes, but if there are any assessed, HOKU shall promptly remit to TIANWEI in full any such taxes paid by TIANWEI which are refunded to HOKU in whole or in part. TIANWEI CUSTOMER shall be responsible for all transportation charges, duties or charges, liabilities and risks for shipping and handling (and hereby indemnifies HOKU for such costs, liabilities and risks); thus, the price for the Products shall not include any such charges. 5.8. Late payments and outstanding balances shall accrue interest at the lesser of 18% [*] per annum or the maximum allowed by law.

Payments & Advances. 5.1The Total Deposit shall be used only by HOKU for polysilicon facilities construction, operation, administration, and other expenses and investments related to HOKU’s polysilicon business. 6.1. HOKU acknowledges receipt of Five Million U.S. Dollars ($5,000,000) from TIANWEI ALEX as a prepayment for Products (the “Prior Deposit”) 6.2. Within ten (10) days after the Signing Date, ALEX shall provide HOKU with a payment of the prepayment of Fifteen Two Million U.S. Dollars (US$15,000,0002,000,000) as an advance payment for Products to be delivered under this Agreement, via wire transfer of immediately available funds (the “Initial Deposit”). TIANWEI ALEX Initials & Date ___________________________ /s/ JGL 2009.2.27 HOKU Initials & Date ___________________________/s/ DS 2/26/09 5.26.3. ALEX shall pay in cash to HOKU acknowledges receipt from TIANWEI of an the additional sum of Fifteen Eight Million U.S. Dollars (US$15,000,0008,000,000) (the “Second Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Second Deposit shall be made on or before March 25, 2009. 5.36.4. ALEX shall pay in cash to HOKU acknowledges receipt from TIANWEI of an the additional sum of Ten Two Million U.S. Dollars (US$10,000,0002,000,000) (the “Third Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Third Deposit shall be made on or before June 24, 2009. 5.46.5. HOKU acknowledges receipt from TIANWEI of an additional sum of Four Million U.S. Dollars (US$4,000,000), and TIANWEI agrees that it ALEX shall pay in cash to HOKU the additional sum of One Three Million U.S. Dollars (US$1,000,0003,000,000) (collectively, the “Fourth Deposit” and together with the Prior Deposit, the Initial Deposit, the Second Deposit Deposit, and the Third Deposit, the “Main Total Deposit”) as an advance payment for Products to be delivered under this Agreement. Payment of the Fourth Deposit shall be made when HOKU completes the shipment to TIANWEI of a cumulative aggregate of [*] metric tons of Products pursuant to Section 4 of this Agreement (including Products shipped in calendar year on or before July 28, 2009). 5.5. HOKU acknowledges receipt from TIANWEI of an irrevocable stand-by letter of credit in substantially the form of Appendix 3 attached hereto (the “Letter of Credit”) by the issuing bank (the “Issuing Bank”) in the amount of the Main Deposit. The Letter of Credit shall be freely assignable by HOKU in connection with any assignment of this Agreement by HOKU pursuant to Section 14.4 below. Payment to HOKU of the Fourth Deposit shall be made by the Issuing Bank upon its receipt of written notice that TIANWEI has failed to make the payment of the Fourth Deposit. The Letter of Credit shall expire after the Main Deposit has been paid in full. 5.66.6. HOKU shall invoice TIANWEI ALEX at or after the time of each shipment of Products to TIANWEIALEX. Taxes, customs and duties, if any, will be identified as separate items on HOKU invoices. All invoices shall be sent to TIANWEIALEX’s address as provided herein. Payment terms for all invoiced amounts shall be [*] days from date of shipmentshipment as reflected in the bxxx of lading or airway bxxx. All payments shall be made in U.S. Dollars. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11 12 below, shipments to TIANWEI ALEX shall be credited against the Total Deposit on a pro rata straight-line basis during the first second through tenth Year from the First Shipment Date. Unless HOKU is entitled to retain the Total Deposit as liquidated damages pursuant to Section 11, shipments to TIANWEI shall be credited against the Total Deposit in accordance with the Credit Schedule on Appendix 1Year. 5.76.7. The prices are EXW prices (INCOTERMS 2000). Prices for the Products do not include any excise, sales, use, import, export or other similar taxes, such taxes will not include income taxes or similar taxes, which taxes will be invoiced to and paid by TIANWEIALEX, provided that TIANWEI ALEX is legally or contractually obliged to pay such taxes. HOKU and TIANWEI shall work together to eliminate the possibility of taxes, but if there are any assessed, HOKU shall promptly remit to TIANWEI in full any such taxes paid by TIANWEI which are refunded to HOKU in whole or in part. TIANWEI ALEX shall be responsible for all transportation charges, duties or charges, liabilities and risks for shipping and handling (and hereby indemnifies HOKU for such costs, liabilities and risks); thus, the price for the Products shall not include any such charges. 5.86.8. Late payments and outstanding balances balances, including, without limitation, late payments of any portion of the Total Deposit, shall accrue interest at the lesser of 18% [*] per annum or the maximum allowed by law.