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| HOKU > SEC Filings for HOKU > Form 8-K on 25-Nov-2009 | All Recent SEC Filings |
25-Nov-2009
Entry into a Material Definitive Agreement
Amendment No. 1 to Amended & Restated Supply Agreement with Jinko Solar Co., Ltd.
In February 2009, we entered into a fixed price, fixed volume supply agreement with Jinko Solar Co., Ltd., formerly known as Jiangxi Jinko Solar Co., Ltd., or Jinko, for the sale and delivery of polysilicon to Jinko over a ten-year period, or the Jinko Agreement. Pursuant to the Jinko Agreement, Jinko has paid us a cash deposit of $20 million as prepayment for future product deliveries. Over the ten-year term of the Jinko Agreement, the total volume of polysilicon to be sold by us to Jinko is approximately $119 million, subject to product deliveries and other conditions. Our failure to commence shipments of polysilicon to Jinko by December 2009 would constitute a material breach by us under the terms of the Jinko Agreement, among other circumstances.
On November 25, 2009, we entered into Amendment No. 1 to Amended & Restated Supply Agreement with Jinko, or the Amendment. Pursuant to the Amendment, we agreed with Jinko to eliminate the first year of shipments under the Jinko Agreement, such that our first delivery of polysilicon products to Jinko is now due in December 2010, and the term of the Jinko Agreement has been shortened to nine years, resulting in the total volume of polysilicon to be sold by us to Jinko being reduced to approximately $106 million, subject to product deliveries and other conditions. Each party, however, may terminate the Jinko Agreement at an earlier date under certain circumstances, including, but not limited to, the bankruptcy, assignment for the benefit of creditors, liquidation or a material breach of the Jinko Agreement by the other party. Our failure to commence shipments of polysilicon by December 31, 2010 constitutes a material breach by us under the terms of the Jinko Agreement, among other circumstances.
Amendment No. 1 to Amended & Restated Supply Agreement will be filed with our Quarterly Report on Form 10-Q for the fiscal quarter ending December 31, 2009.
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