Total amounts that may be payable to Hoku Materials under the contract have increased from up to approximately $371 million for the seven year contract, to up to approximately $530 million for the amended 10-year contract.
Hoku Materials and Sanyo have also agreed to extend to May 31, 2008 the date on which either party may terminate the supply agreement if Hoku Materials is unable to complete the financing for its polysilicon production plant.
The amendment also extends the dates when Sanyo may terminate the agreement if Hoku Materials is unable to complete the various polysilicon production, testing, process implementation and shipment milestones.
In addition, under the amended contract, Hoku Materials will start shipments to Sanyo by the beginning of 2010; however, the agreement provides that Hoku Materials may ship the products to Sanyo in 2009.
Dustin Shindo, CEO of Hoku Scientific, said: Our continuing commitment of capital to the design and engineering of our plant, and to the purchase of long lead-time items such as the reactors, has enabled us to stay on schedule for first commercial product deliveries in the first half of 2009.
