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EXHIBIT 10.102

[*] = 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.
 
HOKU CHANGE ORDER 3.0
 
March 27, 2009

JH KELLY LLC
831 3rd Avenue
Longview, WA 98632
Attn:  Mason Evans, President

Dear Mason:

Pursuant to Article 8.1 of the Cost Plus Incentive Construction Contract dated
August 8, 2007, by and between Hoku Materials, Inc. (“Owner”) and JH Kelly LLC.
(“Contractor”), as modified by Change Order No. 1 dated October 3, 2007 (“Change
Order No. 1”) and Change Order No. 2 dated April 7, 2008 (“Change Order No. 2”
and collectively with Change Order No. 1 and the Cost Plus Incentive Contract,
the “Contract”) Owner and Contractor hereby agree to the following Change (as
defined in the Contract).  Capitalized terms not otherwise defined in this
Change are defined in the Contract.
 
 
1.
The Project Objective described in Exhibit A to the Contract is hereby changed
to reflect an increase in the planned output of the Project from “a minimum of
3,500 metric tons per year” to “a minimum of 4,000 metric tons per year.”

 
 
2.
Section 9.2.2.1 of the Contract is hereby amended such that the maximum Budget
Incentive that may be payable to Contractor is reduced from Three Million Three
Hundred Thousand Dollars ($3,300,000) to One Million Dollars ($1,000,000).

 
 
3.
Section 9.2.2.3 of the Contract is hereby amended and restated to read as
follows:

 
9.2.2.3 Safety Incentive.  Following Final Acceptance of the Work, Owner shall
pay to Contractor a Safety Incentive based on the OSHA Recordable Incident Rate
(ORIR) for the Work performed based on the following schedule:
 
ORIR
Safety Incentive
5.01 or higher
None
3.01 to 5.0
$200,000
3.0 or less
$500,000

 
 
 
 
One Hoku Way · Pocatello, Idaho 83204 · Tel 808-682-7800 · Fax 808-440-0357 ·
www.hokumaterials.com
 
 

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Mason Evans
JH Kelly LLC
Marcy 27, 2009
Page 2 of 5
 

 
 
4. 
Exhibit B to the Contract is amended and restated in its entirety as set forth
on Exhibit B attached hereto.

 
 
5.
Appendix 2 to Exhibit C to the Contract is amended and restated in its entirety
as set forth on Appendix 2 to Exhibit C attached hereto.

 
 
6.
Effective upon submission of the next Application for Payment following the
execution of this Change Order No. 3, Owner shall no longer withhold any
retainage pursuant to Section 9.3.4.2 of the Contract from any future
Application for Payment; and, provided, further, that all retainage amounts
previously withheld shall be paid to Contractor in three equal monthly payments
beginning with payment of the invoice for Work following successful completion
of the Preliminary Reactor Demonstration, through and including the invoice for
the third month thereafter.

 
 
7.
Pursuant to Section 17.5 of the Contract, Owner hereby updates its notice
addresses as follows:

 
If to Owner, to:
 
HOKU MATERIALS, INC.
Attn: Karl Taft
One Hoku Way
Pocatello, Idaho 83204
Tel:  808-682-7800
Fax:  808-440-0357
 
With a copy to:
 
HOKU SCIENTIFIC, INC.
Attn: Dustin Shindo
1288 Ala Moana Blvd, Suite 220
Honolulu, Hawaii 96814
Tel:  (808) 682-7800
Fax:  (808) 440-0357
 
Except for the matters specifically set forth above, this Change Order No. 3
does not amend the Contract.  Please sign below to acknowledge your agreement
with this Change Order No. 3.

Sincerely yours,

HOKU MATERIALS, INC.

/s/ Darryl S. Nakamoto, CFO for

Dustin M. Shindo, CEO

Acknowledged and agreed as of this 27th day of March, 2009.
 
 
 
 
 

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Mason Evans
JH Kelly LLC
Marcy 27, 2009
Page 3 of 5
 

 
 
JH KELLY LLC
 
 
By:  /s/ Mason M. Evans

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Name:  Mason M. Evans
Title:  President
 
Cc:  Mark Fleischauer, JH Kelly LLC, 2311 East First Street, Vancouver, WA 98661
 
 
 
 
 

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Mason Evans
JH Kelly LLC
Marcy 27, 2009
Page 4 of 5
 

 
Exhibit B

PROJECT SCHEDULE

The following Project Schedule is attached as Exhibit B to the Cost Plus
Incentive Construction Contract dated as of August 8, 2007, between HOKU
MATERIALS, INC. and JH KELLY LLC (the “Agreement”).  Capitalized terms not
otherwise defined herein are defined in the Agreement.

The “Preliminary Reactor Test Demonstration” is scheduled for completion on or
before June 30, 2009.  For purposes of the Agreement, the Preliminary Reactor
Test Demonstration means [*].

“Partial Commercial Operation” is scheduled to be accomplished on or before
September 30, 2009.  For purposes of the Agreement, Partial Commercial Operation
means [*].

Partial Commercial Operation includes the following key areas (the “Functional
Areas”):

[*]
 
“Full Commercial Operation” is scheduled to be accomplished on or before March
30, 2010.  For purposes of the Agreement, Full Commercial Operation means [*].

 “Final Completion” is scheduled to be accomplished on or before April 1,
2010.  For purposes of the Agreement, “Final Completion” means that (i) all
punch list items have been completed to Owner’s reasonable satisfaction; (ii)
all temporary facilities have been removed; and (iii) the Project is complete.

It is understood by Owner and Contractor that the Project Schedule outlined
above is a target.  In no event, however, does Contractor represent or warrant
to Owner that the Project Schedule will be achieved, and subject to Owner’s
remedies pursuant to the Agreement for Contractor’s failure to perform,
Contractor shall be paid for the Cost of the Work pursuant to the Agreement
regardless of the actual completion schedule.
 
 
 
 

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Mason Evans
JH Kelly LLC
Marcy 27, 2009
Page 5 of 5
 

 
Appendix 2 to Exhibit C
Schedule Incentive

Based upon engineering drawings being issued for construction, equipment lead
time, construction and permitting, the date for Final Completion (as defined in
Exhibit B to the Agreement) is April 1, 2010 (the “Final Completion
Date”).  However, it is Owner’s desire to achieve certain interim completion
milestones as specified on Exhibit B to this Agreement by the dates specified in
the table below (each, a “Completion Date”).  In the event such milestones are
achieved by the applicable dates set forth below, Contractor shall be entitled
to a “Schedule Incentive” as set forth in the following table:
 
Milestone
Completion Date
Schedule Incentive
Preliminary Reactor Installation
June 30, 2009
$1,500,000
Partial Commercial Operation
September 30, 2009
$1,000,000
Full Commercial Operation
March 30, 2010
$1,000,000

 
The foregoing Schedule Incentives, if earned, shall be payable upon Owner’s
Final Acceptance of the Work.

However, after the date of each such Completion Date, the applicable Schedule
Incentive shall be reduced by $10,000 per day for every day the applicable
Milestone is not achieved.  However, in no event shall the Schedule Incentive be
reduced below zero.
 
 

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