Document:

Amendment to Stock Restriction Agreement dated 7/16/03 by Karl M. Taft III

 Exhibit 10.5 
  
 HOKU SCIENTIFIC, INC. 
  
 AMENDMENT TO STOCK RESTRICTION AGREEMENT 
  
 This Amendment to the Stock Restriction Agreement is made as of July 16, 2003 by and among Hoku Scientific, Inc., a Hawaii corporation (the
“Company”) and Karl M. Taft III (the “Shareholder”), and amends that certain Stock Restriction Agreement dated as of June 21, 2002 by and between the Company and the Shareholder (the “Stock
Restriction Agreement”). 
  
 RECITALS

  
 The Company and the Shareholder wish to amend the Stock
Restriction Agreement and to provide for accelerated vesting upon certain conditions. 
  
 AGREEMENT 
  
 The parties hereby
agree as follows: 
  
 1. Amendment. The Company and
the Shareholder agree to and hereby amend Section 3(a) of the Stock Restriction Agreement by adding a new clause (iv) to the end thereof, which reads as follows: 
  
 (iv) Notwithstanding the foregoing, in the event that there is a Change of Control (as defined below) during
Shareholder’s employment with the Company (the date of the closing of such Change of Control transaction (or series of transactions), the “Change of Control Date”), an additional fifty percent (50%) of the Shares that remain
unreleased from the Repurchase Option as of the Change of Control Date shall be released from the Repurchase Option immediately on the Change of Control Date. Notwithstanding the foregoing, if Shareholder’s employment or consulting relationship
with the Company (or its successor) is subject to an Involuntary Termination (as defined below) within eighteen months (18) months following the Change of Control Date, then all of the Shares still subject to the Repurchase Option shall be released
from the Repurchase Option immediately upon such Involuntary Termination. 
  
 “Change of Control” means a sale of all or substantially all of the Company’s assets, or any merger or consolidation of the Company with or into another corporation other than a merger or
consolidation in which the holders of more than 50% of the shares of capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by the voting securities remaining outstanding or by their being converted
into voting securities of the surviving entity) more than 50% of the total voting power represented by the voting securities of the Company, or such surviving entity, outstanding immediately after such transaction. 
  
 “Involuntary Termination” means termination
of Shareholder’s employment under the following circumstances: (i) termination without Cause (as defined below) by the Company; or (ii) voluntary termination by the Shareholder within 60 days following (A) a material reduction in the
Shareholder’s job duties or responsibilities, provided that neither a mere change in title alone nor reassignment following a Change of Control to a position that is substantially similar to the position in respect of your duties and
responsibilities 

 held prior to the Change of Control shall constitute a material reduction in job duties or
responsibilities; (B) relocation by the Company of the Shareholder’s work site to a facility or location more than 50 miles from the Shareholder’s principal work site for the Company at the time of the Change of Control; or (C) a reduction
in Shareholder’s then-current base salary by at least 10%, provided that an across-the board reduction in the salary level of all other employees or consultants in positions similar to the Shareholder’s by the same percentage amount as
part of a general salary level reduction shall not constitute such a salary reduction. For purposes of the foregoing definition, the term “Company” will be interpreted to include any successor thereto, if appropriate. 
  
 “Cause” for the Company (or a successor, if
appropriate) to terminate the Shareholder’s employment shall exist upon any of the following events: 
  
 (i) the Shareholder’s willful and continued failure to substantially perform his duties with the Company no less than 30 days after
there has been delivered to him by the Company’s Board of Directors a written demand for substantial performance and opportunity to cure which sets forth in detail the specific respects in which the Board believes that he has not substantially
performed his duties; 
  
 (ii) the Shareholder
having committed willful fraud or willful misconduct, in any such case which is materially injurious to the Company; 
  
 (iii) the Shareholder having been convicted of a felony involving moral turpitude which results in material harm to the standing or
reputation of the Company; or 
  
 (iv) the
Shareholder’s material breach of the terms of his Confidential Information and Inventions Assignment Agreement with the Company. The foregoing definition does not in any way limit the Company’s ability to terminate the Shareholder’s
employment or consulting relationship at any time, with or without reason. 
  
 2. Miscellaneous. This Amendment shall be deemed a part of and subject to the Stock Restriction Agreement, which is hereby ratified, confirmed, and approved, as amended hereby. This Amendment may be
signed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. All terms that are defined in the Stock Restriction Agreement shall, unless otherwise defined herein, be used
herein as defined in the Stock Restriction Agreement. 
  
 [Signature Page Follows] 
  
  

 The parties hereto have executed this Amendment to the Stock Restriction Agreement as of the date first
above written. 
  

					
	COMPANY:
	
	HOKU SCIENTIFIC, INC.
		
	By:	 	 /s/ Dustin M. Shindo

	 	 	Dustin M. Shindo, President
		
	Address:	 	2153 North King Street, Suite 300
	 	 	Honolulu, Hawaii 96819
	
	SHAREHOLDER: Karl M. Taft III
	
	 /s/ Karl M. Taft III

	Signature
		
	Address:	 	2153 North King Street, Suite 300
	 	 	Honolulu, Hawaii 96819Form of Addendum to Stock Option Agreement  by Scott Paul

 Exhibit 10.6 
  
 HOKU SCIENTIFIC, INC. 
  

ADDENDUM TO STOCK OPTION AGREEMENT 
  
 This Addendum to the Stock Option Agreement is made as of the      day of
             20    , by and among Hoku Scientific, Inc., a Hawaii corporation (the “Company”) and Scott Paul (the
“Optionee”), and amends that certain Stock Option Agreement (the “Stock Option Agreement”) and Notice of Stock Option Grant (the “Notice of Grant”), each by and between the Company and the Optionee
and executed and delivered on                  , 20    . 
  
 RECITALS 
  
 A. This Addendum supplements and amends the Stock Option Agreement to provide for accelerated vesting upon certain conditions. 
  
 AGREEMENT 
  
 The parties hereby agree as follows: 
  
 1. Addendum. The Company and the Optionee agree as follows:

  
 In the event that there is a Change of Control (as defined
below) during Optionee’s employment with the Company (the date of the closing of such Change of Control transaction (or series of transactions), the “Change of Control Date”), and thereafter Optionee’s employment
relationship with the Company (or its successor) is subject to an Involuntary Termination (as defined below) within eighteen months (18) months following the Change of Control Date, then fifty percent (50%) of the Shares (as defined in the Stock
Option Agreement) that remain unvested as of the date of Involuntary Termination shall become vested immediately on such date. 
  
 “Change of Control” means a sale of all or substantially all of the Company’s assets, or any merger or consolidation of the Company
with or into another corporation other than a merger or consolidation in which the holders of more than 50% of the shares of capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by the voting
securities remaining outstanding or by their being converted into voting securities of the surviving entity) more than 50% of the total voting power represented by the voting securities of the Company, or such surviving entity, outstanding
immediately after such transaction. 
  
 “Involuntary
Termination” means termination of Optionee’s employment termination without Cause (as defined below) by the Company. For purposes of the foregoing definition, the term “Company” will be interpreted to include any successor
thereto, if appropriate. 
  
 “Cause” for the
Company (or a successor, if appropriate) to terminate the Optionee’s employment shall exist upon any of the following events: 

 (i) the Optionee’s willful and continued failure to substantially perform his duties with the
Company no less than 30 days after there has been delivered to him by the Company’s Board of Directors a written demand for substantial performance and opportunity to cure which sets forth in detail the specific respects in which the Board
believes that he has not substantially performed his duties; 
  
 (ii) the Optionee having committed willful fraud or willful misconduct, in any such case which is materially injurious to the Company; 
  
 (iii) the Optionee having been convicted of a felony involving moral turpitude which results in material harm to the standing or reputation of the
Company; or 
  
 (iv) the Optionee’s material breach of the
terms of his Confidential Information and Inventions Assignment Agreement with the Company. The foregoing definition does not in any way limit the Company’s ability to terminate the Optionee’s employment or consulting relationship at any
time, with or without reason. 
  
 2. Miscellaneous.
This Addendum shall be deemed a part of and subject to the Stock Option Agreement, which is hereby ratified, confirmed, and approved, as amended hereby. This Addendum may be signed in counterparts, each of which shall be deemed an original, and
all of which together shall constitute one and the same instrument. All terms that are defined in the Stock Option Agreement shall, unless otherwise defined herein, be used herein as defined in the Stock Option Agreement. 
  
 [Signature Page Follows] 
  

 2 

 The parties hereto have executed this Amendment to the Stock Option Agreement as of the date first above
written. 
  

					
	COMPANY:
	
	HOKU SCIENTIFIC, INC.
		
	By:	 	  

	 	 	Dustin M. Shindo, President
		
	Address:	 	2153 North King Street, Suite 306
	 	 	Honolulu, Hawaii 96819
	
	OPTIONEE: Scott B. Paul
	
	  

	Signature	 	 
		
	Address:	 	 

  

 SIGNATURE PAGE TO ADDENDUM TO STOCK OPTION AGREEMENT

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