Document:

EXHIBIT
10.3

     

    Acclerated
Venture Partners, LLC

    

    1840
Gateway Drive, Suite 200

    Foster
City, CA 94404

    

    December
29, 2009

    

    Accelerated
Acquisitions III, Inc.

    122 Ocean
Park Blvd.

    Suite
307

    Santa
Monica, CA 90405

    

    Re:           Tender
of shares for cancellation

    

    Gentlemen:

    

    By this
letter, the undersigned tenders for cancellation 3,750,000 of the 5,000,000
shares of common stock par value $0.0001 of Accelerated Acquisitions, II, Inc.
(the “Company”) which it holds.  Following the cancellation of such
shares, Accelerated Venture Partners, LLC will hold a total of 1,250,000 of the
Company’s Common Shares.

    

    Sincerely,

    

    ACCELERATED
VENTURE PARTNERS, LLC

    

    
      
        	
                By:

              	
                /s/ Timothy Neher

              
	 
      	
                Timothy
      Neher, Managing MemberEXHIBIT
10.4

    

    RESIGNATION

    

    To the
Board of Directors of

    Accelerated
Acquisitions III, Inc.,

    a
Delaware corporation

    

    The
undersigned, being an officer and director of the above-named corporation, does
hereby resign from all positions as such officer and director of the
corporation.

    

    Said
resignation is contingent and expressly conditioned upon (a) the sale of
17,000,000 shares of the Company’s common shares to Messrs. Redell Vincent
Napper II and Reynaldo Uballe, Jr. and (b) the appointment of successor
directors and officers of the corporation. 

    

    Said
resignation shall be effective on the date of the Closing of the transaction
contemplated by the Subscription Agreements between the Company and Messrs.
Napper and Uballe.

    

    Dated as
of December 29, 2009

    

    
      
        	
                /S/ Timothy Neher

              
	
                Timothy
      NeherExhibit
4.4

     

    HOKU
SCIENTIFIC, INC.

     

    WARRANT
FOR THE PURCHASE OF SHARES OF

    COMMON
STOCK OF HOKU SCIENTIFIC, INC.

     

    
      	
              No.
      1

            	
              Warrant
      to Purchase

              10,000,000
      Shares

            

    

     

    THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED, OR ANY NON-U.S. OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE THEREWITH.

     

    FOR VALUE RECEIVED, HOKU
SCIENTIFIC, INC., a Delaware corporation (the “Company”), hereby certifies
that TIANWEI NEW ENERGY HOLDINGS CO., LTD., its successor or permitted assigns
(the “Holder”), is
entitled, subject to the provisions of this Warrant, to purchase from the
Company, at the times specified herein, up to an aggregate of 10,000,000 fully
paid and non-assessable shares of Common Stock, par value $0.001 per share, of
the Company (the “Common
Stock”), at a purchase price per share of Common Stock equal to the
Exercise Price (as hereinafter defined).  The number of shares of
Common Stock to be received upon the exercise of this Warrant and the Exercise
Price are subject to adjustment from time to time as hereinafter set forth, and
all references to “Common Stock”, “Warrant Shares” and “Exercise Price” herein
shall be deemed to include any such adjustment or series of
adjustments.

     

    1.      Definitions.  (a)
The following terms, as used herein, have the following meanings:

     

    “Affiliate” shall have the
meaning ascribed to such term in the Securities Purchase Agreement.

     

    “Board” means the Board of
Directors of the Company.

     

    “Business Day” means any day
except a Saturday, Sunday or other day on which commercial banks in New York,
New York or the PRC are authorized or obligated to close.

     

    “Current Market Price Per Common
Share” as of any date means the average of the Daily Prices per share of
Common Stock for the five consecutive trading days immediately prior to such
date.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    “Daily Price” means (i) if the
shares of Common Stock then are listed and traded on the New York Stock Exchange
(“NYSE”) or The NASDAQ
Stock Market (“NASDAQ”),
the closing sale price or, if no closing sale price is reported, the last
reported sale price of the shares of Common Stock on NYSE or NASDAQ on such
date, (ii) if the shares of Common Stock then are not listed and traded on NYSE
or NASDAQ, the closing sale price or, if no closing sale price is reported, the
last reported sale price of the shares of Common Stock on such date by the
principal national securities exchange on which the shares are listed and traded
or (iii) if the shares of Common Stock then are not listed and traded on any
such securities exchange, the last quoted bid price on such date for the shares
of Common Stock in the over-the-counter market as reported by Pink Sheets LLC or
similar organization.  If on any determination date the shares of
Common Stock are not quoted by any such organization or such bid price is not
available, the Current Market Price Per Common Share shall be the fair market
value of the shares of Common Stock on such date as determined by a nationally
recognized independent investment banking firm retained mutually agreed upon by
the Company and the Holder.

     

    “Ex-Dividend Date” means, with
respect to any issuance or distribution, the first date on which the shares of
Common Stock trade on the applicable exchange or in the applicable market,
regular way, without the right to receive such issuance or
distribution.

     

    “Exercise Price” means $2.52
per Warrant Share, as adjusted from time to time as provided
herein.

     

    “Expiration Date” means
December 22, 2016 at 5:00 p.m., New York City time, or if such day is not a
Business Day, then on the next succeeding day that shall be a Business
Day.

     

    “Fair Market Value” of Common
Stock or any other security or property means the fair market value thereof as
determined in good faith by the Board, which determination must be set forth in
a written resolution of the Board, in accordance with the following rules: (i)
for Common Stock or other security traded or quoted on a securities exchange,
the Fair Market Value will be the average of the closing prices of such security
on such securities exchange over a ten (10) consecutive trading day period,
ending on the trading day immediately prior to the date of determination; (ii)
for any security that is not so traded or quoted, the Fair Market Value shall be
determined: (x) mutually by the Board and the Holder, or (y) by a nationally
recognized investment bank, appraisal or accounting firm (whose fees and
expenses will be paid by the Company) selected by mutual agreement between the
Board and the Holder; and (iii) for any other property, the Fair Market Value
shall be determined by the Board in good faith assuming a willing buyer and a
willing seller in an arms’-length transaction; provided that if the Holder
objects to a determination of the Board made pursuant to this clause (iii), the
Fair Market Value of such property shall be as determined by nationally
recognized investment bank, appraisal or accounting firm (whose fees and
expenses will be paid by the Company) selected by mutual agreement between the
Board and the Holder.

     

    “Market Disruption Event” means
the occurrence or existence for more than one half hour period in the aggregate
on any scheduled Trading Day for the Common Stock (or Reference Property, to the
extent applicable) of any suspension or limitation imposed on trading (by reason
of movements in price exceeding limits permitted by the NASDAQ or otherwise) in
the Common Stock (or Reference Property, to the extent applicable) or in any
options, contracts or future contracts relating to the Common Stock (or
Reference Property, to the extent applicable), and such suspension or limitation
occurs or exists at any time before 1:00 p.m. (New York City time) on such
day.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Original Issuance Date” shall
mean December 22, 2009.

     

    “PRC” shall have the meaning
assigned to such term in the Securities Purchase Agreement.

     

    “Securities Purchase Agreement”
means that certain Securities Purchase Agreement, dated as of September 28,
2009, between the Company and Tianwei New Energy Holdings Co., Ltd.

     

    “Trading Day” means any day on
which (i) there is no Market Disruption Event and (ii) NASDAQ or, if the Common
Stock (or Reference Property, to the extent applicable) is not listed on NASDAQ,
the principal national securities exchange on which the Common Stock (or
Reference Property, to the extent applicable) is listed, is open for trading or,
if the Common Stock (or Reference Property, to the extent applicable) is not so
listed, admitted for trading or quoted, Business Day.  A Trading Day
only includes those days that have a scheduled closing time of 4:00 p.m. (New
York City time) or the then standard closing time for regular trading on the
relevant exchange or trading system.

     

    “Warrant” means this Warrant,
issued pursuant to the Securities Purchase Agreement.

     

    “Warrant Shares” means the
shares of Common Stock deliverable upon exercise of this Warrant, as adjusted
from time to time.

     

    (b)        Capitalized
terms used but not defined herein shall have the meanings assigned to such terms
in the Securities Purchase Agreement.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    2.      Exercise of Warrant;
Term.

     

    (a)        The
Holder is entitled to exercise the right to purchase the Warrant Shares
represented by this Warrant, in whole or in part, but not for less than 100,000
Warrant Shares (or such lesser number of Warrant Shares which may then
constitute the maximum number purchasable pursuant to this Warrant), such number
being subject to adjustment as provided in Section 10, at any time or from time
to time after the Original Issuance Date, until the Expiration
Date.  To exercise this Warrant, the Holder shall deliver to the
Company (i) an executed Warrant Exercise Notice substantially in the form
annexed hereto as Exhibit A and (ii)
this Warrant.  Upon such delivery (the “Exercise Date”), the Holder
shall be deemed to be the holder of record of the Warrant Shares subject to such
exercise and shall have all of the rights associated with such Warrant Shares to
which the Holder is entitled pursuant to this Warrant, notwithstanding that the
stock transfer books of the Company shall then be closed or that certificates
representing such Warrant Shares shall not then be actually delivered to the
Holder.

     

    (b)        If
the Holder exercises this Warrant in part, this Warrant shall be surrendered by
the Holder to the Company and a new Warrant of the same tenor and for the
unexercised number of Warrant Shares shall be executed by the Company within a
reasonable time, and in any event not exceeding three Business Days after the
Exercise Date.  The Company shall register the new Warrant in the name
of the Holder or in such name or names of its transferee pursuant to Section 6
as may be directed in writing by the Holder, and deliver the new Warrant to the
Person or Persons entitled to receive the same.

     

    (c)        Upon
surrender of this Warrant and delivery of the Warrant Exercise Notice in
conformity with the foregoing provisions, the Company shall transfer to the
Holder appropriate evidence of ownership of any Warrant Shares and/or other
securities or property (including any money) to which the Holder is entitled,
registered or otherwise placed in, or payable to the order of, the Holder or
such name or names of its transferee pursuant to Section 6 as may be directed in
writing by the Holder, and shall deliver such evidence of ownership and any
other securities or property (including any money) to the Person or Persons
entitled to receive the same, together with an amount in cash in lieu of any
fraction of a share as provided in Section 5, within a reasonable time, not to
exceed three Business Days after the Exercise Date.

     

    (d)        Upon
exercise of the Warrant pursuant to Section 2(a), the Holder shall be entitled
to receive Warrant Shares equal to the value (as determined below) of the
Warrant (or the portion thereof being exercised) by surrender of this Warrant
and delivery of the Warrant Exercise Notice, in which event the Company will
promptly issue to the Holder a number of Warrant Shares computed using the
following equation:

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              X =
      (A - B) x
      C

            

    

    
      	
               
      

            	
                            
      A

            

    

     

    
      where:

    

     

    
      	
               
      

            	
              X  =

            	
              the
      number of Warrant Shares issuable to the Holder upon exercise pursuant to
      this Section 2(d).

            

    

     

    
      	
               
      

            	
              A  =

            	
              the
      Current Market Price Per Common Share (as of the Exercise
      Date).

            

    

     

    
      	
               
      

            	
              B  =

            	
              the
      Exercise Price (as of the Exercise
Date).

            

    

     

    
      	
               
      

            	
              C  =

            	
              the
      number of Warrant Shares issuable under this Warrant or, if only a portion
      of this Warrant is being exercised, the portion of the Warrant being
      exercised (as of the Exercise
Date).

            

    

     

    If the
foregoing calculation results in zero or a negative number, then no Warrant
Shares shall be issued upon exercise pursuant to this Section 2(d).

     

    3.      Restrictive
Legend.  Certificates representing shares of Common Stock
issued pursuant to this Warrant shall bear a legend substantially in the form of
the legend set forth on the first page of this Warrant to the extent that and
for so long as such legend is required pursuant to applicable securities
laws.

     

    4.      Reservation of Shares;
Listing.  The Company hereby agrees at all times to keep
reserved for issuance and delivery upon exercise of this Warrant such number of
its authorized but unissued shares of Common Stock or other securities of the
Company from time to time issuable upon exercise of this Warrant as will be
sufficient to permit the exercise in full of this Warrant.  The
Company hereby represents that all such shares shall be duly authorized and,
when issued upon such exercise pursuant to the terms of this Warrant, shall be
validly issued, fully paid and non-assessable, free and clear of all liens,
security interests, charges and other encumbrances or restrictions on sale
(other than restrictions on transfer contemplated by Section 6 or those created
by the Holder) and free and clear of all preemptive rights.  The
Company will use its reasonable best efforts to ensure that the Common Stock may
be issued without violation of any law or regulation applicable to the Company
or of any requirement of any securities exchange applicable to the Company on
which the shares of Common Stock are listed or traded.

     

    5.      No Fractional Warrant Shares or
Scrip.  No fractional Warrant Shares or scrip representing
fractional Warrant Shares shall be issued upon the exercise of this
Warrant.  In lieu of delivery of any such fractional Warrant Share
upon any exercise hereof, the Company shall pay to the Holder an amount in cash
equal to such fraction multiplied by the Current Market Price Per Common Share
at the date of such exercise.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    6.      Transfer or Assignment of
Warrant.  The Holder shall be entitled, without obtaining the
consent of the Company, to assign and transfer this Warrant or any rights
hereunder, at any time in whole or from time to time in part, but not for less
than 100,000 Warrant Shares (or such lesser number of Warrant Shares which may
then constitute the maximum number purchasable pursuant to this Warrant), such
number being subject to adjustment as provided in Section 10, to any Person or
Persons.  Subject to the preceding sentence, upon surrender of this
Warrant to the Company, together with the Warrant Assignment Form attached as
Exhibit B
hereto duly executed, the Company shall, without charge, execute and deliver a
new Warrant in the name of the assignee or assignees named in such instrument of
assignment and, if the Holder’s entire interest is not being assigned, in the
name of the Holder and this Warrant shall promptly be canceled.  All
expenses (other than stock transfer taxes) and other charges payable in
connection with the preparation, execution and delivery of the new Warrants
pursuant to this Section 6 shall be paid by the Company.

     

    7.      Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares (or
other securities) to the Holder upon exercise of this Warrant shall be made
without charge to the Holder for any issue or transfer tax or other incidental
expense in respect of the issuance of such certificates, all of which taxes and
expenses shall be paid by the Company.

     

    8.      Exchange and Registry of
Warrant.  The Company shall maintain a registry showing the
name and address of the Holder as the registered holder of this Warrant, and the
Company shall be entitled to rely in all respects, prior to written notice to
the contrary, upon such registry.  This Warrant is exchangeable, upon
the surrender hereof by the Holder to the Company, for a new Warrant or Warrants
of like tenor and representing the right to purchase the same aggregate number
of Warrant Shares.

     

    9.      Loss, Theft, Destruction or
Mutilation of Warrant.  Upon receipt by the Company of evidence
satisfactory to it (in the exercise of its reasonable discretion) of the loss,
theft, destruction or mutilation of this Warrant, and in the case of any such
loss, theft or destruction, upon the receipt of a bond, indemnity or security
reasonably satisfactory to the Company, and upon surrender and cancellation of
this Warrant, if mutilated, the Company shall execute and deliver, in lieu of
such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor
and date and representing the right to purchase the same aggregate number of
Warrant Shares as provided for in such lost, stolen, destroyed or mutilated
Warrant.

     

    10.    Anti-dilution
Provisions.

     

    (a)       Adjustment for Change in
Capital Stock.

     

    (i)    If
the Company shall, at any time or from time to time, while this Warrant is
outstanding, issue a dividend or make a distribution on its Common Stock (or
Reference Property, to the extent applicable) payable in shares of its Common
Stock (or Reference Property, to the extent applicable) to all holders of its
Common Stock (or Reference Property, to the extent applicable), then, at the
opening of business on the Ex-Dividend Date for such dividend or
distribution:

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    (1)  The
Exercise Price will be adjusted by multiplying such Exercise Price by a
fraction: (A) the numerator of which shall be the number of shares of Common
Stock (or Reference Property, to the extent applicable) outstanding at the close
of business on the Business Day immediately preceding such Ex-Dividend Date; and
(B) the denominator of which shall be the sum of the number of shares of Common
Stock (or Reference Property, to the extent applicable) outstanding at the close
of business on the Business Day immediately preceding the Ex-Dividend Date for
such dividend or distribution, plus the total number of shares of Common Stock
(or Reference Property, to the extent applicable) constituting such dividend or
other distribution; and

    

    (2)  The
number of Warrant Shares will be adjusted by multiplying such number by a
fraction:  (A) the numerator of which shall be the Exercise Price
immediately prior to the adjustment pursuant to Section 10(a)(i)(1) and (B) the
denominator of which shall be the Exercise Price immediately after such
adjustment.

    

    If any
dividend or distribution of the type described in this ‎Section 10(a)(i)
is declared but not so paid or made, the Exercise Price and the number of
Warrant Shares issuable shall again be adjusted to the Exercise Price and the
number of Warrant Shares issuable, respectively, which would then be in effect
if such dividend or distribution had not been declared.  Except as set
forth in the preceding sentence, in no event shall the Exercise Price be
increased or the number of Warrant Shares issuable be decreased pursuant to this
Section 10(a)(i).

    

    (ii)    If
the Company shall, at any time or from time to time while this Warrant is
outstanding, subdivide or reclassify its outstanding shares of Common Stock (or
Reference Property, to the extent applicable) into a greater number of shares of
Common Stock (or Reference Property, to the extent applicable), then the
Exercise Price in effect at the opening of business on the day upon which such
subdivision becomes effective shall be proportionately decreased, and
conversely, if the Company shall, at any time or from time to time while this
Warrant is outstanding, combine or reclassify its outstanding shares of Common
Stock (or Reference Property, to the extent applicable) into a smaller number of
shares of Common Stock (or Reference Property, to the extent applicable), then
the Exercise Price in effect at the opening of business on the day upon which
such combination or reclassification becomes effective shall be proportionately
increased.  In each such case, effective immediately after the opening
of business on the day upon which such subdivision, combination or
reclassification becomes effective:

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    (1)  The
Exercise Price shall be adjusted by multiplying such Exercise Price by a
fraction, the numerator of which shall be the number of shares of Common Stock
(or Reference Property, to the extent applicable) outstanding immediately prior
to such subdivision or combination and the denominator of which shall be the
number of shares of Common Stock (or Reference Property, to the extent
applicable) outstanding immediately after giving effect to such subdivision,
combination or reclassification; and

    

    (2)  The
number of Warrant Shares will be adjusted by multiplying such number by a
fraction:  (A) the numerator of which shall be the Exercise Price
immediately prior to the adjustment pursuant to Section 10(a)(ii)(1) and (B) the
denominator of which shall be the Exercise Price immediately after such
adjustment.

     

    (b)       [Reserved.]

     

    (c)       [Reserved.]

     

    (d)       [Reserved.]

     

    (e)       Disposition
Event.  If any of the following events (any such event, a
“Disposition Event”)
occurs: (i) any reclassification or exchange of the Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to
par value, or as a result of a subdivision or combination); or (ii) any merger,
consolidation or other combination to which the Company is a constituent party,
in each case, as a result of which the holders of Common Stock shall be entitled
to receive cash, securities or other property for their shares of Common Stock,
the Company or the surviving entity of the merger, consolidation or other
combination shall provide that this Warrant be exercised following the effective
date of any Disposition Event, shall be calculated based on the kind and amount
of cash, securities or other property (collectively, “Reference Property”) received
upon the occurrence of such Disposition Event by a holder of Common Stock
holding, immediately prior to the transaction, a number of shares of Common
Stock equal to the number of Warrant Shares issuable under this Warrant
immediately prior to such Disposition Event; provided that if the Disposition
Event provides the holders of Common Stock with the right to receive more than a
single type of consideration determined based in part upon any form of
stockholder election, the Reference Property shall be comprised of the weighted
average of the types and amounts of consideration received by the holders of the
Common Stock.  The Company may not cause, or agree to cause, a
Disposition Event to occur, unless the issuer of any securities or other
property for which this Warrant becomes exercisable agrees, for the express
benefit of the holders of this Warrant (including making them beneficiaries of
such agreement), to issue such securities or property.  The provisions
of this ‎Section 10(e)
shall similarly apply to successive Disposition Events.  If this
Section 10(e) applies to any event or occurrence, neither ‎Section 10(a) nor
‎Section
10(c) shall apply; provided, however, that this ‎Section 10(e)
shall not apply to any stock split or combination to which ‎Section 10(a) is
applicable.  To the extent that equity securities of a company are
received by the holders of Common Stock in connection with a Disposition Event,
the portion of this Warrant which will be exercisable for such equity securities
will continue to be subject to the anti-dilution adjustments set forth in
this‎ Section
10.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (f)        Minimum
Adjustment.  Notwithstanding the foregoing, the Exercise Price
will not be reduced (and the corresponding increase to the number of Warrant
Shares will not occur) if the amount of such reduction would be an amount less
than $0.01, but any such amount will be carried forward and reduction with
respect to the Exercise Price (and increase with respect to the number of
Warrant Shares) will be made at the time that such amount, together with any
subsequent amounts so carried forward, aggregates to $0.01 or more.

     

    (g)       Limitation on Adjustment;
When No Adjustment Required.

     

    (i)        No
adjustment need be made for the issuance of Common Stock (and Reference
Property, to the extent applicable) or any securities convertible into or
exchangeable for Common Stock (and Reference Property, to the extent applicable)
or carrying the right to purchase Common Stock (and Reference Property, to the
extent applicable) or any such security except to the extent explicitly required
herein.

    

    (ii)       No
adjustment need be made for rights to purchase Common Stock (or Reference
Property, to the extent applicable) pursuant to a Company plan for reinvestment
of dividends or interest.

    

    (iii)      No
adjustment need be made for a change in the par value or no par value of the
Common Stock (or Reference Property, to the extent applicable).

    

    (iv)     To
the extent this Warrant becomes exercisable pursuant to ‎Section 10 into
cash, no adjustment need be made thereafter as to the cash.  Interest
will not accrue on the cash.

    

    (h)       Rules of Calculation;
Treasury Stock.  All calculations will be made to the nearest
one-hundredth of a cent or to the nearest one-ten thousandth of a
share.  Except as otherwise explicitly provided herein, the number of
shares of Common Stock (or Reference Property, to the extent applicable)
outstanding will be calculated on the basis of the number of issued and
outstanding shares of Common Stock (or Reference Property, to the extent
applicable), not including shares held in the treasury of the
Company.  The Company shall not pay any dividend on or make any
distribution to shares of Common Stock (or Reference Property, to the extent
applicable) held in treasury.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (i)         Waiver.  Notwithstanding
the foregoing, the Exercise Price will not be reduced and number of Warrant
Shares issuable will not be increased if the Company receives, prior to the
effective time of the adjustment to the Exercise Price and number of Warrant
Shares issuable, written notice from the Holder that no adjustment is to be made
as the result of a particular issuance of Common Stock (or Reference Property,
to the extent applicable) or other dividend or other distribution on shares of
Common Stock.  This waiver will be limited in scope and will not be
valid for any issuance of Common Stock (or Reference Property, to the extent
applicable) or other dividend or other distribution on shares of Common Stock
(or Reference Property, to the extent applicable) not specifically provided for
in such notice.

     

    (j)         Tax
Adjustment.  Anything in this ‎Section 10
notwithstanding, the Company shall be entitled to make such downward adjustments
in the Exercise Price (and corresponding increases in the number of Warrant
Shares issuable), in addition to those required by this ‎Section 10, as the
Board in its sole discretion shall determine to be advisable in order that any
event treated for federal income tax purposes as a dividend or stock split will
not be taxable to the holders of Common Stock (or Reference Property, to the
extent applicable).

     

    (k)        Par
Value.  Anything in this Section 10 notwithstanding, no
adjustment to the Exercise Price shall reduce the Exercise Price below the then
par value per share of Common Stock (or Reference Property, to the extent
applicable), and any such purported adjustment shall instead reduce the Exercise
Price to such par value.

     

    (l)         No
Duplication.  If any action would require adjustment of the
Exercise Price and the number of Warrant Shares pursuant to more than one of the
provisions described in this‎ Section 10 in a
manner such that such adjustments are duplicative, only one adjustment shall be
made.

     

    (m)       Notice of Record
Date.  In the event of:

     

      (i)       any
stock split or combination of the outstanding shares of Common Stock (or
Reference Property, to the extent applicable) or any other reclassification or
change to which Section 10(a)(ii) applies;

    

      (ii)      any
declaration or making of a dividend or other distribution to holders of Common
Stock (or Reference Property, to the extent applicable);

    

      (iii)     the
dissolution, liquidation or winding up of the Company; or

    

      (iv)     any
Disposition Event;

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    then the
Company shall file with its corporate records and mail to the holders of the
Warrants at their last addresses as shown on the records of the Company, at
least 10 days prior to the record date specified in clause (A) below or 10 days
prior to the date specified in clause (B) or (C) below, a notice
stating:

    

    (A)     the
record date of such stock split, combination, dividend or other distribution,
or, if a record is not to be taken, the date as of which the holders of Common
Stock (or Reference Property, to the extent applicable) of record to be entitled
to such stock split, combination, dividend or other distribution are to be
determined,

    

    (B)      the
date on which such reclassification, change, liquidation, dissolution, winding
up or Disposition Event is estimated to become effective or completed, and the
date as of which it is expected that holders of Common Stock (or Reference
Property, to the extent applicable) of record will be entitled to exchange their
shares of Common Stock (or Reference Property, to the extent applicable) for the
capital stock, other securities or other property (including but not limited to
cash and evidences of indebtedness) deliverable upon such reclassification,
change, liquidation, dissolution, winding up or Disposition Event,
or

    

    (C)      the
date on which such tender offer, exchange offer or Below Exercise Price Issuance
is estimated to be completed.

    

    Disclosures
made by the Company in any filings required to be made under the Exchange Act
shall be deemed to satisfy the notice requirements set forth in this Section
10(m).

    

    (n)       Certificate of
Adjustments.  Upon the occurrence of each adjustment or
readjustment of the Exercise Price and the number of Warrant Shares pursuant to
this Section 10, the Company at its expense shall promptly as reasonably
practicable compute such adjustment or readjustment in accordance with the terms
hereof and furnish to each holder of Warrants a certificate, signed by an
officer of the Company, setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based
and shall file a copy of such certificate with its corporate
records.  The Company shall, upon the reasonable written request of
any holder of Warrants, furnish to such holder a similar certificate setting
forth (i) the calculation of such adjustments and readjustments in reasonable
detail, (ii) the Exercise Price then in effect, and (iii) the number of shares
of Common Stock and the amount, if any, of capital stock, other securities or
other property (including but not limited to cash and evidences of indebtedness)
which then would be received upon the exercise of the Warrant.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    11.    Notices.  Any
notice, demand or delivery authorized by this Warrant shall be in writing and
shall be given to the Holder or the Company, as the case may be, at its address
(or facsimile number) set forth below, or such other address (or facsimile
number) as shall have been furnished to the party giving or making such notice,
demand or delivery:

     

    If to the
Company, to it at the following address:

     

    Hoku
Scientific, Inc.

    1288 Ala
Moana Blvd., Suite 220

    Honolulu,
Hawaii 96814

    Attention:
Chief Executive Officer

    Facsimile
No.: + 1 808-682-7807

    

    with a
copy to (which shall not constitute notice):

     

    Stoel
Rives LLP

    101 S.
Capitol Blvd., Suite 1900

    Boise,
Idaho 83702

    Attention:
Paul M. Boyd

    Facsimile
No.: + 1 208-389-9040

     

    If to the
Holder:

     

    Tianwei
New Energy Holdings Co., Ltd.

    No 1,
Tianwei Road,

    Southwest Airport Economic Development Zone,

    Chengdu, China 610200

    Attention:
Wei Xia

    Facsimile
No.: +86-28-6705-0035

     

    with
copies (which shall not constitute notice) to:

    

    Davis
Polk & Wardwell LLP

    26/F,
Twin Towers West,

    B12, Jian
Guo Men Wai Avenue,

    Chao Yang
District,

    Beijing
100022

    Attention:
Howard Zhang

    Facsimile
No.: + 86-10-8567-5123

     

    Each such
notice, demand or delivery shall be deemed received on the date of receipt by
the recipient thereof if received prior to 5:00 p.m. in the place of receipt and
such day is a Business Day.  Otherwise, any such notice, demand or
delivery shall be deemed not to have been received until the next succeeding
Business Day.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    12.    Rights of the Holder; Transfer
Books.  Prior to any exercise of this Warrant, the Holder shall
not, by virtue hereof, be entitled to any rights of a shareholder of the
Company, including, without limitation, the right to vote, to receive dividends
or other distributions, to exercise any preemptive right or to receive any
notice of meetings of Stockholders or any notice of any proceedings of the
Company except as may be specifically provided for herein.  The
Company will at no time close its stock transfer books against transfer of this
Warrant in any manner which interferes with the timely exercise of this
Warrant.

     

    13.    GOVERNING
LAW.  THIS WARRANT AND ALL RIGHTS ARISING HEREUNDER SHALL BE
CONSTRUED AND DETERMINED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
NEW YORK, AND THE PERFORMANCE THEREOF SHALL BE GOVERNED AND ENFORCED IN
ACCORDANCE WITH SUCH LAWS.

     

    14.    Binding
Effect.  This Warrant shall be binding upon any successors or
assigns of the Company.

     

    15.    Amendments;
Waivers.  Any provision of this Warrant may be amended or
waived if, and only if, such amendment or waiver is in writing and signed, in
the case of an amendment, by the Holder and the Company, or in the case of a
waiver, by the party against whom the waiver is to be effective.  No
failure or delay by either party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.  The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

     

    16.    Entire
Agreement.  This Warrant and the forms attached hereto and the
Securities Purchase Agreement (and the other documents referenced therein)
contain the entire agreement between the parties with respect to the subject
matter hereof and supersede all prior and contemporaneous arrangement or
undertakings with respect thereto.

     

    [Remainder of Page Intentionally Left
Blank]

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Company has duly caused this Warrant to be signed by its
duly authorized officer and to be dated as of December 22,
2009.

     

    
      
        	
                HOKU
      SCIENTIFIC, INC.

              
	 
      	 
      
	
                By:

              	
                /s/ Dustin M. Shindo

              
	 
      	
                Title:
      President and CEO

              

      

    

     

    Acknowledged
and Agreed:

    

    
      
        	
                TIANWEI
      NEW ENERGY HOLDINGS

                CO.,
      LTD.

              
	 
      
	
                By:

              	
                /s/ Qiang Ding

              
	 
      	
                Title:
      Legal Representative

              

      

    

     

    [Signature page to
Warrant]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    FORM
OF WARRANT EXERCISE NOTICE

     

    To:         Hoku
Scientific, Inc.

     

    The
undersigned hereby notifies you of its intention to exercise the Warrant to
purchase shares of Common Stock, par value $0.001 per share, of Hoku Scientific,
Inc.  The undersigned intends to exercise the Warrant to purchase
___________ shares (the “Warrant Shares”) at $______
per Share (the Exercise Price currently in effect pursuant to the
Warrant).

     

    As
indicated below, the undersigned intends to pay the aggregate Exercise Price for
the Warrant Shares [by wire transfer of immediately available funds] [by
certified or official bank or bank cashier’s check] [by reduction in the number
of Warrant Shares that would otherwise be issued upon exercise pursuant to
paragraph 2(d) of the Warrant].

     

    Date:  _________________

     

    
      
        
          	
                       

                
	
                  (Signature)

                
	
                       

                
	
                  (Address)

                

        

      

    

    

    
      	
              Payment:

            	
               ̈

            	
              $_______
      wire transfer of immediately available
funds

            

    

    

    
      	
            	
               ̈

            	
              $_______
      certified or official bank or bank cashier’s
  check

            

    

    

    
      	
            	
               ̈

            	
              Reduction
      in number of Warrant Shares

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    WARRANT
ASSIGNMENT FORM

     

    Dated
________________, _____

     

    FOR VALUE
RECEIVED, _______________________ hereby sells, assigns
and transfers unto________________________________ (the “Assignee”),
__________________________________________________

    (please
type or print in block
letters)                                                                     (insert
address)

    its right
to purchase ____________ shares of Common Stock represented by this Warrant and
does hereby irrevocably constitute and appoint _______________________
(attorney), to transfer the same on the books of the Company, with full power of
substitution in the premises.

     

    Signature:
_______________________

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