Document:

Form of Stock Option Agreement Under the 2005 Non-Employee Directors'

 Exhibit 10.14 
  
 HOKU SCIENTIFIC, INC. 
 2005 NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN

  
 OPTION GRANT
NOTICE 
  
 Hoku Scientific, Inc. (the
“Company”), pursuant to its 2005 Non-Employee Directors’ Stock Option Plan (the “Plan”), hereby grants to Optionholder an option to purchase the number of shares of the Company’s Common Stock
set forth below. This option is subject to all of the terms and conditions as set forth herein and in the Option Agreement, the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. 

 

			
	 Optionholder:
	 	_________________________________
	 Date of Grant:
	 	_________________________________
	 Vesting Commencement Date:
	 	_________________________________
	 Number of Shares Subject to Option:
	 	_________________________________
	 Exercise Price (Per Share):
	 	_________________________________
	 Total Exercise Price:
	 	_________________________________
	 Expiration Date:
	 	_________________________________

  

							
	Type of Grant:	  	Nonstatutory Stock Option
			
	Exercise Schedule:	  	  ̈   Same as
Vesting Schedule
	  	  ̈   Early Exercise Permitted

		
	Vesting Schedule:	  	 
		
	Initial Grant:	  	  ̈        1/36th of the shares vest monthly after the Vesting
Commencement Date.

		
	Annual Grant:	  	  ̈        1/12th of the shares vest monthly commencing on the second
anniversary of the date of grant.

		
	Payment:	  	By one or a combination of the following items (described in the Option Agreement):
		
	 	  	  ̈        By cash or check

	 	  	  ̈        Pursuant to a Regulation T Program if the Shares are publicly traded

	 	  	  ̈        By delivery of already-owned shares if the Shares are publicly traded

  
 Additional
Terms/Acknowledgements: The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this Option Grant Notice, the Option Agreement and the Plan. Optionholder further acknowledges that as of the Date of Grant, this Option
Grant Notice, the Option Agreement and the Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that subject with the
exception of (i) options previously granted and delivered to Optionholder under the Plan, and (ii) the following agreements only: 
  

			
	OTHER AGREEMENTS:	 	 
	 	 	 

  

									
	HOKU SCIENTIFIC, INC.	 	 	 	OPTIONHOLDER:
					
	 By:
	 	 	 	 	 	 	 	 
	 	 	Signature	 	 	 	 	 	Signature
	 Title:
	 	 	 	 	 	 Date:
	 	 
	 Date:
	 	 	 	 	 	 	 	 

  
 ATTACHMENTS: Option Agreement, 2005 Non-Employee Directors’ Stock Option Plan and Notice of Exercise 

 HOKU SCIENTIFIC, INC. 
  
 2005 NON-EMPLOYEE DIRECTORS’ STOCK OPTION
PLAN 
  
 OPTION
AGREEMENT 
 (NONSTATUTORY STOCK OPTION) 
  
 Pursuant to your Option Grant Notice (“Grant Notice”)
and this Option Agreement, Hoku Scientific, Inc. (the “Company”) has granted you an option under its 2005 Non-Employee Directors’ Stock Option Plan (the “Plan”) to purchase the number of shares of
the Company’s Common Stock indicated in your Grant Notice at the exercise price indicated in your Grant Notice. Defined terms not explicitly defined in this Option Agreement but defined in the Plan shall have the same definitions as in the
Plan. 
  
 The details of your option are as follows: 

 
 1. VESTING. Subject to the limitations
contained herein, your option will vest as provided in your Grant Notice, provided that vesting will cease upon the termination of your Continuous Service. 
  
 2. NUMBER OF SHARES AND EXERCISE PRICE. The number
of shares of Common Stock subject to your option and your exercise price per share referenced in your Grant Notice may be adjusted from time to time for Capitalization Adjustments. 
  
 3. EXERCISE PRIOR TO VESTING
(“EARLY EXERCISE”). If permitted in your Grant Notice (i.e., the “Exercise Schedule” indicates that “Early Exercise” of your option is permitted) and subject to the provisions of
your option, you may elect at any time that is both (i) during the period of your Continuous Service and (ii) during the term of your option, to exercise all or part of your option, including the nonvested portion of your option; provided,
however, that: 
  
 (a) a partial exercise of your
option shall be deemed to cover first vested shares of Common Stock and then the earliest vesting installment of unvested shares of Common Stock; 
  
 (b) any shares of Common Stock so purchased from installments that have not vested as of the date of exercise shall be subject to the purchase
option in favor of the Company as described in the Company’s form of Early Exercise Stock Purchase Agreement; and 
  
 (c) you shall enter into the Company’s form of Early Exercise Stock Purchase Agreement with a vesting schedule that will result in the same
vesting as if no early exercise had occurred. 

 4. METHOD OF PAYMENT. Payment of the exercise
price is due in full upon exercise of all or any part of your option. You may elect to make payment of the exercise price in cash or by check or in any other manner permitted by your Grant Notice, which may include one or more of the
following: 
  
 (a) In the Company’s sole discretion
at the time your option is exercised and provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, pursuant to a program developed under Regulation T as promulgated by the
Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds.

  
 (b) Provided that at the time of exercise the Common
Stock is publicly traded and quoted regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock either that you have held for the period required to avoid a charge to the Company’s reported earnings
(generally six (6) months) or that you did not acquire, directly or indirectly from the Company, that are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market Value on the date of
exercise. “Delivery” for these purposes, in the sole discretion of the Company at the time you exercise your option, shall include delivery to the Company of your attestation of ownership of such shares of Common Stock in a form approved
by the Company. Notwithstanding the foregoing, you may not exercise your option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the redemption of the
Company’s stock. 
  
 5. WHOLE
SHARES. You may exercise your option only for whole shares of Common Stock. 
  
 6. SECURITIES LAW COMPLIANCE. Notwithstanding anything to the contrary contained herein, you may not exercise your option unless the shares of Common Stock
issuable upon such exercise are then registered under the Securities Act or, if such shares of Common Stock are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of
the Securities Act. The exercise of your option also must comply with other applicable laws and regulations governing your option, and you may not exercise your option if the Company determines that such exercise would not be in material compliance
with such laws and regulations. 
  
 7.
TERM. You may not exercise your option before the commencement or after the expiration of its term. The term of your option commences on the Date of Grant and expires upon the earliest of the following: 
  
 (a) three (3) months after the termination of your Continuous Service
for any reason other than your Disability or death or upon a Change in Control, provided that if during any part of such three (3) month period your option is not exercisable solely because of the condition set forth in Section 6, your option shall
not expire until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service; 
  
 (b) twelve (12) months after the termination of your Continuous Service due to your Disability; 
  
 (c) eighteen (18) months after your death if you die either during
your Continuous Service or within three (3) months after your Continuous Service terminates; 

 (d) twelve (12) months after the effective date of a Change in Control if termination occurs as
of, or within twelve (12) months following the effective date of such a Change in Control; 
  
 (e) the Expiration Date indicated in your Grant Notice; or 
  
 (f) the day before the tenth (10th) anniversary of the Date of Grant. 
  
 8. EXERCISE. 
  
 (a) You may exercise the vested portion of your option (and the unvested portion of your option if your Grant Notice
so permits) during its term by delivering a Notice of Exercise (in a form designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate, during regular business
hours, together with such additional documents as the Company may then require. 
  
 (b) By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter into an arrangement providing for the payment by you to the Company of any tax
withholding obligation of the Company arising by reason of (i) the exercise of your option, (ii) the lapse of any substantial risk of forfeiture to which the shares of Common Stock are subject at the time of exercise, or (iii) the disposition of
shares of Common Stock acquired upon such exercise. 
  
 9.
TRANSFERABILITY. Your option is transferable only by will or by the laws of descent and distribution and is exercisable only by you during your lifetime. However, you may transfer your option for no consideration upon
written consent of the Board (i) if, at the time of transfer, a Form S-8 registration statement under the Securities Act is available for the issuance of shares by the Company upon the exercise of such transferred option or (ii) the transfer is to
your employer at the time of transfer or an affiliate of your employer at the time of transfer. Any such transfer is subject to such limits as the Board may establish, and subject to the transferee agreeing to remain subject to all the terms and
conditions applicable to your option prior to such transfer. The forgoing right to transfer your option shall apply to the right to consent to amendments to the Option Agreement for such option. In addition, until you transfers the option, you may,
by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company, designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option. 
  
 10. OPTION NOT A
SERVICE CONTRACT. Your option is not an employment or service contract, and nothing in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company
or an Affiliate, or of the Company or an Affiliate to continue your employment. In addition, nothing in your option shall obligate the Company or an Affiliate, their respective stockholders, Boards of Directors, Officers or Employees to continue any
relationship that you might have as a Director or Consultant for the Company or an Affiliate. 
  
 11. WITHHOLDING OBLIGATIONS. 
  
 (a) At the time you exercise your option, in whole or in part, or at any time thereafter as requested by the Company, you hereby authorize
withholding from payroll and any 

 
other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a “cashless exercise” pursuant to a program
developed under Regulation T as promulgated by the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if any,
which arise in connection with the exercise of your option. 
  
 (b) Upon your request and subject to approval by the Company, in its sole discretion, and compliance with any applicable legal conditions or restrictions, the Company may withhold from fully vested shares of Common Stock otherwise
issuable to you upon the exercise of your option a number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or
such lower amount as may be necessary to avoid variable award accounting). If the date of determination of any tax withholding obligation is deferred to a date later than the date of exercise of your option, share withholding pursuant to the
preceding sentence shall not be permitted unless you make a proper and timely election under Section 83(b) of the Code, covering the aggregate number of shares of Common Stock acquired upon such exercise with respect to which such determination is
otherwise deferred, to accelerate the determination of such tax withholding obligation to the date of exercise of your option. Notwithstanding the filing of such election, shares of Common Stock shall be withheld solely from fully vested shares of
Common Stock determined as of the date of exercise of your option that are otherwise issuable to you upon such exercise. Any adverse consequences to you arising in connection with such share withholding procedure shall be your sole responsibility.

  
 (c) You may not exercise your option unless the tax
withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly, you may not be able to exercise your option when desired even though your option is vested, and the Company shall have no obligation to issue a certificate for
such shares of Common Stock or release such shares of Common Stock from any escrow provided for herein unless such obligations are satisfied. 
  
 12. NOTICES. Any notices provided for in your option or the Plan shall be given in writing and shall be deemed effectively
given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. 
  
 13. GOVERNING PLAN
DOCUMENT. Your option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations, which may from
time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control. 

 NOTICE OF EXERCISE 
  

					
	 Hoku Scientific, Inc.
 2153 N. King St., Suite
300
 Honolulu, HI 96819
	 	 	 	Date of Exercise:
                                    

  
 Ladies and Gentlemen: 
  
 This constitutes notice under my stock option that I elect to purchase the
number of shares for the price set forth below. 
  

			
	Type of option (check one):	  	x   Nonstatutory
		
	 Stock option dated:
	  	________________
		
	 Number of shares as to which option is exercised:
	  	________________
		
	 Certificates to be issued in name of:
	  	________________
		
	 Total exercise price:
	  	$_______________
		
	 Cash payment delivered herewith:
	  	$_______________
		
	 Value of                  shares of Hoku Scientific,
Inc. Common Stock delivered herewith1:
	  	$_______________

  
 By this exercise, I
agree (i) to provide such additional documents as you may require pursuant to the terms of the Hoku Scientific, Inc. 2005 Non-Employee Directors’ Stock Option Plan and (ii) to provide for the payment by me to you (in the manner designated by
you) of your withholding obligation, if any, relating to the exercise of this option. 
  

	
	Very truly yours,
	
	 
	 

	1	Shares must meet the public trading requirements set forth in the option. Shares must be valued in accordance with the terms of the option being exercised, must have
been owned for the minimum period required in the option, and must be owned free and clear of any liens, claims, encumbrances or security interests. Certificates must be endorsed or accompanied by an executed assignment separate from certificate.Calendar Year 2005 Executive Incentive Compensation Plan

 Exhibit 10.29 
  
 HOKU SCIENTIFIC, INC. 
  
 CALENDAR YEAR 2005 EXECUTIVE INCENTIVE COMPENSATION PLAN 
  

	1.	Overview 

  
 The compensation philosophy of Hoku Scientific, Inc. (the “Company”) is to attract, motivate, retain and reward its management
through a combination of base salary and performance-based compensation. Executive Officers (as defined below), who commenced employment at the Company on or before January 31, 2005 and are employees of the Company on and as of December 31, 2005
(collectively, the “Participants”), shall be eligible to participate in the Calendar Year 2005 Executive Incentive Compensation Plan (the “Plan”). For purposes of the Plan, the Company’s Section
16 reporting officers shall qualify as “Executive Officers.” 
  
 The Plan is designed to award a payment (each an “Incentive Payment”) for performance in calendar year 2005 to a Participant if the Company achieves certain corporate performance targets
(“Corporate Targets”) as described below, as determined in the sole discretion of the independent members of the Company’s Board of Directors (the “Independent Committee”). 
  
 Each Incentive Payment shall be split such that fifty percent (50%) is
allocated to cash and fifty percent (50%) is allocated to a stock award pursuant to the Company’s 2005 Equity Incentive Plan (the “Stock Plan”). The Independent Committee shall determine the amounts and the timing of the
issuance of such stock awards under the Stock Plan in their sole discretion. 
  

	2.	Determination of Calendar Year 2005 Incentive Payments 

  
 A Participant may receive an Incentive Payment if the Corporate Targets are achieved, as determined in the sole discretion of the Independent Committee.

  
 For calendar year 2005, each Participant’s Incentive
Payment will be split among four categories of Corporate Targets as follows, as determined by the Independent Committee: 
  

	 	•	 	Thirty-seven and one-half percent (37.5%) is allocated to the achievement of revenue, net income and stockholder value targets; 

  

	 	•	 	Twenty-five percent (25%) is allocated to the achievement of product development targets; 

  

	 	•	 	Twenty-five (25%) is allocated to the achievement of business development targets; and 

  

	 	•	 	Twelve and one-half percent (12.5%) is allocated to the achievement of corporate best practices targets. 

  
 The maximum amount of an Incentive Payment a Participant may receive upon achievement of the Corporate Targets is 120% of the
Participant’s base salary as of July 8, 2005. 
  

	3.	Miscellaneous Provisions 

  
 The Independent Committee may amend or terminate this Plan at any time in their sole discretion. Further, the Independent Committee may modify the
Corporate Targets and/or Incentive Payment Amounts and the allocation of value between such amounts at any time in their sole discretion. For purposes of this Plan, a director’s independence shall be determined in accordance with The Nasdaq
Stock Market, Inc. Listing Standards. 
  
 The Plan shall be
governed by and construed in accordance with the laws of the State of Hawaii.

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