Document:

ex10-1.htm

Exhibit 10.1

 

Void if not signed & delivered on or before November 30, 2010

 

SEPARATION AGREEMENT AND RELEASE

 

This SEPARATION AGREEMENT AND RELEASE (the “Agreement”) is made and entered into by and between Hoku Corporation (“Employer”) and Karl Taft III (“Employee”) (collectively “parties”) as of November 30, 2010.

 

1.           Separation.  Effective on and as of November 30, 2010 (the “Separation Date”), Employee’s employment as Chief Technology Officer and any and all other positions Employee may have held with Employer shall cease.  Accordingly, on the Separation Date, Employee shall incur a separation from service for purposes of Section 409A of the Internal Revenue Code.

 

2.           Payments.

 

	
  

	
a.

	
Employee hereby acknowledges that Employer has paid to Employee on the Separation Date, an amount equal to $25,000, less, all normal deductions and withholdings (the “Severance Amount”).  Employee acknowledges and agrees that Employee is solely responsible to inform Employer in writing of Employee’s new address should Employee change Employee’s residence and that failure to do so may result in Employee’s not receiving benefits under this Agreement.   Except as expressly provided herein, Employee acknowledges and agrees that Employee will not receive (nor is Employee entitled to receive) any additional consideration, wages, commissions, payments, reimbursements, stock or benefits of any kind, and that the vesting of any stock options or stock awards shall immediately cease upon the Separation Date.  Employee further acknowledges and agrees that as of the Separation Date, Employer has paid to Employee in full any and all wages, salary, accrued but unused vacation, commissions, bonuses, incentives and compensation due and owing as of the Separation Date.

 

	
  

	
b.

	
On the Separation Date,

 

	
  

	
(i)

	
6,666 out of 13,333 unvested shares under Employee’s option (the “Option”) to purchase shares of Employer’s common stock granted to Employee on July 24, 2006, under Employer’s 2005 Equity Incentive Plan, as amended, shall become vested in full.  Employee shall not vest with respect to the remaining 6,666 unvested shares under the Option following the Separation Date.  In accordance with the terms of the agreement evidencing the Option, Employee shall have a period of three months to exercise the Option with respect to the shares that are vested as of the Separation Date and the Option shall terminate on February 28, 2011.

 

	
  

	
(ii)

	
All remaining unvested shares of Employer’s common stock granted under restricted stock awards to Employee on May 16, 2008, and June 16, 2009, under Employer’s 2005 Equity Incentive Plan, as amended, shall become vested in full.

 

 

  Karl Taft III Initial & Date ______________________

Page 1 of 7

  

 

	
  

	
(iii)

	
The number of shares subject to the accelerated vesting under the Option and the restricted stock awards are set forth on attached Schedule A.

 

3.           Non-Interference.  Employee agrees that Employee will not discuss any aspect of the business or affairs of Employer or its affiliates (including, without limitation, Hoku Corporation, Hoku Materials and Hoku Solar, collectively “Affiliates”), with any employee, stockholder, customer, vendor or strategic partner of Employer.  Employee further agrees that Employee will not alone or in combination with any other person or entity take any action to influence the management or strategic direction of Employer or its Affiliates.  Employee acknowledges and agrees that the obligations imposed on Employee under this Section 3 are material to Employer entering into this Agreement, and that violation of this Section 3 constitutes a material breach of this Agreement and Employee shall be required to abide by the terms and conditions of this Section 3 for a period of two (2) years from the Separation Date.

 

4.           Employer Property. On or prior to the Separation Date, Employee agrees to return (and hereby so certifies that Employee has returned) to Employer all Employer documents (and all copies thereof) and any and all other Employer property in Employee’s possession, custody or control, including, but not limited to, cell phones, pagers, computers, laptops, printers, fax machines, projectors, financial information, customer information, customer lists, employee lists, Employer files, notes, contracts, drawings, records, business plans and forecasts, financial information, specifications, computer-recorded information, software, tangible property, credit cards, entry cards, identification badges and keys, and any materials of any kind which contain or embody any proprietary or confidential material of Employer (and all reproductions thereof).

 

5.           Release of Claims. Employee, and on behalf of his heirs, personal representatives, estates, assigns and marital community does hereby release Employer, its Affiliates, and their respective successors, predecessors, assigns, directors, officers, employees, attorneys and agents, both individually and in their official capacities (herein collectively referred to as the “Released Parties”), from any and all claims, demands, suits, complaints, actions and causes of action, whether in law or in equity, with respect to any event, matter, claim, damage or injury arising out of and/or with respect to the Employee’s employment with Employer, including, but not limited to, claims based on his employment with the Company and any related contract or agreement, express or implied, tortious conduct, covenants of good faith and fair dealing, wrongful discharge, unpaid wages, Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the Hawaii Employment Practices Act, the Idaho Human Rights Act, Idaho Code section 67-5901 et seq., the Idaho Claims for Wages Act, Idaho Code section 45-601 et seq.,and any other applicable federal, state or local laws, ordinances and regulations.

 

6.           Waiver of Claims.  Employee understands that by signing this Agreement, he is forever relinquishing his right to sue Employer and the other Released Parties based on any claim arising out of and/or with respect to the Employee’s employment with Employer (other than claims arising under employee benefit plans or claims for injuries compensable under workers’ compensation laws, which are non-waivable).

 

 

  Karl Taft III Initial & Date ______________________

Page 2 of 7

  

 

7.           Review Period.  Employee acknowledges that he has been advised to consult with an attorney of his choice, at the Employee’s own expense, regarding the terms of this Agreement before signing it, and that Employee was offered a reasonable period of time in which to consider the terms herein before signing this Agreement.

 

8.           No Derogatory Statements.  Employee agrees that he shall not disclose, discuss or disseminate any of the facts, circumstances, materials (including this document), or other information concerning the termination of the Employee’s employment with Employer with anyone other than the Employee’s attorneys and except as otherwise required by law.  Employee agrees not to make any disparaging, derogatory, discrediting, injurious, or uncomplimentary statements, allegations, or remarks in any form of communication whatsoever, about Employer or any other Released Parties.

 

9.           No Admission.  Employee understands that the consideration provided to Employee under the terms of this Agreement does not constitute an admission by Employer that it has violated any law, or other legal obligations such as those described in Section 5 above.

 

10.           Nondisclosure of Proprietary Information. Employee agrees to be and acknowledges that Employee continues to be bound by the Confidential Information and Invention Assignment Agreement between Employer and Employee, a copy of which is attached hereto as Exhibit A and hereby incorporated into this Agreement as part of this Agreement.

 

11.           Tax Consequences.  Employee expressly acknowledges that Employer has not made, nor herein makes, any representation about the tax consequences of any consideration provided by Employer to Employee pursuant to this Agreement.  Employee agrees to indemnify Employer and hold Employer harmless from any and all claims or penalties asserted against Employer for any failure to pay taxes due on any consideration provided by Employer pursuant to this Agreement with the exception of any penalties which are the sole result of Employer’s malfeasance as it may relate to this Section 11.

 

12.           Injunctive Relief.  In the event of a breach or threatened breach of Sections 6 or 10 above, Employer shall be entitled to a permanent injunction in order to prevent or restrain any such breach by Employee and/or any and all persons directly or indirectly acting for or with Employee.  In addition, Employer shall be entitled to pursue any other rights, remedies, or damages available to Employer at law or in equity.

 

13.           Arbitration.  Except as provided in Section 12 above, Employee agrees that if there is any breach of any term or condition of this Agreement, the matter shall be submitted to binding arbitration in Honolulu County, Hawaii.  A single arbitrator, using the most current Rules of the American Arbitration Association governing employment disputes, shall decide the matter.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof, with the non-prevailing party to bear all attorneys' fees and costs of all parties.

 

14.           Applicable Law.  This Agreement was entered into in the State of Hawaii, and the parties agree and intend that it be construed and enforced in accordance with the laws of the State of Hawaii.

 

 

  Karl Taft III Initial & Date ______________________

Page 3 of 7

  

 

15.           No Third Party Rights.  The parties agree that by making this Agreement they do not intend to confer any benefits privileges or rights to others.

 

16.           Voluntary and Knowingly.  Employee acknowledges that in executing this Agreement, Employee has reviewed it and understands its terms and has had an opportunity and was advised to seek guidance from counsel of Employee’s own choosing, and was fully advised of Employee’s rights under law, and acted knowingly and voluntarily.

 

17.           Duty to Effectuate. The parties agree to perform any lawful additional acts, including the execution of additional agreements, as are reasonably necessary to effectuate the purpose of this Agreement.

 

18.           Entire Agreement.  This Agreement (together with the exhibits hereto) constitutes the complete, final and exclusive embodiment of the entire agreement between Employee and Employer with regard to the subject matter hereof.  This Agreement supersedes any and all other offers, agreements and contracts between the parties.  This Agreement is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it may not be modified except in a writing that refers to this Agreement signed by Employee and Employer.

 

19.           Successors and Assigns.  This Agreement shall bind the heirs, personal representatives, marital community (if any), successors, assigns, executors and administrators of each party, and insure to the benefit of each party, its heirs, successors and assigns.

 

20.           Severable.  If any provision of this Agreement is determined to be invalid, void or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question shall be modified so as to be rendered enforceable.

 

21.           Section Headings.  The section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

          Section 409A.  It is the intent of the parties that the provisions of this agreement comply with all applicable requirements of Internal Revenue Code Section 409A.  To the extent there is any ambiguity as to whether one or more provisions of this agreement would otherwise contravene the applicable requirements or limitations of Code Section 409A, then those provisions shall be interpreted and applied in a manner that does not result in a violation of the applicable requirements or limitations of Code Section 409A and the applicable Treasury Regulations thereunder.

 

[Signature page follows]

 

  Karl Taft III Initial & Date ______________________

Page 4 of 7

  

Void if not signed & delivered on or before November 30, 2010

IN WITNESS WHEREOF, the parties have duly authorized and caused this Separation Agreement and Release to be executed as of the date last set forth below.

 

	EMPLOYEE	 	EMPLOYER 
 

HOKU CORPORATION,

	 	 	 	 	 
	 	 	 	By:	 
	Karl Taft III	 	 	 
	
 

	 	 	Name:	
Scott Paul

	
 

	 	 	 	
 

	
 

	 	 	Title:	
President & Chief Executive Officer

	 	 	 	 	 
	Date:	 	 	Date:	November 30, 2010

 

VOID IF NOT SIGNED & DELIVERED ON OR BEFORE NOVEMBER 30, 2010

 

 

SIGNATURE PAGE TO SEPARATION AGREEMENT AND RELEASE

  

Page 5 of 7

  

Void if not signed & delivered on or before November 30, 2010

EXHIBIT A

COPY OF CONFIDENTIAL INFORMATION AND

INVENTION ASSIGNMENT AGREEMENT

BETWEEN HOKU CORPORATION AND KARL TAFT III

 

 

  

Page 6 of 7

  

Void if not signed & delivered on or before November 30, 2010

Schedule A

	  	 	  	 	
Unvested

	  	  
	  	 	
Grant

	 	
Shares @

	  	  
	
Type

	 	
Date

	 	
11/30/2010

	  	
Accelerated

Vest

	
Options

	 	
7/24/2006

	 	
13,333

	  	
6,666

	
RSA

	 	
5/16/2008

	 	
8,000

	  	
8,000

	
RSA

	 	
6/16/2009

	 	
16,000

	  	
16,000

	  	 	
Total unvested

	 	
37,333

	  	
30,666

 

 

 

 

Karl Taft III Initial & Date ________________

Page 7 of 7ex101.htm - Generated by SEC Publisher for SEC Filing

 

Confidential Treatment-Redacted Copy

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
UNDER A CONFIDENTIAL TREATMENT REQUEST, PURSUANT TO RULE 406 OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE
APPROPRIATE PLACE WITH FOUR ASTERISKS [****].

 

ADDENDUM 1 TO
LICENSE AGREEMENT

 

THIS ADDENDUM, is made and
entered into this 30th day of November, 2010 (Effective Date of this Addendum),
by and between the UNIVERSITY OF SOUTH FLORIDA RESEARCH FOUNDATION, INC., a
corporation not for profit under Chapter 617 Florida Statutes, and a direct
support organization of the University of South Florida pursuant to section
1004.28 Florida Statutes, having its principal office at 3802 Spectrum Blvd,
Suite 100, Tampa, Florida 33620, U.S.A. and New Energy Solar Corporation. 
Capitalized terms used herein and not otherwise defined shall have the same
meaning ascribed to them in the License Agreement.

 

WHEREAS, on June 21st  ,2010 a
License Agreement (“License Agreement”) was entered into by the parties relating
to the utilization of Patent Rights associated with USF Technology Referenced as
08B117-Fabrication of Organic Solar Array for Applications in
Microelectromechanical Systems and Others; and

 

WHEREAS, New Energy Solar Corporation wishes to
license two additional technologies from UNIVERSITY OF SOUTH FLORIDA RESEARCH
FOUNDATION; USF Reference No.- 09B116 and 10B115, and amend the License
Agreement to include the same.

 

NOW, THEREFORE, the parties agree as
follows:

 

1.      the License Agreement is
hereby amended by:

 

a.)   
Deleting the
text of Schedule I and replacing it with the attached new Schedule I.

 

b.)  
Deleting the
text of Appendix D -Milestones and replacing it with the attached new Appendix
D- Milestones. 

 

c.)   
The principle
office of the Licensee shall be amended as follows

 

i)                  
Section
15.2

New Energy Solar Corp.,

9192 Red Branch Road, Suite 110,

Columbia, MD 21045

 

1

 

 

Confidential Treatment-Redacted Copy

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
UNDER A CONFIDENTIAL TREATMENT REQUEST, PURSUANT TO RULE 406 OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE
APPROPRIATE PLACE WITH FOUR ASTERISKS [****].

 

 

2.  Licensee shall pay to Licensor the sum of
**** within thirty (30) days of the Effective Date of this Addendum to reimburse
any and all prior expenses associated with preparation, filing, prosecution,
issuance, maintenance, defense, and reporting of  patents and patent
applications for ****now included within the definition of Licensed Patents
under the License Agreement.   (NOTE: the above referenced dollar amount in
this section is subject to change, as all related patent prosecution expense
invoices may not have been received from the law firm at the time of this
Addendum’s negotiation and execution.)  Licensee shall be responsible for
and pay all costs and expenses incurred by Licensor  related to the future
preparation, filing, prosecution (including interferences), issuance,
maintenance, defense (including oppositions) and reporting of the Licensed
Patents in accordance with the terms of the License Agreement. 

 

3.  All terms not defined herein shall have
the same meaning as ascribed in the License   Agreement. The License
Agreement shall remain in full force and effect in accordance with its terms as
modified herein. All terms of this Addendum shall control over any conflicting
terms in the License Agreement and any Appendices thereto. The foregoing
changes, deletions and/or additions in the Addendum are made to and constitute
an integral part of the License Agreement as if same were set forth
therein.

                       

IN WITNESS WHEREOF, the parties
have set their hands and seals and duty executed this Addendum as of the
effective date listed in the preamble above.

 

Signature page to follow

 

 

 

 

2

 

 

Confidential Treatment-Redacted Copy

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER A CONFIDENTIAL TREATMENT REQUEST, PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE APPROPRIATE PLACE WITH FOUR ASTERISKS [****].

 

 

 

UNIVERSITY OF SOUTH FLORIDA                          NEW ENERGY SOLAR CORP.

RESEARCH FOUNDATION

 

 

 

 

By:/s/ Valerie Landrio McDevitt                      By:/s/ John Conklin

 

Name:_Valerie Landrio McDevitt                                Name: John Conklin

Title: Assistant Vice President                                      Title: President/ CEO

Division of Patents & Licensing                                  New Energy Solar Corporation

 

 

Acknowledged and Agreed to:

 

 

_________________________________________________                  

 

   ____________________________________________

Inventor                                                                                      University of South Florida Board of 

                                                                                              Trustees, a Public Body Corporate

 

 

 

 

 

 

3

 

 

Confidential Treatment-Redacted Copy

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
UNDER A CONFIDENTIAL TREATMENT REQUEST, PURSUANT TO RULE 406 OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE
APPROPRIATE PLACE WITH FOUR ASTERISKS [****].

 

Schedule
I

****

 

 

 

Appendix D-
Milestones

 

****

 

 

4

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