Document:

ex10_64.htm

    
      
        

        Hoku
Scientific, Inc.

        Dustin
Shindo | dshindo@hokusci.com

        January
2008

        Exhibit
10.64

      

    

    
      
         

      

      
          

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Safe
harbor statement

        Please
note that this presentation and discussion will contain
forward-looking
statements based upon current expectations that involve risks
and uncertainties,
such as our plans, objectives and intentions. Our actual
results and the timing
of events could differ materially from those
anticipated in these forward-
looking statements as a result of many factors,
including without limitation
those we discuss here and those described in our
filings with the SEC. You
should not place undue reliance on any
forward-looking statement, each of
which applies only as of the date we make
it. We assume no obligation to
update any forward-looking
statement.

      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        Agenda

        January
2008

        Introduction

        Hoku
Materials

        Hoku
Solar

        Management

        Financials

        Conclusion

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Transaction
Summary

        (1) As of
December 31, 2007.

        (2) As of
January 18, 2008.

        (3) Fully
diluted market capitalization as of January 18, 2008. Includes
in-the-money outstanding options, warrants and convertible
securities,

        treasury-adjusted.

        
           Listing (Ticker Symbol):  
             
NASDAQ
(HOKU)

                

          
            Shares Outstanding
 :                
     16,883,041

               

            Maximum # of shares
offered:       
3,374,919

                   

            Current Share Price 
:                    
$9.40

                   

            Current Market Capitalization 
:   $164 million

                    

            Use of
Proceeds:                              
General corporate purposes including the 

                                                                      
funding
of the construction and 

                                                                      
procurement
of the Company’s planned 

                                                                      
polysilicon
production facility in 

                                                                      
Pocatello, Idaho

                  

            Agent:                                       
        Deutsche Bank Securities (sole
agent)

          

        

         (1)

         (2)

         (3)

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Company
Overview

        n Non-fluorinated
membranes and optimized
 MEAs
for proton exchange membrane, or
 PEM,
fuel cells

        n Hoku does
not currently plan to actively
 pursue
any new contracts or commit
 resources
to further develop fuel cell
 products

        Hawaii

        INTELLECTUAL
PROPERTY

        n Plans to
produce polysilicon, a key material
 used
in solar modules

        n Construction
underway on $400 million,
 3,500
MT capacity

        n First
production 2H 2008, with first
 commercial
shipment in 1H 2009

        Idaho

        PV
POLYSILICON

        n Offers
photovoltaic, or PV, system design,
 engineering,
installation and post-sale
 service

        n Hawaii’s
premiere solar company providing
 turnkey
PV system installations for
 commercial
and residential applications

        Hawaii

        INSTALLATIONS

      

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Hoku’s
solar industry strategy

        n Low risk
technical approach -
 Siemens
process

        n Expansion
opportunities,
 including
up to 8,000 MT on the
 current
footprint

        Strategic
Benefit

        n Provides
near term revenue
 opportunities

        n Long-term
ability to “pull”
 polysilicon
through the supply
 chain
to maintain margins

        Strategic
Benefit

        This
differentiated strategy allows Hoku and investors to create
value

      

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        Agenda

        January
2008

        Introduction

        Hoku
Materials

        Hoku
Solar

        Management

        Financials

        Conclusion

      

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Business
overview

        Launched
construction
of
polysilicon plant
in 1H07

        Expected
pilot
polysilicon
production in
2H08

        Expected
completion
of
plant in 1H09

        Full
Capacity: 1H 2010

             Minimal
overhead / maintenance capex

             Located in
Pocatello, Idaho

             Current
site supports expansion up to 8,000 metric
 tons

            3,500
metric ton capacity

          
  $180-$200
million revenue potential

           
 45%-55%
gross margins

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Plant
Manager

        TCS
Manager

        Polysilicon
Manager

        Production
Supervisors

        Engineers

        Operators

        Programmers

        Technical
Leads

        n Karl
Taft is Head of Hoku Materials and Chief Technology Officer

         n Strong
industrial engineering, chemistry and operational/management
background

        n The
Company plans to hire approximately 200 well-qualified employees which will
enable
 the
planned facility to be fully functional

        n A
deep pool of talent exists in the areas surrounding the Company’s facility site
in Idaho

        Organizational
chart - Hoku Materials

        Quality
Manager

        Engineering
Manager

        Other
Misc Departments

        Production
Supervisors

        Operators

        Programmers

        Technical
Leads

        Karl
Taft
Head of Hoku Materials
Chief Technology
Officer

      

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Hoku’s
customer contracts account for
substantially all Phase I
capacity

        
          	 	
                  $2,987

                	
                  7

                	
                  Jan
      09

                	
                  $371

                	
                  ü

                	
                  $2

                	
                  $109

                
	 	
                  $8,669

                	
                  10(2)

                	
                  Jul
      09

                	
                  $678 (2)

                	
                  ü

                	
                  $2

                	
                  $45

                
	
                  

                	
                  $195

                	
                  7

                	
                  2H
      09

                	
                  $117

                	
                  ü

                	
                  $2

                	
                  $25

                
	
                  

                	
                  $928

                	
                  8

                	
                  2H
      09

                	
                  $306

                	
                  ü

                	
                  $11

                	
                  $44

                
	 	 	 	
                  Total

                	
                  $1,472

                	 	
                  $17

                	
                  $223

                

        

        Customer

        Term
(yrs)

        Start
date

        Fixed
price/
fixed volume

        Paid
to
date

        Future
payment

        Milestones

        $
in millions

        Source:
Hoku management.

        (1) Fully
diluted market capitalization as of January 18, 2008. Includes
in-the-money outstanding options, warrants

        and
convertible securities, treasury-adjusted.

        (2) The
last 3 years can be terminated by either Suntech or Hoku any time before the end
of the 4th year of
delivery. $678
million

        reflects
the full 10 years of the contract.

        Market
cap
(1)

        2006
Cell Production

        Top 5
producers

        Source:
Solarbuzz March 2007 and Company filings.

        Hoku
supplies 2 of the top 5 crystalline cell producers in the world

        GEWD

        
          Total

          contract
value

        

      

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Hoku’s
strong customer contracts are ideal for
completing its facility

        Paid
to
date

        n More
than half of the cost of construction is covered by customer
pre-payments

        n All
of Hoku’s customer contracts are long-term, fixed price / fixed volume, and all
pre-
 payments
are long-term sources of capital

        n All
prepayments are secured by LOC or in escrow

        Launched
construction
of
polysilicon
plant in 1H07

        Expected
pilot
polysilicon
production in
2H08

        Expected
completion
of
plant in 1H09

        Plant
in
operation

        
          	
                  $17
      million

                

        

        2H
2008

        
          	
                  $135
      million (1)

                

        

        1H
2009

        
          	
                  $68
      million (1)

                

        

        2H
2009 & Beyond

        
          	
                  $20
      million

                

        

        (1) Certain
customer obligations under supply contracts are contingent on Hoku achieving
certain milestones and delivering product at agreed
specifications.

      

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Hoku
has assembled a team of industry leaders

        
          	 	
                  Integration
      and
front end

                	
                  Leading
      EPCM with past industry
experience including TCS
      technologies

                	
                  n 27,000
      employees

                  n FY07
      revenues of $5.7B

                
	 	
                  Construction

                	
                  Established
      in 1923, expertise in steel
erection and rigging, process
      piping,
and instrumentation & controls.
Experience on other
      polysilicon plants

                	
                  n 800
      employees all located in the
 Northwest
 
	
                  Graeber
      Engineering
Consultants /
    MSA
Apparatus
Construction

                	
                  Reactors
      and
converters

                	
                  Significant
      polysilicon reactor and
hydrogenator experience

                	
                  n Works
      in US, Asia and Europe

                  n Team
      of over 200 working in
 engineering
      and manufacturing

                
	 	
                  Vent
      gas
recovery

                	
                  Has
      built systems for major PS plants
with over 45 year of
      experience

                  
                  

                	
                  n “Industry
      standard” for this type
 of
      equipment.

                  n Works
      heavily in Asia and US

                
	 	
                  TCS
technology

                	
                  Experienced
      in TCS technology.
Guarantees for purity and quantities

                	
                  n Works
      in US, Asia and Europe

                  n Chemical,
      pharmaceutical and
 biotech
      experiences with offices
 in
      Asia and the USA

                

        

        Partner

        Key
Area

        Experience

        Company
overview

      

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Expansion
opportunity

        Project
Site and Potential
Expansionary Land

        § Hoku
project site of ~67 acres
 supports
expansion up to 8,000
 MT
per year

        § ROFR
on up to 450 acres for
 expansion

         § Additional
polysilicon
 production

         § Supply
chain expansion

         § Customer
/ Supplier
 synergies

        Annual
Capacity (post expansion): Supports
possible expansion up to 
      8,000
metric tons per year

        Financial
Model (post expansion): Improved
operating leverage from  
      increased
scale

        Gross
Margins (post expansion): 45%
to 55%

        Project
Site (3,500 MT)

        Expansion
Opportunity

        Other
Expansion
Land Nearby

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Polysilicon
supply and demand trends

        Supply
/ demand dynamics favor continued attractive long-term
customer contracts if
Hoku expands to 8,000 metric tons of capacity

        Note: Total
Si demand is driven by “Production-led Scenario” in Marketbuzz March 2007
report. Does
not include potential capacity from new market entrants,
of which
approximately 15,500 tons had been announced for 2008 at the time of the
report.

        Source: Marketbuzz,
March 2007

        n Lack
of existing production capacity drives customers to secure supply with
long-term
 contracts

      

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        Agenda

        January
2008

        Introduction

        Hoku
Materials

        Hoku
Solar

        Management

        Financials

        Conclusion

      

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Business
Overview

        Illustrative
commercial value proposition

        TAM: 35,600
private employers in Hawaii(1)

        (1) Source: Hawaii
State Department of Labor and Industrial Relations.

        (2) Customer’s
estimated savings over 25 years adds up to $1,512,500.

        Favorable
Hawaii Market Conditions

      

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Hoku
Solar is winning contracts

        “Our
selection committee was
unanimous in recommending...

        the
Hoku team that is offering an
excellent turnkey project on
this
scale.”

        -
Dave Waller, HECO Vice
President

        n 167
kW (DC) PV System

        n Hoku
is the complete
 turnkey
system integrator
 and
PPA provider

        n 20
year PPA subject to PUC
 approval

        n Second
largest PV
 installation
on Oahu

        n Installation
begin by 1H08

        n Up
to 1.5 MW of installed
 capacity
(Hawaii)

        n Possible
completion end of
 2008

        n Non-binding
letter of intent
 subject
to conditions

        Local
grid parity and tax incentives
drive Hawaii demand

        Paradise
Beverages - Installed by Hoku Solar, Dec 2007

      

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        Agenda

        January
2008

        Introduction

        Hoku
Materials

        Hoku
Solar

        Management

        Financials

        Conclusion

      

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Experienced
and Proven Management

        Name
/ Title

        Track
record of creating shareholder value

        Working
Experience

        Dustin
M. Shindo

        Chairman
of the Board of Directors,
President & Chief Executive
Officer

        n Founded
Mehana Brewing company (largest bottling brewery in
 Hawaii)

        n Co-founder
of Kai Sensors (Sensor company focusing on wireless heart
 -rate
& respiration monitoring devices)

        Karl
Taft

        Chief
Technology Officer

        Extensive
chemical experience at the following positions:

        n Lead
Manager for R&D at PCC Structurals

        n Industrial
engineer at PCC Structurals

        n Chemist at
PCC Structurals

        Darryl
Nakamoto

        Chief
Financial Officer, Treasurer & Secretary

        n Financial
analyst at Frito-Lay

        n Sales and
Marketing executive at Syntera Solutions

        n Regional
Director at Activitymax

        n CPA at
KPMG

        Scott
Paul

        Vice
President, Business Development
& General Counsel

        n Director
of business development and associate general counsel at
 Read-Rite

        n Associate
at Brobeck, Phleger & Harrison (focused on high tech
 company
financing and M&A)

      

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        Agenda

        January
2008

        Introduction

        Hoku
Materials

        Hoku
Solar

        Management

        Financials

        Conclusion

      

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        n The
Company’s pre-payments will fund more than half of the total
 plant
cost

        Sources
and uses

      

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Construction

        Q1
08

        Objectives

        n Complete
equity financing

        n Complete
Merrill Lynch financing

        n Complete
plant construction / meet
 customer
milestones

        n Deliver on
customer contracts

        n Delever
balance sheet

        n Explore
opportunities to expand facility

        Financial
profile

        n $19 million
of pre-payments from
 customers
after the plant is online

        n 3,500
metric tons facility (the majority of
 the
capacity under long-term contract)

        n ~ $200
million annual revenue

        n 45%-55%
gross margins

        n Minimal
overhead / maintenance capex

        Q1
09

        Operation

        n $400
million cost to construct plant

        n $221
million of pre-payments from
 customers
with long-term contracts (1)

         – The
Company’s pre-payments will
 fund
more than half of the total plant
 cost

        Hoku’s
contracts are with established solar companies

        (1) $17 million
of payments have been received to date. Certain
prepayments are contingent on Hoku achieving certain milestones.

        (2) Fully
diluted market capitalization as of January 18, 2008. Includes
in-the-money outstanding options, warrants and convertible securities,
treasury-adjusted.

        (3) The last 3
years can be terminated by either Suntech or Hoku any time before the end of the
4th year of delivery. $678
million reflects the full 10 years of the contract.

        Path
to profitability

      

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Sustainable
Cost Advantage

        Illustrative
margin profile at full capacity

        Cost
advantages

        Note: For
illustrative purposes only. Note: Estimated
cents/kilowatt is from the Energy Information Administration and Wall
Street
     equity
research.

        n Low cost
electricity

         − Hydro and
wind energy supply in Idaho secure inexpensive
 energy

        n Inexpensive
land

         − 99 year
lease at $1.00 per year

        n Labor, raw
materials and other costs remain stable and
 competitively
priced

        n $0.0295/kWh
is indicative price in Pocatello, ID;
 Hoku’s
price may be different

      

    

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Operational
and Financial Benchmarking

        2010E
Polysilicon MT Capacity (ths)(1)(2)

        2009E
Gross Margin(2)

        (1) Source:
Company management

        (2) Source:
Wall Street equity research

        (3) Fully
diluted capitalization as of January 18, 2008. Includes
in-the-money outstanding options, warrants and convertible securities,
treasury-adjusted.

        2009E
P/E Multiples(2)(3)

        2009E
Revenue Multiples(2)(3)

        Mean: 13.6x

        Mean: 3.4x

        55.0%

      

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        Agenda

        January
2008

        Introduction

        Hoku
Materials

        Hoku
Solar

        Management

        Financials

        Conclusion

      

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Investment
Highlights

        Solar
installation business
allows for “book-end”
strategy

        Marquee
polysilicon
customers with long-term
fixed price / fixed
volume
contracts

        Strong,
predictable cash flows

        Fully
financed business plan
post this offering and the
completion of a debt
facility

        Strong
management team

        Attractive
industry dynamics
favor continued expansion

      

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        January
2008

        Q&A

      

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    
      
        

        Hoku
Scientific, Inc.

        Dustin
Shindo | dshindo@hokusci.com

        January
2008ex10_vii.htm

    
      

    

    EXHIBIT
10vii

    PARTICIPATION
AGREEMENT

    

    2007
Equity Plan for Non-Employee Directors of

    HNI
Corporation

    

    This Participation Agreement
("Participation Agreement") between the undersigned Non-Employee Director,
_________________ ("Director"), and HNI Corporation (the "Corporation") is for
the Election Period (as hereinafter defined) commencing January 1, 20__, and is
subject to all of the terms and conditions of the 2007 Equity Plan for
Non-Employee Directors of HNI Corporation (the "Plan") and any successor plan to
the Plan.  Capitalized terms not defined herein shall have the
meanings set forth in the Plan.

    

    Director hereby elects to receive a
percentage of his or her Fees in the form of Shares in lieu of a cash payment in
accordance with the terms of the Plan as indicated in Section 1
below:

    

    1.           Election of
Shares.  Pursuant to the Plan, you may elect to receive up to
100 percent of your Fees from the Corporation in the form of Shares by filing
with the Corporation's Corporate Secretary a Participation Agreement in the form
hereof before January 1, 20__ (the "Due Date").  This election to
receive Shares will be effective for the period beginning on the date of the
Corporation's February __, 20__ Board of Directors' meeting and ending on
December 31, 20__ (the "Election Period").  Except as the
Corporation's Board of Directors (the "Board") may otherwise provide, this
election to receive Shares is a one-time election for the Election Period and,
unless you revoke or change such election by filing a new Participation
Agreement by the Due Date, such election shall apply to your Fees for the
Election Period only.  After the Due Date, an election may not be made
effective until the commencement of the period beginning on the date of the
Corporation's February 20__ Board meeting and ending on December 31, 20__,
unless the Board shall have otherwise provided.  Director hereby
elects to have

    

                 %
of his or her Fees

    

    paid in
the form of Shares.

    

    2.           Effect of Termination of
Directorship.  The Corporation shall issue Shares to Director
for each calendar quarter during which Director has a Participation Agreement in
effect.  Shares shall be issued on the date of each quarterly meeting
of the Board.  The number of Shares so issued shall be equal
to:  (i) the dollar amount of Fees that Director has elected to
receive as Shares for the calendar quarter pursuant to his or her Participation
Agreement divided by (ii) the Fair Market Value per Share on the date on which
Director would have been paid such Fees in cash but for the Participation
Agreement.  Shares shall be deemed earned during the calendar quarter
in which Fees subject to the election to receive such Shares would otherwise be
payable by the Corporation if paid in cash.  If the foregoing formula
would result in the issuance of fractional Shares, any such fractional Shares
shall be disregarded, and the remaining amount of Fees shall be paid in
cash.  The Corporation shall pay any and all fees and commissions
incurred in connection with the payment of Shares to Director.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           Director Acknowledgment and
Signature.  Director understands that participation in the Plan
is subject to the terms and conditions contained in the Plan.

    

    IN WITNESS WHEREOF, Director has
executed this Participation Agreement on the ___ day of ___________,
20__.

    

    

    
      	 
      	 
      	 
	 
      	
              Director

            	 

    

    

    

    Received and accepted by the Secretary
of HNI Corporation this ________ day of _________________,
20__.

    

    

    
      	 
      	 
      	 
	 
      	
              Secretary

            	 
	 
      	
              HNI
      Corporation

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