Company: COOT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005620
Chunk: 20

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-02-10
Form: 10-Q
Item: Item 8
Chunk 20
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 first priority security interest in all of its assets, free and clear of all other liens and encumbrances other than
the first priority security interests of the Purchaser pursuant to the Australian CQ Oilseeds General Security Deed and the Australian
Leasehold Mortgage on or prior to the Substantial Completion Date, on or prior to the Substantial Completion Date, and/or (z) any of
CQ Oilseeds, Energreen, the Company or the Company fails to comply with, or breaches any of the covenants in any Transaction Document,
then (i) the Company shall issue to the Purchaser a warrant to purchase ten million (10,000,000) Ordinary Shares at an exercise price
of USD$0.01 per Ordinary Share (as the same may be amended, amended and restated or otherwise modified from time to time, a “Penny
Warrant”) and (ii) the Company shall enter into a Registration Rights Agreement with the Purchaser providing registration rights
with respect to the Underlying Shares issuable under the Penny Warrant with terms substantially similar to the terms provided in the
First Registration Rights Agreement. The Penny Warrant shall, among other things, (i) provide for the purchase by the Purchaser of ten
million (10,000,000) Ordinary Shares (the “Penny Warrant Shares”), subject to adjustment upon the occurrence of certain events
as set forth in such Penny Warrant; (ii) be exercisable at a price of USD$0.01 per Ordinary Share; and (iii) be substantially in the
form of Exhibit C attached hereto. The Company and AOI agree that, from time to time, upon written notice from the Purchaser, the Company
shall provide and cause their Subsidiaries to provide the Purchaser with any information and documentation related to the progress of
the construction of the CQ Oilseeds Facility as the Purchaser may request in its discretion.

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11
Lease liabilities and right-of-use assets

The
Company’s leases include rental of a solar power system and plant space. 

Lease
liabilities are secured by the related leased assets.

Solar
power system lease

The
solar power system lease has a term commencing on October 31, 2015 through October 31, 2035.  

Land
lease

The
Company leases land in Cootamundra, Australia, where the oilseed processing plant and