# EDGAR Filing Document

**Accession Number:** 0002080841
**File Stem:** 0001213900-26-005778
**Filing Date:** 2026-1
**Character Count:** 1089108
**Document Hash:** 8ca63fb90e4f93be19713c6899823774
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-005778.hdr.sgml**: 20260121

**ACCESSION NUMBER**: 0001213900-26-005778

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 13

**FILED AS OF DATE**: 20260121

**DATE AS OF CHANGE**: 20260120

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BW Industrial Holdings Inc.
- **CENTRAL INDEX KEY:** 0002080841
- **STANDARD INDUSTRIAL CLASSIFICATION:** GENERAL BUILDING CONTRACTORS - NONRESIDENTIAL BUILDINGS [1540]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 814516346
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-292504
- **FILM NUMBER:** 26544103

**BUSINESS ADDRESS:**
- **STREET 1:** 2825 WILCREST DRIVE, SUITE 421
- **CITY:** HOUSTON
- **STATE:** TX
- **BUSINESS PHONE:** 832-627-6852

**MAIL ADDRESS:**
- **STREET 1:** 2825 WILCREST DRIVE, SUITE 421
- **CITY:** HOUSTON
- **STATE:** TX

#### As filed with the U.S. Securities and Exchange Commission on January 20, 2026

#### Registration No. 333-292504

#### U.S. SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549

#### ___________________________________

#### AMENDMENT NO. 1<br>TO<br> FORM S-1<br>REGISTRATION STATEMENT<br>UNDER<br>THE SECURITIES ACT OF 1933

#### ___________________________________

#### BW Industrial Holdings Inc.<br> (Name of registrant as specified in its charter)

#### ___________________________________

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| | | |
|:---|:---|:---|
|  **Delaware** | **1541** | **81-4516346** |
|  **(State or jurisdiction of** <br>**incorporation or organization)** | **(Primary Standard Industrial <br>Classification Code Number)** | **(I.R.S. Employer** <br>**Identification No.)** |

---

#### 2825 Wilcrest Drive, Suite 421<br>Houston, TX 77042<br>Tel: (832) 627-6852<br> (Address, including zip code, and telephone number,<br>including area code, of Registrant's principal executive offices)

#### ___________________________________

#### Copies to:

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| | |
|:---|:---|
| **Joan Wu, Esq.<br>Louis E. Taubman, Esq. <br>Hunter Taubman Fischer & Li LLC<br>950 Third Ave., 19th Floor<br>New York, NY 10022<br>(212) 530**-2208 | **William Rosenstadt, Esq. <br>Yarona Yieh, Esq. <br>Ortoli Rosenstadt LLP<br>366 Madison Avenue, 3rd Fl.<br>New York, NY 10017<br>(212) 588**-0022 |

---

#### ___________________________________

#### Approximate date of proposed sale to the public:<br>As soon as practicable after the effective date of the registration statement
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box: ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

<u> Large accelerated filer </u>   <u> ☐ </u>   <u> Accelerated filer </u>   <u> ☐ </u> <br> <u> Non-accelerated filer </u>   <u> ☒ </u>   <u> Smaller reporting company </u>   <u> ☒ </u> <br>         <u> Emerging growth company </u>   <u> ☒ </u>

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the Registration Statement shall become effective on such date as the U.S. Securities and Exchange Commission, acting pursuant to Section 8(a), may determine.**

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**The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where such offer or sale is not permitted.**

#### SUBJECT TO COMPLETION, DATED JANUARY 20, 2026

#### PROSPECTUS

#### 2,625,000 Shares of Common Stock

#### BW Industrial Holdings Inc.
This prospectus relates to an initial offering of 2,625,000 shares of common stock, $0.0001 par value (the "Common Stock"), of BW Industrial Holdings Inc., a Delaware corporation (the "Company"), on a firm commitment basis (the "Offering"). We anticipate that the initial public offering price will be between $7 and $9.

We have reserved the symbol "BWGC" for purposes of listing our Common Stock on a national stock exchange. The closing of this Offering is conditioned upon such national stock exchange's final approval of our listing application, and there is no guarantee or assurance that our Common Stock will be approved for listing on a national stock exchange.

We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and, as such, have elected to comply with certain reduced public company reporting requirements for this prospectus and future filings. See "Prospectus Summary — Implications of Being an Emerging Growth Company."

Additionally, we are, and following the completion of this Offering, will continue to be, a "controlled company" as defined under Nasdaq Marketplace Rules 5615(c) or NYSE American Company Guide Section 801(a). Mr. Yunlong Zhang, our controlling stockholder, will be able to exercise approximately 57.21% of the aggregate voting power of our issued and outstanding shares of Common Stock and will be able to determine all matters requiring approval by our stockholders, immediately after the consummation of this Offering, assuming the sales of 2,625,000 shares of Common Stock we are offering and no over-allotment option is exercised by the underwriters. Mr. Yunlong Zhang has served as our Chief Executive Officer ("CEO") and director ("Director") since November 2016. For further information, see "Principal Stockholders" and "Prospectus Summary — Our Relationship with Our Controlling Stockholder — Mr. Yunlong Zhang." As a "controlled company", we are permitted to elect to rely on certain exemptions from the obligations to comply with certain corporate governance requirements. As of the date of this prospectus, we intend to rely only on the exemption that permits us not to have a nominating and corporate governance committee composed entirely of independent directors. We may in the future take advantage of additional controlled company exemptions. As a result, our board may not be structured in the same manner as the boards of companies that are subject to all of The Nasdaq Stock Market LLC ("Nasdaq")'s or The NYSE American LLC ("NYSE American")'s corporate governance requirements, and our stockholders may not have the same protection afforded to stockholders of companies that are subject to all of the corporate governance requirements of such national stock exchange. See "Prospectus Summary — Implications of Our Being a Controlled Company" and "Risk Factors — Risks Relating to Our Capital Stock and Trading — We will be a 'controlled company' within the meaning of Nasdaq listing standards or NYSE American Company Guide and, as a result, will qualify for exemptions from certain corporate governance requirements".

We may amend or supplement this prospectus from time to time by filing amendments or supplements as required. You should read this entire prospectus and any amendments or supplements carefully before you make your investment decision.

**An investment in our Common Stock is speculative and involves a high degree of risk. See "Risk Factors" beginning at page 12 to read about factors you should consider before buying our Common Stock.**

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Total Without <br>Over-Allotment <br>Option** | **Total With <br>Over-Allotment <br>Option** |
|  Assumed Initial public offering price of Common Stock<sup>(1)</sup> | $8.0 | $21000000 | $24150000 |
|  Underwriting discounts<sup>(2)</sup> | $0.48 | $1260000 | $1449000 |
|  Proceeds to our company before expenses<sup>(3)</sup> | $7.52 | $19740000 | $22701000 |

---

____________

(1) Assumes an initial public offering price of $8.0 per share of Common Stock, the midpoint of the range set forth on the cover page of this registration statement.

(2) Represents underwriting discounts equal to 6.0% per share of Common Stock. Does not include an unaccountable expense allowance equivalent to one percent (1%) of the gross proceeds received by the Company from the sales of the shares of Common Stock payable to the underwriters, excluding the over-allotment option. We refer you to "Underwriting" beginning on page 86 of this prospectus for a description of compensation payable to the underwriters.

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(3) We have agreed to grant a 45-day option to Eddid Securities USA Inc., the representative of the underwriters ("Representative" or "Eddid"), to purchase up to an additional 393,750 shares of Common Stock, on the same terms and conditions as set forth above solely to cover over-allotments, if any. See "Underwriting" beginning on page 86 for more information.

The Offering is being conducted on a firm commitment basis. The underwriters are obligated to take and pay for all of the shares of Common Stock if any such shares of Common Stock are taken. We have granted the Representative an option, exercisable for 45 days after the closing of this Offering, to purchase up to an additional 15% of the shares of Common Stock on the same terms as the other shares of Common Stock being purchased by the Representative from us.

The underwriters expect to deliver the shares of our Common Stock against payment in U.S. dollars in New York, New York on or about [•], 2026. In addition, we will pay additional items of value in connection with this Offering that are viewed by the Financial Industry Regulatory Authority ("FINRA"), as underwriting compensation. These payments will further reduce proceeds available to us before expenses.

**Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.**

#### Eddid Securities USA Inc.

#### The date of this prospectus is [•], 202 6

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#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
|  [Prospectus Summary](#T991001) | 1 |
|  [Risk Factors](#T991002) | 12 |
|  [Cautionary Statement Concerning Forward-Looking Information](#T991003) | 30 |
|  [Dividend Policy](#T1004) | 32 |
|  [Use Of Proceeds](#T991005) | 33 |
|  [Capitalization](#T991006) | 34 |
|  [Dilution](#T991007) | 35 |
|  [Market Price and Dividends on Registrant's Common Equity and Related Stockholder Matters](#T991008) | 36 |
|  [Management's Discussion And Analysis Of Financial Condition and Results of Operations](#T991009) | 37 |
|  [Business](#T991010) | 58 |
|  [Industry](#T991011) | 69 |
|  [Management](#T991012) | 77 |
|  [Executive Compensation](#T991013) | 81 |
|  [Security Ownership of Certain Beneficial Owners and Management](#T991014) | 83 |
|  [Shares Eligible For Future Sale](#T991015) | 84 |
|  [Underwriting](#T991016) | 86 |
|  [Certain Relationships and Related Transactions](#T991017) | 91 |
|  [Description of Securities](#T991018) | 93 |
|  [Legal Matters](#T991019) | 97 |
|  [Experts](#T991020) | 97 |
|  [Disclosure Of Commission Position on Indemnification for Securities Act Liabilities](#T991021) | 97 |
|  [Where You Can Find Additional Information](#T991022) | 97 |
|  [Exhibits and Financial Statement Schedule](#T991023) | F-1 |

---

Neither we nor the underwriters have authorized any person to give you any supplemental information or to make any representations for us. You should not rely upon any information about us that is not contained in this prospectus or in any free writing prospectuses prepared by us or on our behalf or to which we have referred you. Information contained in this prospectus or in our other public reports may become stale. You should not assume that the information contained in this prospectus, any prospectus supplement or the documents incorporated by reference are accurate as of any date other than their respective filing dates, regardless of the time of delivery of this prospectus or of any sale of the shares of Common Stock. Our business, financial condition, results of operations and prospects may have changed since those dates. We are offering to sell, and seeking offers to buy, shares of our Common Stock only in jurisdictions where offers and sales are permitted or where the person making the offer or sale is not qualified to do so or to any person to whom it is not permitted to make such offer or sale.

**For Investors Outside the United States:** The underwriters are offering to sell, and seeking offers to buy, shares of our Common Stock only in jurisdictions where offers and sales are permitted. Neither we nor the underwriters have done anything that would permit this Offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our Common Stock and the distribution of this prospectus outside the United States.

***Unless the context indicates otherwise, as used in this prospectus, the terms "BW Holdings," "Company," "we," "us," "our," "our company" and "our business" refer, to BW Industrial Holdings Inc. "Bestwater" or "BW Construction" are to Bestwater USA Inc. (d/b/a BW Industrial Construction), a corporation organized under the laws of Texas, and a wholly owned subsidiary of BW Holdings.***

Unless the context indicates otherwise, all information in this prospectus assumes no exercise by the underwriters of their over-allotment option.

Numerical figures included in this prospectus may have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them.

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#### COMMONLY USED DEFINED TERMS
Unless the context otherwise requires, in this registration statement references to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Bestwater" or "BW Construction" refers to Bestwater USA Inc. (dba. BW Industrial Construction), a wholly owned subsidiary of BW Holdings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "BW Holdings" refers to BW Industrial Holdings Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Bylaws" refers to the bylaws of BW Holdings, adopted on December 19, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Certificate of Incorporation" refers to the amended and restated certificate of incorporation of BW Holdings, adopted on April 28, 2025 and as amended on December 19, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Company" refers to BW Holdings and its wholly owned subsidiary Bestwater or BW Construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Common Stock" refers to shares of the Company's common stock, $0.0001 par value per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Eddid" refers to Eddid Securities USA Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "EPC" refers to engineering, procurement, and construction services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Exchange Act" refers to the U.S. Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "FINRA" refers to the Financial Industry Regulatory Authority, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Fiscal year" refers to the period from January 1 of each calendar year to December 31 of the following calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "MEP" refers to mechanical, electrical, and plumbing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "OSHA" refers to the U.S. Occupational Safety and Health Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "PRC" and "China" refer to the People's Republic of China.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Quality Control Manager" refers to the individual in charge of implementing, monitoring, and enforcing all quality assurance and quality control procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Securities Exchange Commission," "SEC," "Commission" or similar terms refer to the Securities Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Sarbanes-Oxley Act" refers to the Sarbanes-Oxley Act of 2002.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Securities Act" refers to the Securities Act of 1933.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "United States," "U.S." and "US" refer to the United States of America.

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#### PROSPECTUS SUMMARY
*The following summary provides an overview of selected information contained elsewhere in this prospectus and does not contain all of the information you should consider before investing in our Common Stock. You should carefully read this prospectus in its entirety before investing in our Common Stock, including the information discussed in the section titled "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and notes thereto that appear elsewhere in this prospectus.*

#### Business Overview
We are a U.S.-based engineering, procurement, and construction ("EPC") company that provides design, construction, and integration services for critical process systems across multiple industrial sectors. We serve companies in automotive parts manufacturing, energy storage and battery manufacturing, renewable energy infrastructure, electronics production, advanced manufacturing, and semiconductor fabrication industries.

Our EPC business has been built on serving international companies, seeking to establish and expand their manufacturing operations in the United States. We believe this experience gives us deep expertise in navigating complex regulatory frameworks, international business practices, and the technical requirements of sophisticated manufacturing processes. We are now leveraging these capabilities to expand our client base to include domestic and more foreign companies with similar technical and project execution needs, and to explore opportunities in public sector projects. This strategy aims to diversify our client base and reduce concentration risk.

As of the date of this prospectus, we meet the eligibility requirements to bid on government projects in Texas and actively participate in government bids in Texas, and have dedicated personnel responsible for bidding on a regular basis. These efforts include monitoring and submitting bids for city-led municipal water and wastewater infrastructure projects.

We believe our Houston headquarters positions us strategically to serve clients throughout North America, with proximity to major industrial corridors, suppliers, and skilled labor markets. We believe our experience bridging international standards with U.S. regulatory requirements, combined with our track record in complex industrial projects, enables us to deliver efficient, compliant solutions for clients seeking comprehensive EPC services.

For the years ended December 31, 2023 and 2024, our revenue was approximately $29.1 million and approximately $102.0 million, respectively. The revenue from EPC services accounted for approximately $28.0 million, representing 96% of the total revenue for the year ended December 31, 2023, and approximately $102.0 million, representing 100% of the total revenue for the year ended December 31, 2024, respectively. Our net income was approximately $4.1 million and approximately $7.8 million for the years ended December 31, 2023 and 2024, respectively.

For the nine months ended September 30, 2024 and 2025, our revenue was approximately $66.3 million and approximately $19.9 million, respectively. The revenue from EPC services accounted for approximately $66.2 million, representing approximately 100% of total revenue for the nine months ended September 30, 2024, and approximately $19.7 million, representing 99% of total revenue for the nine months ended September 30, 2025. Our net income was approximately $5.6 million and approximately $5.4 million for the nine months ended September 30, 2024 and 2025, respectively.

We are dependent on large construction projects for which we recognize revenue over time. These projects can take up to several months or more than one year. Such projects represent a significant portion of our total revenue and as a result, our financial performance in any given reporting period or fiscal year may fluctuate due to the timing and completion of such projects, as well as the number and size of such projects in any given year.

In addition, our customers typically have the unilateral right to terminate existing contracts without cause. Upon any such termination for convenience, we are entitled to receive compensation for the work we have already performed and for the costs incurred by us as a result of such termination, but we would not be able to receive the full amount of revenues that would have been generated had the project continued through completion. This termination structure provides our customers with flexibility but also introduces the risk that a significant project could be terminated prior to completion, which could impact our revenues and results of operations.

#### History and Corporate Structure
BW Holdings was incorporated in Delaware on April 28, 2025, and is headquartered in Houston, Texas. The Company operates through its wholly owned operating subsidiary, Bestwater, doing business as BW Industrial Construction, a corporation organized under the laws of Texas on November 21, 2016.

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On June 5, 2025, the Company entered into a share exchange agreement with Bestwater and its stockholders, pursuant to which the Company acquired 100% of the issued and outstanding shares of common stock of Bestwater's, and in exchange, issued an aggregate of 19,400,000 shares of the Company's Common Stock (the "Share Exchange") to stockholders of Bestwater. As a result of the Share Exchange, Bestwater became a wholly owned subsidiary of the Company. The Share Exchange is recognized as a combination of entities under common control as both Bestwater and the Company have been controlled before and after the transaction by the same stockholders. As such, the financial statements and financial information contained in this filing for prior years have been retrospectively adjusted as if the Share Exchange had occurred at the beginning of the earliest period presented.

On December 19, 2025, the Company effectuated a forward split of its issued and outstanding shares of Common Stock at a ratio of 1-for-2 without amending its par value (the "Forward Split"). As a result of the Forward Split, the issued and outstanding shares of Common Stock of Company increased from 9,700,000 shares to 19,400,000 shares. Unless otherwise noted, the number of shares is presented on a post-Forward Split basis.

Below is the chart showing the Company's corporate structure as of the date of this prospectus and as of the closing of the Offering (assuming the over-allotment option is not exercised in full):

![](tflowchart_001.jpg)

#### Our Competitive Strengths
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Comprehensive Pre*-Construction *Advisory Services*. Unlike many regional EPC firms that focus primarily on construction execution, we differentiate ourselves by offering a full suite of pre-construction advisory services beginning at the initial stages of project development. Our support includes industrial site selection, regulatory and permitting feasibility assessments, and analysis of local policies and development incentives. We believe this service is especially valuable to foreign manufacturers and other clients unfamiliar with the U.S. regulatory landscape, enabling them to navigate complex requirements with confidence. By engaging early in the project lifecycle, we aim to help clients make faster, better-informed strategic decisions before committing significant capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Cross*-Border *Technical and Regulatory Navigation*. Many of our clients operate mature production facilities in China and other international markets and seek to replicate proven processes in their U.S. operations. Our team specializes in working with foreign design documents, technical specifications, and manufacturing layouts. We collaborate with U.S.-licensed architects and engineers to translate these foreign design documents into U.S.-compliant construction drawings while preserving the operational logic and efficiency of the original designs. We believe this cross-border technical expertise enables us to leverage clients' existing investments in manufacturing processes, that we believe significantly reducing design time and costs compared to approaches that require complete facility redesign from the ground up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Effective Change Order Management Through Cultural Insight and Technical Expertise*. International clients often face costly change orders when working with contractors due to communication gaps, cultural misunderstandings, inconsistent documentation practices, and differing interpretations of regulatory requirements. We have observed projects where change orders have reached 100% of original contract values, doubling the project costs. Our approach focuses on minimizing such cost overruns through better upfront

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coordination and communication. Our team's deep understanding of the U.S. business norms and technical design standards enables us to proactively identify and resolve potential issues during the planning phase. Through our translation of the original design documents into locally compliant construction drawings, we aim to reduce ambiguity and increase project alignment from the outset. This collaborative, detail-oriented approach tends to minimize the likelihood of scope changes and contributes to more predictable project outcomes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Strategic Procurement Optimization*. We engage clients early in the design process to optimize material and equipment sourcing strategies, determining which components can be procured internationally for cost advantages and which must be sourced domestically for compliance or logistical reasons. Our experience with international supply chains and long-lead procurement enables proactive planning during design phases, reducing project delays and cost overruns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Specialized Technical Expertise in Advanced Manufacturing*. We have successfully delivered complex industrial facilities across lithium battery manufacturing, solar panel production, and precision glass manufacturing. Our technical capabilities include cleanroom construction, hazardous material handling systems, ultra-pure process systems, and advanced mechanical, electrical, and plumbing ("MEP") integration required for high-technology manufacturing environments.

#### Our Growth Strategies
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Market Expansion*. We are pursuing a market expansion strategy to serve domestic and more foreign industrial clients across Asia and the Americas. This strategy aims to diversify our client base and reduce concentration risk. As of the date of this prospectus, we meet the eligibility requirements to bid on government projects in Texas and actively participate in government bids in Texas, and have dedicated personnel responsible for bidding on a regular basis. These efforts include monitoring and submitting bids for city-led municipal water and wastewater infrastructure projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Technology and Systems Enhancement*. To support scalable project delivery and stay current with industry best practices as we grow, we plan to invest more in our technology infrastructure. As of the date of this prospectus, we are considering exploring the use of AI-powered design tools because we believe such tools could help generate 3D models during the design process more efficiently and may support additional interactive functionalities in the future. These proposed technology investments are designed to enhance cross-team collaboration, reduce construction-phase issues, and ultimately deliver better outcomes for our clients while increasing our operational efficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Leveraging Policy Incentives for Market Expansion.* We plan to capitalize on the growing availability of U.S. policy incentives designed to attract foreign manufacturing investment to expand our client base and accelerate project pipelines. If more states and localities offer tax abatements, infrastructure support, and streamlined permitting to attract international manufacturers, we believe we will be positioned to serve as a critical bridge helping these companies navigate and maximize these benefits. We believe our expertise in guiding clients through incentive application processes, including industrial site selection, regulatory and permitting feasibility assessments, analysis of local policies and development incentives, and government communications creates opportunities to engage with prospects earlier in their decision-making process, potentially leading to larger project scopes and stronger client relationships.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Potential Vertical Integration*. As part of our long-term strategic planning, we may pursue vertical integration opportunities, including the possible acquisition of local design institutes or steel fabrication facilities. These potential acquisitions could enhance our in-house capabilities and provide greater control over project timelines and quality. However, as of the date of this prospectus, no formal discussions have taken place, and no specific acquisition targets have been identified.

#### Our EPC Services
Our service offerings are structured to meet diverse client needs and project phases, providing flexibility in engagement scope and timing. Most of our revenue is derived from full-scope EPC projects or multi-phase service arrangements that span significant portions of the project lifecycle. These projects typically have an average duration of approximately 12 months, which we believe is faster than some competitors in our sector. While we generally act as the general contractor, we also provide specialized EPC services as a subcontractor in one project in Arizona. We believe this service structure enables us to build relationships progressively while providing project owners the flexibility to engage us at the appropriate project phase and scope level for their specific needs.

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We have successfully executed complex, large-scale industrial projects across various sectors, including the renewable energy, automotive, and advanced manufacturing sectors. Our past work includes providing full EPC services for both the construction and renovation of renewable energy production facilities, and an automotive glass manufacturing plant, covering MEP, compressed air systems ("CAS"), and heating, ventilation, and air conditioning ("HVAC") installations. We also led the design and installation of dust collection, insulation, and vacuum piping systems at battery manufacturing facilities.

#### Our Products
In addition to our core EPC service offerings, we have expanded into product development in the second quarter of 2025 and plan to launch our first proprietary product line: modular water treatment systems. These containerized systems are designed to provide clean drinking and domestic-use water and can be rapidly deployed with minimal on-site setup with the connection to a water source and power supply.

The systems are self-contained and highly portable, making them suitable for a range of use cases. They integrate multi-stage filtration, sterilization, and intelligent control functions to produce potable water that meets drinking water standards. The system features automatic operation, remote monitoring, and a plug-and-play structure, reducing installation costs and labor intensity for end users. We believe this product is suitable for a range of use cases. In North America, we expect the primary customer base to include commercial users such as camping grounds, remote worksites, and private ranches where access to municipal water is limited. In Central and South America, we anticipate demand from government agencies or non-profit organizations ("NGOs") for installations in rural or underserved residential areas where access to drinkable water is a critical need.

As of the date of this prospectus, we have completed the product development and market analysis phase. We expect to initiate pilot deployments and small-scale production runs in the first quarter of 2026 and are targeting initial commercial sales in the first half of 2026. We believe the material challenges to commercialization include obtaining required certifications to comply with regional water quality standards, establishing reliable manufacturing and distribution arrangements, demonstrating cost competitiveness to the target customers, and gaining market acceptance for a new product line without an established sales track record. We expect the costs of the product launch and the promotion to be approximately $200,000 annually, and we intend to fund these activities with our existing resources. In the event that we use a portion of the net proceeds from this Offering to fund our commercialization upstart, we do not expect we will require additional financing beyond the expected proceeds of this Offering. However, there can be no assurance that we will overcome these challenges on the anticipated timeframe or that we will not require additional capital to fund our anticipated commercialization beyond the anticipated net proceeds of this proposed offering.

#### Corporate Information
Our principal executive office is located at 2825 Wilcrest Drive, Suite 421, Houston, Texas, 77042. Our telephone number at our principal executive office is 832-627-6852. Our corporate website is *https://bsw*-epc*.com/*. The information on our corporate website is not part of, and is not incorporated by reference into, this prospectus.

#### Implications of Being an "Emerging Growth Company"
As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the JOBS Act. An "emerging growth company" may take advantage of reduced reporting requirements that are otherwise applicable to larger public companies. In particular, as an emerging growth company, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may present only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives, and elements and analyzing how those elements fit with our principles and objectives, which is commonly referred to as "compensation discussion and analysis";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are not required to obtain an attestation and report from our auditors on our management's assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are not required to obtain a non-binding advisory vote from our stockholders on executive compensation or golden parachute arrangements (commonly referred to as the "say-on-pay," "say-on frequency," and "say-on-golden-parachute" votes);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act.

We intend to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under §107 of the JOBS Act.

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions until we no longer meet the definition of an emerging growth company. The JOBS Act provides that we would cease to be an "emerging growth company" at the end of the fiscal year in which the fifth anniversary of our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act occurred, if we have more than $1.235 billion in annual revenue, have more than $700 million in market value of our Common Stock held by non-affiliates, or issue more than $1 billion in principal amount of non-convertible debt over a three-year period.

#### Implications of Our Being a Controlled Company
Following the completion of this Offering, Mr. Yunlong Zhang will beneficially own approximately 57.21% of the aggregate voting power of our issued and outstanding shares of Common Stock assuming no exercise of the underwriters' over-allotment option, or approximately 56.2%, assuming full exercise of the underwriter's over-allotment option. As a result, Mr. Zhang will have the ability to control matters requiring stockholder approval, including the election of directors, amendment of the articles of incorporation and approval of certain major corporate transactions in accordance with the Delaware General Corporation Law. As such, we will be deemed to be a "controlled company" under Nasdaq Marketplace Rules 5615(c) or NYSE American Company Guide Section 801(a). As a controlled company, we will be exempt from the following corporate governance requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that a majority of our board of directors be composed of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that we have a compensation committee that is composed entirely of independent directors with a written charter addressing the purposes and responsibilities of the committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that our director nominees be selected or recommended solely by independent directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that we have a nominating and corporate governance committee that is composed entirely of independent directors with a written charter addressing the purposes and responsibilities of the committee.

As of the date of this prospectus, we intend to rely only on the exemption that permits us not to have a nominating and corporate governance committee composed entirely of independent directors. We may in the future take advantage of additional controlled company exemptions. As a result, our board may not be structured in the same manner as the boards of companies that are subject to all of Nasdaq's or NYSE American's corporate governance requirements, and our stockholders may not have the same protection afforded to stockholders of companies that are subject to all of the corporate governance requirements of Nasdaq or NYSE American.

#### Implications of Being a Smaller Reporting Company
We are also a "smaller reporting company," as defined under Rule 405 under the Securities Act of 1933, as amended. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the market value of our stock held by non-affiliates is less than $250 million; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) our annual revenue was less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates was less than $700 million.

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For so long as we remain a smaller reporting company, we are permitted and intend to rely on exemptions from certain disclosure and other requirements that are applicable to other public companies that are not applicable to a smaller reporting company. For example, as a smaller reporting company, we may choose to present only the two most recent fiscal years of audited financial statements in our annual report (the "Annual Report") on Form 10-K, and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation. As a result, the information in this prospectus supplement, the accompanying base prospectus, or the documents incorporated by reference herein and therein that we provide to our investors in the future may be different than what investors might receive from other public reporting companies. If investors consider our Common Stock less attractive as a result of our election to use the scaled-back disclosure permitted for smaller reporting companies, there may be a less active trading market for our Common Stock and our share price may be more volatile.

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#### Summary of the Offering
This Offering relates to the offer and sale of our shares of Common Stock.

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| | |
|:---|:---|
|  **Issuer** | BW Industrial Holdings Inc. |
|  **Securities offered by us** | 2,625,000 shares of Common Stock (or 3,018,750 shares of Common Stock if the underwriters exercise their option to purchase additional shares of Common Stock in full within 45 days of the closing date of this Offering). |
|  **Over-allotment option** | We have granted to the underwriters an option, exercisable within 45 days from the closing of the Offering to purchase up to an aggregate of 393,750 additional shares of Common Stock. |
|  **Form of the Offering** | Firm commitment basis |
|  **Offering price** | We estimate that the initial public offering price will be in the range of $7.0 to $9.0 per share of Common Stock. |
|  **Shares of Common Stock outstanding before this Offering** | <br>19,400,000 shares of Common Stock |
|  **Shares of Common Stock outstanding following the Offering** | <br>22,025,000 shares of Common Stock assuming no exercise of the underwriters' over-allotment option. <br> 22,418,750 shares of Common Stock, assuming full exercise of the underwriters' over-allotment option. |
|  **Use of proceeds** | We intend to use proceeds from the Offering for business expansion, strategic acquisitions and working capital and other general corporate purposes. See "Use of Proceeds" for additional information. |
|  **Lock-up** | We have agreed not to, for a period of six (6) months from the date of this prospectus, issue, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of our Common Stock or any securities convertible into or exercisable or exchangeable for shares of our Common Stock (excluding, however, the issuance of any shares of our Common Stock or other equity awards pursuant to our executive compensation or employee benefit plan), without the prior written consent of the Representative. <br> All of our directors and officers and our principal stockholders (5% or more stockholders) have agreed with the underwriters, subject to certain exceptions, not to sell, transfer, or dispose of, directly or indirectly, any of our Common Stock or securities convertible into or exercisable or exchangeable for our Common Stock for a period of six (6) months after the date of this prospectus. See "Underwriting — Lock-up Agreements" for more information. |

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| | |
|:---|:---|
|  **Risk Factors** | An investment in our Common Stock is speculative and involves substantial risks. You should read the "Risk Factors" section beginning on page 12 of this prospectus for a discussion of certain factors to consider carefully before deciding to invest in shares of our Common Stock. |
|  **Transfer Agent** | [•] |
|  **Listing** | We plan to apply to list our share of Common Stock on a national stock exchange. The closing of this Offering is conditioned upon such national stock exchange's final approval of our listing application, and there is no guarantee or assurance that our shares of Common Stock will be approved for listing on a national stock exchange. |
|  **Proposed Stock Symbol** | We have reserved the symbol "BWGC" for the trading of our Common Stock on a national stock exchange. |

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#### Summary of Risk Factors

#### Risks Related to Our Business and Operation
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Demand for our services may decrease during economic downturns or unpredictable economic cycles, which would most likely affect our businesses adversely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our dependence on large construction contracts may result in uneven financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We derive a substantial portion of our revenue from a limited number of clients, and the loss of one or more of these clients could materially and adversely affect our business and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on a limited number of vendors, and the loss of, or a disruption in the operations of, any of these parties could materially and adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Actual results could differ from the assumptions and estimates used to prepare our consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Project backlog amounts may be uncertain indicators of future revenues as project realization may be subject to unexpected adjustments, delays, and cancellations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our results could be adversely affected by natural disasters, human-made disasters, or other catastrophic events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Artificial intelligence ("AI") poses risks that could adversely affect our business, results of operations, and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Intense competition for engineering, procurement and construction contracts could reduce our market share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in government incentives or trade policies could reduce demand for our services and adversely impact our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Labor disruptions could adversely affect our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expectations of customers and investors may change with respect to sustainability practices, which may impose costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on internally generated cash flows to fund our operations and growth, and any disruption to our cash flow could adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may experience reduced profits or incur losses under fixed-price contracts if costs increase above estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we guarantee the timely completion or the performance of a project, we could incur additional costs to fulfill such obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be involved in litigation, liability claims and contract disputes which could reduce our profits and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our failure to recover adequately on change orders submitted to project owners could have a material effect on our financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The shortage of skilled craft labor may negatively impact our ability to execute on our long-term construction contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our dependence upon third parties to complete our contracts may adversely affect our performance under current and future construction contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to maintain safe work sites could result in losses as we work on projects that are inherently dangerous.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be unable to obtain or maintain sufficient bonding capacity, which could materially adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our insurance may not be sufficient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Future acquisitions and/or investments may not occur, which could limit the growth of our business, and the integration of acquired companies may not be successful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our failure to protect our management information systems against security breaches could adversely affect our business and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We could be adversely affected by violations of the Foreign Corrupt Practices Act and similar anti-bribery laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our continued success requires us to retain and hire talented personnel.

#### Risks Related to This Offering and Our Shares of Common Stock
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There is no existing market for our securities, and we do not know if one will develop to provide you with adequate liquidity. Even if a market does develop following this Offering, the stock prices in the market may not exceed the offering price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• BW Holdings is a holding company and our operations, cash flow, and ability to pursue enhancement opportunities depend on the earnings, distributions, and financial condition of our subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The market price of our Common Stock is likely to be highly volatile, and you could lose all or part of your investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our quarterly operating results may fluctuate significantly and could fall below the expectations of securities analysts and investors due to macroeconomic conditions and other factors, some of which are beyond our control, resulting in a decline in our stock price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our failure to meet the continued listing requirements of the national stock exchange could result in a delisting of our Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If our shares are delisted from the national stock exchange and become subject to the penny stock rules, it would become more difficult to trade our shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have no current plans to pay cash dividends on our Common Stock for the foreseeable future, and you may not receive any return on investment unless you sell your Common Stock for a price greater than that which you paid for it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our management will have broad discretion in how we use the net proceeds of this Offering and might not use them effectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our founder and principal stockholder has substantial influence over our company. His interests may not be aligned with the interests of our other stockholders, and he could prevent or cause a change of control or other transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The sale or availability for sale of substantial amounts of our Common Stock could adversely affect its market price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You will experience immediate and substantial dilution as a result of this Offering and may experience additional dilution in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will incur significant increased costs as a result of operating as a public company and our management will be required to devote substantial time to new compliance initiatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our financial condition and results of operations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As an "emerging growth company" under applicable law, we will be subject to lessened disclosure requirements, which could leave our stockholders with less information or fewer rights available to stockholders of more mature companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Because we have elected to use the extended transition period for complying with new or revised accounting standards for an "emerging growth company" our financial statements may not be comparable to companies that comply with standard public company effective dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will be a "controlled company" within the meaning of Nasdaq listing standards or the NYSE American Company Guide and, as a result, will qualify for exemptions from certain corporate governance requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If securities or industry analysts do not publish or cease publishing research or reports about us, our business, or our market, or if they change their recommendations regarding our Common Stock adversely, the price of our Common Stock and trading volume could decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delaware law and our Certificate of Incorporation and Bylaws contain certain provisions, including anti-takeover provisions that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price.

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#### RISK FACTORS
*Any investment in our securities involves a high degree of risk. You should carefully consider the risks described below, which we believe represent certain of the material risks to our business, together with the information contained elsewhere in this prospectus, before you decide to invest in our shares of Common Stock. Please note that the risks highlighted here are not the only ones that we may face. For example, additional risks presently unknown to us or that we currently consider immaterial or unlikely to occur could also impair our operations. If any of the following events occur or any additional risks presently unknown to us actually occur, our business, financial condition and operating results may be materially adversely affected. In that event, the trading price of our securities could decline, and you could lose all or part of your investment.*

#### Risks Related to Our Business and Operation

#### Demand for our services may decrease during economic downturns or unpredictable economic cycles, which would most likely affect our businesses adversely.
The engineering and construction industry is prone to cyclical fluctuations influenced by factors such as economic recessions, downturns in project owners' business cycles, material shortages, subcontractor price hikes, interest rate changes, regulatory and political change, and other external economic factors.

When the general level of economic activity deteriorates, uncertainty about future business prospects increases, prompting clients to potentially delay or cancel projects. This includes new construction projects, manufacturing facility buildouts, production line expansions, and installation of critical process systems. The adverse financial condition of the industry could diminish our customers' ability and willingness to fund capital expenditures or pursue significant projects in the future. Furthermore, specific economic, regulatory and market conditions affecting our clients may lead to a decrease in demand for our services, causing delays, reductions, or cancellations of projects essential to our future business forecasts.

#### Our dependence on large construction contracts may result in uneven financial results.
Our EPC services activities are concentrated on a limited number of large construction projects for which we recognize revenues over time. We believe this best reflects the transfer of control to the client and the progress toward completion. To a substantial extent, our contract revenues are based on the related amounts of costs incurred. As the timing of equipment purchases, subcontractor services and other contract events may not be evenly distributed over the terms of our contracts, the amount of total contract costs may vary from quarter to quarter, creating uneven amounts of quarterly and/or annual consolidated revenues. In addition, the timing of contract commencements and completions may exacerbate the uneven pattern. For example, in April 2025, a solar panel module manufacturer client under the service agreement dated March 25, 2024, (the "Solar Agreement") exercised its right to terminate for convenience. As of September 30, 2025, we recognized approximately $93.4 million of revenue under the Solar Agreement, representing 100% of the total contract value of approximately $93.4 million. The majority of the project work was completed prior to the termination and this termination has discontinued a substantial source of revenue present in 2024.

As a result of the foregoing, future reported amounts of consolidated revenues, cash flow from operations, net income and earnings per share may vary in uneven patterns and may not be indicative of the operating results expected for any other fiscal period; thus, rendering consecutive quarter comparisons of our consolidated operating results a less meaningful way to assess the growth of our business.

***We derive a substantial portion of our revenue from a limited number of clients, and the loss of one or more of these clients could materially and adversely affect our business and results of operations.***

Our business is subject to significant customer concentration. For the year ended December 31, 2023, one major client accounted for 96% of our total revenues. For the year ended December 31, 2024, two major clients accounted for 78% and 19% of our total revenues. For the nine months ended September 30, 2024, two major clients accounted for 75% and 24% of our total revenues. For the nine months ended September 30, 2025, two major clients accounted for 70% and 13% of our total revenues. We expect that a significant portion of our revenue will continue to be derived from an increasing number of clients and projects for the foreseeable future. However, a reduction in the scope or value of projects, or delays in payments could materially and adversely affect our revenue, cash flows, and profitability.

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In addition, our dependence on a small client base may limit our negotiating power on pricing and contract terms, and makes us more vulnerable to changes in their business strategies, financial condition, or procurement policies. While we are actively seeking to diversify our client base, we may not be successful in doing so in a timely manner, or at all.

#### Our customers may unilaterally terminate their contracts with us for convenience, which could adversely affect our revenues and results of operations.
Our customers typically have the unilateral right to terminate existing contracts without cause. Upon any such termination for convenience, we are entitled to receive compensation for the work we have already performed and for the costs incurred by us as a result of such termination, but we would not be able to receive the full amount of revenues that would have been generated had the project continued through completion. This termination structure provides our customers with flexibility but also introduces the risk that a significant project could be terminated prior to completion, which could impact our revenues and results of operations. Any such early termination could result in lower than expected revenues, reduced profitability and disruption to our operations. If a material number of projects were terminated for convenience, our business, financial condition, and results of operations could be materially and adversely affected.

***We rely on a limited number of vendors, and the loss of, or a disruption in the operations of, any of these parties could materially and adversely affect our business.***

A significant portion of our cost of revenues is attributable to a limited number of vendors. For the year ended December 31, 2023, three vendors accounted for 24%, 14% and 12% of our total cost of revenues. For the year ended December 31, 2024, four vendors accounted for approximately 64% of our total cost of revenues. For the nine months ended September 30, 2025, three vendors accounted for approximately 64% of our total cost of revenues. For the nine-month period ended September 30, 2024, four vendors accounted for 19%, 18%, 12% and 11% of our total cost of revenues. This is common for EPC projects that heavily concentrate on MEP work. We expect to continue to depend on a small pool of highly qualified vendors for subcontracted services, and also control the number of vendors working on each project for on-site management purposes for the foreseeable future. Any disruption, delay, or deterioration in our relationships with these suppliers could materially impact our ability to deliver projects on time and on budget. In addition, if any of our major vendors were to significantly increase their prices or change their terms unfavorably, and we are unable to pass those increases on to our clients or secure alternative vendors on acceptable terms, our gross margins and financial results could be adversely affected. Although we seek to maintain strong relationships with our vendors and evaluate alternatives where feasible, there can be no assurance that we will be able to avoid disruptions or cost increases in the future.

***We have no history of commercial sales, distribution, or branding, and our ability to successfully launch and commercialize our modular water treatment systems is unproven.***

We have not generated any commercial revenues from sales of our modular water treatment systems. To date, we have no history of establishing sales channels, building a distribution network, marketing our products, or developing brand recognition. The future success of our sales of the modular water treatment systems depends on our ability to transition from development to commercialization, which will require us to, among other things, obtain necessary regulatory approvals, establish effective sales and distribution capabilities, build brand awareness, and generate customer demand. There is no assurance that we will be able to accomplish these objectives in a timely manner, on commercially reasonable terms, or at all. If we fail to establish these capabilities or achieve market acceptance of our products, our business, financial condition, and results of operations may be materially and adversely affected.

#### Actual results could differ from the assumptions and estimates used to prepare our consolidated financial statements.
To prepare consolidated financial statements in conformity with accounting principles generally accepted in the U.S., we are required to make estimates, assumptions, and judgments as of the date of such financial statements, which affect the reported values of assets and liabilities, revenues and expenses, and disclosures of contingent assets and liabilities.

For each of our fixed-price customer contracts, we recognize revenues over the life of the contract as performance obligations are completed by us based on the proportion of costs incurred to date compared with the total costs estimated to be incurred for the entire project, and by using the resulting percentage to update the recorded amounts of project-to-date revenues. We review and make necessary revisions to the amounts of estimated future costs on a monthly basis. In addition, contract results may be impacted by our estimates of the amounts of change orders that we expect to receive and our assessment of any contract disputes that may arise. The effects on revenues of changes to the amounts

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of contract values and estimated costs are recorded as catch-up adjustments when the amounts are known and can be reasonably estimated. These revisions can occur at any time and could be material. Given the uncertainties associated with the types of customer contracts that we are awarded, it is possible for contract values and actual costs to vary from estimates previously made, which may result in reductions or reversals of previously recorded revenues and profits.

Among the other areas that could require significant estimates by our management are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the determination of provisions for income taxes, the accounting for uncertain income tax positions and the establishment of valuation allowances associated with deferred income tax assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the determination of the allowance for doubtful accounts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accruals for estimated liabilities, including any losses related to legal matters.

Our actual business and financial results could differ from our estimates, which may impact future profits.

#### Project backlog amounts may be uncertain indicators of future revenues as project realization may be subject to unexpected adjustments, delays, and cancellations.
Project cancellations or scope modifications may occur that could reduce the amount of our project backlog and the associated revenues and profits that we actually earn. Our projects generally provide our customers the right to terminate existing contracts unilaterally at their convenience as long as they compensate us for work already completed and compensate us for the additional costs incurred by us to terminate corresponding subcontract, terminate equipment orders, and demobilize and vacate construction sites. These costs would most likely be meaningful. Should any unexpected delay, suspension, or termination of the work under such projects occur, our results of operations may be materially and adversely affected. Although we believe that the customer commitments represented by project backlog are firm, we cannot guarantee that amounts in project backlog will be recognized as future revenues or will result in profitable operating results.

#### Our cash flows may be adversely affected by the timing of progress payments, retentions, or holdbacks under our contracts.
For our EPC services, revenue is recognized over time as work is completed, and payments are typically tied to the achievement of specified project milestones. In certain jurisdictions, we are subject to statutory retainage or holdbacks, under which a portion of the contract price is withheld by the client during the process and released after a certain period following the completion. To mitigate the impact of these delays on our cash flows, we typically include corresponding retainage provisions in agreements with our subcontractors, requiring them to accept the same retainage percentage and payment timing that applies to us. Although we generally do not agree to additional contractual retentions beyond these statutory requirements, such statutory arrangements delay our receipt of a portion of the contract value and may adversely affect our cash flows during the life of a project. In certain projects where we act as a subcontractor, our ability to control the cash flow may be influenced by the general contractor, which could affect our financial results. In addition, if a client disputes our performance, experiences financial difficulties, or otherwise withholds payment, we may encounter delays or be unable to collect amounts owed, including retentions or holdbacks. Any such delays or nonpayment could require us to use our own working capital to fund project costs, reduce liquidity available for other projects, and negatively impact our financial condition and results of operations.

#### Our results could be adversely affected by natural disasters, human-made disasters, or other catastrophic events.
Natural disasters, such as hurricanes, tornadoes, blizzards, floods, and other adverse weather conditions; or other catastrophic events such as fires, public health crises, pandemics, geopolitical conflicts, terrorism, and civil disturbances could disrupt our operations or the operations of one or more of our vendors or customers. In particular, these types of events could shut down our construction job sites or fabrication facility for indefinite periods of time, disrupt our product supply chain or could cause our customers to delay or cancel projects. To the extent any of these events occur, our operations and financial results could be adversely affected.

The adverse effects of the war in Ukraine spread globally. The prolonged disruption by Russia of the supply and prices of oil and natural gas provided to Western European nations adversely affected the economies of those countries. Western European nations were forced to search for alternative supplies of oil and natural gas at higher prices or through more complicated transit routes, further disrupting global supply chains. Many resorted to seeking alternative energy sources, such as liquefied natural gas ("LNG"), which involves infrastructure challenges and elevated costs.

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In addition to energy supply disruptions, activities conducted by Yemen-based terrorist groups significantly endangered the key shipping route between the Red Sea and the Indian Ocean. These actions led to rerouting shipping vessels, longer transit times, and increased freight costs, compounding global supply chain challenges.

While we have protections in our contracts with major customers that provide certain relief that helps to mitigate certain financial risks, the effectiveness of these protections may be limited by factors including the financial strength of the customer. The extent to which natural disasters, human-made disasters or other catastrophic events could harm us depends on the impact on our customers, supply chains, labor forces and numerous other evolving factors.

#### AI poses risks that could adversely affect our business, results of operations, and financial condition.
Although our current use of AI tools is limited, we recognize that improper or unauthorized use of such tools, including third-party AI applications, could pose risks related to data privacy, confidentiality, and information security.

#### Intense competition for engineering, procurement and construction contracts could reduce our market share.
The EPC services market for industrial facility construction in the United States is highly competitive and continues to evolve. We compete against a broad range of domestic and international firms, including large, well-capitalized EPC providers, regional construction firms, and vertically integrated engineering or industrial solution providers. Many of these competitors have established client relationships, extensive experience with U.S. permitting and construction regulations, and greater financial and operational resources. As global industrial clients continue to pursue U.S. expansion strategies, we expect competition to intensify, including from U.S. firms with strong local regulatory knowledge, labor networks, and supply chain infrastructure.

Competing effectively in this market requires not only strong technical and project execution capabilities, but also the ability to provide tailored support to foreign clients navigating the U.S. construction environment. If we fail to differentiate our services, secure new project awards with favorable margins, or retain key clients, we could lose market share, face pressure on our profit margins, and experience declines in future revenue and earnings.

#### Changes in government incentives or trade policies could reduce demand for our services and adversely impact our business.
Many of the industrial projects we support are influenced by federal or state policies, including tax credits, grants, utility rate incentives, permitting advantages, and other programs designed to promote manufacturing investment in the United States. Reductions, delays, or cancellations of such incentive policies could affect our clients' capital expenditure decisions. This may result in fewer new facilities being built, slower project development timelines, or the cancellation of planned construction projects.

In addition, trade actions, such as tariffs, export controls, or import restrictions, targeting industrial equipment, materials, or goods manufactured in certain countries (including China) may lead to increased project costs or temporary supply chain disruptions for our clients. Although we do not directly import construction, our EPC services depend on subcontractors and suppliers that source key materials, such as steel and aluminum, from international markets. Tariffs or other trade restrictions imposed on these materials could lead to higher procurement costs or supply chain delays for our subcontractors, which in turn may increase overall project costs or impact project timelines. In addition, uncertainty around trade policies may lead some project owners to delay or reconsider investment in new industrial construction projects, particularly where material costs are a significant portion of the budget. In some cases, significant increases in material costs or uncertainty around trade policy may prompt clients to pause construction or temporarily suspend operations until market conditions stabilize. For example, in February 2025, we secured a $30 million contract with a new client in the battery manufacturing industry for the construction of a production facility. However, in June 2025, the project was placed on hold. We believe this hold was in part due to significantly increased U.S. tariffs on imports from China, particularly machinery and production equipment, which have been subject to tariffs of up to 145%, as well as additional duties on steel and aluminum. These policy shifts significantly raised projected capital expenditures and delayed critical equipment installation. While the contract has not been terminated and we remain in active communication with the client, there is currently no definitive timeline for resumption.

While some foreign manufacturers may respond by localizing production in the United States, the timing and scale of such responses remain uncertain, and such trade policy changes may still result in delays, increased costs, or reduced near-term demand for our services.

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These factors could materially and adversely affect our business, financial condition, and results of operations.

#### U.S. tariffs, trade disputes, and any uncertainties around trade policies could materially harm our business.
In recent years, and particularly in 2025, the U.S. government has implemented substantial tariffs on a wide range of goods imported from Canada, Mexico, and China. Current tariff levels on many Chinese goods, particularly machinery and production equipment, are significant. Furthermore, the U.S. administration has demonstrated a willingness to modify these tariffs, sometimes rapidly, creating significant uncertainty regarding the impacts on our clients' planned capital expenditures and on our ongoing as well as future projects. Recent statements suggest potential future adjustments, but the timing, scope, and direction of any changes remain highly uncertain.

Any escalation in trade tensions, further increases in tariffs, imposition of quotas, or other restrictions could exacerbate these risks. The cumulative impact of these tariffs and the related uncertainty could materially and adversely affect our business, financial condition, results of operations, and future prospects.

#### Labor disruptions could adversely affect our operations.
Although none of our current employees are represented by labor unions, certain large-scale construction projects may involve subcontractors whose workers are unionized or subject to labor agreements. In such cases, we may be indirectly affected by labor disputes, strikes, slowdowns, or other disruptions involving unionized subcontractor personnel or trade groups operating at our project sites.

Any significant labor unrest affecting our subcontractors or vendors could result in cost overruns, delays in project completion, or disruption to our operations. In addition, adverse labor incidents may generate negative publicity, which could harm our reputation and reduce our ability to secure future project awards in certain markets.

While we strive to work with subcontractors and vendors who maintain constructive labor relationships, we cannot guarantee that labor disruptions will not occur or negatively impact our business, financial condition, or results of operations.

#### Inflationary pressures may adversely affect our operating results and profitability.
Our business is subject to inflationary pressures that may increase the costs of raw materials, subcontractor services, labor-related expenses, and other project-related costs. Key construction inputs such as steel, copper, concrete, and specialized equipment are particularly susceptible to price volatility due to global supply chain disruptions and market dynamics. If inflation persists or accelerates, we may face challenges in maintaining our current gross margins and managing operating expenses as a percentage of project revenues, especially if contract prices do not adjust accordingly. This risk could adversely impact our profitability, cash flow, and overall financial performance.

#### Expectations of customers and investors may change with respect to sustainability practices, which may impose costs.
Customer and investor standards, which may evolve, may include a focus on environmental, social, and governance practices of the companies with which they work or in which they invest. Customers may require that we meet their standards before granting us projects, which may create additional costs to us. If our sustainability practices do not ultimately meet customer expectations, we may not win projects.

***We rely on internally generated cash flows to fund our operations and growth, and any disruption to our cash flow could adversely affect our business.***

We have historically funded our operations and growth strategy through internally generated cash flows and have not relied on external financing. We believe that maintaining this asset-light, self-funded model is a key aspect of our business philosophy. However, this approach also limits our access to additional capital that may otherwise be available through debt or equity financing.

If our cash flows are adversely affected by project delays, cost overruns, customer payment issues, or broader economic conditions, we may not have sufficient liquidity to fund working capital needs, pursue growth opportunities, or respond to unexpected events. Our ability to scale or invest in strategic initiatives could also be constrained. In contrast, competitors with access to external financing may have greater flexibility to navigate such challenges. Any material disruption in our cash flow generation could negatively impact our operations, financial condition, and growth prospects.

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#### We may experience reduced profits or incur losses under fixed-price contracts if costs increase above estimates.
Primarily, our business is performed under fixed-price contracts at prices that reflect our estimates of corresponding costs and schedules. Inaccuracies in these estimates may lead to cost overruns that may not be paid by our project owner customers. While our projects typically have durations averaging around one year, which reduces our exposure to certain long-term risks such as multi-year inflationary effects or prolonged economic shifts, we remain subject to cost estimation risks that could materially impact our profitability. Inaccuracies in our cost estimates may lead to cost overruns that may not be recoverable from our project owner customers. If we fail to accurately estimate the resources required and time necessary to complete these types of contracts, or if we fail to complete these contracts within the costs and timeframes to which we have agreed, there could be material adverse impacts on our actual financial results, the accuracy of forecasted future results, as well as our business reputation.

Factors that could result in contract cost overruns, project delays or other problems for us may include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays in the scheduled deliveries of machinery and equipment ordered by us or a project owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unanticipated technical problems, including design or engineering issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inadequate project execution tools for recording, tracking, forecasting and controlling future costs and schedules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unforeseen increases in the costs of labor, warranties, raw materials, components or equipment, or our failure or inability to obtain resources when needed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reliance on historical cost and/or execution data for estimation purposes that is not representative of current conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays or productivity issues caused by weather conditions, or other forces majeure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• satisfying the requirements of the Inflation Reduction Act of 2022 (the "IRA") for our customers in order to maximize its potential benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incorrect assumptions related to labor productivity, scheduling estimates or future economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• workmanship deficiencies resulting in delays and costs associated with the performance by us of unanticipated rework; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• modifications to projects that create unanticipated costs or delays.

While our shorter project durations limit our exposure to certain risks that affect longer-term contracts, cost overruns and delays can still occur within our typical project timeframes and negatively impact our financial condition and results of operations.

We try to mitigate these risks by reflecting in our overall cost estimates the reasonable possibility that a number of different and potentially unfavorable outcomes might occur. There are no assurances that our estimates will be sufficient. If not, our misjudgments may lead to decreased profits or losses. In some cases, as certain risk scenarios are eliminated or our concerns regarding certain potential cost and/or schedule issues diminish, we may estimate that the likelihood of an unforeseen cost overrun has reduced and, accordingly, we may increase the estimated gross margin on the project by decreasing the remaining overall cost estimate.

#### If we guarantee the timely completion or the performance of a project, we could incur additional costs to fulfill such obligations.
In certain of our fixed-price long-term contracts, we guarantee that we will complete a project by a scheduled date. We sometimes provide that the project, when completed, will also achieve certain performance standards. Subsequently, we may fail to complete the project on time or equipment that we install may not meet guaranteed performance standards. In those cases, we may be held responsible for costs incurred by the customer resulting from any delay or any modification to the plant made in order to achieve the performance standards, generally in the form of contractually agreed-upon liquidated damages or obligations to re-perform substandard work. If we are required to pay such costs, the total costs of the project would likely exceed our original estimate, and we could experience reduced profits, or a loss related to the applicable project.

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#### We may be involved in litigation, liability claims and contract disputes which could reduce our profits and cash flows.
We build industrial construction projects where design, construction, or systems failures can result in substantial injury or damage to third parties. In addition, the nature of our business results in project owners, subcontractors, and vendors occasionally presenting claims against us for recovery of costs for which they believe they are not contractually liable. In other cases, project owners may withhold retention and/or contract payments that they believe they do not contractually owe us, or they believe offset amounts owed to them by us. They may even terminate the contract. These legal matters generally arise in the normal course of our business. In addition, from time to time, we and/or certain of our current or former directors, officers or employees could be named as parties to other types of lawsuits.

Litigation can involve complex factual and legal questions, and proceedings may occur over several years. Any claim that is successfully asserted against us could result in our payment of significant sums for damages and other losses. Even if we were to prevail, any litigation may be costly and time-consuming, and would likely divert the attention of our management and key personnel from our business operations over multi-year periods. Either outcome may result in adverse effects on our financial condition, results of operations, cash flows and our reputation.

In accordance with customary industry practices, we maintain insurance coverage against some, but not all, potential losses in order to protect against the risks we face. When it is determined that we have liability, we may not be covered by insurance or, if covered, the dollar amount of any liability may exceed our policy limits or self-insurance reserves. Further, we may elect not to carry insurance related to particular risks if our management believes that the cost of available insurance is excessive relative to the risks presented. In addition, we cannot insure fully against pollution and environmental risks. Our management liability insurance policies are on a "claims-made" basis covering only claims actually made during the policy period currently in effect. In addition, even where insurance is maintained for such exposures, the policies have deductibles resulting in our assuming exposure for a layer of coverage with respect to any such claims. Any liability not covered by our insurance, in excess of our insurance limits and self-insurance reserves or, if covered by insurance but subject to a high deductible, could result in a significant loss for us, which claims may reduce our future profits and cash available for operations.

#### Our failure to recover adequately on change orders submitted to project owners could have a material effect on our financial results.
We may submit change orders to project owners for additional amounts exceeding the contract price or for amounts not included in the original contract price. Our contracts generally require that all change orders be formally approved and signed by the project owner before we proceed with any related work. As a result, we typically do not perform change-related work at risk, which limits our exposure to disputes over unpaid or unapproved change orders.

However, even with formal approvals from the clients, change orders may still be subject to delays in negotiation. These delays may affect the timing of revenue recognition and cash collections, and if significant, could adversely impact our working capital and operating results.

#### The shortage of skilled craft labor may negatively impact our ability to execute on our long-term construction contracts.
Increased infrastructure spending and general economic expansion may increase the demand for employees with the types of skills needed for the completion of our projects. There is a risk that our construction project schedules become unachievable or that labor expenses will increase unexpectedly as a result of a shortage in the supply of skilled personnel available to us. Increased labor costs may influence our customers' decisions regarding the feasibility or scheduling of specific projects, potentially leading to delays or cancellations that could materially affect our business adversely. Labor shortages, productivity decreases, or increased labor costs could impair our ability to maintain our business or grow our revenues. In general, we have been effective in staffing our projects with the necessary resources and managing labor costs. However, the inability to hire and retain qualified skilled employees in the future, including workers in the construction crafts, could negatively impact our ability to complete our long-term construction contracts successfully.

#### Our dependence upon third parties to complete our contracts may adversely affect our performance under current and future construction contracts.
We engage third-party subcontractors to perform certain work under our EPC contracts. We also rely on third-party manufacturers or suppliers to provide much of the equipment and most of the materials (such as copper, concrete and steel) needed to complete our construction projects. If we are unable to hire qualified subcontractors or to find qualified equipment manufacturers or suppliers, our ability to successfully complete a project could be adversely

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impacted. If the price we are required to pay for subcontractors or equipment and supplies exceeds the corresponding amount that we have estimated, we may suffer a reduction in the anticipated amount of gross profit or even a loss on the contract. If a supplier, manufacturer, or subcontractor fails to provide supplies, equipment, or services as required under a negotiated contract for any reason, we may be required to self-perform unexpected work or obtain these supplies, equipment, or services on an expedited basis or at a higher price than anticipated from a substitute source, which could impact contract profitability in an adverse manner. Unresolved disputes with a subcontractor or supplier regarding the scope of work or performance may escalate, resulting in arbitration proceedings or legal actions. Unfavorable outcomes of such disputes may also impact contract profitability in an adverse manner. In addition, if a subcontractor fails to pay its subcontractors, suppliers or employees, liens may be placed on our project requiring us to incur the costs of reimbursing such parties in order to have the liens removed or to commence litigation.

***When acting as the general contractor, we remain responsible for project performance and integration even when we engage third-party subcontractors, which could expose us to additional risks and liabilities.***

While we generally require subcontractors to provide a two-year warranty on their work and product warranties that extend to the earlier of one year from first use or 18 months from delivery, we remain the primary point of contact for clients and retain full responsibility for overall project integration and delivery. Subcontractors are obligated, at their own expense, to correct or reperform any work that fails to meet agreed performance standards. Nevertheless, if a subcontractor fails to perform adequately, experiences delays, or delivers substandard work, we may incur additional costs to remedy such issues, engage replacement subcontractors, or face penalties under our contracts. Furthermore, any subcontractor-related issues could harm our reputation, even if the cause is outside our direct control. These risks could materially and adversely affect our business, financial condition, results of operations, and reputation.

#### Our operations are subject to contractor licensing requirements that vary by state and jurisdiction, which could limit our ability to pursue or complete projects.
In the United States, contractor licensing requirements differ significantly across states, counties, and municipalities. Generally, we must obtain a general contractor license in each jurisdiction where we perform construction-related services as the general contractor. When acting as a subcontractor, we may also be required to hold certain licenses depending on the scope of work. These licenses are typically issued to qualifying individuals affiliated with our operating entity and must be maintained and renewed as required. We currently obtain licenses on a project-by-project basis and plan to secure additional licenses as we expand geographically. However, failure to obtain, maintain, or renew the necessary licenses in a timely manner could prevent us from bidding on, winning, or performing certain projects, which could adversely affect our business growth, operations, and financial results.

#### Failure to maintain safe work sites could result in losses as we work on projects that are inherently dangerous.
Our project sites can place our employees and others near large and/or mechanized equipment, high voltage electrical equipment, moving vehicles, dangerous processes, or highly regulated materials, and in challenging environments. Consequently, safety is a primary focus of our business and is critical to our reputation. Many of our customers require that we meet certain safety criteria to be eligible to bid on contracts. Further, regulatory changes implemented by OSHA or similar government agencies could impose additional costs on us. We maintain programs with the primary purpose of implementing effective health, safety, and environmental procedures throughout our Company. If we fail to implement appropriate safety procedures and/or if our procedures fail, our employees or others may suffer injuries or illness. The failure to comply with such procedures, client contracts or applicable regulations could subject us to losses and liability, and adversely impact our ability to complete awarded projects as planned or to obtain projects in the future.

#### We may be unable to obtain or maintain sufficient bonding capacity, which could materially adversely affect our business.
Some of our contracts require performance and payment bonds. Our ability to obtain performance and payment bonds primarily depends upon our capitalization, working capital, past performance, management expertise, reputation, and certain external factors, including the overall capacity of the surety market. If we are unable to renew or obtain a sufficient level of bonding capacity in the future, we may be precluded from being able to bid for certain projects or successfully contract with certain clients. In addition, even if we are able to successfully renew or obtain performance or payment bonds, we may be required to post letters of credit in connection with such bonds, which could negatively affect our liquidity and results of operations.

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It is standard for sureties to issue or continue bonds on a project-by-project basis, and they can decline to do so at any time or require the posting of additional collateral as a condition thereto. Events that adversely affect the insurance and bonding markets generally may result in bonding becoming more difficult to or costly to obtain in the future. If we were to experience an interruption or reduction in the availability of our bonding capacity as a result of these or any other reasons, or if bonding costs were to increase, we may be unable to compete for certain projects that require bonding, which would materially and adversely affect our financial condition, results of operations or liquidity.

#### Our insurance may not be sufficient.
We carry insurance that we consider adequate in regard to the nature of the covered risks and the costs of coverage, discussed in the "Insurance" section. Nonetheless, we are not fully insured against all possible risks, nor are all such risks insurable. We may be forced to cover the costs of certain realized risks which may have a material adverse effect on our business, results of operations or financial condition.

***Future acquisitions and/or investments may not occur, which could limit the growth of our business, and the integration of acquired companies may not be successful.***

We may make additional opportunistic acquisitions and/or investments by identifying companies with significant potential for profitable growth and realizable synergies with one or more of our existing businesses. However, we may have more than one industrial focus depending on the opportunity and/or needs of our customers. Companies meeting our criteria and that provide products and/or services in growth industries and that are available for purchase at attractive prices are difficult to find. Discussions with the principal(s) of potential acquisition targets may be protracted and ultimately terminated for a variety of reasons. Further, due diligence investigations of attractive target companies may uncover unfavorable data, and the negotiation and consummation of acquisition agreements may not be successful.

We cannot readily predict the timing or size of any future acquisitions or the capital we will need for these transactions. However, it is likely that any potential future acquisition or strategic investment transaction would require the use of cash and/or shares of our Common Stock. Using cash for acquisitions may limit our financial flexibility and make us more likely to seek additional capital through future debt or equity financings. Our ability to obtain such additional financing in the future may depend upon prevailing capital market conditions, the strength of our future operating results and financial condition as well as conditions in our business, and the amount of outside financing sought by us. These factors may affect our efforts to arrange additional financing on terms that are acceptable to us. Our ability to use shares of our Common Stock as future acquisition consideration may be limited by a variety of factors, including the future market price of shares of our Common Stock and a potential seller's assessment of the liquidity of our Common Stock. If adequate funds or the use of our Common Stock are not available to us, or are not available on acceptable terms, we may not be able to take advantage of desirable acquisitions or other investment opportunities that would benefit our business. Even if we do complete acquisitions in the future, acquired companies may fail to achieve the results we anticipate including the expected gross profit percentages.

If we complete any acquisitions in the future, we may attempt to integrate certain aspects to drive synergies and cost reductions, as well as to share best practices, processes, and procedures. In the future, we may not be able to successfully integrate such acquired companies with our other operations without substantial costs, delays or other operational or financial problems including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the diversion of management's attention from other important operational or financial matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability to retain or maintain the focus of key personnel of acquired companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the discovery of previously unidentified project costs or other liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unforeseen difficulties encountered in the maintenance of uniform standards, controls, procedures, and policies, including an effective system of internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairment losses related to acquired goodwill and other intangible assets.

Further, we may conclude that the divestiture of a troubled or unrelated business will satisfy the best interests of our stockholders. There is risk that we would be unable to complete such a transaction with terms and timing that are acceptable for us, or at all. Any divesting transaction could also result in a material loss for us.

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In summary, integrating acquired companies may involve unique and significant risks. Our failure to overcome such risks could materially and adversely affect our business, financial condition, and future results of operations, and could cause damage to our Company's reputation.

#### Our failure to protect our management information systems against security breaches could adversely affect our business and results of operations.
Our information systems face the threat of unauthorized access, computer hackers, viruses, malicious code, cyberattacks, phishing and other security incursions and system disruptions, including attempts to improperly access our confidential and proprietary information as well as the confidential and proprietary information of our customers and other business partners. Techniques used to attempt to obtain unauthorized access to information systems change frequently, and the rapid development of AI poses new cybersecurity risks that we may not timely anticipate. A party who circumvents our security measures, or those of our clients, contractors, or other vendors, could misappropriate confidential or proprietary information, improperly manipulate data, or cause damage or interruptions to systems.

Furthermore, we are heavily reliant on computer, information and communications technology and related systems, some of which are hosted by third party providers. We may experience system availability disruptions. Unplanned interruptions could delay or prevent necessary operations. While we believe that our reasonable safeguards will protect us from serious disruptions in the availability of our information technology assets, these safeguards may not be sufficient. We may also be required to expend significant resources to protect against or alleviate damage caused by systems interruptions and delays.

Various privacy and security laws in the U.S. require us to protect sensitive and confidential information and data from disclosure and we are bound by our client and other contracts, as well as our own business practices, to protect confidential and proprietary information and data from unauthorized disclosure. We believe that we have deployed industry-accepted security measures and technologies to securely maintain confidential and proprietary information retained within our information systems. However, these measures and technologies may not adequately prevent unanticipated security breaches. There can be no assurance that our efforts will prevent these intrusions. Further, as these security threats continue to evolve, we may be required to devote additional resources to protect, prevent, detect, and respond against such threats. We believe that our business represents a low value target for cyberextortion as we are not a company in the high technology space, and we do not maintain large files of sensitive or confidential personal information. However, we may from time to time hold significant cash balances for project execution that could encourage bad actors to attempt to breach the security of our systems, particularly by using social engineering schemes. We do maintain a cybersecurity insurance policy to help protect ourselves from various types of losses relating to computer security breaches; however, it may not cover all types of breaches, or a meaningful portion of any loss incurred.

We are unaware of any significant security breaches at any of our business locations. That does not suggest that we may not be victimized by an additional breach in the future. Any significant future breach of our information security could damage our reputation, result in litigation and/or regulatory fines and penalties, or have other material adverse effects on our business, financial condition, results of operations or cash flows.

#### We could be adversely affected by violations of the Foreign Corrupt Practices Act and similar anti-bribery laws.
The U.S. Foreign Corrupt Practices Act and similar anti-bribery laws in other jurisdictions generally prohibit companies and their intermediaries from making improper payments to officials or others for the purpose of obtaining or retaining business. While we believe that our policies and oversight, as well as our client's policies and oversights in this area are comprehensive and effective, we cannot provide assurances that our internal controls and procedures always will protect us from the possible reckless or criminal acts committed by our employees or others. We typically sign and comply with client-imposed ethics and compliance policies as part of our contracts, demonstrating our commitment to maintaining high standards of anti-corruption compliance. If we are found to be liable for anti-bribery law violations (either due to our own acts or our inadvertence, or due to the acts or inadvertence of others including our partners, subcontractors or suppliers), we could suffer from criminal or civil penalties or other sanctions, including contract cancellations or debarment, and damage to our reputation, any of which could have a material adverse effect on our business. Litigation or investigations relating to alleged or suspected violations of anti-bribery laws, even if such litigation or investigations demonstrate ultimately that we did not violate anti-bribery laws, could be costly and could divert management's attention away from other aspects of our business.

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#### Our continued success requires us to retain and hire talented personnel.
Our ability to operate productively and profitably particularly in the industrial construction industry, is dependent on our ability to attract, employ, retain, and train skilled personnel necessary to meet our future requirements. However, unforeseen future changes in our management may occur. Therefore, we cannot be certain that any key executive or manager will continue in such capacity while performing at a high level for any particular period of time, nor can we be certain that events will permit us to complete smooth management transitions should they occur. We cannot be certain that we will be able to maintain experienced management teams and adequately skilled groups of employees necessary to execute our long-term construction contracts successfully and to support our future growth strategy. The loss of key personnel, the inability to complete management transitions without significant loss of effectiveness, or the inability to hire and retain qualified employees in the future could negatively impact our ability to manage our business in the future.

***Our Certificate of Incorporation renounces certain corporate opportunities and permits our non-employee directors and their affiliates to compete with us, which could result in conflicts of interest and limit our growth opportunities.***

Our Certificate of Incorporation, to the fullest extent permitted by Delaware law, provides that our non-employee directors and their respective affiliates have no duty to refrain from engaging in the same or similar business activities or lines of business as those in which we or our affiliates engage or may engage, and may compete with us without breaching any fiduciary duty. In addition, our Certificate of Incorporation renounces any interest or expectancy in, or right to be offered an opportunity to participate in, any business opportunity that may be a corporate opportunity for such persons, except in limited circumstances where the opportunity is expressly offered to a director or officer solely in his or her capacity as a director or officer of our company.

As a result, our non-employee directors and their affiliates may pursue business opportunities for themselves or others that could otherwise be suitable for us, including opportunities that are competitive with our business, and are not obligated to present such opportunities to us. These provisions may result in our Company foregoing attractive business opportunities, strategic transactions or investments, and could create conflicts of interest that are not resolved in our favor.

Further, because these provisions limit the fiduciary duties of our non-employee directors and their affiliates and provide that stockholders are deemed to have consented to such provisions, our stockholders may have limited ability to challenge these actions or seek remedies. These conflicts of interest and limitations could have a material adverse effect on our business, financial condition, results of operations and prospects.

#### Risks Related to This Offering and Our Shares of Common Stock
***There is no existing market for our securities, and we do not know if one will develop to provide you with adequate liquidity. Even if a market does develop following this Offering, the stock prices in the market may not exceed the offering price.***

Prior to this Offering, there has not been a public market for our securities. We cannot assure you that an active trading market for our Common Stock will develop following this Offering, or if it does develop, it may not be maintained. You may not be able to sell your shares quickly or at the market price if trading in our Common Stock is not active. The initial public offering price for the shares will be determined by negotiations between us and representatives of the Underwriters and may not be indicative of prices that will prevail in the trading market following the completion of this Offering. Consequently, you may not be able to sell shares of our Common Stock at prices equal to or greater than the price you pay in this Offering.

***BW Holdings is a holding company and our operations, cash flow, and ability to pursue enhancement opportunities depend on the earnings, distributions, and financial condition of our subsidiaries.***

We, BW Holdings, are a holding company and our only significant assets are the capital stock of our current or future subsidiaries. As a result, we are subject to the risks attributable to our subsidiary. As a holding company, we conduct substantially all of our business through our subsidiary, which generate substantially all of our revenues. Consequently, our cash flows and ability to complete current or desirable future enhancement opportunities are dependent on the earnings of our subsidiary and the distribution of those earnings to us. Its ability to pay dividends and other distributions will depend on their operating results and will be subject to applicable laws and regulations which require that solvency and capital standards be maintained by such companies and contractual restrictions contained in the instruments governing their debt. In the event of a bankruptcy, liquidation, or reorganization of any of our subsidiaries, holders of indebtedness and trade creditors will generally be entitled to payment of their claims from the assets of that subsidiary before any assets are made available for distribution to us.

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#### The market price of our Common Stock is likely to be highly volatile, and you could lose all or part of your investment.
Investing in our stock involves substantial risk due to potential for rapid and unpredictable fluctuations in our stock price. The trading price of our Common Stock is likely to be volatile and may experience rapid and unpredictable changes. This volatility can make it difficult for investors to assess the rapidly changing value of our stock and may prevent you from being able to sell your shares at or above the price you paid for them. Our stock price could be subject to wide fluctuations in response to a variety of factors, which include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated fluctuations in our quarterly or annual operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• publication of research reports by securities analysts about us or our competitors or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the public's reaction to our press releases, our other public announcements and our filings with the Securities and Exchange Commission ("SEC");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure or the failure of our competitors to meet analysts' projections or guidance that we or our competitors may give to the market; additions and departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions and departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strategic decisions by us or our competitors, such as acquisitions, divestitures, spin-offs, joint ventures, strategic investments, or changes in business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the passage of legislation or other regulatory developments affecting us or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculation in the press or investment community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• terrorist acts, acts of war or periods of widespread civil unrest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• natural disasters and other calamities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in general market and economic conditions.

In addition, instances of extreme stock price run-ups followed by rapid price declines and significant stock price volatility may occur, and these fluctuations may be unrelated to our actual or expected operating performance, financial condition, or prospects. Broad market and industry factors may negatively affect the market price of our Common Stock, regardless of our actual operating performance. In the past, securities class action litigation has often been initiated against companies following periods of volatility in their stock price. This type of litigation could result in substantial costs and divert our management's attention and resources and could also require us to make substantial payments to satisfy judgments or to settle litigation.

***Our quarterly operating results may fluctuate significantly and could fall below the expectations of securities analysts and investors due to macroeconomic conditions and other factors, some of which are beyond our control, resulting in a decline in our stock price.***

Our quarterly operating results may fluctuate significantly because of several factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• labor availability and costs for hourly and management personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• macroeconomic conditions, both nationally and locally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in consumer preferences and competitive conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expansion to new markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in infrastructure costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in commodity prices.

Unanticipated fluctuations in our quarterly operating results could result in a decline in our stock price.

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#### Our failure to meet the continued listing requirements of the national stock exchange could result in a delisting of our Common Stock.
If, after listing, we fail to satisfy the continued listing requirements of the national stock exchange, such as the corporate governance requirements or the minimum closing bid price requirement, such national stock exchange may take steps to delist our Common Stock. Such delisting would likely have a negative effect on the price of our Common Stock and would impair your ability to sell or purchase our Common Stock when you wish to do so. In the event of a de-listing, we would take actions to restore our compliance with such national stock exchange's listing requirements, but we can provide no assurance that any such action taken by us would allow our Common Stock to become listed again, stabilize the market price or improve the liquidity of our Common Stock, prevent our Common Stock from dropping below the minimum bid price requirement or prevent future non-compliance with such national stock exchange's listing requirements.

***If our shares are delisted from the national stock exchange and become subject to the penny stock rules, it would become more difficult to trade our shares.***

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. If we do not obtain or retain a listing on the national stock exchange and if the price of our Common Stock is less than $5.00, our Common Stock will be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser's written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our Common Stock, and therefore stockholders may have difficulty selling their shares.

***We have no current plans to pay cash dividends on our Common Stock for the foreseeable future, and you may not receive any return on investment unless you sell your Common Stock for a price greater than that which you paid for it.***

We may retain future earnings, if any, for future operations, expansion and debt repayment and have no current plans to pay any cash dividends for the foreseeable future. Any decision to declare and pay dividends in the future will be made at the discretion of our board of directors ("Board of Directors" or "Board") and will depend on, among other things, our results of operations, financial condition, cash requirements, contractual restrictions, and other factors that our Board of Directors may deem relevant. In addition, our ability to pay dividends may be limited by covenants of any existing and future outstanding indebtedness we or our subsidiaries incur, including our credit facility. As a result, you may not receive any return on an investment in our Common Stock unless you sell our Common Stock for a price greater than that which you paid for it and any potential investor who anticipates the need for current dividends should not purchase our securities. See the section entitled "Dividend Policy."

#### Our management will have broad discretion in how we use the net proceeds of this Offering and might not use them effectively.
Our management will have considerable discretion over the use of proceeds from this Offering. You will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used in a manner which you may consider most appropriate. Our management might spend a portion or all of the net proceeds from this Offering in ways that our stockholders do not desire or that might not yield a favorable return. The failure by our management to apply these funds effectively could harm our business. Furthermore, you will have no direct say on how our management allocates the net proceeds of this Offering. Until the net proceeds are used, they may be placed in investments that do not produce significant income or that may lose value.

***Our founder and principal stockholder has substantial influence over our company. His interests may not be aligned with the interests of our other stockholders, and he could prevent or cause a change of control or other transactions.***

After giving effect to this Offering, Mr. Yunlong Zhang will own 12,600,000 shares of Common Stock, representing 57.21% of the Company's voting power (or 56.0% of the Company's voting power, if the underwriters exercise the over-allotment option in full). Accordingly, Mr. Zhang will have significant influence in determining the

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outcome of any corporate transaction or other matter submitted to the stockholders for approval, including mergers, consolidations, the appointment of directors and other significant corporate actions. Mr. Zhang will also have the power to prevent or cause a change in control. Without the consent of Mr. Zhang, we may be prevented from entering into transactions that could be beneficial to us or our minority stockholders. In addition, Mr. Zhang could violate his fiduciary duties by diverting business opportunities from us to himself or others. The interests of Mr. Zhang may differ from the interests of our other stockholders. The concentration in the ownership of our Common Stock shares may cause a material decline in the value of our Common Stock. For more information regarding Mr. Zhang's stock ownership and voting power, see "Security Ownership of Certain Beneficial Owners and Management."

#### The sale or availability for sale of substantial amounts of our Common Stock could adversely affect its market price.
Sales of substantial amounts of our Common Stock in the public market after the completion of this Offering, including sales made of any shares pledged for a loan by any holder of a significant number of shares of our Common Stock, or the perception that these sales could occur, could adversely affect the market price of our Common Stock and could materially impair our ability to raise capital through equity offerings in the future. The Common Stock sold in this Offering will be freely tradable without restriction or further registration under the Securities Act, and shares held by our existing stockholders may also be sold in the public market in the future subject to the restrictions in Rule 144 under the Securities Act and the applicable lock-up agreements. There will be 22,025,000 shares of Common Stock outstanding immediately after this Offering (or 22,418,750 shares of Common Stock assuming the full exercise of the underwriters' over-allotment option). In connection with this Offering, we have agreed not to sell any Common Stock for six (6) months from the closing of this Offering without the prior written consent of the underwriter, and each of our directors and officers named in the section "Directors and Executive Officers," have agreed not to sell any Common Stock for six months from the date of this prospectus without the prior written consent of the underwriter, subject to certain exceptions. However, the underwriters may release these securities from these restrictions at any time, subject to applicable regulations of the FINRA. We cannot predict what effect, if any, market sales of securities held by our significant stockholders or any other stockholder or the availability of these securities for future sale will have on the market price of our Common Stock. See "Plan of Distribution" and "Description of Capital Stock" for a more detailed description of the restrictions on selling our securities after this Offering.

#### You will experience immediate and substantial dilution as a result of this Offering and may experience additional dilution in the future .
You will incur immediate and substantial dilution as a result of this Offering. After giving effect to the sale by us of 2,625,000 shares of Common Stock offered in this Offering at an assumed initial public offering price of $8.0 per share, the midpoint of the price range set forth on the cover page, and after deducting underwriting commissions and estimated offering expenses payable by us, investors in this Offering can expect an immediate dilution of $6.47 per share. Following the completion of this Offering, in most scenarios, our Board has the authority, without action or vote of our stockholders, to issue all or any part of our authorized but unissued shares of Common Stock, including shares issuable upon the exercise of options, or shares of our authorized but unissued preferred stock. Issuances of Common Stock or voting preferred stock would reduce your influence over matters on which our stockholders vote and, in the case of issuances of preferred stock, would likely result in your interest in us being subject to the prior rights of holders of that preferred stock. See the section titled "Dilution."

***We will incur significant increased costs as a result of operating as a public company and our management will be required to devote substantial time to new compliance initiatives.***

If we become a public company, we will incur significant legal, accounting, and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act, as well as rules subsequently implemented by the SEC and the national stock exchange which our shares of Common Stock will be traded on, has imposed various requirements on public companies. Our management and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover, we anticipate that compliance with these rules and regulations will increase our legal, accounting, and financial compliance costs substantially. A number of those requirements will require us to carry out activities we have not done previously. For example, we will create new board committees and adopt new internal controls and disclosure controls and procedures. In addition, these rules and regulations may make our activities related to legal, accounting, and financial compliance more difficult, time-consuming and costly and may also place undue strain on our personnel, systems and resources. Furthermore, if we identify any issues in complying with those requirements (for example, if we or our auditors identify a material weakness or significant deficiency in

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our internal control over financial reporting), we could incur additional costs rectifying those issues, and the existence of those issues could adversely affect us, our reputation or investor perceptions of us. If these requirements divert the attention of our management and personnel from other business concerns, they could have a material adverse effect on our business, financial condition, and results of operations. For example, we expect these rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to incur substantial costs to maintain our current levels of such coverage. These increased costs will require us to divert a significant amount of money that we could otherwise use to expand our business and achieve our strategic objectives. Advocacy efforts by stockholders and third parties may also prompt additional changes in governance and reporting requirements, which could further increase our costs.

***Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our financial condition and results of operations.***

We will be subject to income taxes in the United States, and our domestic tax liabilities will be subject to the allocation of expenses in differing jurisdictions. Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the valuation of our deferred tax assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expected timing and amount of the release of any tax valuation allowances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax effects of stock-based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs related to intercompany restructurings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in tax laws, regulations, or interpretations thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lower than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than anticipated future earnings in jurisdictions where we have higher statutory tax rates.

In addition, we may be subject to audits of our income, sales, and other transaction taxes by federal, state, and local authorities. Outcomes from these audits could have an adverse effect on our financial condition and results of operations.

***As an "emerging growth company" under applicable law, we will be subject to lessened disclosure requirements, which could leave our stockholders with less information or fewer rights available to stockholders of more mature companies.***

For as long as we remain an "emerging growth company", we have elected to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• taking advantage of an extension of time to comply with new or revised financial accounting standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

We expect to take advantage of these reporting exemptions until we are no longer an "emerging growth company." Because of these lessened regulatory requirements, our stockholders would be left without information or rights available to stockholders of more mature companies.

***Because we have elected to use the extended transition period for complying with new or revised accounting standards for an "emerging growth company" our financial statements may not be comparable to companies that comply with standard public company effective dates.***

We have elected to use the extended transition period for complying with new or revised accounting standards for an emerging growth company. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result

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of this election, our financial statements may not be comparable to companies that comply with standard public company effective dates, and thus investors may have difficulty evaluating or comparing our business, performance, or prospects in comparison to other public companies, which may have a negative impact on the value and liquidity of our Common Stock.

***We will be a "controlled company" within the meaning of Nasdaq listing standards or the NYSE American Company Guide and, as a result, will qualify for exemptions from certain corporate governance requirements.***

Following this Offering, Mr. Yunlong Zhang, our Chief Executive Officer and Chairman, will hold approximately 57.21% of the voting power in us (or approximately 56.20% if the underwriters exercise their over-allotment option in full) and, as a result, we will be a "controlled company" within the meaning of the Nasdaq listing standards or the NYSE American Company Guide. For so long as we remain a controlled company, we technically qualify and are eligible to be exempted from the following corporate governance requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that a majority of our board of directors be composed of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that we have a compensation committee that is composed entirely of independent directors with a written charter addressing the purposes and responsibilities of the committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that our director nominees be selected or recommended solely by independent directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that we have a nominating and corporate governance committee that is composed entirely of independent directors with a written charter addressing the purposes and responsibilities of the committee.

The controlled company exemptions do not apply to the audit committee requirement or the requirement for executive sessions of independent directors. We are required to disclose in our annual report that we are a controlled company and the basis for that determination. As of the date of this prospectus, we intend to rely only on the exemption that permits us not to have a nominating and corporate governance committee composed entirely of independent directors. We may in the future take advantage of additional controlled company exemptions. Our status as a controlled company could cause our securities to be less attractive to certain investors or otherwise adversely affect our securities' trading price.

***If securities or industry analysts do not publish or cease publishing research or reports about us, our business, or our market, or if they change their recommendations regarding our Common Stock adversely, the price of our Common Stock and trading volume could decline.***

The trading market for our Common Stock may be influenced by the research and reports that securities or industry analysts may publish about us, our business, our market, or our competitors. If any of the analysts who may cover us change their recommendation regarding our Common Stock adversely, or provide more favorable relative recommendations about our competitors, the price of our Common Stock would likely decline. If any analyst who may cover us was to cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause the price of our Common Stock or trading volume to decline.

***Delaware law and our Certificate of Incorporation and Bylaws will contain certain provisions, including anti-takeover provisions that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable.***

Our Certificate of Incorporation and Bylaws contains provisions that could have the effect of rendering more difficult, delaying, or preventing an acquisition deemed undesirable by our board and therefore depress the trading price of our Common Stock. In addition, as a Delaware corporation, we will generally be subject to provisions of Delaware law, including the Delaware General Corporation Law ("DGCL"). These provisions could also make it difficult for stockholders to take certain actions, including electing directors who are not nominated by the current members of our board or taking other corporate actions, including effecting changes in management.

Such provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our board or management.

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Any provision of our Certificate of Incorporation or Bylaws or Delaware law that has the effect of delaying or preventing a change in control could limit the opportunity for stockholders to receive a premium for their shares of our stock and could also affect the price that some investors are willing to pay for our Common Stock.

***Failure to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price.***

We are not currently required to comply with the rules of the SEC implementing Section 404 of the Sarbanes-Oxley Act and therefore are not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. Upon becoming a publicly traded company, we will be required to comply with the SEC's rules implementing Sections 302 and 404 of the Sarbanes-Oxley Act, which will require management to certify financial and other information in our quarterly and annual reports and provide an annual management report on the effectiveness of controls over financial reporting. Though we will be required to disclose changes made in our internal controls and procedures on a quarterly basis, we will not be required to make our first annual assessment of our internal control over financial reporting pursuant to Section 404 until the year following our first annual report required to be filed with the SEC. Our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control over financial reporting until the later of the year following our first annual report required to be filed with the SEC or the date we are no longer an emerging growth company and are an accelerated or large accelerated filer.

To comply with the requirements of being a public company, we may need to undertake various actions, such as implementing new internal controls and procedures and hiring additional accounting or internal audit staff, all of which would is likely to add additional attention and costs to the Company.

Prior to the consummation of this Offering, we are a private company with limited accounting personnel to adequately execute its accounting processes and limited supervisory resources with which to address its internal control over financial reporting. In connection with the audit of our consolidated financial statements for the years ended December 31, 2024 and 2023, we identified control deficiencies in the design and operation of our internal control over financial reporting that constituted material weaknesses. Specifically, these material weaknesses are (i) the lack of accounting personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements to properly address complex U.S. GAAP accounting issues and to prepare and review our consolidated financial statements and related disclosures to fulfill U.S. GAAP and SEC financial reporting requirements; (ii) lack of formal policies and procedures to establish risk assessment processes and an internal control framework: and (iii) deficiencies in IT general control related to the privileged access restriction, user access review, IT operations and cybersecurity of the Company's financial system.

To remediate the material weaknesses described above, we have implemented most of the measures described below in early 2025 and we will continue to evaluate and, as needed, implement additional measures. The remaining measures are currently in progress. Specifically, we have taken or are taking the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have recruited personnel with the requisite knowledge in accounting and disclosure requirements for complex transactions under U.S. GAAP and statutory compliance. Where needed, we have engaged external third parties with the expertise for complex or evolving areas such as public company filings, taxation, and valuation services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have designed a control environment which allows management to monitor effectiveness of internal controls over financial reporting and are addressing gaps identified within the environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have appointed independent board member nominees with what we believe to be sufficient accounting and reporting experience and knowledge, and will design and implement risk assessment policies and procedures to identify and assess internal and external risks relating to financial reporting on a regular basis. Our board of directors will oversee implementation of such policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have strengthened processes to communicate internal control information and address operating deficiencies in IT general controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have developed and implemented action plans to address control deficiencies identified within certain key financial processes, prioritized by potential financial impact and risk.

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Our management and other personnel will need to devote a substantial amount of time to compliance initiatives applicable to public companies, including compliance with Section 404 and the evaluation of the effectiveness of our internal controls over financial reporting within the prescribed timeframe. We cannot assure you that there will not be additional material weaknesses in our internal control over financial reporting now or in the future and we may discover additional deficiencies in existing systems and controls that we may not be able to remediate in an efficient or timely manner.

Any failure to maintain internal control over financial reporting could severely inhibit our ability to accurately report our financial condition, results of operations or cash flows. If we are unable to conclude that our internal control over financial reporting is effective, or if our independent registered public accounting firm determines that we have a material weakness in our internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports, the market price of our securities could decline, and we could be subject to sanctions or investigations by the national stock exchange on which our shares of Common Stock will be traded on, the SEC or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to the capital markets.

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#### CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION
This prospectus and the documents to which we refer you and incorporate into this prospectus by reference contain forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "will," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential" or "continue" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including those described in this prospectus under the heading "Risk Factors" beginning on page 12. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this prospectus, the documents to which we refer you and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our market opportunity and the potential growth of that market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our strategy, outcomes, and growth prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• trends in our industry and markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the competitive environment in which we operate.

Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• declines in industrial construction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to our operating strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition for projects with our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unfavorable economic conditions and restrictive financing markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully identify, manage, and integrate acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain sufficient capacity to undertake certain projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to accurately estimate the overall risks, requirements, or costs when we bid on or negotiate contracts that are ultimately awarded to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cancellation of a significant number of contracts or our disqualification from bidding for new contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to adverse weather conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• climate change and related laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• indebtedness and the restrictions imposed on us by the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to manage our supply chain to obtain adequate raw materials, equipment and essential supplies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to retain key personnel and maintain satisfactory labor relations, and to manage or mitigate any labor shortages, turnover and labor cost increases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of inflation on costs of labor, raw materials and other items that are critical to our business, including fuel, concrete and steel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unfavorable developments affecting the banking and financial services industry;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• property damage and other claims and insurance coverage issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to any litigation or disputes, including employment-related, workers' compensation and breach of contract claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to our information technology systems and infrastructure, including cybersecurity incidents.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We caution you not to place undue reliance on these statements, which speak only as of the date of this prospectus. We are under no duty to update any of the forward-looking statements after the date of this prospectus to conform such statements to actual results.

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#### DIVIDEND POLICY
Our Board has discretion regarding whether to declare or pay dividends.

On December 31, 2024, Bestwater declared a special dividend in the amount of $2,303,066.04 to Mr. Yunlong Zhang. On June 1, 2025, Bestwater declared a special dividend in an aggregate amount of $1,998,200 to its stockholders as of such date. Other than aforementioned special dividends, we have never declared or paid dividends on our Common Stock. We intend to retain earnings, if any, to support the development of our business and therefore do not anticipate paying cash dividends for the foreseeable future. Payment of future dividends, if any, will be at the discretion of our Board after taking into account various factors, including current financial condition, operating results and current and anticipated cash needs.

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#### USE OF PROCEEDS
Based upon an assumed initial public offering price of $8.0 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, we estimate that we will receive net proceeds from this Offering, after deducting the estimated underwriting discounts and the estimated offering expenses payable by us, of approximately $18.4 million if the underwriters do not exercise their over-allotment option, and $21.3 million if the underwriters exercise their over-allotment option in full.

As of the date of this prospectus, we intend to use proceeds we receive from the Offering for business expansion, strategic acquisitions, and working capital and other general corporate purposes. The intended allocation of the proceeds for each purpose are set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 50% for business expansion, including talent acquisition, geographic expansion, and broadening the scope of our projects to include public infrastructure and commercial construction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 35% for strategic acquisitions, including potential acquisitions of design institutes, engineering firms, or building materials manufacturing businesses to enhance our vertical integration; however, we have not identified any specific acquisition targets as of the date of this prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 15% for working capital and general corporate purposes.

A $1.00 increase (decrease) in the assumed initial public offering price would increase (decrease) the net proceeds to us from this Offering by approximately $2.4 million, after deducting the estimated underwriting discounts, non-accountable expense allowance and estimated aggregate offering expenses payable by us and assuming no change to the number of shares of Common Stock offered by us as set forth on the cover page of this prospectus.

The foregoing represents our current intentions based upon our present plans and business conditions to allocate and use the net proceeds of this Offering. However, the nature, amounts and timing of our actual expenditures may vary significantly depending on numerous factors. As a result, our management has and will retain broad discretion over the allocation of the net proceeds from this Offering. We may find it necessary or advisable to use the net proceeds from this Offering for other purposes, and we will have broad discretion in the application of net proceeds from this Offering. Pending our use of the net proceeds from this Offering, we intend to invest the net proceeds in a variety of capital preservation investments, including short-term, investment-grade, interest-bearing instruments, and U.S. government securities. If an unforeseen event occurs or business conditions change, we may use the proceeds of this Offering differently than as described in this prospectus. Such events and conditions could include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays, cancellations, terminations, or changes in anticipated project awards or schedules that alter our near-term capital needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in raw material, labor or subcontracting costs that require us to allocate more proceeds to operating expenses or working capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic or market conditions, such as inflation, interest rate fluctuations, or reduced availability of credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in laws or regulations affecting our operations or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• operational disruptions, including supply chain interruptions or labor shortages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• force majeure events, such as natural disasters, pandemics, or geopolitical instability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strategic opportunities, such as investments in technology, joint ventures, or acquisitions, that were not anticipated at the time of this Offering.

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#### CAPITALIZATION
The following table sets forth our capitalization as of September 30, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma as adjusted basis to reflect the issuance and sale of 2,625,000 shares of Common Stock by us in this Offering at the assumed initial public offering price of $8.0 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, after deducting the estimated discounts to the underwriters, non-accountable expense allowance, and the estimated offering expenses payable by us. The following capitalization table assumes the over-allotment option has not been exercised and fully exercised.

You should read this capitalization table in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and the related notes appearing elsewhere in this prospectus.

---

| | | | |
|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Actual<sup>(1)</sup>** | **Pro Forma As Adjusted<sup>(</sup><sup>2</sup><sup>)</sup>** | **Pro Forma As Adjusted<sup>(</sup><sup>2</sup><sup>)</sup>** |
|  | **Actual<sup>(1)</sup>** | **Assuming no <br>exercise of the <br>over-allotment <br>option** | **Assuming full <br>exercise of the <br>over-allotment <br>option** |
|  Cash | $4648112 | $23498785 | $26428285 |
|  Stockholders' Equity: |  |  |  |
|  Common Stock, (i) $0.0001 par value; 200,000,000 shares of Common Stock authorized; 19,400,000 issued and outstanding on an actual basis, and (ii) $0.0001 par value; 200,000,000 shares of Common Stock authorized; 22,025,000 issued and outstanding on a pro forma as adjusted basis. | $1940 | 2203 | 2242 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 1736415 | 20115325 | 23044786 |
| &nbsp;&nbsp;&nbsp; Retained earnings | 13476035 | 13476035  | 13476035  |
| &nbsp;&nbsp;&nbsp; Total Stockholders' Equity | $15214390 | 33593563 | 36523063 |

---

____________

(1) Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and the 1 for 2 forward stock split effected on December 19, 2025, both of which have been retroactively reflected in the share amounts and per share data presented on an actual basis and in our unaudited interim condensed consolidated financial statements for the nine months ended September 30, 2025.

(2) Reflects the sale of the 2,625,000 shares of Common Stock in this Offering at an assumed initial public offering price of $8.0 per share, the midpoint of the price range set forth on the cover page of the registration statement, and after deducting the estimated underwriting discounts, non-accountable expense allowance, and estimated offering expenses payable by us. The as adjusted information is illustrative only, and we will adjust this information based on the actual initial public offering price and other terms of this Offering determined at pricing. Additional paid-in capital reflects the net proceeds we expect to receive, after deducting the underwriting discounts, non-accountable expense allowance, and estimated offering expenses payable by us. We estimate that such net proceeds will be approximately $18.4 million.

A $1.00 increase (decrease) in the assumed initial public offering price of $8.0 per share would increase (decrease) each of additional paid-in capital, total stockholders' equity and total capitalization by $2.4 million, assuming the number of the Common Stock offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and estimated expenses payable by us.

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#### DILUTION
If you invest in our Common Stock, your interest will be diluted to the extent of the difference between the public offering price per share of our Common Stock that you pay and the pro forma as adjusted net tangible book value per share of our Common Stock after this Offering. Our pro forma as adjusted net tangible book value as of September 30, 2025, was 15.2 million, or $0.78 per share of Common Stock. Our pro forma as adjusted net tangible book value per share represents total assets reduced by goodwill and other intangible assets and total liabilities and divided by the number of shares of Common Stock outstanding immediately prior to the closing of this Offering.

After giving effect to our sale of 2,625,000 shares offered in this Offering based on the estimated initial public offering price of $8.0 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, after deduction of the estimated underwriting discounts and the estimated offering expenses payable by us, our as adjusted net tangible book value as of September 30, 2025, would have been $33.6 million, or $1.53 per outstanding share of Common Stock. This represents an immediate increase in net tangible book value of $0.75 per share of Common Stock to the existing stockholders, and an immediate dilution in net tangible book value of $6.47 per share of Common Stock to investors purchasing the shares of Common Stock in this Offering. The as adjusted information discussed above is illustrative only.

The following table illustrates such dilution:

---

| | | |
|:---|:---|:---|
|  | **Post-Offering<sup>(1)</sup>** | **Full Exercise of <br>Over-Allotment <br>Option** |
|  Assumed initial public offering price per share | $8.0 | $8.0 |
|  Net tangible book value per share as of September 30, 2025 | $0.78 | $0.78 |
|  Increase per share attributable to this Offering | $0.75 | $0.85 |
|  As adjusted net tangible book value per share immediately after this Offering | $1.53 | $1.63 |
|  Amount of dilution in net tangible book value per share to new investors in the Offering | $6.47 | $6.37 |

---

____________

(1) Assumes that the underwriters' over-allotment option has not been exercised.

The following tables summarize, on an as adjusted basis as of September 30, 2025, the differences between existing stockholders and the new investors with respect to the number of shares purchased from us, the total consideration paid and the average price per share before deducting the estimated underwriting discounts and the estimated offering expenses payable by us.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Over-allotment option not <br>exercised** | **Shares purchased**  | **Shares purchased**  | **Total consideration** | **Total consideration** | **Average price <br>Per Share** |
|  **Over-allotment option not <br>exercised** | **Number** | **Percent** | **Amount** | **Percent** | **Average price <br>Per Share** |
|  Existing stockholders | 19400000 | 88% | $15214390 | 42% | $0.78 |
|  New investors | 2625000 | 12% | $21000000 | 58% | $8.00 |
|  Total | 22025000 | 100% | $36214390 | 100% | $1.64 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Over-allotment option <br>exercised in full** | **Shares purchased**  | **Shares purchased**  | **Total consideration** | **Total consideration** | **Average price <br>Per Share** |
|  **Over-allotment option <br>exercised in full** | **Number** | **Percent** | **Amount** | **Percent** | **Average price <br>Per Share** |
|  Existing stockholders | 19400000 | 87% | $15214390 | 39% | $0.78 |
|  New investors | 3018750 | 13% | $24150000 | 61% | $8.00 |
|  Total | 22418750 | 100% | $39364390 | 100% | $1.76 |

---

The as adjusted information as discussed above is illustrative only. Our net tangible book value following the completion of this Offering is subject to adjustment based on the actual initial public offering price of our Common Stock and other terms of this Offering determined at the pricing.

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#### MARKET PRICE AND DIVIDENDS ON REGISTRANT'S COMMON EQUITY<br>AND RELATED STOCKHOLDER MATTERS

#### Market Information
Our Common Stock is not currently listed on any stock exchange. We plan to apply to list our Common Stock listed on a national stock exchange under the symbol "BWGC." The national stock exchange might not approve our listing, and if it does, a trading market might not develop for our Common Stock. We will not proceed with this Offering in the event our Common Stock is not approved for listing on a national stock exchange.

#### Number of Holders
As of January 20, 2026, there are four (4) record holders of our Common Stock.

#### Dividend Policy
On December 31, 2024, Bestwater declared a special dividend in the amount of $2,303,066.04 to Mr. Yunlong Zhang. On June 1, 2025, Bestwater declared a special dividend in an aggregate amount of $1,998,200 to its stockholders as of such date. Other than aforementioned special dividends, we have never declared or paid dividends on our Common Stock. We intend to retain earnings, if any, to support the development of our business and therefore do not anticipate paying cash dividends for the foreseeable future. Payment of future dividends, if any, will be at the discretion of our Board after taking into account various factors, including current financial condition, operating results and current and anticipated cash needs.

#### Securities Authorized for Issuance under Equity Compensation Plans
Our Board of Directors plan to approve and adopt the "2026 Equity Incentive Plan" (the "Plan") before the commencement of the sales of the Offering. The following table discloses information as of the date of this prospectus, with respect to compensation plans (including individual compensation arrangements) under which our equity securities are authorized for issuance, aggregated as follows:

#### Equity Compensation Plan Information

---

| | |
|:---|:---|
|  **Plan category** | **Number of <br>securities to <br>be issued upon <br>exercise of <br>outstanding <br>options or <br>rights** |
| &nbsp;&nbsp;&nbsp; Equity compensation plans approved by security holders |  |
|  Equity compensation plans not approved by security holders |  |
|  Total |  |

---

____________

(1) The number of shares of Common Stock reserved for issuance under our Plan was initially [•]; such amount will increase automatically on each January 1, starting with January 1, 2027, with an additional number of shares of Common Stock equal to the lesser of (A) 2% of the outstanding number of shares of Common Stock (on a fully-diluted basis) on December 31 and (B) such lower number of shares of Common Stock as may be determined by the Board. Therefore, as of January [•], 2026, we had a total of [•] shares of Common Stock available for issuance under the Plan.

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#### MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION <br>AND RESULTS OF OPERATIONS
*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this prospectus. This discussion and analysis and other parts of this prospectus contain forward*-looking *statements based upon current beliefs, plans and expectations that involve risks, uncertainties, and assumptions. Our actual results and the timing of selected events could differ materially from those anticipated in these forward*-looking *statements as a result of several factors, including those set forth under "Risk Factors" and elsewhere in this prospectus. You should carefully read the "Risk Factors" section of this prospectus to gain an understanding of the important factors that could cause actual results to differ materially from our forward*-looking *statements.*

#### Overview
We are a U.S.-based EPC company that provides design, construction, and integration services for critical process systems across multiple industrial sectors. We serve companies in automotive parts manufacturing, energy storage and battery manufacturing, renewable energy infrastructure, electronics production, and advanced manufacturing.

Our business has been built on serving international companies, primarily overseas enterprises, seeking to establish and expand their manufacturing operations in the United States. We believe this foundation has given us deep expertise in navigating complex regulatory frameworks, international business practices, and the technical requirements of sophisticated manufacturing processes. We are now leveraging these capabilities to expand our client base to include domestic and more foreign companies with similar technical and project execution needs, and to explore opportunities in public sector projects. This strategy aims to diversify our client base and reduce concentration risk.

As of the date of this prospectus, we meet the eligibility requirements to bid on government projects in Texas and actively participate in government bids in Texas, and have dedicated personnel responsible for bidding on a regular basis. These efforts include monitoring and submitting bids for city-led municipal water and wastewater infrastructure projects.

We believe our Houston headquarters positions us a strong base to serve clients throughout North America, with proximity to what we believe to be major industrial corridors, suppliers, and skilled labor markets. While not unique to Houston, we believe this combination of logistical accessibility and industry ecosystem makes it a compelling location for supporting our EPC operations. Our experience bridging international standards with U.S. regulatory requirements, combined with our track record in complex industrial projects, enables us to deliver efficient, compliant solutions for any client seeking comprehensive EPC services. We continue to expand our footprint across Texas, Arizona, Florida, and other key markets. Our strategy focuses on delivering turnkey industrial solutions that meet the unique operational and cultural needs of overseas manufacturers entering the U.S. market.

For the years ended December 31, 2023 and 2024, our revenue was approximately $29.1 million and approximately $102.0 million, respectively. The revenue from EPC services accounted for approximately $28.0 million, representing 96% of the total revenue for the year ended December 31, 2023, and approximately $102.0 million, representing 100% of the total revenue for the year ended December 31, 2024, respectively. Our net income was approximately $4.1 million and approximately $7.8 million for the years ended December 31, 2023 and 2024, respectively.

For the three-month periods ended September 30, 2024 and 2025, our revenue was approximately $41.9 million and approximately $1.9 million, respectively. The revenue from EPC services accounted for approximately $41.9 million, representing 100% of the total revenue for the three-month period ended September 30, 2024 and approximately $1.8 million, representing 94% of the total revenue for the three-month period ended September 30, 2025, respectively. Our net income (loss) was approximately $3.6 million and approximately $(0.4) million for the three-month periods ended September 30, 2024 and 2025, respectively.

For the nine-month periods ended September 30, 2024 and 2025, our revenue was approximately $66.3 million and approximately $19.9 million, respectively. The revenue from EPC services accounted for approximately $66.2 million, representing approximately 100% of the total revenue for the nine-month period ended September 30, 2024 and approximately $19.7 million, representing 99% of the total revenue for the nine-month period ended September 30, 2025, respectively. Our net income was approximately $5.6 million and approximately $5.4 million for the nine-month periods ended September 30, 2024 and 2025, respectively.

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#### KEY FACTORS AFFECTING THE RESULTS OF OUR GROUP'S OPERATIONS
Our financial condition and results of operation have been and will continue to be affected by a number of factors, many of which may be beyond our control, including those factors set out in the section headed "Risk Factors" in this prospectus and those set out below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Demand from our major client groups*** — We derive a substantial portion of our revenue from a limited number of clients. For the year ended December 31, 2023, one major client accounted for 96% of our total revenues. For the year ended December 31, 2024, two major clients accounted for 78% and 19% of our total revenues. Our accounts receivables and contract assets also reflect this concentration. As of December 31, 2023, two major clients accounted for 56% and 44% of our total accounts receivable. As of December 31, 2024, one major client accounted for 100% of our total accounts receivable. As of December 31, 2023, one major client accounted for 100% of our total contract assets. As of December 31, 2024, two major clients accounted for 65% and 30% of our total contract assets.

For the three-month period ended September 30, 2024, two major clients accounted for 84% and 14% of our total revenues. For the three-month period ended September 30, 2025, two major clients accounted for 45% and 38% of our total revenues. For the nine-month period ended September 30, 2024, two major clients accounted for 75% and 24% of our total revenues. For the nine-month period ended September 30, 2025, two major clients accounted for 70% and 13% of our total revenues. Our accounts receivables and contract assets also reflect this concentration. As of September 30, 2025, four major clients accounted for 32%, 22%, 20% and 18% of our total accounts receivable. As of September 30, 2025, two major clients accounted for 69% and 30% of our total contract assets.

Although we expect a continued degree of revenue concentration in the near term, as of the date of this prospectus, we aim to expand our client base, build repeat-client momentum, and further diversify project pipelines which we believe will position us to reduce client concentration over time. Nevertheless, the timing of new contract execution and the resumption of paused projects may lead to fluctuations in revenue recognition and cash flow in the short term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Fluctuations in the cost of our revenues*** — Subcontracting costs and project related expenses are the largest part of our cost of revenue. These costs are subject to fluctuations due to several key factors, including variations in project size and scope; changes in labor availability and subcontractor rates;<br>fluctuations in raw material prices (e.g., steel, concrete, electrical components); project site conditions and logistics; and supply chain delays or disruptions affecting the timing and cost of materials and subcontracted services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Concentration of supply*** — For the year ended December 31, 2023, three vendors accounted for 24%, 14% and 12% of our total cost of revenues. For the year ended December 31, 2024, four vendors accounted for 19%, 18%, 14% and 13% of our total cost of revenues. For the three-month period ended September 30, 2024, three vendors accounted for 25%, 22% and 18% of our total cost of revenues. For the three-month period ended September 30, 2025, four vendors accounted for 21%, 19%, 17% and 11% of our total cost of revenues. For the nine-month period ended September 30, 2024, four vendors accounted for 19%, 18%, 12% and 11% of our total cost of revenues. For the nine-month period ended September 30, 2025, three vendors accounted for 34%, 16% and 14% of our total cost of revenues. This concentration is not the result of strategic reliance on specific subcontractors, but rather reflects project-specific factors, such as the technical complexity or volume of work in certain trades (e.g., electrical or mechanical), that cause certain vendors to assume a larger role in specific projects. All subcontractors and suppliers are selected through competitive bidding based on each project's scope, location, and schedule. While we maintain an expanding vendor pool, changes in pricing, availability, or performance of these key vendors could adversely impact our cost structure and operating margins. We continue to manage this risk by evaluating alternative vendors and negotiating favorable terms where appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Inflation risk*** — Inflationary factors, such as increases in material costs, subcontracting costs, project related employee benefits expenses and miscellaneous project expenses, could impair our operating results. For example, prices for key inputs such as steel, copper, and concrete continue to fluctuate due to global supply chain disruptions. A high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses as a percentage of sales revenue if the revenues do not increase with such increased costs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Geopolitical tensions and trade policies*** — Our projects may be affected by external policy changes and international trade developments, particularly when they involve imported equipment and materials. In February 2025, we signed a $30 million contract with a client in the battery manufacturing industry for the construction of a production facility. However, in June 2025, the project was placed on hold. We believe this was in part due to significantly increased U.S. tariffs on certain types of machinery and production equipment, some of which have been subject to tariffs of up to 145%, as well as additional duties on steel and aluminum. These policy shifts significantly raised projected capital expenditures and delayed critical equipment installation. While the contract has not been terminated and we remain in active communication with the client, there is currently no definitive timeline for resumption. This instance reflects the potential impact of external macroeconomic and policy factors on specific projects, rather than a trend affecting our overall client base. We continue to monitor relevant policy developments and maintain flexibility in project scheduling and resource allocation.

Despite these headwinds, we believe our specialization in delivering EPC services to U.S.-based manufacturing ventures positions us to benefit from ongoing trends in reshoring and foreign direct investment into the U.S. industrial base. These trends have been driven in part by geopolitical tensions, global supply chain disruptions, and government incentives that encourage strategic sectors to localize production and reduce reliance on overseas manufacturing.

#### Description and Analysis of Principal Components of Our Results of Operations
The following discussion is based on our Company's historical results of operations and may not be indicative of our Group's future operating performance.

<u>**<u>Comparison of operating results for the financial years ended December 31, 2023 and 2024</u>**</u>

The following table shows our statement of operations data for the fiscal years ended December 31, 2023 and 2024. For further information regarding the results of our operations, see our financial statements appearing elsewhere in this prospectus.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2023** | **For the <br>year ended <br>December 31, <br>2024** | **Change** | **Change** |
|  | **US$** | **US$** | **US$** | |
|  **Revenue** | 29075604 | 102048355 | 72972751 | 251% |
|  Cost of revenues | (21962790) | (88920480) | (66957690) | 305% |
|  **Gross profit** | **7112814** | **13127875** | **6015061** | 85% |
|  **Operating expenses:** |  |  |  |  |
|  Selling, general, and administrative expenses | (1899253) | (3396780) | (1497527) | 79% |
|  **Total operating expenses** | (1899253) | (3396780) | (1497527) | 79% |
|  **Income from operations** | **5213561** | **9731095** | **4517534** | **87**% |
|  **Other income** |  |  |  |  |
|  Interest income | 271 | 105115 | 104844 | 38688% |
|  **Total other income** | **271** | **105115** | **104844** | **38688**% |
|  **Income before income tax expense** | **5213832** | **9836210** | **4622378** | **89**% |
|  Income tax expense | (1094905) | (2065604) | (970699) | 89% |
|  **Net income** | **4118927** | **7770606** | **3651679** | 89% |

---

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<u>**<u>Comparison of operating results for the</u> <u>three-month</u> <u>periods ended September 30, 2024 and 2025</u>**</u>

The following table shows our statement of operations data for the three-month periods ended September 30, 2024 and 2025. For further information regarding the results of our operations, see our financial statements appearing elsewhere in this prospectus.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the <br>three-month <br>period ended <br>September 30, <br>2024** | **For the <br>three-month <br>period ended <br>September 30, <br>2025** | **Change** | **Change** |
|  | **US$** | **US$** | **US$** | |
|  **Revenue** | 41941712 | 1872377 | (40069335) | (96)% |
|  Cost of revenues | (36848681) | (1487849) | 35360832 | (96)% |
|  **Gross profit** | **5093031** | **384528** | **(4708503**) | (92)% |
|  **Operating expenses:** |  |  |  |  |
|  Selling, general and administrative expenses | (532355) | (955939) | (423584) | 80% |
|  **Total operating expenses** | (532355) | (955939) | (423584) | 80% |
|  **Income (Loss) from operations** | **4560676** | **(571411**) | **(5132087**) | **(113)**% |
|  **Other income** |  |  |  |  |
|  Interest income | 21199 | 29462 | 8263 | 39% |
|  **Total other income** | **21199** | **29462** | **8263** | **39**% |
|  **Income (Loss) before income tax expense** | **4581875** | **(541949)** | **(5123824**) | **(112)**% |
|  Income tax (expense) benefit | (962368) | 113809 | 1076177 | (112)% |
|  **Net income (loss)** | **3619507** | **(428140)** | **(4047647**) | (112)% |

---

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<u>**<u>Comparison of operating results for the</u> <u>nine-month</u> <u>periods ended September 30, 2024 and 2025</u>**</u>

The following table shows our statement of operations data for the nine-month periods ended September 30, 2024 and 2025. For further information regarding the results of our operations, see our financial statements appearing elsewhere in this prospectus.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the <br>nine-month <br>period ended <br>September 30, <br>2024** | **For the <br>nine-month <br>period ended <br>September 30, <br>2025** | **Change** | **Change** |
|  | **US$** | **US$** | **US$** | |
|  **Revenue** | 66266834 | 19867626 | (46399208) | (70)% |
|  Cost of revenues | (57338720) | (9075285) | 48263435 | (84)% |
|  **Gross profit** | **8928114** | **10792341** | **(1864227**) | (21)% |
|  **Operating expenses:** |  |  |  |  |
|  Selling, general and administrative expenses | (1968801) | (4074212) | (2105411) | 107% |
|  **Total operating expenses** | (1968801) | (4074212) | (2105411) | 107% |
|  **Income from operations** | **6959313** | **6718129** | **(241184)** | **(3)**% |
|  **Other income** |  |  |  |  |
|  Interest income | 76190 | 80654 | 4464 | 6% |
|  **Total other income** | **76190** | **80654** | **4464** | **6**% |
|  **Income before income tax expense** | 7035503 | 6798783 | **(236720**) | **(3)**% |
|  Income tax expense | (1477456) | (1427744) | 49712 | (3)% |
|  **Net income** | 5558047 | 5371039 | **(187008**) | (3)% |

---

#### Revenue
As set forth in the following table, during the years ended December 31, 2023 and 2024, our revenue was derived from EPC services and sales of equipment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  EPC services | 28009454 | 96% | 101951758 | 100% |
|  Sales of equipment | 1066150 | 4% | 96597 | 0% |
|  **Total** | **29075604** | **100**% | **102048355** | **100**% |

---

Our total revenue increased by approximately $73.0 million, or 251%, to approximately $102.1 million for the year ended December 31, 2024 from approximately $29.1 million for the year ended December 31, 2023. The increase was primarily attributable to the commencement and execution of a major EPC contract, which contributed approximately $79.6 million, or 78% of our total revenue in 2024. The remaining approximately $22.4 million was generated from other EPC projects, compared to approximately $28.0 million in 2023, reflecting both new contract awards and the completion of certain ongoing projects. Revenue from equipment sales decreased from approximately $1.1 million in 2023 to approximately $0.1 million in 2024. Accordingly, the year-over-year revenue increase was driven predominantly by the Solar Agreement, partially offset by decreases in other EPC activities and equipment sales.

In April 2025, the client under the Solar Agreement exercised its right to terminate for convenience. The termination did not result from any performance issues or breach by us. As of December 31, 2024, we recognized approximately $79.6 million of revenue under the Solar Agreement, representing 90.5% of the total contract value of approximately $88 million. The majority of the project work was completed prior to the termination and while

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we believe we are entitled to a termination fee, covering completed work and related costs, this termination has discontinued a substantial source of revenue present in 2024. As a result, we believe our results of operations for 2024 should not be considered indicative of our future operating results or financial condition.

As of September 30, 2025, we recognized approximately $93.4 million in revenue from the Solar Agreement, representing 100% of its total contract value. Out of the total contract value, $13.9 million was recognized for the nine months ended September 30, 2025.

Subsequent to December 31, 2024, we entered into several EPC contracts with different clients, each generally in the single-digit million dollar range. While the aggregate value of these contracts is not comparable to the Solar Agreement, we believe they broaden our client base and may support future revenue opportunities.

As set forth in the following table, for the three-month and nine-month periods ended September 30, 2024 and 2025, our revenue was derived from EPC services and sales of equipment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  EPC services | 41941712 | 100% | 1751457 | 94% |
|  Sales of equipment |  | —% | 120920 | 6% |
|  **Total** | **41941712** | **100**% | **1872377** | **100**% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  EPC services | 66195790 | 100% | 19707106 | 99% |
|  Sales of equipment | 71044 | 0% | 160520 | 1% |
|  **Total** | **66266834** | **100**% | **19867626** | **100**% |

---

Our total revenue decreased by approximately $40.0 million, or 96%, to approximately $1.9 million for the three-month period ended September 30, 2025 from approximately $41.9 million for the three-month period ended September 30, 2024. Our total revenue decreased by approximately $46.4 million, or 70%, to approximately $19.9 million for the nine-month period ended September 30, 2025 from approximately $66.3 million for the nine-month period ended September 30, 2024. The decrease was primarily due to the postponement of a $30 million EPC contract with a new client in the battery manufacturing industry, as well as the completion of several large-scale projects in early to mid-2025 that had contributed to revenue in prior periods. The project, which was signed in February 2025 and expected to commence shortly thereafter, was placed on hold in June 2025. While the contract has not been terminated and we remain in active communication with the client, as of the date of this prospectus, there is currently no definitive timeline for resumption.

#### Cost of revenues
During the years ended December 31, 2023 and 2024, our cost of revenues increased by approximately $66.9 million or 305% to approximately $88.9 million for the year ended December 31, 2024 from approximately $22.0 million for the year ended December 31, 2023. Such an increase was correlated to the increase in revenue from EPC services.

Our cost of revenues decreased by approximately $35.3 million or 96% to approximately $1.5 million for the three-month period ended September 30, 2025, from approximately $36.8 million for the three-month period ended September 30, 2024. For the nine-month periods ended September 30, 2024 and 2025, our cost of revenues decreased by approximately $48.3 million or 84% to approximately $9.0 million for the nine-month period ended September 30, 2025, from approximately $57.3 million for the nine-month period ended September 30, 2024. This decrease was primarily correlated with the decrease in revenue from EPC services, as project activity was significantly lower during the period. Amounts payable to certain vendors were accrued based on vendor contract amount as of December 31, 2024. During the invoice reconciliation process with those vendors in 2025, we revised our estimates for certain accrued amounts, resulting in approximately $3.7 million decrease from the amounts previously accrued. This change was attributable to improved vendor efficiency and did not result from any changes in project scope or contractual terms. The change in estimate was recorded as a reduction in cost of revenues for the nine months ended September 30, 2025.

[**Table of Contents**](#TOC001)

#### Gross profit
Our gross profit margin decreased from approximately 24% in the year ended December 31, 2023 to approximately 13% in the year ended December 31, 2024. The decrease was primarily due to the following factors: (i) a significant portion of our 2024 revenue was generated from a large new client project in Arizona, for which we adopted a relatively lower bidding margin strategy in order to secure the contract; (ii) larger-scale projects generally have lower profit margins compared to smaller projects due to the competitive bidding environment and pricing structures; and (iii) the Arizona project, being our first project of this scale, incurred substantial consulting and advisory fees, which were necessary during the initial execution phase but are not expected to recur at similar levels in future projects of comparable size.

Our gross profit margin increased from approximately 12% for the three-month period ended September 30, 2024, to approximately 21% for the three-month period ended September 30, 2025. The increase was primarily driven by a favorable change order on one of our EPC projects, which provided additional compensation at a higher margin relative to our other project activities during the period. As overall project volume declined during the three-month ended September 30, 2025, this high-margin change order contributed a proportionally larger share of total gross profit.

Our gross profit margin increased from approximately 13% for the nine-month period ended September 30, 2024 to approximately 54% for the nine-month period ended September 30, 2025. The increase was primarily driven by a favorable change order on one of our EPC projects, which provided additional compensation at a higher margin relative to our other project activities during the period. In addition, amounts payable to certain vendors were accrued based on vendor contract amount as of December 31, 2024. During the invoice reconciliation process with those vendors in 2025, we revised our estimates for certain accrued amounts, resulting in approximately $3.7 million decrease from the amounts previously accrued. This change was attributable to improved vendor efficiency and did not result from any changes in project scope or contractual terms. This change in estimate was recorded as a reduction in cost of revenues for the nine months ended September 30, 2025. As overall project volume declined in 2025, this high-margin change order and deduction of cost of revenues contributed a proportionally larger share of total gross profit, which may not be indicative of our gross profit margins or operating results in future periods.

#### Selling, general and administrative expenses
The following table sets forth the breakdown of our selling, general and administrative expenses for the financial years ended December 31, 2023 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  Payroll and welfare expenses | 1098944 | 58% | 1570663 | 46% |
|  Office expenses | 489574 | 26% | 1003594 | 30% |
|  Operating lease expenses | 14866 | 1% | 65765 | 2% |
|  Professional service expenses | 163925 | 8% | 645265 | 19% |
|  Depreciation and amortization |  | —% | 32747 | 1% |
|  Share-based compensation expenses | 128696 | 7% |  | —% |
|  Selling expenses | 3248 | 0% | 78746 | 2% |
|  **Total** | 1899253 | 100% | 3396780 | 100% |

---

General and administrative expenses increased by approximately $1.5 million or 79% to approximately $3.4 million for the year ended December 31, 2024, from approximately $1.9 million for the year ended December 31, 2023. Such increase was mainly attributable to the increase in revenue generated from EPC services of approximately $73.9 million. In 2024, the Company expanded its workforce by hiring additional project management, engineering, and administrative personnel, as well as the strengthening its bidding and client development teams. The Company also participated in marketing activities and industry events designed to enhance visibility and support future contract acquisition. In turn, these initiatives contributed to the rise in selling, general, and administrative expenses to support increased business volume.

The Company expects that certain general and administrative expenses, including those related to legal and financial advisory services, will continue to increase in 2026 as it engages with consultants to support future growth and capital market activities.

[**Table of Contents**](#TOC001)

The following table sets forth the breakdown of our selling, general and administrative expenses for the three-month and nine-month periods ended September 30, 2024 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  Payroll and welfare expenses | 330730 | 62% | 471815 | 50% |
|  Office expenses | 112404 | 21% | 147679 | 15% |
|  Operating lease expenses | 21018 | 4% | 1711 | 0% |
|  Professional service expenses | 43212 | 8% | 322514 | 34% |
|  Depreciation and amortization | 8848 | 2% | 8848 | 1% |
|  Selling expenses | 16143 | 3% | 3372 | 0% |
|  **Total** | 532355 | 100% | 955939 | 100% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  Payroll and welfare expenses | 1018523 | 52% | 1656962 | 41% |
|  Office expenses | 611392 | 31% | 622366 | 15% |
|  Operating lease expenses | 55371 | 3% | 2687 | 0% |
|  Professional service expenses | 199961 | 10% | 456773 | 11% |
|  Depreciation and amortization | 23899 | 1% | 26544 | 1% |
|  Share-based compensation expenses |  | —% | 1296619 | 32% |
|  Selling expenses | 59655 | 3% | 12261 | 0% |
|  **Total** | 1968801 | 100% | 4074212 | 100% |

---

Selling, general, and administrative expenses increased by approximately $0.5 million or 80% to approximately $1.0 million for the three-month period ended September 30, 2025, from approximately $0.5 million for the three-month period ended September 30, 2024. Selling, general, and administrative expenses increased by approximately $2.1 million or 107% to approximately $4.1 million for the nine-month period ended September 30, 2025, from approximately $2.0 million for the nine-month period ended September 30, 2024.

The increase was primarily driven by the Company's continued business expansion efforts, including the hiring of additional project management, engineering and administrative personnel to support ongoing operations. In addition, professional service expenses increased due to higher audit fees in connection with our proposed initial public offering and legal fees for a closed litigation proceeding. The increase in selling, general and administrative expenses for the nine-month period also reflected the recognition of share-based compensation expenses of approximately $1.3 million in 2025, to decline following the completion of this Offering. In addition, the share-based compensation arising from a one-time grant of equity awards that were fully vested upon grant, resulting in immediate expense recognition. A portion of these increases, particularly professional service fees related to audit, legal and capital market preparation activities, is non-recurring and is expected expenses recognized in 2025 resulted from a one-time equity incentive grant and are not expected to recur in future periods.

Payroll and welfare expenses were mainly represented by the salaries, allowances to our employees and share-based compensation expense, primarily for our corporate, executive, finance and other administrative functions.

Office expenses were mainly represented by insurance, travel expenses and software expenses.

Professional service expenses were mainly represented by the financial, legal advisory service and other services rendered by the professionals outside the Company.

[**Table of Contents**](#TOC001)

#### Other Income
Our interest income increased from bank deposit increases by $104,844 for the year ended December 31, 2024. This is mainly due to more placement of deposits attributable to increase in funds from operation during the year ended December 31, 2024.

Our interest income increased from bank deposit increases by $8,263 and $4,464 for the three-month and nine-month period ended September 30, 2025, respectively, from the three-month and nine-month period ended September 30, 2024. This is mainly due to more placement of deposits attributable to increase in funds from operation during the three-month and nine-month period ended September 30, 2025.

#### Income Tax Expenses
During the financial years ended December 31, 2023 and 2024, our income tax expense comprised of our current tax expense and deferred tax for the financial year.

For the year ended December 31, 2024, our income tax increased to approximately $2.1 million and our effective tax rate, calculated as income tax divided by profit before income tax, was approximately 21% due to the increase on the growth of revenue. Such income tax increase was generally in line with the increase in our profit for the financial year.

For the three-month period ended September 30, 2025, our income tax benefit was approximately $0.1 million, compared to our income tax expense was approximately $1.0 million for the three-month period ended September 30, 2024. The decrease was primarily due to the decline in our profit before income tax for the period, and the change in income tax expense was generally in line with the change in our profitability.

There were no significant changes on our income tax expense from the nine-month period ended September 30, 2024, to the nine-month period ended September 30, 2025.

#### Net Income
As a result of the foregoing, our net income amounted to approximately $4.1 million and approximately $7.8 million for the financial years ended December 31, 2023 and 2024, respectively.

As a result of the foregoing, our net income amounted to approximately $3.6 million and our net loss amounted to approximately $0.4 million for the three-month periods ended September 30, 2024 and 2025, respectively.

As a result of the foregoing, our net income amounted to approximately $5.6 million and approximately $5.4 million for the nine-month periods ended September 30, 2024 and 2025, respectively.

#### Liquidity and Capital Resources
As of December 31, 2024, we had approximately $9.4 million in cash, compared to approximately $9.6 million as of December 31, 2023. The slight decrease was primarily due to cash outflows from investing activities on purchasing the vehicle, partially offset by positive cash flow from operating activities.

As of September 30, 2025, we had approximately $4.6 million in cash, compared to approximately $9.4 million as of December 31, 2024. The decrease was primarily attributable to cash outflows from operating activities, driven by lower revenues during the period, and financing activities related to the dividend payment made to stockholders in July 2025.

Our liquidity and working capital requirements have primarily related to our operating expenses. Historically, we have met our working capital and other liquidity requirements primarily through a combination of cash generated from our operations. Going forward, we expect to fund our working capital and other liquidity requirements from various sources, including but not limited to cash generated from our operations, the net proceeds from this Offering and other equity or debt financings as and when appropriate.

[**Table of Contents**](#TOC001)

We believe that our operations are self-sustaining and that our current cash position is sufficient to meet our working capital needs and planned capital expenditures for at least the next 12 months from the date of this prospectus.

#### Material Cash Requirements

#### Working Capital
As of December 31, 2024, we had approximately $9.4 million in cash and net current assets of approximately $10.4 million. Subsequent to December 31, 2024, and up to the date of this prospectus, we have not received additional paid-in capital and our cash position has not materially changed.

In April 2025, our largest client terminated for convenience the Solar Agreement with a total contract value of approximately $88 million. As of December 31, 2024, we recognized approximately $79.6 million from the Solar Agreement, which represented approximately 78% of our total revenue for the year ended December 31, 2024. We substantially completed our scope of work under the Solar Agreement prior to termination and we believe we are entitled to receive payments under the termination provisions, covering completed work and demobilization costs. We have recognized an aggregate of $93.4 million in revenue from the Solar Agreement in accordance with applicable accounting principles. As of the date of this prospectus, approximately $4.0 million of contract assets which are not billed yet and $0.3 million of the recognized amount remains outstanding and has not yet been collected in cash.

In addition, a $30 million EPC contract awarded in February 2025 was placed on hold in June 2025, which we believe was due to significant increases in the U.S. tariffs on imported machinery and equipment. While this hold delays revenue recognition, it also defers the related cost outlays. While higher tariffs may increase costs on certain inputs such as steel and aluminum, we believe they may also encourage additional domestic manufacturing investment, which could support demand for our EPC services over the longer term.

Our historical operating cash requirements primarily consist of selling, general and administrative expenses ("SG&A"), which were approximately $3.4 million in the year ended December 31, 2024. By comparison, our $9.4 million cash balance as of December 31, 2024, was nearly three times our annual SG&A expenses. Our cost of revenues, by contrast, fluctuates with the size of projects under execution and are generally matched by project-related cash inflows. Taking these factors together, we believe our current cash position, combined with expected payments under existing contracts and costs for the commercialization of our modular water treatment systems products, provides sufficient liquidity to support our operations and meet our obligations for at least the next 12 months from the date of this prospectus.

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  Total current assets | 14518964 | 24041132 |
|  Total current liabilities | (9443072) | (13594971) |
|  Net current assets | 5075892 | 10446161 |

---

As of September 30, 2025, we had approximately $4.6 million in cash and net current assets of approximately $15.1 million. The increase in net current assets compared to December 31, 2024, was mainly due to a decrease in current liabilities as certain project-related payables were settled during the period. Subsequent to September 30, 2025, and up to the date of this prospectus, we have not received additional paid-in capital and our cash position has not materially changed.

Our historical operating cash requirements primarily consist of selling, general and administrative expenses ("SG&A"), which were approximately $4.1 million for the nine-month period ended September 30, 2025. SG&A for the period included payroll and welfare expenses due to the hiring of additional project management, engineering and administrative personnel to support ongoing operations, professional service fees related to audit and legal, as well as a one-time share-based compensation expense of approximately $1.3 million. By contrast, our cost of revenues fluctuates with project execution levels and is generally matched by project-related cash inflows.

[**Table of Contents**](#TOC001)

Taking these factors together, we believe our current cash position, combined with expected payments under existing contracts, provides sufficient liquidity to support our operations and meet our obligations for at least the next 12 months from the date of this prospectus.

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  | | **(Unaudited)** |
|  Total current assets | 24041132 | 22256266 |
|  Total current liabilities | (13594971) | (7115580) |
|  Net current assets | 10446161 | 15140686 |

---

#### Cash flows
The following table summarizes our cash flows for the financial years ended December 31, 2023 and 2024:

---

| | | |
|:---|:---|:---|
|  | **For the years ended <br>December 31,** | **For the years ended <br>December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  **Cash as of beginning of the year** | 217813 | 9573299 |
|  Net cash provided by operating activities | 11569163 | 58907 |
|  Net cash used in investing activities |  | (99018) |
|  Net cash used in financing activities | (2213677) | (89389) |
|  Net change in cash | 9355486 | (129500) |
|  **Cash as of the end of the year** | 9573299 | 9443799 |

---

#### Cash flows from operating activities
Our cash inflow from operating activities was principally receipt of payments from clients. Our cash outflows from operating activities were principally due to payments to subcontractors, and for salaries, raw materials, rental, and other administrative and operating expenses. Net cash provided by operating activities reflects our net income adjusted for depreciation of equipment, amortization of right-of-use assets, share-based compensation expense and change in operating assets and liabilities items including accounts receivable, contract assets, amount due from related parties, prepayments and other current assets, accounts payables, contract liabilities, income tax payables, accrued expense and other current liabilities and other non-current liabilities.

For the year ended December 31, 2024, our net cash provided by operating activities was approximately $0.1 million, which primarily reflected our net income of approximately $7.8 million, as negatively adjusted by (i) increase of accounts receivable of approximately $0.9 million, and (ii) increase of contract assets of approximately $10.2 million and positively adjusted by (iii) increase of accounts payable of approximately $3.6 million.

For the year ended December 31, 2023, our net cash provided by operating activities was approximately $11.6 million, which primarily reflected our net income of approximately $4.1 million, as negatively adjusted by (i) increase of contract assets of approximately $2.2 million and positively adjusted by (ii) increase of accounts payable of approximately $7.0 million, and (iii) increase of income tax payable of approximately $1.3 million.

#### Cash flows from investing activities
Our cash flows used in investing activities primarily consisted of purchase of vehicles for business uses.

For the year ended December 31, 2024, our net cash used in investing activities was approximately $0.1 million, primarily due to purchase of vehicles.

[**Table of Contents**](#TOC001)

#### Cash flows from financing activities
Our cash flows used in financing activities primarily consists of amounts borrowed to, and repayments made by the director.

For the year ended December 31, 2024, our net cash used in financing activities was approximately $0.1 million, which mainly consisted of amounts borrowed to and repayment made by the related party.

For the year ended December 31, 2023, our net cash used in financing activities was approximately $2.2 million, which mainly consisted of amounts borrowed to and repayment made by the related party.

The following table summarizes our cash flows for the nine-month periods ended September 30, 2024 and 2025:

---

| | | |
|:---|:---|:---|
|  | **For the nine-month periods ended <br>September 30,** | **For the nine-month periods ended <br>September 30,** |
|  | **2024** | **2025** |
|  | **US$** | **US$** |
|  **Cash at the beginning of the period** | 9573299 | 9443799 |
|  Net cash used in operating activities | (2054880) | (2325987) |
|  Net cash used in investing activities | (99018) |  |
|  Net cash provided by (used in) financing activities | 211611 | (2469700) |
|  Net change in cash | (1942287) | (4795687) |
|  **Cash as of the end of the year** | 7631012 | 4648112 |

---

#### Cash flows from operating activities
Our cash inflows from operating activities primarily consist of payments received from clients, while our cash outflows primarily relate to payments to subcontractors, salaries, materials, rental expenses and other administrative and operating costs. Net cash provided by operating activities reflects our net income adjusted for non-cash items, including depreciation of equipment, amortization of right-of-use assets and share-based compensation expenses, as well as changes in operating assets and liabilities.

For the nine-month period ended September 30, 2025, our net cash used in operating activities was approximately $2.3 million. This amount primarily reflected our net income of approximately $5.4 million, adjusted for non-cash items and significant changes in working capital. Operating cash flow was negatively affected by (i) an increase in accounts receivable of approximately $0.8 million, (ii) an increase in prepayments and other current assets of approximately $1.0 million and (iii) a decrease in accounts payable of approximately $4.1 million as outstanding payables from prior project activities were settled. These impacts were partially offset by (iv) an increase in contract liabilities of approximately $1.4 million. The combination of these working capital movements resulted in net cash used in operating activities for the period.

For the nine-month period ended September 30, 2024, our net cash used in operating activities was approximately $2.1 million. Although we generated net income of approximately $5.6 million during the period, operating cash flow was negatively impacted by (i) an increase in contract assets of approximately $5.2 million, reflecting timing differences in revenue recognition and billings, and (ii) a decrease in accounts payable of approximately $3.9 million. These impacts were partially offset by (iii) an increase in contract liabilities of approximately $1.2 million and (iv) an increase in income tax payable of approximately $1.3 million. As a result, we recorded net cash used in operating activities for the period.

#### Cash flows from investing activities
Our cash flows used in investing activities primarily consisted of purchase of vehicles for business uses.

For the nine-month period ended September 30, 2024, our net cash used in investing activities was approximately $0.1 million, primarily due to purchase of vehicles to support project execution and administrative functions. For the nine-month period ended September 30, 2025, we did not have any material investing activities, and cash flows from investing activities were not significant for the period.

[**Table of Contents**](#TOC001)

#### Cash flows from financing activities
Our cash flows from financing activities primarily consist of advances from and repayments to related parties, dividend distributions and payments of deferred offering costs.

For the nine-month period ended September 30, 2025, our net cash used in financing activities was approximately $2.5 million, which was primarily due to the payment of dividends of approximately $2.0 million to our stockholders and the payment of approximately $0.5 million in deferred initial public offering costs. These financing outflows were non-recurring in nature and were related to capital market activities and the Company's pre-offering capital structure.

For the nine-month period ended September 30, 2024, our net cash provided by financing activities was approximately $0.2 million, primarily reflecting short-term advances from and repayments to a related party.

#### Accounts receivable
Our net accounts receivable increased from approximately $0.1 million as of December 31, 2023 to approximately $1.0 million as of December 31, 2024. The increase was primarily attributable to our revenue from EPC services.

The following table sets forth the ageing analysis of our accounts receivable, net, based on the invoiced date as of the dates mentioned below:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  Within 30 days |  | 970500 |
|  Between 31 and 60 days |  |  |
|  Between 61 and 90 days |  |  |
|  Over 91 days | 83287 |  |
|  Accounts receivables, net | 83287 | 970500 |

---

We have a policy for determining the allowance for credit loss based on the evaluation of collectability and aging analysis of accounts receivable and on management's judgement, including the change in credit quality, the past collection history of each client and the current market condition.

The loss allowance for accounts receivable related to a general provision for accounts receivable applying the simplified approach to providing for expected credit loss(es) (the "ECL(s)"). Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk of default. An ECL rate is calculated based on historical loss rates of the industry in which our clients operate and aging of the accounts receivable.

During the years ended December 31, 2023 and 2024, there was no allowance.

Our net accounts receivable increased from approximately $1.0 million as of December 31, 2024, to approximately $1.8 million as of September 30, 2025. The increase was primarily attributable to the timing of billings and collections under ongoing EPC contracts rather than an increase in revenue volume. Certain milestone billings were issued but not yet collected as of period end, resulting in a higher accounts receivable balance.

The following table sets forth the ageing analysis of our accounts receivable, net, based on the invoiced date as of the dates mentioned below:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  Within 30 days | 970500 | 484123 |
|  Between 31 and 60 days |  | 15821 |
|  Between 61 and 90 days |  |  |
|  Over 91 days |  | 1291437 |
|  Accounts receivables, net | 970500 | 1791381 |

---

[**Table of Contents**](#TOC001)

The increase in amounts aged over 91 days as of September 30, 2025 was mainly due to delays in client payment processing and the timing of certification and approval cycles under our EPC contracts. Our EPC agreements generally include progress-certification-and-billing provisions ("PCABO"), under which billings are tied to verified milestones and obligate clients to remit payment upon certification. These contractual mechanisms support the collectability of our accounts receivable, and the ageing profile reflects timing differences rather than deterioration in credit quality.

Based on management's assessment of client credit quality, payment history, project status, and contractual billing protections, no allowance for credit losses was recorded for the nine-month periods ended September 30, 2024 and 2025.

#### Contract assets
Our contract assets increased from approximately $2.5 million as of December 31, 2023 to approximately $12.7 million as of December 31, 2024. The increase was primarily attributable to our EPC service projects with two clients. We believe the increase resulted from both clients' heightened caution in certifying project milestones given what we believe to be the significance of the projects, which led to delays in the expected timeline. In 2025, we issued the invoices totaling approximately $5.6 million, which was recorded as contract assets as of December 31, 2024 and was fully settled with cash as of September 30, 2025. We expect the clients to complete the remaining certifying process by the end of 2025. We believe this delay attributable to the certification process presents no significant impact on our liquidity.

Our contract assets further increased from approximately $12.7 million as of December 31, 2024 to approximately $13.2 million as of September 30, 2025, primarily due to continued EPC work performed for the same two major clients for which certification and billing had not yet occurred as of the reporting date. During the nine-month period ended September 30, 2025, additional contract assets of approximately $6.6 million were recognized from these projects as work progressed ahead of agreed project milestones. As noted above, the invoices totaling approximately $5.6 million that were recorded as contract assets as of December 31, 2024 were fully settled in cash by September 30, 2025. We expect the outstanding milestones to be certified by the end of 2025. Management believes that the delays in certification are procedural in nature, and reflect project scale, but as of the date of this prospectus, no firm timeline exists, and prolonged delays could impair collectability or liquidity.

#### Accounts payable
Our accounts payable increased from approximately $7.0 million as of December 31, 2023 to approximately $10.6 million as of December 31, 2024. The increase was mainly attributable to more procurement and subcontracting activities in line with our expanded project volume.

Our accounts payable decreased from approximately $10.6 million as of December 31, 2024 to approximately $2.8 million as of September 30, 2025. The decrease was mainly due to the settlement of subcontractor payables associated with EPC projects that were completed during the period. The reduction reflects the normal timing of project completion and supplier payment cycles rather than any change in our procurement practices or payment terms. Amounts payable to certain vendors were accrued based on vendor contract amount as of December 31, 2024. During the invoice reconciliation process with those vendors in 2025, we revised our estimates for certain accrued amounts, resulting in approximately $3.7 million decrease from the amounts previously accrued. This change was attributable to improved vendor efficiency and did not result from any changes in project scope or contractual terms. The change in estimate was recorded as a reduction in cost of revenues for the nine months ended September 30, 2025.

#### Capital Commitments
As of December 31, 2023 and 2024, and September 30, 2025, we did not have any capital commitments.

#### Contractual Obligations
The following table summarized our contractual obligations, which include principal in the cases of contract liabilities as of December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** |
|  | **Less than <br>1 year** | **1 to 3 years** | **3 to 5 years** | **Total** |
|  | **US$** | **US$** | **US$** | **US$** |
|  Contractual Obligations: |  |  |  |  |
|  Contract liabilities | 743012 |  |  | 743012 |
|  Operating lease obligations | 17718 | 1477 |  | 19195 |

---

[**Table of Contents**](#TOC001)

The following table summarized our contractual obligations, which include principal in the cases of contract liabilities as of September 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** |
|  | **Less than <br>1 year** | **1 to 3 years** | **3 to 5 years** | **Total** |
|  | **US$** | **US$** | **US$** | **US$** |
|  Contractual Obligations: |  |  |  |  |
|  Contract liabilities | 2131875 |  |  | 2131875 |
|  Operating lease obligations | 5844 |  |  | 5844 |

---

#### Contingencies
In the ordinary course of business, the Company may be subject to legal proceedings and claims arising from contractual obligations, employment matters, or other business-related issues. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable, and the amount of the loss is reasonably estimable.

As of December 31, 2024, and September 30, 2025, and through the date of this prospectus, in the opinion of management, appropriate and adequate accruals for legal matters have been made, and management believes that the probability of a material loss beyond the amounts accrued is remote. Nevertheless, the Company cannot predict the impact of future developments affecting our pending or future claims and lawsuits. The Company expenses legal costs as incurred, and recorded legal liabilities are adjusted as additional information becomes available.

#### Quantitative and Qualitative Disclosure About Market Risk
*Concentration of Credit Risk*

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash. The Company places its cash with financial institutions with high credit ratings. As of December 31, 2023 and 2024, the Company held $9,573,299 and $9,443,799 in cash, respectively. As of September 30, 2025, the Company held $4,648,112 in cash.

Accounts receivable primarily consist of amounts receivable from the service clients. To reduce credit risk, the Company performs ongoing credit evaluations of the financial condition of these clients. The Company establishes a provision for doubtful accounts based on estimates, factors surrounding the credit risk of specific service clients and other information.

*Concentration of demand*

The following table sets forth a summary of single clients who represent 10% or more of the Company's total accounts receivable:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client A | 46460 | 56% |  | —% |
| &nbsp;&nbsp;&nbsp; Client B | 36827 | 44% |  | —% |
| &nbsp;&nbsp;&nbsp; Client C |  | —% | 970500 | 100% |
|  **Total** | 83287 | 100% | 970500 | 100% |

---

[**Table of Contents**](#TOC001)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of September 30, 2025** | **As of September 30, 2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client C | 970500 | 100% | 570473 | 32% |
| &nbsp;&nbsp;&nbsp; Client E |  | —% | 319685 | 18% |
| &nbsp;&nbsp;&nbsp; Client F |  | —% | 392649 | 22% |
| &nbsp;&nbsp;&nbsp; Client G |  | —% | 366574 | 20% |
|  **Total** | 970500 | 100% | 1649381 | 92% |

---

The following table sets forth a summary of single customers who represent 10% or more of the Company's total revenue:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 27816530 | 96% | 19673476 | 19% |
| &nbsp;&nbsp;&nbsp; Client E |  | —% | 79569682 | 78% |
|  **Total** | 27816530 | 96% | 99243158 | 97% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 5813180 | 14% | 718820 | 38% |
| &nbsp;&nbsp;&nbsp; Client E | 35131111 | 84% |  | —% |
| &nbsp;&nbsp;&nbsp; Client F |  | —% | 847379 | 45% |
|  **Total** | 40944291 | 98% | 1566199 | 83% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 15584846 | 24% | 2559994 | 13% |
| &nbsp;&nbsp;&nbsp; Client E | 49557783 | 75% | 13876017 | 70% |
|  **Total** | 65142629 | 99% | 16436011 | 83% |

---

The following table sets forth a summary of single clients who represent 10% or more of the Company's total contract assets:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 2466530 | 100% | 8282006 | 65% |
| &nbsp;&nbsp;&nbsp; Client E |  | —% | 3812738 | 30% |
|  **Total** | 2466530 | 100% | 12094744 | 95% |

---

[**Table of Contents**](#TOC001)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of September 30, 2025** | **As of September 30, 2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 8282006 | 65% | 9100000 | 69% |
| &nbsp;&nbsp;&nbsp; Client E | 3812738 | 30% | 4000000 | 30% |
|  **Total** | 12094744 | 95% | 13100000 | 99% |

---

The projects associated with these clients were completed in April and in June 2025, respectively. In February 2025, we signed a $30 million contract with a new client in the battery manufacturing industry for the construction of a production facility. However, in June 2025, the project was placed on hold. We believe this hold was in part due to significantly increased U.S. tariffs on imports from China, particularly machinery and production equipment, which have been subject to tariffs of up to 145%, as well as additional duties on steel and aluminum. These policy shifts significantly raised projected capital expenditures and delayed critical equipment installation. While the contract has not been terminated and we remain in active communication with the client, as of the date of this prospectus, there is currently no definitive timeline for resumption.

During the year ended December 31, 2025, we have signed contracts with eight new clients across industries including semiconductor foundry, photovoltaic manufacturing, energy storage batteries, cross-border e-commerce, and furniture manufacturing. In addition, we are actively bidding for projects from five prospective clients, across sectors such as photovoltaic and battery production, automotive glass, and furniture manufacturing.

Although we expect a continued degree of revenue concentration in the near term, as of the date of this prospectus, we aim to expand our client base, build repeat-client momentum, and further diversify project pipelines which we believe will position us to reduce client concentration over time. Nevertheless, the timing of new contract execution and the resumption of paused projects may lead to fluctuations in revenue recognition and cash flow in the short term.

*Concentration of supply*

The following table sets forth a summary of single suppliers who represent 10% or more of the Company's total accounts payable:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier A | 2600000 | 37% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier B | 2248780 | 32% | 2757791 | 26% |
| &nbsp;&nbsp;&nbsp; Supplier C | 890504 | 13% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier D |  | —% | 3402390 | 32% |
|  **Total** | 5739284 | 82% | 6160181 | 58% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of September 30, 2025** | **As of September 30, 2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier B | 2757791 | 26% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier D | 3402390 | 32% | 2491936 | 90% |
|  **Total** | 6160181 | 58% | 2491936 | 90% |

---

[**Table of Contents**](#TOC001)

The following table sets forth a summary of single suppliers who represent 10% or more of the Company's total cost:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier A | 2600000 | 12% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier B | 5180280 | 24% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier D |  | —% | 17188618 | 19% |
| &nbsp;&nbsp;&nbsp; Supplier E | 3081377 | 14% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier F |  | —% | 16287868 | 18% |
| &nbsp;&nbsp;&nbsp; Supplier G |  | —% | 12687903 | 14% |
| &nbsp;&nbsp;&nbsp; Supplier H |  | —% | 11144609 | 13% |
|  **Total** | 10861657 | 50% | 57308998 | 64% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier F | 8269790 | 22% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier G | 9272899 | 25% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier H | 6622284 | 18% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier I |  | —% | 310957 | 21% |
| &nbsp;&nbsp;&nbsp; Supplier J |  | —% | 277228 | 19% |
| &nbsp;&nbsp;&nbsp; Supplier K |  | —% | 254280 | 17% |
| &nbsp;&nbsp;&nbsp; Supplier L |  | —% | 156906 | 11% |
|  **Total** | 24164973 | 65% | 999371 | 68% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier D | 6293411 | 11% | 3080492 | 34% |
| &nbsp;&nbsp;&nbsp; Supplier F | 10850738 | 19% | 1488681 | 16% |
| &nbsp;&nbsp;&nbsp; Supplier G | 10572602 | 18% | 1225608 | 14% |
| &nbsp;&nbsp;&nbsp; Supplier H | 7134110 | 12% |  | —% |
|  **Total** | 34850861 | 60% | 5794781 | 64% |

---

This concentration is not the result of strategic reliance on specific subcontractors, but rather reflects project-specific factors, such as the technical complexity or volume of work in certain trades (e.g., electrical or mechanical), that cause certain vendors to assume a larger role in specific projects. All subcontractors and suppliers are selected through competitive bidding based on each project's scope, location, and schedule. While we maintain an expanding vendor pool, changes in pricing, availability, or performance of these key vendors could adversely impact our cost structure and operating margins. We continue to manage this risk by evaluating alternative vendors and negotiating favorable terms where appropriate.

*Liquidity Risk*

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

[**Table of Contents**](#TOC001)

Typically, the Company aims to maintain access to sufficient cash on hand to meet expected operational expenses, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. The management concluded that the Company's available cash and working capital will be sufficient to support its continuous operations and to meet its payment obligations when liabilities fall due within the next twelve months from the date of issuance of these financial statements. Accordingly, management continues to prepare the Company's financial statements on a going concern basis.

#### Critical Accounting Policies and Estimates
Our financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of these financial statements and accompanying notes requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operation. Critical accounting policies are those that are most important to the portrayal of our financial conditions and results of operations and require management's difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management's current judgments. While our significant accounting policies are more fully described in Note 2 to the consolidated financial statements included elsewhere in this prospectus, we believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements.

#### Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The significant estimate in the period is revenue recognition. Actual results could vary from the estimates and assumptions that were used.

#### Revenue recognition
The Company engages in providing EPC services for critical process systems across multiple industrial sectors. The Company serves clients in energy storage and battery manufacturing, renewable energy infrastructure, electronics production, advanced manufacturing, and semiconductor fabrication industries.

The Company elected to adopt Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), effective as of April 1, 2020. Accordingly, the consolidated financial statements for the year ended December 31, 2024 and 2023 are presented under ASC 606. The Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer obtains control of that asset. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. For the accounting period, the Company has determined two revenue streams for the accounting period, which includes: (1) Revenue from EPC services and (2) Sales of equipment and others.

Revenue from contracts with clients is recognized using the five-step model defined by ASC Topic 606 which requires the Company to (1) identify its contracts with clients, (2) identify its performance obligations under those contracts, (3) determine the transaction prices of those contracts, (4) allocate the transaction prices to its performance obligations in those contracts and (5) recognize revenue when each performance obligation under those contracts is satisfied. Revenue is recognized when promised goods or services are transferred to the client in an amount that reflects the consideration expected in exchange for those goods or services.

[**Table of Contents**](#TOC001)

(1) EPC services

The Company typically got the EPC projects through project bidding or purchase orders from its clients which will set the terms and conditions including the transaction price, services to be performed, performance obligations, and terms of payments. The terms and conditions serve as the basis of the performance obligations that the Company must fulfill in order to recognize revenue. The performance obligation is to provide engineering, procurement, and construction services to the clients. There are no implied or implicit performance obligations related to the typical EPC contract and/or purchase order. The scope of work to be executed by the Company shall include all materials and equipment required by a given contract and all temporary or permanent sub-contractor's personnel, materials and other items and services required for the engineering, procurement, construction, facility equipment commissioning, training, defect remedy and acceptance.

A typical EPC contract of the Company is on a fixed priced basis certain exemptions, which have a variable consideration within a range of the contract price based on changes to the scope of work, which is reflected in the milestone billings and based upon the attainment of specific project objectives to ensure the Company meets its contractual obligation. The Company's revenue is derived from contracts where scope is adequately defined, and therefore the Company can reasonably estimate total contract value. Revenue and gross profit or loss for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders and liquidated damages that may not be resolved until the later stages of such contract or after such contract has been completed. The Company estimates variable consideration based on the amount the Company expects to be entitled, and includes estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when the Company concludes that any significant uncertainty associated with the variable consideration is resolved. For 2024 and 2023, we had no material amounts in revenue related to unapproved change orders or liquidated damages. For the three-month and nine-month periods ended September 30, 2024 and 2025, we had no material amounts in revenue related to unapproved change orders or liquidated damages.

Customer contracts are generally represented by a contract with durations typically ranging from three months to two years. The Company uses the percentage of completion ("POC") method, the ratio of contract costs incurred to date compared to total estimated contract costs, to recognize revenue (an input method). For these contracts, revenue is recognized over time since the customer controls the projects being constructed and renovated throughout the process, and there is a continuous transfer of control from the Company to the customer. There is typically no warranty obligation except for certain projects, of which contracts may include retentions or holdbacks, in accordance with the local requirements, to be paid one-year after the quality assurance warranty period expires to ensure that Company meets the contract obligations and to provide guarantees that the product will function as intended and meet the agreed-upon specifications. This assurance-type warranty is not accounted for as a separate performance obligation, and thus no transaction price is being allocated. According to past experience, the Company never occurred quality problems after the project was completed. The amount of warranty is nil for the years ended December 31, 2023 and 2024, and for the nine-month periods ended September 30, 2024 and 2025. The Company does not assess whether a contract contains a significant financing component if the Company expects, at contract inception, that the period between payment by the clients and the transfer of promised services to the clients will be less than one year.

The Company uses the ratio of actual costs incurred to total estimated costs since costs incurred represent a reasonable measure of progress towards the satisfaction of a performance obligation in order to estimate the portion of revenue earned. The Company uses the input method to recognize revenue due to the outputs are difficult to measure. Input methods recognize revenue on the basis of the entity's efforts or inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation. The contract price is fully allocated to one performance obligation. Milestone billing payments are approved once the service is certified by the client at each milestone. Remaining performance obligation represents all future revenue under contract that has not yet been recognized as revenue and includes unearned revenue. The value of the transaction price allocated to remaining performance obligations under EPC service contracts as of December 31, 2024 was approximately $12.7 million. As of September 30, 2025, the Company recognized 100% of remaining performance obligations as revenue. The value of the transaction price allocated to remaining performance obligations under EPC service contracts as of September 30, 2025 was approximately $2.2 million. The Company expects to recognize 100% of remaining performance obligations as revenue in the next six months.

[**Table of Contents**](#TOC001)

Contract costs typically include direct labor, subcontractor and consultant costs, materials and indirect costs related to contract performance. Changes in estimated costs to complete these obligations result in adjustments to revenue on a cumulative catch-up basis, which causes the effect of revised estimates to be recognized in the current period. Changes in estimates can routinely occur over the contract term for a variety of reasons including, changes in scope, unanticipated costs, delays or favorable or unfavorable progress than original expectations. When the outcome of the contract cannot be reasonably measured, revenue is recognized only to the extent of contract costs incurred that are expected to be recovered. This means that profit is not recognized until the outcome can be reliably measured. The stage of completion is determined through the proportion of costs incurred to total costs.

The Company's contract with the client has payment terms specified based upon certain obligations completed. The Company will submit progress billing to the client when the stage of the project is completed, and after the Company receives the certificate from client, the Company will issue a tax invoice to the client. As the clients are required to pay the Company at different billing stages over the contract period, as such, the Company believes the progress payments limit the Company's exposure to credit risk and that the Company would be able to collect substantially all of the consideration gradually at different stages. The timing of the satisfaction of the Company's performance obligations is based upon the cost-to-cost measure of progress method, which is generally different than the timing of unconditional right of payment, and is based upon certain conditions completed as specified in the contract. The timing between the satisfaction of the Company's performance obligations and the unconditional right of payment would contribute to contract assets and contract liabilities.

(2) Sales of equipment and others

Revenue from sales of equipment and others comprised of revenue mainly from equipment sales with minor installation and transportation, and other design service, which is recognized when the performance obligation is satisfied at a point in time generally as the equipment is sold or services are provided for a duration of typically less than three months. The Company typically receives purchase orders from its clients which will set for the terms and conditions including the transaction price, equipment or services to be provided or performed, performance obligations, and terms of payment. The terms and conditions serve as the basis of the performance obligations that the Company must fulfil in order to recognize revenue. The key performance obligation is the delivery or completion of the equipment or the services to the client according to the contract. The Company recognizes revenue when the following events have occurred: (a) the Company has performed the contract obligation; (b) the Company has a present right to payment; (c) the client has legal rights to the equipment or services, and (d) the client bears significant risks and rewards of ownership of the services. The completion of this revenue process is evidenced by the client acceptance on the equipment and services and the Company recognized the revenue at a point in time.

The Company is the principal for its transactions and recognizes revenue on a gross basis. The Company is the principal when it has control of the service before it is transferred to clients, which generally is established when the Company is primarily responsible for merchandising decisions, maintains the relationship with client, and has pricing discretion.

#### Recent accounting pronouncements
See the discussion of the recent accounting pronouncements contained in Note 2 "Summary of significant accounting policies — Recently issued accounting pronouncements" to the financial statements of the Company as of December 31, 2024 and 2023.

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#### BUSINESS

#### Business Overview
We are a U.S.-based EPC company that provides design, construction, and integration services for critical process systems across multiple industrial sectors. We serve companies in automotive parts manufacturing, energy storage and battery manufacturing, renewable energy infrastructure, electronics production, advanced manufacturing, and semiconductor fabrication industries.

Our business has been built on serving international companies, seeking to establish and expand their manufacturing operations in the United States. We believe this foundation has given us deep expertise in navigating complex regulatory frameworks, international business practices, and the technical requirements of sophisticated manufacturing processes. We are now leveraging these capabilities to expand our client base to include domestic companies with similar technical and project execution needs, and to explore opportunities in public sector projects. This strategy aims to diversify our client base and reduce concentration risk.

As of the date of this prospectus, we meet the eligibility requirements to bid on government projects in Texas and actively participate in government bids in Texas, and have dedicated personnel responsible for bidding on a regular basis. These efforts include monitoring and submitting bids for city-led municipal water and wastewater infrastructure projects.

We believe our Houston headquarters positions us strategically to serve clients throughout North America, with proximity to major industrial corridors, suppliers, and skilled labor markets. Our experience bridging international standards with U.S. regulatory requirements, combined with our track record in complex industrial projects, enables us to deliver efficient, compliant solutions for any client seeking comprehensive EPC services.

For the years ended December 31, 2023 and 2024, our revenue was approximately $29.1 million and approximately $102.0 million, respectively. The revenue from EPC services accounted for approximately $28.0 million, representing 96% of the total revenue for the year ended December 31, 2023, and approximately $102.0 million, representing 100% of the total revenue for the year ended December 31, 2024, respectively. Our net income was approximately $4.1 million and approximately $7.8 million for the years ended December 31, 2023 and 2024, respectively.

For the nine months ended September 30, 2024 and 2025, our revenue was approximately $66.3 million and approximately $19.9 million, respectively. The revenue from EPC services accounted for approximately $66.2 million, representing approximately 100% of total revenue for the nine months ended September 30, 2024, and approximately $19.7 million, representing 99% of total revenue for the nine months ended September 30, 2025. Our net income was approximately $5.6 million and approximately $5.4 million for the nine months ended September 30, 2024 and 2025, respectively.

We are dependent on large construction projects for which we recognize revenue over time. These projects can take up to several months or more than one year. Such projects represent a significant portion of our total revenue. As a result, our financial performance in any given reporting period or fiscal year may fluctuate due to the timing and completion of such projects, as well as the number and size of such projects in any given year.

In addition, our customers typically have the unilateral right to terminate existing contracts without cause. Upon any such termination for convenience, we are entitled to receive compensation for the work we have already performed and for the costs incurred by us as a result of such termination, but we would not be able to receive the full amount of revenues that would have been generated had the project continued through completion. This termination structure provides our customers with flexibility but also introduces the risk that a significant project could be terminated prior to completion, which could impact our revenues and results of operations.

#### Our Material Projects

#### Ongoing Project
*Semiconductor Manufacturing Facility Project — Arizona*

On August 1, 2025, Bestwater entered into a certain service agreement with Propersys Corporation to act as a subcontractor for the construction of a large semiconductor manufacturing facility located in Phoenix, Arizona. Bestwater is subcontracting for the project's general contractor and has received three separate purchase orders ("PO" or "Purchase Order") for an aggregate contract value of $5.5 million as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Scope of work*: The first Purchase Order covers cable tray installation. The project preparation began in mid-September 2025 with completion expected by January 2026. Upon completion of the first Purchase Order, we are scheduled to commence work under the second and third Purchase Orders for electrical wiring for another two months on-site.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Contract type*: This contract is structured as labor-only, without significant procurement obligations. We agreed to provide labor, rental equipment, such as forklifts, and auxiliary materials, while the general contractor or owner supplies the major cable tray and wiring materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Materiality and outlook*: Although relative to the Solar Agreement, the size of the first three purchase orders is not significant, we believe this project represents our entry into a strategic client relationship in the semiconductor sector. We believe its successful execution may position us to compete for larger-scale contracts at this facility annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risks and considerations*: As with most labor-only subcontracts, the principal risks relate to labor availability, productivity, and scheduling coordination on site. To that end, we believe that we do not bear risks associated with the procurement of major materials, design and construction management or site safety management.

#### Recently Completed and Terminated Projects
*Photovoltaic Manufacturing Facility Project — Florida*

In 2018, Bestwater was awarded the phase I construction contract for this photovoltaic manufacturing facility project, and completed the work in 2019 to the client's satisfaction. In 2023, Bestwater was awarded phase II and phase III construction contracts for the expansion of a solar panel module manufacture in Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Scope of work*: The project primarily involved EPC services for design and construction of process utilities, electrical and mechanical installation, and supporting infrastructure. The objective was to adapt and upgrade the existing facility the client leased to meet the client's new production requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Contracts terms and size*: Together, phase II and phase III had an aggregate contract value of approximately $45.5 million. Payments were milestone-based, linked to defined stages of completion such as utility hookups, production line installation, and building systems commissioning. The contracts also included customary provisions on performance standards, warranties, and termination rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Project Completion and Revenue Contribution*: Both projects were completed in July 2025, with revenue recognized in accordance with the cost-to-cost method under ASC 606. These contracts contributed approximately $27.8 million, or 96% of our total revenue in 2023, and approximately $19.7 million, or 19% of our total revenue in 2024. These contracts contributed approximately $2.6 million, or 13% of our total revenue as of September 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risks and considerations*: Although the projects were completed without material delays or cost overruns, they were performed under fixed-price terms, reflecting that we believe to be the competitive pricing environment in the renewable energy sector. Such contract structures can exert pressure on our profit margins and may continue to influence our approach to future large-scale projects.

*Photovoltaic Manufacturing Facility Project — Arizona*

In March 2024, Bestwater entered into a construction contract with a solar panel module manufacturer for tenancy improvements and related infrastructure works at its new facility in Arizona. The total contract value was approximately $88 million. In April 2025, this Solar Agreement was terminated for convenience by the client. We have recognized an aggregate of $93.4 million in revenue from the Solar Agreement in accordance with applicable accounting principles. As of the date of this prospectus, approximately $4.0 million of contract assets which are not billed yet and $0.3 million of the recognized amount remains outstanding and has not yet been collected in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Scope of work*: Our responsibilities included construction of multiple critical systems, such mechanical, HVAC, electrical, plumbing, and fire protection systems. The objective was to adapt and upgrade the existing facility the client leased to meet the client's production requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Progress and termination*: By April 2025, we had substantially completed our scope of work, when the client underwent a change of ownership. The new owner then exercised its contractual right to terminate the Solar Agreement for convenience in April 2025. At the time of termination, we recognized approximately $88 million in revenue from this project, of which, $79,569,682 was recognized in 2024, representing approximately 78% of our total revenue for the year ended December 31, 2024. As of September 30, 2025,

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we recognized approximately $93.4 million in revenue from this project, of which, $13.9 million was recognized for the nine months ended September 30, 2025, representing approximately 70% of our total revenue for the nine months ended September 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Payment provisions*: Under the termination terms, the new owner is obligated to pay a termination fee, which includes (a) payment for all work performed up to the termination date that has not yet been paid, (b) reasonable expenses incurred for demobilizing equipment and personnel from the project site, (c) reasonable costs associated with terminating subcontractor agreements and satisfying related obligations entered into in good faith, and (d) other actual and reasonable out-of-pocket costs directly resulting from the termination. Upon termination, we were entitled to a termination fee, covering completed work and related costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risks and considerations*: While the project was substantially completed in accordance with schedule and performance standards, its termination highlights the risk that large clients may discontinue or alter projects for reasons unrelated to our performance, such as changes in ownership or business strategy. Because the vast majority of our work has already been performed prior to termination, we do not expect material financial losses from this contract. However, given the size of this project and its contribution to our 2024 revenue, this instance also illustrates the risks associated with revenue concentration and the potential impact on our operating results should similar terminations occur in the future. See "Risk Factor — Risks Related to Our Business and Operation — Our dependence on large construction contracts may result in uneven financial results."

#### History and Corporate Structure
BW Holdings was incorporated in Delaware on April 28, 2025, and is headquartered in Houston, Texas. The Company operates through its wholly owned operating subsidiary, Bestwater, doing business as BW Industrial Construction, a corporation organized under the laws of Texas on November 21, 2016.

On June 5, 2025, the Company entered into a share exchange agreement with Bestwater and its stockholders, pursuant to which the Company acquired 100% of the issued and outstanding shares of Bestwater's common stock, and in exchange, issued an aggregate of 19,400,000 shares of the Company's Common Stock (the "Share Exchange") to stockholders of Bestwater. As a result of the Share Exchange, Bestwater became a wholly owned subsidiary of the Company. The Share Exchange is recognized as a combination of entities under common control as both Bestwater and the Company have been controlled before and after the transaction by the same stockholders. As such, the financial statements and financial information contained in this filing for prior years have been retrospectively adjusted as if the Share Exchange had occurred at the beginning of the earliest period presented.

On December 19, 2025, the Company effectuated a 1-for-2 Forward Split. As a result of the Forward Split, the issued and outstanding shares of Common Stock of Company increased from 9,700,000 shares to 19,400,000 shares. Unless otherwise noted, the number of shares is presented on a post-Forward Split basis.

Below is the chart showing the Company's corporate structure as of the date of this prospectus and as of the closing of the Offering (assuming the over-allotment option is not exercised in full):

![](tflowchart_001.jpg)

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#### Our Competitive Strengths
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Comprehensive Pre*-Construction *Advisory Services*. Unlike many regional EPC firms that focus primarily on construction execution, we differentiate ourselves by offering a full suite of pre-construction advisory services beginning at the initial stages of project development. Our support includes industrial site selection, regulatory and permitting feasibility assessments, and analysis of local policies and development incentives. This service is especially valuable to foreign manufacturers and other clients unfamiliar with the U.S. regulatory landscape, enabling them to navigate complex requirements with confidence. By engaging early in the project lifecycle, we aim to help clients make faster, better-informed strategic decisions before committing significant capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Cross*-Border *Technical and Regulatory Navigation*. Many of our clients operate mature production facilities in China and other international markets and seek to replicate proven processes in their U.S. operations. Our team specializes in working with foreign design documents, technical specifications, and manufacturing layouts. We collaborate with U.S.-licensed architects and engineers to translate these foreign design documents into U.S.-compliant construction drawings while preserving the operational logic and efficiency of the original designs. This cross-border technical expertise enables us to leverage clients' existing investments in proven manufacturing processes, significantly reducing design time and costs compared to approaches that require complete facility redesign from the ground up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Effective Change Order Management Through Cultural Insight and Technical Expertise*. International clients often face costly change orders when working with contractors due to communication gaps, cultural misunderstandings, inconsistent documentation practices, and differing interpretations of regulatory requirements. We have observed projects where change orders have reached 100% of original contract values, doubling the project costs. Our approach focuses on minimizing such cost overruns through better upfront coordination and communication. Our team's deep understanding of the U.S. business norms and technical design standards enables us to proactively identify and resolve potential issues during the planning phase. Through our translation of the original design documents into locally compliant construction drawings, we aim to reduce ambiguity and increase project alignment from the outset. This collaborative, detail-oriented approach tends to minimize the likelihood of scope changes and contributes to more predictable project outcomes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Strategic Procurement Optimization*. We engage clients early in the design process to optimize material and equipment sourcing strategies, determining which components can be procured internationally for cost advantages and which must be sourced domestically for compliance or logistical reasons. Our experience with international supply chains and long-lead procurement enables proactive planning during design phases, reducing project delays and cost overruns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Specialized Technical Expertise in Advanced Manufacturing*. We have successfully delivered complex industrial facilities across lithium battery manufacturing, solar panel production, and precision glass manufacturing. Our technical capabilities include cleanroom construction, hazardous material handling systems, ultra-pure process systems, and advanced mechanical, electrical, and plumbing ("MEP") integration required for high-technology manufacturing environments.

#### Our Growth Strategies
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Market Expansion*. We are pursuing a market expansion strategy to serve domestic industrial clients and more foreign industrial clients across Asia and the Americas. This strategy aims to diversify our client base and reduce concentration risk. As of the date of this prospectus, we meet the eligibility requirements to bid on government projects in Texas and actively participate in government bids in Texas, and have dedicated personnel responsible for bidding on a regular basis. These efforts include monitoring and submitting bids for city-led municipal water and wastewater infrastructure projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Technology and Systems Enhancement*. To support scalable project delivery and stay current with industry best practices as we grow, we plan to invest more in our technology infrastructure. As of the date of this prospectus we are considering exploring the use of AI-powered design tools, because we believe such tools could help generate 3D models during the design process more efficiently and may support additional interactive functionalities in the future. These proposed technology investments are designed to enhance cross-team collaboration, reduce construction-phase issues, and ultimately deliver better outcomes for our clients while increasing our operational efficiency.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Leveraging Policy Incentives for Market Expansion.* We plan to capitalize on the growing availability of U.S. policy incentives designed to attract foreign manufacturing investment to expand our client base and accelerate project pipelines. If more states and localities offer tax abatements, infrastructure support, and streamlined permitting to attract international manufacturers, we are positioned to serve as a critical bridge helping these companies navigate and maximize these benefits. Our expertise in guiding clients through incentive application processes, including industrial site selection, regulatory and permitting feasibility assessments, analysis of local policies and development incentives, and government communications creates opportunities to engage with prospects earlier in their decision-making process, potentially leading to larger project scopes and stronger client relationships.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Potential Vertical Integration*. As part of our long-term strategic planning, we may pursue vertical integration opportunities, including the possible acquisition of local design institutes or steel fabrication facilities. These potential acquisitions could enhance our in-house capabilities and provide greater control over project timelines and quality. However, no formal discussions have taken place, and no specific acquisition targets have been identified.

#### Our EPC Services
Our service offerings are structured to meet diverse client needs and project phases, providing flexibility in engagement scope and timing. Most of our revenue is derived from full-scope EPC projects or multi-phase service arrangements that span significant portions of the project lifecycle. These projects typically have an average duration of approximately 12 months, which we believe is faster than many competitors in our sector. While we generally act as the general contractor, we also provide specialized EPC services as a subcontractor for one project in Arizona. We believe this service structure enables us to build relationships progressively while providing project owners the flexibility to engage us at the appropriate project phase and scope level for their specific needs.

We have successfully executed complex, large-scale industrial projects across various sectors, including the renewable energy, automotive, and advanced manufacturing sectors. Our past work includes providing full EPC services for both the construction and renovation of renewable energy production facilities, and an automotive glass manufacturing plant, covering mechanical, electrical, and plumbing (MEP), compressed air systems (CAS), and HVAC installations. We also led the design and installation of dust collection, insulation, and vacuum piping systems at battery manufacturing facilities.

#### Operation Workflow
Our operations follow a structured project lifecycle which we believe enable us to deliver complex industrial facilities with consistency, cost-efficiency, and high technical performance. The key phases of our project execution are as follows:

*Client Engagement and Bidding*

We typically engage with clients through a competitive bidding process. In response to requests for proposals ("RFPs") issued by prospective clients, we submit detailed bids that include technical solutions, cost estimates, project schedules, and execution plans. Successful bids are awarded based on a combination of price competitiveness, technical qualifications, safety record, and past performance.

*Design and Pre-Construction Planning*

Once awarded a contract, we will work closely with the client to finalize our engagement scope and design requirements. Depending on the project's stage and the client's needs, we may provide pre-construction advisory services such as industrial site selection, preliminary due diligence, permitting feasibility assessments, and local policy comparisons. Once a site is selected, our team of architects and engineers will review the client's design documents and convert them into local-compliant construction drawings while preserving the operational logic and efficiency of the original designs.

We also assess the project's material and equipment requirements based on contract specifications. We determine procurement channels for each component, to balance the lead time and cost efficiency. Early identification and procurement of long-lead items help minimize supply chain risks and facilitate timely project delivery.

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*Construction and Project Execution*

We usually form a project management team to oversee on-site execution, which usually consists of project manager, superintendent, and safety supervisor. Our project management team is generally responsible for managing project schedules, controlling costs, and coordinating procurement. In general, we determine the manpower required based on the timeline, scale, and complexity of the projects as well as the existing workload of our staff. During the construction phase, we generally oversee all aspects of construction including civil, structural, architectural, mechanical, electrical, and plumbing.

*Testing, Commission and Completion*

We design and implement comprehensive testing on all our construction, as well as fully assist commissioning programs provided by process equipment vendors to verify that their installed systems perform according to our clients' specifications. Our services include preparation and coordination with clients and equipment vendors, execution of performance testing protocols, and support during facility startup. Our goal is to deliver each project in accordance with the clients' specifications upon completion.

#### Our Products
In addition to our core EPC service offerings, in the second quarter of 2025, we have expanded into product development and plan to launch our first proprietary product line: modular water treatment systems. These containerized systems are designed to provide clean drinking and domestic-use water and can be rapidly deployed with minimal on-site setup with the connection to a water source and power supply.

The systems are self-contained and highly portable, making them suitable for a range of use cases. They integrate multi-stage filtration, sterilization, and intelligent control functions to produce potable water that meets drinking water standards. The system features automatic operation, remote monitoring, and a plug-and-play structure, reducing installation costs and labor intensity for end users. We believe this product is suitable for a range of use cases. In North America, we expect the primary customer base to include commercial users such as camping grounds, remote worksites, and private ranches where access to municipal water is limited. In Central and South America, we anticipate demand from government agencies or NGOs for installations in rural or underserved residential areas where access to drinkable water is a critical need.

As of the date of this prospectus, we have completed the product development and market analysis phase. We expect to initiate pilot deployments and small-scale production runs in the first quarter of 2026 and are targeting initial commercial sales in the first half of 2026. We believe material challenges to commercialization include obtaining required certifications to comply with regional water quality standards, establishing reliable manufacturing and distribution arrangements, demonstrating cost competitiveness to the target customers, and gaining market acceptance for a new product line without an established sales track record. We intend to fund these activities with our existing resources. In the event that we use a portion of the net proceeds from this Offering to fund our commercialization upstart, we do not expect we will require additional financing beyond the expected proceeds of this Offering. However, there can be no assurance that we will overcome these challenges on the anticipated timeframe or that we will not require additional capital to fund our anticipated commercialization beyond the anticipated net proceeds of this proposed offering.

#### Pricing Strategy
We use a fixed price model when pricing our services. Pricing of our services is determined on a case-by-case basis and is dependent on various factors, which generally include (i) the scope of services; (ii) the price trend for the types of subcontracting services as well as the materials required; (iii) the complexity and the location of the project; (iv) the estimated quantity and type of equipment required; (v) the completion time requested by our customers; and (vi) the availability of human and financial resources.

In consideration of the percentage of mark-up for each project, we generally consider (i) the size, complexity, and duration of the project; (ii) our business relationship with the customer; (iii) the customer's payment history and financial background; (iv) the prospect of obtaining future projects from the customer; (v) the possibility of establishing our reputation in the industry; and (vi) the prevailing market conditions.

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#### Our Clients
Our client relationships are typically project-based, though we often engage with the same companies for multiple facilities or expansion phases. We served 6 clients in the nine months ended September 30, 2024, and 13 clients in the nine months ended September 30, 2025. Our largest client accounted for approximately 75% of our total revenue for the nine months ended September 30, 2024, and our largest client accounted for approximately 70% of our total revenue for the nine months ended September 30, 2025, reflecting a continued level of client concentration that creates dependency risk for our business operations. We served seven clients in the year ended December 31, 2024, and eight clients in the year ended December 31, 2023. The largest client in the year ended December 31, 2024, accounted for 78% of the total revenue in the year ended December 31, 2024, and the largest client in the year ended December 31, 2023, accounted for 96% of the total revenue, representing significant client concentration that creates dependency risk for our business operations. See "Risk Factor — Risks Related to Our Business and Operation — We derive a substantial portion of our revenue from a limited number of clients, and the loss of one or more of these clients could materially and adversely affect our business and results of operations." for more details.

The current trade policies and strategic national initiatives in the U.S. have significantly influenced our target client sectors, which we believe creates substantial opportunities for our specialized EPC services. For example, tariffs on Chinese-manufactured goods, combined with federal incentives for domestic clean energy and advanced manufacturing, have prompted many Chinese companies to relocate or establish production facilities in the United States. Additionally, we believe the trend to localize critical supply chains in the semiconductor and energy storage sections has accelerated the timeline for other foreign companies to establish U.S. manufacturing capabilities. We believe our technical expertise and cross-border experience position us well to serve clients navigating these market transitions.

As part of our growth strategy, we are actively working to serve a broader range of industrial companies in the domestic and international markets, as well as participating in the public sectors projects. This diversification approach is intended to reduce client concentration risk while leveraging our proven capabilities across a broader market base.

#### Our Subcontractors
We conduct most project management and construction oversight in-house, and outsource the design and construction works to qualified third-party firms. When engaging subcontractors, we follow a structured selection process that prioritizes a pre-approved list of partners with a demonstrated history of successful collaboration with us, cross-cultural industrial project experience, and possession of valid state-level licenses and appropriate insurance coverage.

All subcontractor relationships are governed by separate service agreements (each a "Site Services Agreement") that clearly define the scope of work, payment terms, performance standards, and legal obligations. Despite the involvement of third-party subcontractors, we remain the client's primary point of contact and retain full responsibility for overall project integration and delivery.

#### Material Terms of the Form of Site Services Agreement with Subcontractors
The scopes of subcontractor vary by project but generally cover specific design and/or construction services aligned with our project schedules and milestones. Site Services Agreements are typically fixed-price, with payments based on submitted invoices and subject to a holdback of up to 10%, released upon completion and acceptance. We may withhold payments for defective work, site damage, third-party claims, or other legally permissible reasons.

Each Site Services Agreement generally prohibits change orders unless they are explicitly requested by our client and approved by us in writing. In addition, each Site Services Agreement does not permit subcontractors to impose delay-based fees or costs not authorized through a formal change order process.

We usually require the subcontractors to provide a two-year warranty on all work performed by the subcontractor. Product warranties typically extend until the earlier of one year from first use or 18 months from delivery. Subcontractors must, at their own expense, correct or reperform any work that fails to meet agreed performance standards.

Each Site Services Agreement may be terminated by us, at our discretion, at any time without cause upon written notice to the subcontractor. Upon such termination, the subcontractor is entitled only to payment for work completed through the termination date and any reasonable costs related to finishing their engagement in a compliant method. Termination upon subcontractors' default is permitted if the subcontractors materially breach a Site Services

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Agreement or becomes financially insolvent. Upon such termination, we may, at our option, complete the terminated work by whatever method we may deem expedient and, to the extent the costs of completing such work exceed those amounts that would have been payable to subcontractor hereunder to complete such work but for its default, subcontractor shall pay the difference to us.

Each Site Services Agreement requires that the subcontractor indemnify and defend us and our clients against any losses, damages, or claims arising from personal injury, property damage, environmental violations, infringement, or failure to pay their own subcontractors, to the extent caused by the subcontractor's negligence or willful misconduct.

Subcontractors are generally required to carry insurance coverage, including commercial general liability, workers' compensation, automobile liability, excess/umbrella, and property damage, prior to starting work. Except for workers' compensation, we must be named as an additional insured, with waivers of subrogation to protect against insurer claims. Subcontractors must also insure their own equipment and maintain performance bonds from authorized surety providers in the project's jurisdiction.

Each Site Services Agreement allows for the subcontractor to subcontract selected work and services if they obtain our prior written consent. If we choose to grant consent, the subcontractor remains fully responsible for the performance of its subcontractors.

Each Site Services Agreement is governed by the laws of the state in which the project is located and all legal proceedings under each Site Services Agreement must be brought in the state or federal courts having jurisdiction in the state in which the project is located. Pursuant to each Site Services Agreement, any subcontractor has also agreed to participate in and be bound by any dispute resolution proceedings to which we are subject under the agreements with the owners of the project, and waive their right to a jury trial. Additionally, if the owner of a project imposes liquidated damages on the Company for delays, and those delays are attributable to the subcontractor, the subcontractor may be held liable.

#### Regulatory Approvals
Our operations in the United States are subject to contractor licensing requirements that vary by state. In general, we must obtain a contractor license in each state in which we perform construction-related services. These licenses may be required at the state, county, or municipal level, depending on the jurisdiction. We obtain contractor licenses as needed on a project-by-project basis, and we intend to continue securing additional licenses in other states as our operations expand geographically. Failure to maintain or timely obtain the required licenses could impact our ability to bid on or perform certain projects.

Below is a list of our current licenses:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Licensee** | **License** | **Issuing Authority** | **States/Cities** | **Expiration Date** |
|  Jean Reyes/<br>Bestwater | General Contractor (License No. CGC1535043) | Construction Industry Licensing Board of the Department of Business and Professional Regulation (DBPR) | Florida | August 31, 2026 |
|  Bestwater | B-1 General Commercial Contractor (License No. ROC 350195) | Registrar of Contractor | Arizona | February 8, 2026 |
|  Bestwater | C-11 Electrical (License No. ROC 358830) | Registrar of Contractor | Arizona | May 31, 2027 |
|  Bestwater | General Contractor (License No. GC-02650-2025) | City of Mesquite | Mesquite, Texas | March 6, 2026 |

---

#### Quality Control
Our quality control system is overseen by a quality control manager ("Quality Control Manager"), who is in charge of implementing, monitoring, and enforcing all quality assurance and quality control procedures. The project managers for each project reports to the Quality Control Manager on their respective projects. While the project managers may delegate qualified individuals to perform certain quality control activities, they retain full responsibilities for completing their assigned projects in strict accordance with both the Company's quality control policy and the client's specifications.

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In addition, we maintain a pre-approved list of qualified subcontractors that meet our established standards. Awarding a subcontract to an entity not on this list requires prior written approval from the Quality Control Manager.

Quality inspections and review are conducted at all key stages of a project. The Quality Control Manager oversees calibration of all measuring and testing equipment with any sub-standard equipment being identified, documented, and withheld from further usage until fixed. The quality control system also includes document control protocols to ensure that only current and management approved quality documents are being used on projects. We also conduct periodic management review and testing to verify that the quality control system remains effective.

#### Financing
We primarily fund our operations using internally generated cash flows and retained earnings.<br>Our EPC projects require advance spending on procurement and subcontracting. To support these working capital needs, we implement detailed project-level cash flow planning and budgeting processes. Currently, we do not have any external financing arrangement.

As we execute our growth strategy and expand our client base, we may evaluate additional financing options to support larger project commitments and increased working capital requirements.

#### Marketing and Sales Strategy
Our business development efforts have relied primarily on the industry relationships and reputation of our Chairman. Many of our client engagements have been initiated through his professional network, as well as referrals from other professionals in the EPC and industrial construction industries. We believe that our track record of successful project execution, technical capabilities, and client service has contributed to a strong word-of-mouth reputation, which continues to serve as our primary source of new business opportunities.

Our client acquisition approach often starts with smaller-scale projects that allow us to demonstrate our technical and execution capabilities. We believe these pilot engagements not only help establish client trust but also frequently lead to larger, more complex contracts because in our experience, this phased engagement model has proven effective in building long-term client relationships and generating repeat business opportunities.

Looking ahead, we plan to expand our sales and marketing efforts as part of our growth strategy. This includes hiring dedicated business development personnel, enhancing our digital marketing capabilities, and increasing participation in relevant industry events to strengthen our brand awareness and reach a broader client base.

#### Seasonality
Our business is not subject to material seasonal fluctuations, and we do not experience significant variations in revenue or operations due to seasonal factors.

#### Employees
As of the date of this prospectus, we have 19 full-time employees. As of September 30, 2024 and 2025, we had 12 and 19 full-time employees, respectively. As of the year ended December 31, 2024 and 2023, we had 17 and 5 full-time employees, respectively. We believe that we maintain a good working relationship with our employees and to date, we have not experienced any labor disputes.

The following table provides a breakdown of our employees by function as of the date of this prospectus:

---

| | |
|:---|:---|
|  **Function** | **Number of <br>Employees** |
|  Engineering & Technical | 4 |
|  Project Execution | 6 |
|  Procurement & Estimating | 2 |
|  Corporate & Administrative | 7 |
|  **Total** | **19** |

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#### Properties
Our corporate headquarters are located at 2825 Wilcrest Dr. Ste 421, Houston, TX 77042 pursuant to a lease agreement dated February 1, 2025, for a 12-month term ending on January 31, 2026. The monthly rent is $1,476.54 for approximately 1068 square feet of office space. The property is in good condition, and we believe it is sufficient for our business needs.

#### Insurance
We maintain insurance coverage that we believe is customary for a company of our size and industry and adequate to address the risks associated with our operations. Our current insurance policies include commercial general liability, umbrella liability, excess liability, workers' compensation, and pollution liability coverage. Certain of our liability policies are written on an occurrence basis. In addition to our standard coverage, we may obtain additional insurance or increase coverage limits on a project-specific basis, as required by our clients or the nature of the project. All policies are subject to certain deductibles, limits or sub-limits and policy terms and conditions. The Company intends to utilize directors' and officers' insurance upon its listing on a national.

In construction and development projects that involve subcontractors, we require all subcontractors to meet specific insurance requirements as stipulated by our insurance provider. These requirements include obtaining coverage that aligns with our own risk management standards and documented in our agreements with the subcontractors. Importantly, all coverages provided by the subcontractor must list Bestwater as a certificated holder. This designation must be confirmed and documented before the subcontractor commences work on behalf of the Company. The process aims to provide adequate protection and compliance with our insurance standards by the subcontractors.

#### Government Regulation
Our operations are subject to stringent federal, state, and local laws and regulations governing occupational safety and health aspects of our operations. Any failure to comply with these laws and regulations may result in the assessment of administrative, civil, and criminal penalties, the imposition of corrective or remedial obligations, the occurrence of delays or restrictions in permitting or performance of projects, and the issuance of orders enjoining performance of some or all of our operations.

#### Licensing Requirements
Our operations in the United States are subject to various licensing requirements that vary by jurisdiction. As of the date of this prospectus, we hold general contractor licenses in key states (or cities) where we operate, including the City of Mesquite in Texas, Arizona, and Florida and a C-11 Electrical license in Arizona. Below is a summary of the principal regulatory frameworks applicable in these jurisdictions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Texas:** The State of Texas does not have a single, uniform licensing system for all contractors. Instead, licensing requirements vary between general contractors and specialized trades, with a heavy emphasis on local municipal regulations and licensing. For general contracting work, licensing is typically managed at the city or county level. For example, we currently hold a general contractor license issued by the City of Mesquite. To obtain this license, we provided proof of general liability insurance and workers' compensation coverage, demonstrated financial responsibility. As a licensee, we are required to comply with local building codes, ordinances, and permitting requirements. While Mesquite does not require a licensing examination for general contractors, ongoing adherence to local regulations is mandatory to maintain licensure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Arizona:** The Arizona Registrar of Contractors ("ROC") administers licensing for contractors in the state. General contractors must obtain a ROC license to perform commercial and residential construction. Licenses are categorized by trade type and require applicants to meet experience, financial, and testing requirements. Contractors must maintain appropriate liability and workers' compensation insurance coverage as part of licensing conditions. The licenses issued by the Arizona ROC require biennial renewal, insurance maintenance, compliance with state building codes, and periodic continuing education.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Florida:** In Florida, the Department of Business and Professional Regulation ("DBPR") licenses general contractors through its construction industry licensing board to qualifying agents. These agents hold the contractor license and are responsible for the construction activities performed by their affiliated companies. Licensing requires passing examinations, demonstrating financial stability, and meeting insurance requirements. Florida contractors are subject to comprehensive state building codes, local permitting processes, and safety regulations. The state requires biennial renewal, continuing education, insurance maintenance, and disclosure of any disciplinary actions.

We obtain contractor licenses as needed on a project-by-project basis, and we intend to continue securing additional licenses in other states as our operations expand geographically. Failure to obtain, maintain, or renew required licenses in these or other jurisdictions could result in penalties, restrictions on bidding or performing work, or other adverse consequences that may impact our business operations and growth prospects.

#### Occupational Health and Safety
We are subject to rules regarding worker safety and similar matters promulgated by the U.S. Occupational Safety and Health Administration ("OSHA") and other governmental authorities. OSHA has established workplace safety standards that provide guidelines for maintaining a safe workplace in light of potential hazards, such as employee exposure to hazardous substances. We have implemented safety programs and training procedures designed to promote compliance with applicable health and safety regulations, minimize the risk of workplace incidents, and foster a culture of safety across our project sites. To date, we have not experienced any material violations or incurred any material fines or penalties related to OSHA or other workplace safety regulations.

#### Environmental Regulations
We are not currently subject to any material compliance obligations under U.S. federal, state, or local environmental laws and regulations, as our construction activities do not involve the generation or discharge of hazardous substances, wastewater, or other regulated waste. However, the facilities we construct or install may be subject to environmental regulation once operational, and our clients are responsible for obtaining and maintaining any required environmental permits. While we do not take ownership or operational responsibility for these facilities, we remain contractually obligated to comply with applicable environmental requirements during the construction phase. We also maintain pollution liability insurance as a precautionary measure. As of the date of this prospectus, we have not incurred any material costs related to environmental compliance or remediation.

#### Legal Proceedings
From time to time, the Company may be involved in various legal actions incidental to its business, including construction defect claims, and miscellaneous third-party tort actions. As of the date of this prospectus, we are not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business, financial condition, or operating results.

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#### INDUSTRY

#### INDUSTRY OVERVIEW
*All the information and data presented in this section have been derived from Frost & Sullivan Limited ("Frost & Sullivan")'s industry report commissioned by us entitled "Market Study of Industrial Construction in the U.S." (the "Frost & Sullivan Report") unless otherwise noted. Frost & Sullivan has advised us that the statistical and graphical information contained herein is drawn from its database and other sources. The following discussion contains projections for future growth, which may not occur at the rates that are projected or at all.*

#### Overview of Macroeconomic Environment

#### Workforce Size of Construction Industry in the U.S.
The workforce size of construction industry in the U.S. has increased from 7,255.5 thousand in 2020 to 8,211.0 thousand in 2024 at a moderate CAGR of 3.1%, mainly attributed to a post-pandemic rebound in industrial, residential and infrastructure spending, bolstered by federal stimulus packages such as the Infrastructure Investment and Jobs Act. The workforce size directly affects the U.S. industrial construction industry's ability to deliver projects on time and within budget while limiting scalability. An expanding workforce mirrors the growth of the U.S. construction industry, enabling industrial construction contractors to mitigate delays, control costs, and scale operations to meet rising demand in the near future.

![](tbarchart_001.jpg)

*Source: The Frost & Sullivan Report*

#### Materials and Components for Construction Producer Price Index in the U.S.
The Construction Producer Price Index (PPI) is an economic indicator published by the U.S. Bureau of Labor Statistics that measures the average change over time in the selling prices received by domestic producers for construction-related goods and services. It reflects price trends in the construction industry, capturing the costs of labor, materials, equipment, and other inputs used in construction projects.

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The materials and components for construction producer price index in the U.S. has increased from 109.9 in 2020 to 139.8 in 2024, mainly due to persistent supply-chain disruptions, elevated energy and raw-material costs, and strong domestic demand fueled by large-scale infrastructure and housing projects.

![](tlinechart_001.jpg)

*Source: The Frost & Sullivan Report*

#### Overview of Industrial Construction in the U.S.

#### Definition and Classification
Industrial construction refers to the design, development, and building of facilities for industrial purposes, namely manufacturing plants, warehouses, distribution centers, power plants, refineries, and other large-scale production or processing facilities. It involves specialized planning, engineering, and construction techniques to meet the unique demands of heavy industry, including durability, safety, and compliance with strict regulations.

Industrial construction involves a structured process: planning and design includes feasibility studies, site selection, and engineering collaboration to meet operational needs. Permitting entails navigating complex zoning, environmental, and safety regulations. Construction uses heavy materials like steel and concrete with specialized equipment for large-scale projects. Commissioning involves testing systems to ensure they function properly before operations start.

Key features:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Structural Durability: Buildings must withstand heavy machinery, vibrations, and extreme conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Specialized Systems: HVAC, electrical, plumbing, and fire suppression systems tailored to industrial needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Safety and Compliance: Adherence to Occupational Safety and Health Administration, Environmental Protection Agency, and local regulations for worker safety and environmental impact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Scalability: Designs often account for future expansion or technological upgrades.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sustainability: Increasing focus on energy-efficient designs, renewable energy integration, and waste reduction.

Industrial construction projects include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Manufacturing Facilities: Factories for goods like automobiles, electronics, or chemicals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Warehouses and Distribution Centers: Large hubs for e-commerce and supply chain logistics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Energy Facilities: Power plants (solar, wind, nuclear, fossil fuel), refineries, and substations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Data Centers: Server facilities with advanced cooling and power systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Heavy Industrial: Steel mills, mining, and chemical processing plants.

#### Value Chain
The value chain of industrial construction market generally consists of three major parties: clients, contractors, and suppliers.

Owners of manufacturing facilities, warehouses and distribution centers, energy facilities, data centers and heavy industrial are the major clients for construction projects in both public and private sectors. As a common practice in the construction market, contract owners initiate projects and issue work orders to main contractors in the form of tendering bids.

EPC companies primarily serve as main contractor, the central point of coordination and responsibility for the successful delivery of the project. The primary role of main contractor involves overseeing and managing all aspects of the project, including planning, scheduling, resource allocation, and ensuring compliance with safety, quality, and regulatory standards. The main contractor is responsible for hiring and supervising subcontractors, such as specialized E&M contractors for HVAC, plumbing, or fire safety systems, and ensuring their work is properly integrated with the overall construction or facility development. Additionally, they act as a liaison between the client, consultants, architects, and subcontractors, ensuring that all parties are aligned with the project's goals, specifications, and timelines. The main contractor also manages procurement, ensuring that materials and equipment meet the technical specifications and are delivered on time. They play a critical role in risk management, addressing challenges such as delays, cost overruns, or on-site safety issues.

In general, depending on client's request, project nature, agreement, main contractors and/or subcontractors will be responsible for procurement of materials and equipment required for the projects from suppliers.

![](tflowchart_002.jpg)

*Source: The Frost & Sullivan Report*

#### Market Size of Industrial Construction in the U.S.
The U.S. industrial construction market increased from USD75.4 billion in 2020 to USD233.2 billion in 2024, at a CAGR of 32.6% from 2020 to 2024. This market is vital for supporting the nation's manufacturing, logistics, and infrastructure sectors. Industrial construction, encompassing large-scale warehouses, advanced data centers, and specialized manufacturing facilities, underpins the U.S.'s supply chain and economic growth. Growth is driven by increasing e-commerce demands, the need for modern manufacturing spaces, and sustainable, energy-efficient buildings with automation and cold chain capabilities for pharmaceuticals and food storage. Government initiatives promoting infrastructure expansion and domestic manufacturing further boost the demand for industrial construction in the U.S. The U.S. industrial construction market is expected to reach USD460.8 billion in 2029, representing a CAGR of 14.5% from 2025 to 2029.

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As estimated, the market size of industrial construction works initiated by Chinese firms is USD2.3 billion in 2024, and it is expected to reach USD5.1 billion in 2029 at a CAGR of 17.2% from 2025 to 2029, driven by the industrial construction works in the U.S. initiated or funded by Chinese companies in 2025 including the Gotion battery plant in Illinois and Bitmain's planned factory in Texas or Florida.

*Source: The Frost & Sullivan Report*

#### Market Drivers and Trends Analysis
***Reshoring and Supply Chain Security:*** U.S. policies like the Biden administration's "Made in America" initiatives, the CHIPS and Science Act, and the Inflation Reduction Act incentivize domestic manufacturing in semiconductors, automotive, and clean energy sectors. These policies provide financial incentives, tax credits, and tariffs to encourage companies to build or expand factories, warehouses, and logistics centers in the U.S., reducing reliance on foreign supply chains vulnerable to disruptions like the COVID-19 pandemic or geopolitical tensions. For instance, the CHIPS Act's $52 billion investment has driven multi-billion-dollar semiconductor plants in Arizona and Ohio, while EV battery and solar manufacturing growth has spurred construction in Texas and Georgia, increasing demand for industrial facilities and supporting infrastructure.

***Investment in Electric Vehicle and Battery Manufacturing:*** The electric vehicle sector is a major driver of industrial construction, with significant investments in large-scale manufacturing facilities. Projects like Hyundai's 17-million-square-foot plant in Georgia, Ford's 10-million-square-foot Blue Oval City in Tennessee, and Panasonic's 4.7-million-square-foot battery plant in Kansas require extensive construction of factories and complex infrastructure, such as high-capacity power and water systems. These facilities, designed for high EV output and often incorporating carbon-neutral goals, also drive ancillary developments like logistics centers and community facilities, boosting regional economies and sustaining demand for industrial construction.

***Regulatory Environment and Environmental Compliance:*** The U.S. regulatory landscape shapes industrial construction through a balance of streamlined permitting and stringent environmental requirements. Policies like the Fixing America's Surface Transportation Act, Title 41 (FAST-41) and state-level zoning reforms in Texas and Arizona accelerate project timelines by simplifying approvals, enabling rapid construction of factories and logistics centers. However, regulations like the National Environmental Policy Act (NEPA) can delay projects due to lengthy environmental reviews. These regulations also drive demand for sustainable, high-tech facilities, such as energy-efficient or carbon-compliant factories, spurred by incentives from the Inflation Reduction Act. This dual dynamic attracts investment to business-friendly regions while increasing the need for green infrastructure, despite challenges like compliance costs.

***Technological Advancements in Construction:*** The industrial construction sector is adopting advanced technologies to enhance efficiency and sustainability. Building Information Modeling and digital twins improve project planning and execution accuracy. Robotics, automation, and modular prefabrication methods streamline operations, reduce labor costs, and accelerate timelines. Advances in materials enable the creation of resilient, energy-efficient structures, while green building practices, including renewable energy integration and Leadership in Energy and Environmental Design (LEED) certifications, align with regulatory and client demands. These innovations are transforming the industry, supporting faster and more sustainable project delivery.

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***Energy Conservation and Sustainability:*** Growing awareness of energy conservation is reshaping industrial construction toward sustainability, driven by environmental concerns, rising energy costs, and government incentives. The adoption of sustainable materials like recycled steel, energy-efficient designs with passive heating/cooling, and renewable energy systems like solar or geothermal is increasing. Smart technologies, such as IoT for real-time energy monitoring, optimize resource use, while retrofitting older facilities with efficient lighting and insulation reduces consumption. Compliance with green building standards like LEED and workforce training further support these efforts, aligning with corporate sustainability goals and regulatory requirements.

#### End-market Analysis

#### Photovoltaic Industry
The U.S. photovoltaic (PV) industry is poised for significant growth, with annual installations projected at 43 GWdc through 2030 and cumulative capacity surpassing 730 GWdc by 2035. Domestic manufacturing has reached 51 GW in module capacity, but upstream supply chain limitations and new tariffs on imports from Southeast Asia, Canada, Mexico, and China may disrupt supply chains and delay projects. Technological advancements, including crystalline silicon modules, perovskite cells, and hybrid PV-battery systems, are improving efficiency. Growth is driven by federal policies like the Investment Tax Credit, Production Tax Credit, and manufacturing incentives, alongside state-level Renewable Portfolio Standards, net metering, and rebates, boosting demand across residential, commercial, and utility-scale segments. Major utility-scale projects, such as the 875 MW Edwards & Sanborn Solar Project in California and the 1.2 GW Sunstone Solar Project in Oregon, contribute to over 239 GW of installed PV capacity as of 2025, primarily in California, Texas, and Nevada. Foreign investments, particularly from Chinese firms like Jinko Solar and Trina Solar, are reshaping the market through U.S.-based manufacturing and third-country facilities, navigating tariffs, and leveraging IRA and USMCA benefits.

#### Car Parts and EV Battery Industry
The U.S. car parts industry is thriving due to digital innovation, high internet penetration, and 254.8 million e-commerce users, boosting online sales of replacement parts. Consumer preferences for customization, safety, and connectivity, alongside a shift to eco-friendly materials, drive growth. The industry aligns with sustainability goals, supported by the EPA's 2023 proposal for two-thirds of new vehicle sales to be electric by 2032. The EV battery market is expanding rapidly due to demand for electric, plug-in hybrid, and hybrid vehicles, with advancements improving battery lifespan and reducing costs. Major investments in 2025, such as Ford's USD5.6 billion Blue Oval City, GM's USD7 Billion Orion Assembly, Hyundai's USD7.4 billion Metaplant, and others, focus on EV components and battery production. Cross-border investments, particularly from foreign and Chinese firms, leverage U.S. incentives like the Inflation Reduction Act to meet rising EV demand and navigate trade barriers, positioning the U.S. as a hub for sustainable mobility.

#### Copper Tubing and Fiber Glass Industry
The U.S. copper tubing market is growing due to demand in construction, HVAC, plumbing, and industrial applications, driven by urbanization, infrastructure development, and energy-efficient building practices. The 2021 Bipartisan Infrastructure Law supports a USD25 – 55 billion Lead Service Line Replacement program, replacing lead pipes with copper tubing. Projects like Hudson Yards of USD25 billion investment and facilities like the Golden Dragon Copper Plant in Alabama boost domestic supply. Challenges include price volatility and competition from alternative materials. The U.S. dominates the North American market with strong growth expected.

The U.S. fiberglass market is expanding in construction, automotive, aerospace, and marine sectors due to its lightweight, durable, and corrosion-resistant properties. Applications include insulation, composites, and consumer goods. Notable projects include Architectural Fiberglass, Inc.'s restoration of iconic structures and LF Manufacturing's production of wind turbine blades and FRP tanks. Fiberglass Solutions LLC focuses on custom industrial applications.

Cross-border investments from Chinese and European firms, such as Golden Dragon's USD100 million Alabama plant, CNBM's USD40 million North Carolina facility, and Saint-Gobain's USD100 million Georgia fiberglass plant, support both markets. These align with U.S. infrastructure and sustainability goals, enhancing production for HVAC, plumbing, automotive, and renewable energy applications.

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#### Semiconductor Industry
The U.S. is bolstering its role in the global semiconductor sector through targeted government policies and substantial private investments. The 2022 CHIPS and Science Act, with its USD50 billion allocation, has driven nearly USD450 billion in private funding across 28 states, leading to over 90 new manufacturing projects by August 2024. This positions the U.S. to triple its chip production capacity by 2032, surpassing global rivals. Major projects include TSMC's USD165 billion investment in three Arizona factories, generating 6,000 high-tech jobs, and Micron's advanced memory chip facilities in New York.

The U.S. maintains a global lead in semiconductor design and R&D, with over USD50 billion invested in 2023. Key efforts include the National Semiconductor Technology Center in Albany, New York, and USD300 million for advanced packaging research in Georgia, California, and Arizona, focusing on AI and next-generation technologies. Global semiconductor sales reached USD630.5 billion in 2024 and are expected to exceed $600 billion in 2025, driven by AI and data center demand, despite softer PC and mobile markets. The industry supports 338,000 direct and nearly 2 million indirect U.S. jobs, significantly impacting the economy. Innovations in materials like germanium and graphene, along with 3D packaging and AI-optimized chips, are advancing.

#### Water Processing Facilities Industry
The growth of U.S. water processing facilities market is attributed to regulatory pressures, technological advancements, and rising water demand from industrial and municipal sectors. Stricter EPA standards and public-private partnership laws drive investments in advanced technologies like membrane filtration, reverse osmosis, and ultraviolet disinfection. Water reuse, energy efficiency, and smart systems are key trends, fueled by rapid industrialization and population growth. Major projects include California's Pure Water San Diego with USD1.5 billion investment and Pure Water Southern California with USD3.4 billion investment, New York City's Newtown Creek upgrade with USD2 billion investment, and Texas' Carrizo-Wilcox aquifer developments, addressing water scarcity and aging infrastructure. Industrial recycling is prominent in sectors like oil, gas, and semiconductors such as TSMC's Arizona plant. Chinese firms, such as Beijing Origin Water and Vontron Technology, indirectly support the market by supplying cost-competitive reverse osmosis membranes through partnerships and OEM agreements, influenced by the Belt and Road Initiative.

#### Competitive Landscape
The U.S. construction market in 2024 is moderately fragmented, largely due to the dominance of the private sector and the entry of new competitors. In the industrial EPC sector, the market features two primary categories of major players:

1) Traditional large-scale integrated contractors like Bechtel, Turner, Kiewit, and Fluor possess extensive project experience across continents, robust supply chain networks, and strong capabilities for cross-border resource deployment. They offer sufficient capital and comprehensive financing solutions, enabling them to deliver full-cycle integration services for large-scale projects across various sectors, including industrial, manufacturing, energy, aerospace, and infrastructure.

2) Specialized EPC contractors, like MasTec in power/telecom, Whiting-Turner in manufacturing facilities, and Granite in transportation, as well as the Group in the new energy sector, create barriers in specific industries or regions. Their expertise in proprietary construction methods, prefabrication, and extensive subcontracting networks can significantly reduce construction timelines. They can leverage local policy networks to enhance efficiency in permitting, environmental assessment, labor union, and community coordination. However, shifts in local policy may quickly alter the scale of regional players, such as adjusted environmental standards, altered subsidy programs, or revised approval processes. For example, tightening emissions rules could raise compliance costs for regional EPC firms in new energy, eroding their cost edge. Similarly, localities reducing infrastructure subsidies might drastically reduce project volumes for small contractors reliant on such funds, shrinking their market scale.

The U.S. industrial construction market currently exhibits a blend of fragmentation and specialization. For leading players, strong partnerships with supply chains and clients, strategic financial management, and systematic execution are considered core competitive edges. While new entrants will inevitably face barriers related to capital, regulation, compliance, experience, and expertise.

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#### Business Profile of Major Players
![](ttable_001.jpg)

*Source: The Frost & Sullivan Report*

#### Entry Barriers
***Capital Investment:*** Initial startup and ongoing operations in the industrial general contracting sector necessitate substantial capital investment, primarily for recruiting specialized engineering talent, licensing expensive design software, and covering significant upfront project costs. Furthermore, performance bonding capacity and working capital are critical for new entrants, which sometimes represent the qualification for bidding on large-scale industrial projects. Concurrently, long payment cycles from clients create immense pressure on a service provider's working capital, as payments to subcontractors and suppliers must be made upfront. Companies without sufficient financial strength cannot secure the necessary bonding or sustain the cash flow required for large-scale projects, effectively cutting them off from a crucial source of revenue.

***Regulation and Compliance:*** Construction approvals in the U.S. involve federal, state, county, and municipal agencies, each with distinct and possibly overlapping requirements for permits, environmental standards, fire safety, and labor regulations for industrial projects. As regulatory interpretation and approval timelines differ, failure to establish a stable communication channel with regulatory advisors and hearing representatives in each region may lead to extended construction periods due to procedural repetition or document supplementation, resulting in unpredictable cost and time risks.

***Experience and Expertise:*** When serving multinational clients, industrial buildings must integrate overseas engineering languages, process standards, and safety culture with North American construction practices effectively. This capability includes process package interpretation, supply chain adaptation, on-site safety culture transfer, and digital delivery requirements. New entrants without a clear understanding of the owner's internal regulations, site management logic, and established partner network will struggle to deliver a convincing technically integrated solution during the bidding process.

#### Factors of Competition
***Solid partnership with supply chain and clients:*** Solid partnerships with key supply chain participants are crucial for achieving market leadership in a resource-constrained environment. Leading contractors utilize their significant purchasing power and established relationships to secure competitive pricing, prioritized scheduling, enhanced technical support, and reliable labor from premier subcontractors and material suppliers. Meanwhile, leading contractors are strengthening their partnerships with clients through early engagement, which allows contractors to

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provide clients with risk and return data during the schematic design stage, optimizing functional layouts and lifecycle costs. Clients benefit from transparent budgets, reduced construction timelines, and decreased operating costs. Meanwhile, leading players secure long-term service contracts, boost follow-up order volumes, and utilize the client's brand to attract high-end projects, thereby enhancing their competitive edge.

***Strategic Financial Management:*** Sustained success in industrial construction sector is contingent upon sophisticated financial management, which extends beyond mere capital adequacy to encompass strategic cash flow control and robust risk mitigation. Market leaders leverage a strong balance sheet to negotiate favorable terms with suppliers, secure comprehensive insurance, and offer clients flexible commercial structures. The ability to absorb long payment cycles from clients while ensuring prompt payment to subcontractors is a critical differentiator that builds trust throughout the supply chain.

***Systematized Execution Excellence:*** Achieving consistent, high-quality project outcomes necessitates the implementation of a systematized and data-driven execution framework. This involves integrating rigorous, non-negotiable protocols for safety, quality assurance (QA/QC), and advanced project controls across all operations. Furthermore, leading firms convert historical project data into predictive analytics, allowing them to proactively identify and mitigate potential risks before they impact schedule or budget. Thereby, systematized execution contributes to one of the key success factors to market players.

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#### MANAGEMENT

#### Directors and Executive Officers
The table below lists our officers and directors, as well as director nominees, as of the date hereof.

---

| | | |
|:---|:---|:---|
|  **Name** | **Age** | **Position** |
|  Yunlong Zhang | 56 | Chief Executive Officer and Director |
|  Zhimin Chen | 37 | Chief Financial Officer |
|  Robert Sliva | 59 | Chief Operating Officer and Director Nominee |
|  Yuan Shi\* | 62 | Independent Director Nominee |
|  Damon Wright\* | 54 | Independent Director Nominee |
|  Marc Distefano\* | 53 | Independent Director Nominee |

---

____________

\* This individual has indicated his/her consent to the appointment of such position upon listing of our Common Stock on a national exchange.

**Yunlong Zhang, *Chief Executive Officer and Director.*** Yunlong Zhang founded Bestwater in November 2016 and serves as the Company's Chief Executive Officer and director. Mr. Zhang has over three decades of experiences in the EPC industry, with a background in both domestic and international markets. In 2014, Mr. Zhang began undertaking industrial EPC projects in the United States. He founded Bestwater USA Inc. in 2016 and has since overseen the Company's day-to-day operations and strategic direction. Under his leadership, the Company has completed EPC projects in various states, including South Carolina, Florida, Texas, Arizona, Illinois, Ohio, Michigan, and Tennessee. Mr. Zhang holds a Bachelor of Engineering in Industrial Electrical Automation from Jilin University of Technology in Changchun, China. We believe Mr. Zhang's extensive industry knowledge, project experience, and leadership capabilities qualify him to serve as our Chief Executive Officer and director.

**Zhimin Chen*, Chief Financial Officer.*** Zhimin Chen joined Bestwater in January 2019 as a Financial Analysis Manager, working on EPC project execution and financial operations including financial reporting, budgeting, internal controls, and compliance. In May 2025, Ms. Chen was promoted to Chief Financial Officer of Bestwater. Prior to joining the Company, Ms. Chen held diverse roles in the financial services and investment sectors. Ms. Chen began her career as an assurance staff in 2011 at Shine Wing Certified Public Accountants Co., Ltd., where she focused on industrial clients' projects. Between 2013 and 2016 Ms. Chen worked at China Minsheng Bank, focusing on credit analysis, risk management, real estate investments through years. Ms. Chen received a Bachelor of Science in Accounting from the University of Arizona in 2010. In 2011, Ms. Chen received a Master of Accounting from the University of Arizona's Eller College of Management. Ms. Chen attended full-time MBA program at Rice University and received a Master of Business Administration in 2018.

***Robert A. Sliva, P.E., Chief Operating Officer and Director Nominee.*** Robert Sliva serves as our Chief Operating Officer and will serve as a director upon the effectiveness of this registration statement of which this prospectus forms a part. Mr. Sliva has over 30 years of experience in industrial operations and engineering project management, with a focus on infrastructure, energy, and water-related sectors. Prior to joining our Company, Mr. Sliva held senior leadership roles at several industrial and energy-focused companies. From 2007 to 2011, Mr. Sliva served as President and Chief Operating Officer of TSC Group Holdings Ltd, a Hong Kong listed company formerly known as TSC Offshore Group Ltd. From December 2012 to April 2017, Mr. Sliva was a Vice President at Consolidated Pressure Control, a division of HP Piping Solutions, LLC. From February 2020 to April 2021 Mr. Sliva served as a Manager of Control Systems at Worldwide Oilfield Machine Inc. Between April 2021 and July 2023, Mr. Sliva served as a Regional Vice President at Industrial Service Solutions. In these roles, he was responsible for global operations, revenue growth, business development, and operational improvements across multiple sites and product lines. Mr. Sliva holds a Bachelor of Science degree in Mechanical Engineering and completed graduate level coursework in Accounting and Quantitative Management at the University of Houston. Mr. Sliva also completed the Advanced Management Program for Senior Executives at Rice University. We believe Mr. Sliva's extensive industry knowledge, project experience, and leadership capabilities qualify him to serve as our Chief Operating Officer and director.

***Yuan Shi, Independent Director Nominee.*** Yuan Shi will serve as one of our independent directors upon effectiveness of this registration statement of which this prospectus forms a part. Mr. Shi has over twenty years of experience in industrial technology and manufacturing management. Since July 2006, Mr. Shi has served as Managing

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Director of Shanghai NorthGlass Coating Technology Industrial Co., Ltd., where he is responsible for overseeing the company's overall operations, strategic direction, and business development. He has also served as a director of Shanghai NorthGlass Coating Technology Industrial Co., Ltd. Mr. Shi received a Master's degree in Mechanical Engineering from Tongji University in Shanghai, China. We believe Mr. Shi's extensive industry knowledge, project experience, and leadership capabilities qualify him to serve as an independent director.

***Damon Wright, Independent Director Nominee.*** Damon Wright will serve as one of our independent directors upon effectiveness of this registration statement of which this prospectus forms a part. Mr. Wright has over two decades of experience in accounting, finance, and corporate financial management. Since May 2025, Mr. Wright has served as Chief Financial Officer of Aurelia Technologies, where he is responsible for overseeing the company's accounting, finance, and financial reporting functions. From March 2024 to May 2025, Mr. Wright served as Chief Financial Officer of Signal Power Group, where he led financial operations, budgeting, and accounting oversight. Mr. Wright serves as a director and a member of the audit committee for both Signal Power Group and Aurelia Technologies. From August 2023 to March 2024, Mr. Wright served as Corporate Controller of Beusa, where his responsibilities included financial reporting, accounting operations, and internal controls. From March 2020 to August 2023, Mr. Wright served as Corporate Controller at Equipment Depot, Inc., with primary responsibility for accounting and finance functions. Mr. Wright received a Bachelor of Science in Accounting from the University of Kansas in 2001. We believe Mr. Wright's extensive industry knowledge, project experience, and leadership capabilities qualify him to serve as an independent director.

***Marc Distefano, Independent Director Nominee.*** Marc Distefano will serve as an independent director upon effectiveness of this registration statement of which this prospectus forms a part. Marc J. Distefano has over ten years of experience in executive leadership, operations management, and industrial services, with a particular focus on strategy, M&A integration, and operations. Since July 2025, Mr. Distefano has served as General Manager of Houston Placement Area, LLC, where he is responsible for executive leadership, strategic planning, and day-to-day operational oversight. From February 2020 through May 2025, Mr. Distefano served as Executive Vice President of Racca Solutions Group, LLC, where he acted as an operations consultant providing M&A diligence support, post-transaction integrations, and enterprise systems improvements. Prior to that, from April 2017 to February 2020, Mr. Distefano served as Executive Vice President of Arena Industrial, LLC, where he led company operations, developed corporate strategy, and oversaw post-acquisition integration. Earlier in his career, from October 2015 to April 2017, Mr. Distefano served as General Manager of Danos, Inc.'s fabrication division. In that role, he managed multiple large offshore fabrication projects and was responsible for establishing and scaling a new fabrication division for the company. Mr. Distefano received a Bachelor of Science in Civil Engineering from the United States Military Academy. He also holds a Master of Science in Construction Engineering and Project Management from the University of Texas and a Master of Science in Finance from the University of Houston. We believe Mr. Distefano's extensive industry knowledge, project experience, and leadership capabilities qualify him to serve as an independent director.

#### Family Relationships
There are no family relationships among our director, director nominees or executive officers.

#### Code of Ethics
Our board of directors has not adopted a code of ethics due to the fact that we presently only have one director, and we are in the development stage of our operations. We anticipate that we will adopt a code of ethics upon the effectiveness of the registration statement, of which this prospectus forms a part.

#### Director Independence
We plan to apply to list our Common Stock on a national stock exchange in connection with this Offering. Generally, under the rules of a national stock exchange, for example, Nasdaq listing rules or NYSE American Company Guide, a director will only qualify as an "independent director" if, in the opinion of that company's Board of Directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In order to be considered independent for purposes of Rule 10A-3 of the Exchange Act, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the Board of Directors, or any other Board committee, accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries or otherwise be an affiliated person of the listed company or any of its subsidiaries.

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Our Board has determined that Yuan Shi, Damon Wright, and Marc Distefano are "independent directors" as defined in the Nasdaq listing rules, the NYSE American Company Guide, and applicable SEC rules.

#### Board Committees
Our Board currently consists of one director. Upon effectiveness of this registration statement of which this prospectus forms a part, our Board will consist of five directors, comprised of two executive directors and three independent directors.

Upon the effectiveness of the registration statement, of which this prospectus forms a part, we will establish three standing committees: an audit committee, a compensation committee, and a nominating and corporate governance committee, each of which will have the composition and responsibilities described below. From time to time, our board of directors may establish other committees to facilitate the management of our business.

*Audit Committee.* Upon the effectiveness of the registration statement of which this prospectus forms a part, we will establish an audit committee of the Board. Under the national exchange listing standards and applicable SEC rules, we are required to have at least three members of the audit committee, all of whom must be independent, subject to certain phase-in provisions. Yuan Shi, Damon Wright, and Marc Distefano meet the independent director standard under national exchange listing standards and under Rule 10-A-3(b)(1) of the Exchange Act. Damon Wright will serve as chairperson of our audit committee. Each member of the audit committee is financially literate, and our Board has determined that Damon Wright qualifies as an "audit committee financial expert" as defined in applicable SEC rules.

We will adopt an audit committee charter, which will detail the purpose and principal functions of the audit committee, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appoint, compensate, and oversee the work of any registered public accounting firm employed by us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• resolve any disagreements between management and the auditor regarding financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pre-approve all auditing and non-audit services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• retain independent counsel, accountants, or others to advise the audit committee or assist in the conduct of an investigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• seek any information it requires from employees-all of whom are directed to cooperate with the audit committee's requests-or external parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• meet with our officers, external auditors, or outside counsel, as necessary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• oversee that management has established and maintained processes to assure our compliance with all applicable laws, regulations, and corporate policy.

*Compensation Committee.* Upon the effectiveness of the registration statement of which this prospectus forms a part, we will establish a compensation committee of the Board. Yuan Shi (chairperson of the committee), Damon Wright and Marc Distefano will serve as members of our compensation committee. Under the national exchange listing standards and applicable SEC rules, we are required to have at least two members of the compensation committee, all of whom must be independent, subject to certain phase-in provisions. Yuan Shi, Damon Wright, and Marc Distefano meet the independent director standard under national exchange listing standards applicable to members of the compensation committee.

We will adopt a compensation committee charter, which will detail the purpose and responsibility of the compensation committee, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discharge the responsibilities of the Board relating to compensation of our directors, executive officers, and key employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assist the Board in establishing appropriate incentive compensation and equity-based plans and to administer such plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• oversee the annual process of evaluation of the performance of our management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• perform such other duties and responsibilities as enumerated in and consistent with compensation committee's charter.

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*Nominating and Governance Committee.* Upon completion of this Offering, the nominating and corporate governance committee will consist of three directors: Yunlong Zhang (chair of the committee), Yuan Shi and Marc Distefano. Yuan Shi and Marc Distefano meet the independent director standard under national exchange listing standards applicable to members of the nominating committee.

We will adopt a nominating and governance committee charter, which will detail the purpose and responsibility of the compensation committee, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying individuals qualified to become new board of directors members, consistent with criteria approved by our board of directors, subject to our Certificate of Incorporation and Bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing the qualifications of incumbent directors to determine whether to recommend them for reelection and selecting, or recommending that our board of directors select, the director nominees for the next annual meeting of stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying board of directors members qualified to fill vacancies on our board of directors or any board of directors committee and recommending that our board of directors appoint the identified member or members to our board of directors or the applicable committee, subject to our Certificate of Incorporation and Bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and recommending to our board of directors corporate governance principles applicable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the evaluation of our board of directors and management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing our strategy on corporate social responsibility and sustainability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• handling such other matters that are specifically delegated to the committee by our board of directors from time to time.

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#### EXECUTIVE COMPENSATION
As an "emerging growth company" as defined in the JOBS Act and a smaller reporting company we are not required to include a Compensation Discussion and Analysis section and have elected to comply with the scaled disclosure requirements applicable to emerging growth companies and smaller reporting companies.

#### Summary Compensation Table
The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officer during the years ended December 31, 2024 and 2023 in all capacities for the accounts of our executive, including the Chief Executive Officer (CEO), and Chief Financial Officer (CFO):

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Name and principal <br>position** | **Year** | **Salary <br>($)** | **Bonus <br>($)** | **Stock <br>Awards <br>($)** | **Option <br>Awards <br>($)** | **Non-Equity <br>Incentive Plan <br>Compensation <br>($)** | **Nonqualified <br>Deferred <br>Compensation <br>Earnings <br>($)** | **All Other <br>Compensation <br>($)** | **Total <br>($)** |
|  *Yunlong Zhang* | 2024 | $120577 |  |  |  |  |  |  | $120577 |
| &nbsp;&nbsp;&nbsp; *CEO* | 2023 | $114000 |  |  |  |  |  |  | $114000 |
|  *Zhimin Chen* | 2024 | $193141 |  |  |  |  |  |  | $193141 |
| &nbsp;&nbsp;&nbsp; *CFO* | 2023 | $105000 | 675000 | 128696 |  |  |  |  | $908696 |

---

#### Compliance with Internal Revenue Code Section 162(m)
Section 162(m) of the Internal Revenue Code generally disallows a tax deduction to a public company for compensation over $1 million paid to its chief executive officer and its four other most highly compensated executive officers. However, if certain performance-based requirements are met, qualifying compensation will not be subject to this deduction limit. Although the limitations of Section 162(m) were not much concern to us prior to the Share Exchange, as we were a holding company, we intend to consider the requirements of Section 162(m) in developing our compensation policies now that we are an operating company.

#### Role of Executive Officers in Executive Compensation
During our most recently completed year, we did not have a compensation committee or another committee of our board of directors performing equivalent functions. Instead, the board of directors performed the function of a compensation committee, and our board of directors will continue to serve in such role.

#### Named Executive Officer Offer Letters
Our operating subsidiary, Bestwater, has entered into an offer letter setting forth terms and conditions of employment with each of our named executive officers. Each of these agreements provide for at-will employment and include the named executive officer's right to base salary and standard employment benefit plan participation, and standard confidential obligations.

*Yunlong Zhang, Chief Executive Officer.* Yunlong Zhang is our founder and has served as the Chief Executive Officer since November 28, 2016. Mr. Zhang's is employed on an at-will basis and receives an annual base salary of $120,000.

*Zhimin Chen, Chief Financial Officer.* Zhimin Chen has served as our Chief Financial Officer since May 2025. She initially joined the Company as the Financial Analysis Manager pursuant to an offer letter with Bestwater, dated December 28, 2018, and was subsequently promoted to Chief Financial Officer. Ms. Chen is employed on an at-will basis and receives a base salary of $210,020.

*Robert Sliva, Chief Operating Officer.* Robert Sliva has served as our Chief Operating Officer since May 2025 pursuant to an offer letter with Bestwater, dated April 25, 2025. Mr. Sliva is employed on an at-will basis and receives an annual base salary of $153,000 and a monthly car allowance of $600.

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#### Potential Payments upon Termination
We do not have any other policies, agreements, or arrangements regarding potential payments upon termination of other employment.

#### 2026 Stock Option Plan
Our Board of Directors plan to approve and adopt the 2026 Equity Incentive Plan (the "Plan"). Below is a summary of the principal provisions of the Plan which does not purport to be complete.

The Plan provides for the grant of stock options to our employees, officers, directors, and consultants, and is administered by the Board of Directors, provided that the Board may delegate such administration to a committee consisting of no fewer than two independent members of the Board of Directors. The Plan provides for a total of [•] shares of Common Stock to be reserved for issuance. Proportionate adjustments will be made to the number of shares of Common Stock subject to the Plan in the event of any change in our capitalization affecting our Common Stock, such as a stock split, reverse stock split, recapitalization, or combination of the authorized, issued, and outstanding shares of Common Stock. Shares of Common Stock subject to option grants that are terminated or forfeited will again be available for issuance under the Plan. As of the date of this prospectus, there are [•] options or other grants outstanding under the Plan.

#### Outstanding Equity Awards at Fiscal Year End
There are no outstanding unexercised options, unvested stock, or other equity incentive plan awards held by any of our named executive officers as of December 31, 2024.

#### Compensation of Directors
As of the date of this prospectus, Mr. Yunlong Zhang is our sole director. As of the date of this prospectus, we do not have a policy to pay our director for serving on our board or fees for attending scheduled and special meetings of our board of directors. Following consummation of the Offering, independent directors will be compensated $[•] per year, payable in equal quarterly payments. Independent directors will also be compensated $[•] per year for each committee on which they participate and an additional $[•] per year for serving as chair of a committee.

Since at this time we do not have a compensation committee, the function of considering and deciding compensation of directors are currently being performed by our board of directors. Following the completion of the Offering, the compensation committee shall be responsible for setting executive compensation, for making recommendations to the full Board concerning director compensation and for general oversight of the compensation and benefit programs for other employees.

#### Limitation on Liability and Indemnification Matters
No director or officer of the corporation past, present or future, shall be personally liable to the corporation or any of its stockholders for damages for breach of fiduciary duty as a director or officer; provided, however, that the liability of a director for acts or omissions which involve intentional misconduct, fraud or knowing violation of law and for the payment of dividends in violation of Section 78.300 of the Delaware Revised Statutes is not so eliminated. The corporation shall advance or reimburse reasonable expenses incurred by this individual without regard to the limitations in Delaware Revised Statute 78.7502, or any other limitation which may hereafter be enacted to the extent such limitation may be disregarded if authorized by the Articles of Incorporation.

Our Bylaws provide for the indemnification of our directors and officers, as to those liabilities and on those terms and conditions as appropriate.

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#### Security Ownership of Certain Beneficial Owners and Management
The following table sets forth certain information regarding the beneficial ownership of our Common Stock. The information below indicates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person who is known by us to be the beneficial owner of more than five percent (5%) of our issued and outstanding shares of Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors, executive officers, and nominees to become directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all directors and executive officers as a group.

Beneficial ownership is determined in accordance with the rules of the SEC and the percentage of beneficial ownership of each listed person prior to this Offering is calculated based on 19,400,000 shares of Common Stock outstanding as of the date of this prospectus. Percentage of beneficial ownership of each listed person after this Offering is based on 22,025,000 shares of Common Stock outstanding immediately after the completion of this Offering, assuming the underwriters do not exercise their over-allotment option.

Except as otherwise indicated, each person and each group shown in the table has sole voting and investment power with respect to the shares of Common Stock. For purposes of the table below, in accordance with Rule 13d-3 under the Exchange Act, a person is deemed to be the beneficial owner, for purposes of any shares of Common Stock, over which he or she has or shares of Common Stock, directly or indirectly, voting or investment power, or of which he or she has the right to acquire beneficial ownership at any time within 60 days after the date of this prospectus. As used herein, "voting power" is the power to vote or direct the voting of shares of Common Stock and "investment power" includes the power to dispose or direct the disposition of shares of Common Stock.

Except as otherwise noted below, the address for persons listed in the table is 2825 Wilcrest Drive, Suite 421, Houston, Texas, 77042.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares of Common Stock <br>beneficially owned prior to the <br>Offering** | **Shares of Common Stock <br>beneficially owned prior to the <br>Offering** | **Shares of Common Stock <br>beneficially owned after the <br>Offering** | **Shares of Common Stock <br>beneficially owned after the <br>Offering** |
|  **Name of Beneficial Owner** | **Number** | **%** | **Number** | **%** |
|  Yunlong Zhang | 12600000 | 64.95% | 12600000 | 57.21% |
|  Zhimin Chen | 4800000 | 24.74% | 4800000 | 21.79% |
|  Robert Sliva<sup>(3)</sup> |  |  |  |  |
|  Yuan Shi<sup>(3)</sup> |  |  |  |  |
|  Damon Wright<sup>(3)</sup> |  |  |  |  |
|  Marc Distefano<sup>(3)</sup> |  |  |  |  |
|  ***All executive officers and directors as a group (six persons)*** | **17400000** | **89.69%** | **17400000** | **79.00%** |
|  Yuchen Zhang<sup>(1)</sup> | 1000000 | 5.15% | 1000000 | 4.54% |
|  Zhou Ye<sup>(2)</sup> | 1000000 | 5.15% | 1000000 | 4.54% |

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____________

(1) Yuchen Zhang is the daughter of Yunlong Zhang. Yunlong Zhang disclaims beneficial ownership to the shares of Common Stock owned by Yuchen Zhang.

(2) Zhou Ye is the spouse of Zhimin Chen. Zhimin Chen disclaims beneficial ownership to the shares of Common Stock owned by Zhou Ye.

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#### SHARES ELIGIBLE FOR FUTURE SALE
Prior to this Offering, there has been no public market for our Common Stock. Future sales of substantial amounts of our Common Stock, including shares of Common Stock issued upon the exercise of outstanding options, in the public market after this Offering, or the possibility of these sales or issuances occurring, could adversely affect the prevailing market price for our Common Stock or impair our ability to raise equity capital. Upon completion of this Offering, we will have outstanding shares of Common Stock held by public stockholders representing approximately 11.92% of our Common Stock in issue if the underwriters do not exercise their over-allotment option, and approximately 13.47% of our Common Stock in issue if the underwriters exercise their over-allotment option in full. All of the Common Stock sold in this Offering will be freely transferable by persons other than our "affiliates" without restriction or further registration under the Securities Act.

We cannot assure you that a liquid trading market for our Common Stock will develop on a national stock exchange or be sustained after this Offering. Once approved for listing on a national stock exchange, sales of substantial amounts of our shares of Common Stock following this Offering, or the perception that these sales could occur, could adversely affect prevailing market prices of our shares of Common Stock, and could impair our future ability to obtain capital, especially through an offering of equity securities.

We will have an aggregate of 22,025,000 shares of Common Stock outstanding immediately upon the closing of this Offering, if the underwriters do not exercise their over-allotment option in full, or 22,418,750 shares of Common Stock, if the over-allotment option is exercised in full.

Of these shares, the 2,625,000 shares of Common Stock sold in this Offering by us, will be freely tradable without restriction or further registration under the Securities Act, unless purchased by "affiliates" as that term is defined under Rule 144 of the Securities Act, who may sell only the volume of shares of Common Stock described below and whose sales would be subject to additional restrictions described below. The remaining 19,400,000 shares of Common Stock, representing approximately 57.21% of our outstanding shares, following the Offering, respectively, will be held by our existing stockholders. These shares will be "restricted securities" as that phrase is defined in Rule 144 under the Securities Act. Subject to certain contractual restrictions, including the lock-up agreements described below for our officers, directors and greater than 5% stockholders, holders of restricted shares of Common Stock will be entitled to sell those shares of Common Stock in the public market pursuant to an effective registration statement under the Securities Act or if they qualify for an exemption from registration under Rule 144. Sales of these shares in the public market after the restrictions under the lock-up agreements lapse, or the perception that those sales may occur, could cause the prevailing market price to decrease or to be lower than it might be in the absence of those sales or perceptions. As a result of lock-up agreements described below, and the provisions of Rules 144 under the Securities Act, the restricted securities will be available for sale in the public market.

Upon expiration of the respective lock-up periods after the date of this prospectus, outstanding shares will become eligible for sale, subject in most cases to the limitations of Rule 144.

#### Lock-up Arrangements
See "Plan of Distribution" and "Underwriting — Lock-up Agreements."

#### Rule 144
As of the date of this prospectus, we have 19,400,000 shares of Common Stock issued and outstanding. All of the shares of our Common Stock outstanding prior to the closing of this Offering are "restricted securities," as that term is defined in Rule 144 under the Securities Act and may be sold publicly in the United States only if they are subject to an effective registration statement under the Securities Act or pursuant to an exemption from the registration requirement, such as those provided by Rule 144 and Rule 701 promulgated under the Securities Act.

In general, under Rule 144 as currently in effect, beginning 90 days after the date of this prospectus, a person who is not deemed to have been our affiliate at any time during the three months preceding a sale and who has beneficially owned restricted securities within the meaning of Rule 144 for more than six months would be entitled to sell an unlimited number of those securities, subject only to the availability of current public information about us. A non-affiliate who has beneficially owned restricted securities for at least one year from the later of the date these shares of Common Stock were acquired from us or from our affiliate would be entitled to freely sell those shares of Common Stock.

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A person who is deemed to be an affiliate of ours and who has beneficially owned "restricted securities" for at least six months would be entitled to sell, within any three-month period, a number of shares of Common Stock that is not more than the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of shares of Common Stock then outstanding, which will equal approximately 2,202,500 shares immediately after this Offering, assuming the underwriters do not exercise their over-allotment option; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume of our Common Stock on a national stock exchange during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

#### Rule 701
In general, under Rule 701 of the Securities Act as currently in effect, each of our employees, consultants, or advisors who purchases shares of our Common Stock from us in connection with a compensatory stock plan or other written agreement executed prior to the completion of this Offering is eligible to resell those shares of Common Stock in reliance on Rule 144, but without compliance with some of the restrictions, including the holding period, contained in Rule 144. However, the Rule 701 shares of Common Stock would remain subject to lock-up arrangements and would only become eligible for sale when the lock-up period expires.

#### Regulation S
Regulation S provides generally that sales made in offshore transactions are not subject to the registration or prospectus-delivery requirements of the Securities Act.

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#### UNDERWRITING
In connection with this Offering, we will enter into an underwriting agreement with Eddid Securities USA Inc. ("Eddid") as representative for the underwriters in this Offering with respect to the shares of Common Stock. The representative may retain other brokers or dealers to act as sub-agents on its behalf in connection with this Offering and may pay any sub-agent a solicitation fee with respect to any securities placed by it. Under the terms and subject to the conditions contained in the underwriting agreement, we have agreed to issue and sell to the underwriters and each of the underwriters, severally and not jointly, has agreed to purchase from us, on a firm commitment basis, the number of shares of Common Stock set forth opposite its name below, at the initial public offering price less the underwriting discounts set forth on the cover page of this prospectus:

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| | |
|:---|:---|
|  **Underwriter** | **Number of <br>Shares** |
|  Eddid Securities USA Inc. | 2625000 |
|  **Total** | **2625000** |

---

Upon the declaration of effectiveness of the registration statement of which this prospectus forms a part, we will enter into an underwriting agreement with the representative. The underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the shares of Common stock offered by this prospectus are subject to the approval of certain legal matters by their counsel and to other conditions. The underwriters are committed to purchase all of the shares of Common Stock offered by this prospectus and subject to prior sale other than those covered by the over-allotment option to purchase additional securities described below, if they purchase any such securities.

The obligations of the underwriters may be terminated upon the occurrence of certain events specified in the underwriting agreement. Furthermore, pursuant to the underwriting agreement, the underwriters' obligations are subject to the absence of any material adverse change in our business or in the financial markets, customary conditions, representations, and warranties contained in the underwriting agreement, such as receipt by the underwriters of officers' certificates and legal opinions, and comfort letters from us, our legal counsels, and our independent auditors. The underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

We have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act of 1933, as amended, and to contribute to payments the underwriters may be required to make in respect thereof.

The underwriters will offer the shares of Common Stock to the public at the initial public offering price set forth on the cover of this prospectus and to selected dealers at the initial public offering price less a selling concession not in excess of $[•] per share of Common Stock. After this Offering, the initial public offering price, concession, and reallowance to dealers may be reduced by the representative. No such reduction will change the amount of proceeds to be received by us as set forth on the cover of this prospectus. The securities are offered by the underwriters as stated herein, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part. The underwriters have informed us that they do not intend to confirm sales to any accounts over which they exercise discretionary authority.

#### Over-allotment Option
We have granted the underwriters an option, exercisable in whole or in part, from time to time, for up to 45 days after the closing date of this Offering, permits the underwriters to purchase a maximum of 393,750 additional shares of Common Stock (equal to 15% of the shares of Common Stock sold in this initial public offering) from us at a price per share equal to the public offering price per share less the underwriting discounts set forth on the cover of this prospectus to cover over-allotments, if any. We will be obligated, pursuant to the option, to sell these additional shares of Common Stock to the underwriters to the extent the over-allotment option is exercised.

#### Discounts and Expenses
We have agreed to pay the underwriters a cash fee discount for the Common Stock to be sold in this Offering equal to six percent (6.00%) of the aggregate gross proceeds received by the Company in the Offering.

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The underwriters have advised us that they propose to offer shares of Common Stock to the public at the public offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession. After this Offering, the initial public offering price, concession, and reallowance to dealers may be reduced by the underwriters. No change in those terms will change the amount of proceeds to be received by us as set forth on the cover of this prospectus. The securities are offered by the underwriter as stated herein, subject to its receipt and acceptance and subject to its right to reject any order in whole or in part.

The following table shows the assumed public offering price per share and total assumed public offering price, underwriting discount, and proceeds, before expenses, to us. The information assumes either no exercise or full exercise by the underwriters of their over-allotment option. Because the actual amount to be raised in this Offering is uncertain, the actual total underwriting discounts are not presently determinable and may be substantially less than the maximum amount set forth below.

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| | | | |
|:---|:---|:---|:---|
|  | **Per share**  | **Total Without <br>Exercise of <br>Over-Allotment <br>Option** | **Total With <br>Exercise of <br>Over Allotment <br>Option** |
|  Assumed Initial public offering price | $8.0 | $21000000 | $24150000 |
|  Underwriting discounts to be paid by us (6.0%)<sup>(1)</sup> | $0.48 | $1260000 | $1449000 |
|  Proceeds to the Company, before expenses | $7.52 | $19740000 | $22701000 |

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____________

(1) We have agreed to pay the underwriting discounts equal to six percent (6%) of the gross proceeds of this Offering, at the closing of this Offering, and each closing of the over-allotment option, if any. The fees do not include (i) a non-accountable expense allowance equal to one percent (1%) of the gross proceeds (excluding any proceeds from the exercise of the over-allotment option from this Offering, and (ii) the reimbursement of certain expenses of the underwriters.

We have also agreed to pay the underwriters by deduction from the gross proceeds of the Offering contemplated herein a non-accountable expense allowance equal to one percent (1%) of the aggregate gross proceeds received by us from the sale of the shares of Common Stock from this Offering, including the proceeds from any over-allotment option exercised by the representative, if any.

In addition, we have agreed to pay all reasonable, necessary, accountable and documented out-of-pocket expenses relating to the underwriters performance pursuant to the Offering and including, without limitation: expenses for travel, due diligence expenses, reasonable fees and expenses of underwriters' legal counsel, expenses for any roadshow and background checks on the Company's principals. We estimate such expenses payable by us in connection with this Offering, excluding the underwriting discounts and non-accountable expenses referred to above, will be no greater than $250,000, the maximum aggregate reimbursement amount of the underwriters' accountable expenses.

We estimate that the total expenses of the Offering payable by us, excluding underwriting discounts and non-accountable expense allowance, will be approximately $1.15 million.

#### Listing
We intend to apply to have our Common Stock listed on a national stock exchange under the symbol "BWGC." No assurance can be given that our listing will be approved by such national stock exchange or that a trading market will develop for our Common Stock. We will not proceed with this Offering in the event the Common Stock is not approved for listing on a national stock exchange.

#### Lock-Up Agreements
Pursuant to certain "lock-up" agreements, our executive officers, directors and existing stockholders owning 5% or more of our Common Stock and or holders of securities exercisable for or convertible into our Common Stock outstanding immediately upon the closing of this Offering equal to 5% or more of our capital stock upon closing, have agreed, subject to certain exceptions, not to offer, sell, assign, transfer, pledge, contract to sell, or otherwise dispose of or announce the intention to otherwise dispose of, or enter into any swap, hedge or similar agreement or arrangement that transfers, in whole or in part, the economic risk of ownership of, directly or indirectly, engage in any short selling of any Common Stock or securities convertible into or exchangeable or exercisable for any Common Stock, whether currently owned or subsequently acquired, without the prior written consent of the underwriters, for a period of six (6) months following the closing of this Offering.

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In addition, we have agreed, subject to certain exceptions, not to offer, sell, assign, transfer, pledge, contract to sell, or otherwise dispose of or announce the intention to otherwise dispose of, or enter into any swap, hedge or similar agreement or arrangement that transfers, in whole or in part, the economic risk of ownership of, directly or indirectly, engage in any short selling of any Common Stock or securities convertible into or exchangeable or exercisable for any Common Stock, whether currently owned or subsequently acquired, without the prior written consent of the underwriters, for a period of six (6) months following the closing of this Offering.

#### Right of First Refusal
We have agreed to grant the representative, for the period commencing to the closing of this Offering and concluding twelve (12) months thereafter, a right of first refusal exercisable at the representative's sole discretion to act as lead or managing underwriter, exclusive placement agent, exclusive financial advisor or in any other similar capacity, for any and all future registered, underwritten public offering of securities, and private placement of securities, for which the Company or any of the subsidiaries retains the service of an investment bank or similar financial advisor in connection with such offering during such twelve (12) month period of the Company. We have agreed not to offer to retain any entity or person in connection with any such offering on terms more favorable than terms on which we offer to retain the Representative. Such offer shall be made in writing in order to be effective. The Representative shall notify us within five (5) business days of its receipt of the written offer contemplated above as to whether or not it agrees to accept such retention. If the Representative should decline such retention, we shall have no further obligations to the Representative with respect to the offering of securities.

#### Fee Tail Period
For a period of twelve (12) months from the earlier to occur of the expiration or termination of our engagement with the representative or the closing of the Offering, if we receive any proceeds from the sale of our securities to certain investors with whom were introduced to us by the representative during the Offering, we have agreed to pay to the representative a cash fee equal to six percent (6%) of such gross proceeds.

#### Electronic Offer, Sale, and Distribution of Shares
A prospectus in electronic format may be made available on the websites maintained by the underwriters, if any, participating in this Offering and the underwriters participating in this Offering may distribute prospectuses electronically. The underwriters may agree to allocate a number of shares of Common Stock for sale to its online brokerage account holders. Internet distributions will be allocated by the underwriters that will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on these websites is not part of, nor incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us or the underwriters in their capacity as underwriters, and should not be relied upon by investors.

#### Other Relationships
The underwriter and its affiliates may, in the future provide various investment banking, commercial banking and other financial services for our company and its affiliates for which they have received, and may in the future receive, customary fees. However, except as disclosed in this prospectus, our Company has no present arrangements with the underwriter for any further services.

#### Offering Price Determination
There is no established market for our Common Stock. The public offering price of the securities we are offering will be negotiated between us and Eddid. Factors considered in determining the public offering price of the shares of Common Stock include the history and prospects of our company, the stage of development of our business, our business plans for the future and the extent to which they have been implemented, an assessment of our management, general conditions of the securities markets at the time of the Offering and such other factors as are deemed relevant.

Using the above valuation factors and the number of shares of Common Stock outstanding, we set a price range between $7.0 and $9.0 per share of our Common Stock.

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An active trading market for our Common Stock may not develop. It is possible that after this Offering our Common Stock will not trade in the public market at or above the initial offering price.

#### Price Stabilization, Short Positions, and Penalty Bids

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions permit bids to purchase Common Stock so long as the stabilizing bids do not exceed a specified maximum and are engaged in for the purpose of preventing or retarding a decline in the market price of the Common Stock while the Offering is in progress.

The underwriters may also sell shares of Common Stock in excess of the option to purchase additional shares of Common Stock, creating a naked short position. The underwriters must close out any naked short position by purchasing shares of Common Stock in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the Common Stock in the open market after pricing that could adversely affect investors who purchase in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Specifically, the underwriters may sell more shares of Common Stock than they are obligated to purchase under the underwriting agreement, creating a short position. A short sale is covered if the short position is no greater than the number of shares of Common Stock available for purchase by the underwriters under option to purchase additional shares of Common Stock. The underwriters can close out a covered short sale by exercising the option to purchase additional shares of Common Stock or purchasing shares of Common Stock in the open market. In determining the source of the shares of Common Stock to close out a covered short sale, the underwriters will consider, among other things, the open market price of the shares of Common Stock compared to the price available under the option to purchase additional shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Penalty bids permits the underwriters to reclaim a selling concession from a syndicate member when the shares of Common Stock originally sold by that syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of the shares of Common Stock or preventing or retarding a decline in the market price of its shares of Common Stock. As a result, the price of the Common Stock in the open market may be higher than it would otherwise be in the absence of these transactions. Neither our Company nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the price of our company's Common Stock. These transactions may be effected on a national stock exchange, or otherwise and, if commenced, may be discontinued at any time.

#### Passive Market Making
In connection with this Offering, the underwriters may engage in passive market making transactions in our company's Common Stock on a national stock exchange in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the shares of Common Stock and extending through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, then that bid must then be lowered when specified purchase limits are exceeded.

#### Potential Conflicts of Interest
The underwriters and their affiliates may, from time to time, engage in transactions with and perform services for us in the ordinary course of their business for which they may receive customary fees and reimbursement of expenses. In the ordinary course of their various business activities, the underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own accounts and for the accounts of their customers and such

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investment and securities activities may involve securities and/or instruments of our Company. The underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

#### Other Relationships
The underwriters and certain of their affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing, and brokerage activities. Some of the underwriters and certain of their affiliates may in the future engage in investment banking and other commercial dealings in the ordinary course of business with us and our affiliates, for which they may in the future receive customary fees, commissions, and expenses.

In addition, in the ordinary course of their business activities, the underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers. Such investments and securities activities may involve securities and/or instruments of ours or our affiliates. The underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or financial instruments and may hold, or recommend to clients that they acquire, long, and/or short positions in such securities and instruments.

#### Stamp Taxes
If you purchase our shares of Common Stock offered in this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the offering price listed on the cover page of this prospectus.

#### Selling Restrictions
No action has been taken in any jurisdiction (except in the United States) that would permit a public offering of our Common Stock, or the possession, circulation or distribution of this prospectus or any other material relating to us or our Common Stock, where action for that purpose is required. Accordingly, our Common Stock may not be offered or sold, directly or indirectly, and neither this prospectus nor any other offering material or advertisements in connection with our Common Stock may be distributed or published, in or from any country or jurisdiction except in compliance with any applicable rules and regulations of any such country or jurisdiction.

In addition to the Offering of the shares of Common Stock in the United States, the underwriters may, subject to applicable foreign laws, also offer the shares of Common Stock in certain countries.

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#### CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
We have not entered into any transaction during the last three fiscal years with any director, executive officer, director nominee, 5% or more stockholder, nor have we entered into transaction with any member of the immediate families of the foregoing person (including spouse, parents, children, siblings, and in-laws) or is any such transaction proposed, except as follows:

These related parties of the Company with whom transactions are reported in these financial statements are as follows:

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to Us** |
|  Mr. Yunlong Zhang | Director of the Company |
|  Shenzhen Best-Water S&T Co. Ltd. ("SZBW") | CEO of SZBW is the same as the Company's CEO and SZBW is wholly owned by the Company's CEO |

---

In the ordinary course of business, during the years ended December 31, 2022, 2023 and 2024, the Company was involved in certain transactions, either at cost or current market prices, and on normal commercial terms with related parties. The following table provides the transactions with these parties for the years as presented (for the portion of such period that they were considered related):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2022** | **As of<br> December 31,<br> 2023** | **As of<br> December 31,<br> 2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** | **US$** | **US$** |
|  **Amount due from a related party** |  |  |  |  |
|  ***<u>Name of related party</u>*** |  |  |  |  |
|  Mr. Yunlong Zhang |  | 2213677 |  |  |
|  |  | 2213677 |  |  |

---

In 2023, the Company entered into a loan agreement in a principal amount not to exceed $3,000,000 with a related party, the director of the Company, which carries no interest with a maturity date of December 31, 2025. During 2023, the Company lent $3,544,021 to Mr. Yunlong Zhang and received repayments of $1,330,344, resulting in a net loan of $2,213,677 outstanding. During 2024, the Company lent $2,355,506 and received repayments of $2,266,117, resulting in a net loan of $89,389. The outstanding loan balance of $2,303,066 was settled by the special dividend on December 31, 2024.

The Company lent $334,000 to Mr. Yunlong Zhang and received repayments of $312,000, resulting in a net loan of $22,000 during the first half of the year 2025. The outstanding loan balance of $22,000 was settled by the dividend on June 1, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2022** | **As of<br> December 31,<br> 2023** | **As of<br> December 31,<br> 2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** | **US$** | **US$** |
|  **Amount due to a related party** |  |  |  |  |
|  ***<u>Name of related party</u>*** |  |  |  |  |
|  Mr. Yunlong Zhang |  | 15027 |  |  |
|  |  | 15027 |  |  |

---

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Mr. Yunlong Zhang made payment on behalf of the Company when temporary payment was required. The Company paid back to Mr. Yunlong Zhang for reimbursement expenses when receiving the payment from clients. As of December 31, 2022, 2023, 2024, and September 30, 2025 the outstanding balance due to related party was $15,027, nil, nil and nil, respectively.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2022** | **As of<br> December 31,<br> 2023** | **As of<br> December 31,<br> 2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** | **US$** | **US$** |
|  **Prepayment to a related party** |  |  |  |  |
|  ***<u>Name of related party</u>*** |  |  |  |  |
|  SZBW |  | 90000 | 525000 | 625000 |
|  |  | 90000 | 525000 | 625000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2022** | **For the <br>year ended <br>December 31, <br>2023** | **For the <br>year ended <br>December 31, <br>2024** | **For the <br>nine-month <br>ended <br>September 30, <br>2025** |
|  | **US$** | **US$** | **US$** | **US$** |
|  **Construction consultancy service fee and equipment fee** |  |  |  |  |
|  ***<u>Name of related party</u>*** |  |  |  |  |
|  SZBW | 111220 | 283753 | 108500 |  |
|  | 111220 | 283753 | 108500 |  |

---

#### Stock Compensation of An Immediate Family Member of An Executive Officer
Zhou Ye serves as the Investor Relations Officer of Bestwater and is the spouse of Zhimin Chen, our Chief Financial Officer. Mr. Zhou received 500 shares of common stock of Bestwater on March 21, 2025, in consideration for services rendered. Pursuant to the Share Exchange Agreement, he received 500,000 shares of Common Stock on June 5, 2025.

#### Review, Approval, and Ratification of Related Party Transactions
Prior to completion of this Offering, we intend to adopt formal written procedures for the review, approval, or ratification of transactions with related persons, or the Related Persons Transaction Policy. The Related Persons Transaction Policy will provide that the audit committee of our board of directors will be charged with reviewing for approval or ratification all transactions with "related persons" (as defined in paragraph (a) of Item 404 of Regulation S-K) that are brought to the audit committee's attention. We also maintain certain compensation agreements and other arrangements with certain of our executive officers, which are described under "Executive Compensation" elsewhere in this prospectus.

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#### DESCRIPTION OF SECURITIES

#### General
Our Certificate of Incorporation authorizes the issuance of shares of capital stock, each with a par value of $0.0001, consisting of (a) 200,000,000 shares of Common Stock and (b) 1,000,000 shares of preferred stock. As of the date of this prospectus, there are 19,400,000 shares of Common Stock issued and outstanding. We have not issued any shares of preferred stock.

#### Common Stock
Each outstanding share of Common Stock entitles the holder thereof to one vote per share on matters submitted to a vote of stockholders. Stockholders do not have preemptive rights to purchase shares of Common Stock in any future issuance of our Common Stock.

The holders of shares of our Common Stock are entitled to dividends out of funds legally available when and as declared by our board of directors. Our board of directors has never declared a dividend. Should we decide in the future to pay dividends, it will be at the discretion of the Board of Directors and will be dependent upon then existing conditions, including our financial condition and results of operations, capital requirements, contractual restrictions, business prospects, and other factors that the Board of Directors considers relevant. Each share shall be entitled to the same dividend. In the event of our liquidation, dissolution or winding up, holders of our Common Stock are entitled to receive, ratably, the net assets available to stockholders after payment of all creditors.

All of the issued and outstanding shares of our Common Stock are duly authorized, validly issued, fully paid and non-assessable. To the extent that additional shares of our Common Stock are issued, the relative interests of existing stockholders will be diluted.

#### Voting Rights
Each share of our Common Stock entitles its holder to one vote per share on all matters to be voted upon by the stockholders. There is no cumulative voting, which means that a holder or group of holders of more than 50% of the shares of our Common Stock can elect all of our directors.

#### Dividend Rights
The holders of our Common Stock are entitled to receive, and will share ratably in, dividends when and as declared by our board of directors from legally available sources, subject to the prior rights of the holders of our preferred stock, if any. See "Dividend Policy."

#### Preemptive or Similar Rights
Our Common Stock is not entitled to preemptive rights.

#### Liquidation Rights
Upon our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our Common Stock and any participating preferred stock outstanding at that time after payment of liquidation preferences, if any, on any outstanding shares of preferred stock and payment of claims of creditors.

#### Conversion or Redemption Rights
Our Common Stock will be neither convertible nor redeemable.

#### Preferred Stock
Our Certificate of Incorporation authorizes 10,000,000 shares of preferred stock. Under our Certificate of Incorporation, our Board is authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series and to fix the designation, powers, preferences and rights of the shares of each series and any associated qualifications, limitations or

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restrictions. The Board is also able to increase or decrease the number of shares of any series, but not below the number of shares of that series then outstanding, without any further vote or action by our stockholders. The Board has the power to authorize the issuance of shares of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of shares of Common Stock. The issuance of shares of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of the Company and may adversely affect the market price of our Common Stock and the voting and other rights of the holders of shares of Common Stock. Although there is currently no intention to issue any shares of preferred stock, there cannot be any assurance that preferred stock will not be issued in the future.

#### Anti-Takeover Provisions
The provisions of the DGCL, our Certificate of Incorporation, and our Bylaws could have the effect of delaying, deferring, or discouraging another person from acquiring control of our Company. These provisions, which are summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids, and encourage persons seeking to acquire control of our Company to first negotiate with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

#### Stockholder Meetings
Our Certificate of Incorporation provides that a special meeting of the stockholders may be called only by the majority of the total number of authorized directors whether or not there exists any vacancies in previously authorized directorships, the chair of the Board, the president, or our Chief Executive Officer.

Subject to the terms of any series of Preferred Stock, any action required or permitted to be taken at any annual or special meeting of stockholders of the Company may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of the then-outstanding shares of stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Company in the manner provided by applicable law.

#### Stockholder Action by Written Consent
Our Certificate of Incorporation provides that any action to be taken at any annual or special meeting of stockholders of a corporation may be taken by written consent of the holders of outstanding stock having not less than the minimum number of votes that would be necessary to take that action at a meeting at which all stockholders entitled to vote were present and voted.

#### Board of Directors
Our Certificate of Incorporation provides that the number of directors constituting the entire board of directors shall be fixed only by resolution of the Board, subject to the rights of holders of preferred stock, if any. Our Board currently consists of one director. Upon effectiveness of this registration statement of which this prospectus forms a part, our Board will consist of five directors, comprised of two executive directors and three independent directors.

Our Board is not classified. The directors will constitute a single class and are elected annually for one-year terms. Stockholders are not permitted to cumulate votes in the election of directors.

Directors are elected at each annual meeting of stockholders to hold office until the expiration of the term for which they are elected and until their successors have been duly elected and qualified or until their earlier resignation or removal. Newly created directorships resulting from any increase in the number of directors and any vacancies on the Board may be filled only by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum, or by a sole remaining director, and not by the stockholders. Directors elected to fill vacancies or newly created directorships hold office until the next annual meeting and until their successors are duly elected and qualified, or until their earlier death, resignation, or removal.

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Our Certificate of Incorporation provides that, members of the Board may be removed from office only for cause, and requires the approval by the affirmative vote of holders of at least a majority in voting power of the outstanding shares of capital stock of the Company entitled to vote in the election of directors to remove directors from the Company.

#### Director Vacancies
Directors are elected at each annual meeting of stockholders to hold office until the expiration of the term for which they are elected and until their successors have been duly elected and qualified or until their earlier resignation or removal. Our Certificate of Incorporation and Bylaws authorize the Board to fill newly created directorships resulting from any increase in the number of directors, or from death, resignation, disqualification, removal or other cause. In addition, the number of directors constituting the Board will be set only by resolution adopted by a majority vote of the Board. These provisions will prevent a stockholder from increasing the Board and gaining control of the Board by filling the resulting vacancies with its own nominees.

#### Section 203 of the DGCL
As per our Certificate of Incorporation, we are not subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. As per our Certificate of Incorporation, the Company shall not engage in any business combination (as defined in the amended and restated certificate of incorporation), at any point in time at which the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, with any interested stockholder (as defined Certificate of Incorporation) for a period of three (3) years following the time that such stockholder became an interested stockholder, except under certain circumstances, such as if the board of directors approved the transaction before the stockholder became an interested stockholder, if at least 66 and 2/3 of the Company's outstanding voting stock voted in favor (not by written consent) of the combination or if the stockholder, at the time it consummated the transaction pursuant to which it became an interested stockholder, owned at least 85% of the Company's voting stock (not including stock held by officers, directors or employee stock plans).

The Certificate of Incorporation includes the definition of the terms used in this section, including that an interested stockholder is any person (other than the Company and any direct or indirect majority-owned subsidiary of the Company) that (i) is the owner of 15% or more of the outstanding voting stock of the Company, or (ii) is an affiliate or associate of the Company and was the owner of 15% or more of the outstanding voting stock of the Company at any time within the 3-year period immediately prior to the date on which it is sought to be determined whether such person is an interested stockholder, and the affiliates and associates of such person; provided, however, that the term "interested stockholder" shall not include any person whose ownership of shares in excess of the 15% limitation set forth herein is the result of action taken solely by the Company; provided that such person shall be an interested stockholder if thereafter such person acquires additional shares of voting stock of the Company, except as a result of further corporate action not caused, directly or indirectly, by such person. For the purpose of determining whether a person is an interested stockholder, the voting stock of the Company deemed to be outstanding shall include stock deemed to be owned by the person through application of the definition of "owner" included in the Certificate of Incorporation, but shall not include any other unissued stock of such Company which may be issuable pursuant to any agreement, arrangement or understanding, or upon exercise of conversion rights, warrants or options, or otherwise.

#### Limitations on Liability and Indemnification of Officers and Directors
The DGCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors' fiduciary duties, subject to certain exceptions. Our By-Laws provide that we must indemnify and may advance expenses to directors and officers to the fullest extent authorized by the DGCL. We are also expressly authorized to carry directors' and officers' liability insurance providing indemnification for directors, officers, and certain employees for some liabilities. We believe that these indemnification and advancement provisions and insurance are useful to attract and retain qualified directors and executive officers.

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The limitation of liability, indemnification and advancement provisions in the By-Laws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. We believe that these provisions, liability insurance and any indemnity agreements that may be entered into are necessary to attract and retain talented and experienced directors and officers.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

There is currently no pending material litigation or proceeding involving our respective directors, officers or employees for which indemnification is sought.

#### Transfer Agent
The transfer agent for our Common Stock is [name], [address], phone: [•]; facsimile [•].

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#### LEGAL MATTERS
Certain legal matters with respect to the shares of Common Stock offered hereby will be passed upon for us by Hunter Taubman Fischer & Li LLC, 950 Third Avenue, 19<sup>th</sup> Floor, New York, NY 10022. Ortoli Rosenstadt LLP is acting as counsel to the underwriter in connection with this Offering.

#### EXPERTS
The audited consolidated financial statements of the Company as of December 31, 2024 and 2023 and the related consolidated statements of operations, changes in stockholders' deficit and cash flows for the years then ended, and the related notes appearing in this registration statement, have been audited by Marcum Asia CPAs LLP, an independent registered public accounting firm, as set forth in their report thereon.

#### DISCLOSURE OF COMMISSION POSITION ON<br>INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by us of expenses incurred or paid by one of our directors, officers or controlling persons in the successful defense of any action, suit or proceeding) is asserted by that director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether that indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of that issue.

#### WHERE YOU CAN FIND ADDITIONAL INFORMATION
We will file with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of Common Stock offered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement, some of which is contained in exhibits to the registration statement as permitted by the rules and regulations of the SEC. For further information with respect to us and our Common Stock, we refer you to the registration statement to be filed, including the exhibits filed as a part of the registration statement. Statements contained in this prospectus concerning the contents of any contract or any other document is not necessarily complete. If a contract or document will be filed as an exhibit to the registration statement, please see the copy of the contract or document that will be filed. Each statement in this prospectus relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The SEC maintains a website that contains reports and other information regarding registrants that file electronically with the SEC. The address of the SEC's website is *http://www.sec.gov*.

Upon the completion of this Offering, we will be subject to the information reporting requirements of the Exchange Act, and we will file reports, proxy statements, and other information with the SEC. These reports, proxy statements, and other information will be available on the website of the SEC referred to above. We also maintain a website at *http*://*www.bw*-industrial*.com*, at which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Information contained on, or that can be accessed through, our website is not incorporated by reference in this prospectus, and you should not consider information on our website to be part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only.

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#### INDEX TO FINANCIAL INFORMATION STATEMENTS

#### BW Industrial Holdings Inc.<br> UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
|  [Unaudited Interim Condensed Consolidated Balance Sheets as of December 31, 2024 and September 30, 2025](#T881) | F-2 |
|  [Unaudited Interim Condensed Consolidated Statements of Operations for the Three-month and Nine-month Periods Ended September 30, 2024 and 2025](#T882) | F-3 |
|  [Unaudited Interim Condensed Consolidated Statements of Change in Stockholders' Equity for the <br>Nine-month Periods Ended September 30, 2024 and 2025](#T883) | F-4 |
|  [Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Nine-month Periods Ended September 30, 2024 and 2025](#T884) | F-5 |
|  [Notes to Unaudited Interim Condensed Consolidated Financial Statements](#T885) | F-6 |

---

#### BESTWATER USA INC.<br>FINANCIAL INFORMATION STATEMENTS

#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
|  [Report of Independent Registered Public Accounting Firm](#T886) | F-26 |
|  [Balance Sheets as of December 31, 2023 and 2024](#T887) | F-27 |
|  [Statements of Operations and Comprehensive Income for the Years Ended December 31, 2023 and <br>2024](#T888) | F-28 |
|  [Statements of Change in Stockholders' Equity for the Years Ended December 31, 2023 and 2024](#T889) | F-29 |
|  [Statements of Cash Flows for the Years Ended December 31, 2023 and 2024](#T890) | F-30 |
|  [Notes to Financial Statements](#T891) | F-31 |

---

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#### BW Industrial Holdings Inc.<br>UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS<br> (Expressed in U.S. dollars ("US$"), except for the number of shares)

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  **Assets** |  |  |
|  **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp; Cash | 9443799 | 4648112 |
| &nbsp;&nbsp;&nbsp; Accounts receivables, net | 970500 | 1791381 |
| &nbsp;&nbsp;&nbsp; Contract assets | 12665217 | 13223481 |
| &nbsp;&nbsp;&nbsp; Amount due from related parties | 525000 | 625000 |
| &nbsp;&nbsp;&nbsp; Deferred initial public offering ("IPO") costs |  | 526500 |
| &nbsp;&nbsp;&nbsp; Prepayment and other current assets | 436616 | 1441792 |
|  **Total current assets** | 24041132 | 22256266 |
|  **Non-current assets** |  |  |
|  Equipment, net | 81860 | 67008 |
|  Operating lease right-of-use assets | 16888 | 5196 |
|  Other non-current assets | 1500 | 1500 |
|  **Total non-current assets** | 100248 | 73704 |
|  **Total assets** | **24141380** | **22329970** |
|  **Liabilities and stockholders' equity** |  |  |
|  **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payables | 10605026 | 2758760 |
| &nbsp;&nbsp;&nbsp; Contract liabilities | 743012 | 2131875 |
| &nbsp;&nbsp;&nbsp; Income tax payable | 2024259 | 1952003 |
| &nbsp;&nbsp;&nbsp; Accrued expense and other current liabilities | 222674 | 272942 |
|  **Total current liabilities** | 13594971 | 7115580 |
|  **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp; Other non-current liabilities | 1477 |  |
|  **Total non-current liabilities** | 1477 |  |
|  **Total liabilities** | **13596448** | **7115580** |
|  **Commitments and contingencies** |  |  |
|  **Stockholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp; Common stock, par value US$0.0001, 200,000,000 shares authorized; 18,400,000 shares and 19,400,000 shares issued and outstanding as of December 31, 2024, and September 30, 2025, respectively\* | 1840 | 1940 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital\* | 439896 | 1736415 |
| &nbsp;&nbsp;&nbsp; Retained Earnings | 10103196 | 13476035 |
|  **Total stockholders' equity** | **10544932** | **15214390** |
|  **Total liabilities and stockholders' equity** | **24141380** | **22329970** |

---

____________

\* Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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#### BW Industrial Holdings Inc.<br>UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS <br> (Expressed in U.S. dollars ("US$"), except for the number of shares)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month <br>periods ended <br>September 30,** | **For the three-month <br>periods ended <br>September 30,** | **For the nine-month <br>periods ended <br>September 30,** | **For the nine-month <br>periods ended <br>September 30,** |
|  | **2024** | **2025**  | **2024** | **2025** |
|  | **US$** | **US$**  | **US$** | **US$** |
|  **Revenue** | 41941712 | 1872377 | 66266834 | 19867626 |
|  Cost of revenues | (36848681) | (1487849) | (57338720) | (9075285) |
|  **Gross profit** | **5093031** | **384528** | **8928114** | **10792341** |
|  **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | (532355) | (955939) | (1968801) | (4074212) |
|  **Total operating expenses** | (532355) | (955939) | (1968801) | (4074212) |
|  **Income (Loss) from operations** | **4560676** | **(571411)** | **6959313** | **6718129** |
|  **Other income** |  |  |  |  |
|  Interest income | 21199 | 29462 | 76190 | 80654 |
|  **Total other income** | **21199** | **29462** | **76190** | **80654** |
|  **Income before income tax expense** | 4581875 | (541949) | 7035503 | 6798783 |
|  Income tax (expense) benefit | (962368) | 113810 | (1477456) | (1427744) |
|  **Net income (loss)** | 3619507 | (428139) | 5558047 | 5371039 |
|  **Earnings (Loss) per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted\* | 0.20 | (0.02) | 0.30 | 0.28 |
|  **Weighted average shares outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted\* | 18400000 | 19400000 | 18400000 | 19110623 |

---

____________

\* Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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#### BW Industrial Holdings Inc.<br> UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS <br>OF CHANGES IN STOCKHOLDERS' EQUITY<br> (Expressed in U.S. dollars ("US$"), except for the number of shares)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **<br>Common stock** | **<br>Common stock** | **Additional <br>Paid-in <br>Capital\*** | **Retained <br>Earnings** | **Total <br>Stockholders' <br>Equity** |
|  | **Share\*** | **Amount\*** | **Additional <br>Paid-in <br>Capital\*** | **Retained <br>Earnings** | **Total <br>Stockholders' <br>Equity** |
|  |  | **US$** | **US$** | **US$** | **US$** |
|  **Balance, December 31, 2023** | **18400000** | **1840** | **439896** | **4635656** | **5077392** |
|  Net income |  |  |  | 5558047 | 5558047 |
|  **Balance, September 30, 2024** | **18400000** | **1840** | **439896** | **10193703** | **10635439** |
|  **Balance, December 31, 2024** | **18400000** | **1840** | **439896** | **10103196** | **10544932** |
|  Issuance of common stock under share-based compensation plan | 1000000 | 100 | 1296519 |  | 1296619 |
|  Dividends declared to the stockholder |  |  |  | (1998200) | (1998200) |
|  Net income |  |  |  | 5371039 | 5371039 |
|  **Balance, September 30, 2025** | **19400000** | **1940** | **1736415** | **13476035** | **15214390** |

---

____________

\* Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<br> (Expressed in U.S. dollars ("US$"))

---

| | | |
|:---|:---|:---|
|  | **For the <br>nine-month <br>periods ended <br>September 30, <br>2024** | **For the <br>nine-month <br>periods ended <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  **Cash flows from operating activities** |  |  |
|  Net income | 5558047 | 5371039 |
| &nbsp;&nbsp;&nbsp; Adjustment to reconcile net income to net cash generated from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation of equipment | 12207 | 14852 |
| &nbsp;&nbsp;&nbsp; Amortization of right-of-use assets | 11692 | 11692 |
| &nbsp;&nbsp;&nbsp; Share-based compensation expense |  | 1296619 |
| &nbsp;&nbsp;&nbsp; Gain on extinguishment of accounts payable |  | (3743713) |
|  Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Accounts receivables, net | 83287 | (820881) |
| &nbsp;&nbsp;&nbsp; Contract assets | (5175720) | (558264) |
| &nbsp;&nbsp;&nbsp; Amount due from related party | (435000) | (100000) |
| &nbsp;&nbsp;&nbsp; Prepayment and other current assets | (179481) | (1005176) |
| &nbsp;&nbsp;&nbsp; Accounts payables | (3937715) | (4102553) |
| &nbsp;&nbsp;&nbsp; Contract liabilities | 1204477 | 1388863 |
| &nbsp;&nbsp;&nbsp; Income tax payables | 1287455 | (72256) |
| &nbsp;&nbsp;&nbsp; Accrued expense and other current liabilities | (489973) | (4732) |
| &nbsp;&nbsp;&nbsp; Other non-current liabilities | 5844 | (1477) |
|  **Net cash used in operating activities** | (2054880) | (2325987) |
|  **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Purchase of equipment | (99018) |  |
|  **Net cash used in investing activities** | (99018) |  |
|  **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Payment of deferred initial public offering costs |  | (471500) |
| &nbsp;&nbsp;&nbsp; Paid for dividend |  | (1976200) |
| &nbsp;&nbsp;&nbsp; Borrowings to related party | (2054506) | (334000) |
| &nbsp;&nbsp;&nbsp; Repayment made by related party | 2266117 | 312000 |
|  **Net cash provided by (used in) financing activities** | 211611 | (2469700) |
|  **Net change in cash** | (1942287) | (4795687) |
|  **Cash at the beginning of the period** | 9573299 | 9443799 |
|  **Cash at the end of the period** | 7631012 | 4648112 |
|  **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:** |  |  |
|  Cash paid for: |  |  |
|  Income taxes | 190000 | 1500000 |
|  **NON-CASH OPERATING AND FINANCING ACTIVITIES:** |  |  |
|  Operating lease right-of-use assets | 32477 |  |
|  Non-cash dividend settlement |  | 22000 |
|  Unpaid deferred initial public offering costs |  | 55000 |

---

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 1 — NATURE OF BUSINESS AND ORGANIZATION
BESTWATER USA INC. (the "Company") was incorporated in the state of Texas, U.S.A on November 21, 2016. The Company authorized 10,000 shares of common stock and initially issued 6,800 shares of common stock, par value US$0.01 each.

BW Industrial Holdings Inc. (the "Holding Company") was incorporated in Delaware on April 28, 2025, and is headquartered in Houston. The Holding Company authorized 100,000,000 shares of common stock, par value US$0.0001 each. Subsequently on June 5, 2025, the Holding Company issued an aggregate of 9,700,000 shares of common stock and the Company completed a share exchange for that the stockholders of the Company became stockholders of Holding Company with the same shareholding percentage and the Holding Company became the sole stockholder of the Company. On December 19, 2025, the Holding Company effected a one-for-two forward split of all issued and outstanding shares of 9,700,000 shares of common stock. As a result of the forward split, the Holding Company now have 19,400,000 shares of common stock issued and outstanding as of the date hereof.

The Company engages in providing engineering, procurement, and construction ("EPC") services for critical process systems across multiple industrial sectors. The Company serves clients in energy storage and battery manufacturing, renewable energy infrastructure, electronics production, advanced manufacturing, and semiconductor fabrication industries.

#### Reorganization
The reorganization was accounted for as a transaction between entities under common control in accordance with ASC 805-50 and therefore treated as a recapitalization for accounting purposes. As a result, no new goodwill or intangible assets were recognized, and the assets, liabilities and results of operations of the Company continue to be reflected at their historical carrying amounts. The Holding Company has been presented as the reporting entity for all periods following the reorganization.

Consistent with the applicable accounting guidance and the requirements of the SEC Financial Reporting Manual, all share and per-share information presented in this prospectus has been retrospectively adjusted to reflect the capital structure of the Holding Company as if the share exchange had occurred at the beginning of the earliest period presented. The reorganization did not have any impact on our historical total shareholders' equity, net loss or income, cash flows, or historical operations, but it did result in a reclassification within equity accounts due to the change in par value and number of shares outstanding.

As a result of the reorganization, the Holding Company became the parent company of the Company, which continues to conduct the historical operations of the business.

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES
*(a) Basis of presentation*

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the Company's unaudited interim condensed consolidated financial statement. The unaudited interim condensed consolidated financial statements should be read in conjunction with the Company's financial statements and the notes thereto for the year ended December 31, 2023 and 2024.

*(b) Use of estimates*

The preparation of unaudited interim condensed consolidated financial statements in conformity with accounting principles generally accepted in U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The significant estimate in the period is revenue recognition. Actual results could vary from the estimates and assumptions that were used.

*(c) Risks and uncertainties*

The Company's business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company's operations.

#### Credit Risk
Credit risk is the potential financial loss to the Company resulting from the failure of a client or a counterparty to settle its financial and contractual obligations to the Company, as and when they fall due. As the Company does not hold any collateral, the maximum exposure to credit risk is the carrying amounts of other receivables (excluding prepayments) and cash and bank deposits presented on the balance sheets. The Company has no other financial assets which carry significant exposure to credit risk.

#### Concentration of Credit Risk
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash. The Company places its cash with financial institutions with high-credit ratings and quality. As of December 31, 2024 and September 30, 2025, the Company's cash was US$9,443,799 and US$4,648,112, respectively.

Accounts receivable primarily comprise of amounts receivable from the revenue from EPC services and sales of equipment. To reduce credit risk, the Company performs on-going credit evaluations of the financial condition of these service clients. The Company establishes a provision for doubtful accounts based upon estimates, factors surrounding the credit risk of specific service clients and other information.

#### Concentration of demand
The following table sets forth a summary of single clients who represent 10% or more of the Company's total accounts receivable:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of September 30, 2025** | **As of September 30, 2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client C | 970500 | 100% | 570473 | 32% |
| &nbsp;&nbsp;&nbsp; Client E |  | —% | 319685 | 18% |
| &nbsp;&nbsp;&nbsp; Client F |  | —% | 392649 | 22% |
| &nbsp;&nbsp;&nbsp; Client G |  | —% | 366574 | 20% |
|  **Total** | 970500 | 100% | 1649381 | 92% |

---

The following table sets forth a summary of single clients who represent 10% or more of the Company's total revenue:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 5813180 | 14% | 718820 | 38% |
| &nbsp;&nbsp;&nbsp; Client E | 35131111 | 84% |  | —% |
| &nbsp;&nbsp;&nbsp; Client F |  | —% | 847379 | 45% |
|  **Total** | 40944291 | 98% | 1566199 | 83% |

---

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 15584846 | 24% | 2559994 | 13% |
| &nbsp;&nbsp;&nbsp; Client E | 49557783 | 75% | 13876017 | 70% |
|  **Total** | 65142629 | 99% | 16436011 | 83% |

---

The following table sets forth a summary of single clients who represent 10% or more of the Company's total contract assets:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of September 30, 2025** | **As of September 30, 2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 8282006 | 65% | 9100000 | 69% |
| &nbsp;&nbsp;&nbsp; Client E | 3812738 | 30% | 4000000 | 30% |
|  **Total** | 12094744 | 95% | 13100000 | 99% |

---

#### Concentration of supply
The following table sets forth a summary of single suppliers who represent 10% or more of the Company's total accounts payable:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of September 30, 2025** | **As of September 30, 2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier B | 2757791 | 26% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier D | 3402390 | 32% | 2491936 | 90% |
|  **Total** | 6160181 | 58% | 2491936 | 90% |

---

The following table sets forth a summary of single suppliers who represent 10% or more of the Company's total cost:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** | **For the three-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier F | 8269790 | 22% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier G | 9272899 | 25% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier H | 6622284 | 18% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier I |  | —% | 310957 | 21% |
| &nbsp;&nbsp;&nbsp; Supplier J |  | —% | 277228 | 19% |
| &nbsp;&nbsp;&nbsp; Supplier K |  | —% | 254280 | 17% |
| &nbsp;&nbsp;&nbsp; Supplier L |  | —% | 156906 | 11% |
|  **Total** | 24164973 | 65% | 999371 | 68% |

---

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** | **For the nine-month periods ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier D | 6293411 | 11% | 3080492 | 34% |
| &nbsp;&nbsp;&nbsp; Supplier F | 10850738 | 19% | 1488681 | 16% |
| &nbsp;&nbsp;&nbsp; Supplier G | 10572602 | 18% | 1225608 | 14% |
| &nbsp;&nbsp;&nbsp; Supplier H | 7134110 | 12% |  | —% |
|  **Total** | 34850861 | 60% | 5794781 | 64% |

---

#### Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. The management concluded that the Company's available cash and working capital will be sufficient to support its continuous operations and to meet its payment obligations when liabilities fall due within the next twelve months from the date of issuance of these financial statements. Accordingly, management continues to prepare the Company's financial statements on a going concern basis.

*(d) Fair value measurement*

The Company applies ASC 820, *Fair Value Measurements and Disclosures*, ("ASC 820''). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.

ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of input that may be used to measure fair value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 applies to assets or liabilities for which there are quoted prices, in active markets for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
Financial assets and liabilities of the Company primarily consist of cash, accounts receivable, contract assets, amount due from related parties, prepayment and other current assets, accounts payable, contract liabilities, income tax payable and accrued expense and other current liabilities which are subject to fair value measurement; however, because of their being short term in nature management believes their carrying values approximate their fair value as of December 31, 2024 and September 30, 2025.

Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

*(e) Related parties*

The Company follows the ASC 850-10, Related Party for the identification of related parties and disclosure of related party transactions.

Pursuant to section 850-10-20 the related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company December deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. The Company discloses all significant related party transactions in Note 10.

*(f) Cash*

Cash consists of cash in banks and certificate of deposit, the Company's demand deposit placed with financial institutions, which have original maturities of less than three months and unrestricted as to withdrawal and use. Deposits are held at highly liquid and well capitalized financial institutions. Risk of loss is not expected by management.

*(g) Accounts receivables, net*

Accounts receivables are recognized in the period when the Company has delivered service to its clients and when its right to consideration is unconditional. Accounts receivable, net are stated at the original amount less an allowance for expected credit loss on such receivables. Management reviews its accounts receivable on a regular basis to determine if the provision for credit loss is adequate, and makes provision when necessary. Accounts receivable are considered past due based on contractual terms. In establishing the allowance, management uses probability of default method to estimate the amount of the allowance for credit losses. The allowance for expected credit loss is estimated based upon the Company's assessment of various factors including historical experience, the age of the accounts receivable balances, current general economic conditions, future expectations and client specific quantitative

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
and qualitative factors that may affect the Company's clients' ability to pay. An allowance is also made when there is objective evidence for the Company to reasonably estimate the amount of probable loss. Account balances are charged off against the provision after all means of collection have been exhausted and the likelihood of collection is remote. As of December 31, 2024 and September 30, 2025, the Company made nil allowance for expected credit loss for accounts receivable.

*(h) Contract assets*

Projects with performance obligations recognized over time that have revenue recognized to date in excess of cumulative billings are reported on consolidated balance sheets as "Contract assets". Contract retentions, included in contract assets, represent amounts withheld by clients, in accordance with underlying contract terms, until certain conditions are met or the project is completed. Provisions for estimated losses of contract assets on uncompleted contracts are made in the period in which such losses are determined. As of December 31, 2024 and September 30, 2025, the Company made nil allowance for expected credit loss for contract assets.

*(i) Expected credit loss*

ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial assets. Using this methodology will result in earlier recognition of losses than under the current incurred loss approach, which requires waiting to recognize a loss until it is probable of having been incurred. There are other provisions within the standard that affect how impairments of other financial assets may be recorded and presented, and that expand disclosures. The Company adopted the ASU on January 1, 2022 and applied to accounts receivable, contract assets and other financial instruments. The adoption of this guidance did not materially impact the net earning and financial position and has no impact on the cash flows. As of December 31, 2024 and September 30, 2025, the Company made nil allowance for expected credit loss for accounts receivable, contract assets and other financial instruments.

*(j) Prepayment and other current assets*

Prepayments are mainly payments made to vendors or services providers for future services that have not been provided. These amounts are refundable and bear no interest. Management reviews its prepayments on a regular basis to determine if the allowance is adequate and adjusts the allowance when necessary. As of December 31, 2024 and September 30, 2025, no allowance was deemed necessary.

*(k) Deferred Initial Public Offering ("IPO") costs*

The Company complies with the requirement of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin ("SAB") Topic 5A — "Expenses of Offering". Initial public offering expense directly attributable to offering of securities are deferred and would be charged against the gross proceeds of the offering, as a reduction in capital stock. These deferred expenses mainly consist of underwriting, legal and other expenses incurred through the balance sheet date that are directly related to the intended IPO. Should the IPO prove to be unsuccessful, these deferred initial public offering costs, as well as additional expenses to be incurred, will be charged to operations. As of December 31, 2024 and September 30, 2025, the Company capitalized nil and US$526,500 of deferred initial public offering costs.

*(l) Equipment, net*

Equipment, net are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives are as follows:

---

| | |
|:---|:---|
|  **Category** | **Estimated <br>useful life** |
|  vehicle | 5 years |

---

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
Expenditure for repair and maintenance costs, which do not materially extend the useful lives of the assets, are charged to expenses as incurred, whereas the expenditure for major renewals and betterment that substantially extends the useful lives of equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the statements of operations and comprehensive loss.

*(m) Contract liabilities*

Contract liabilities are recorded when consideration is received from a client prior to transferring the services to the client or other conditions under the terms of a sales contract. As of December 31, 2024 and September 30, 2025, the Company recorded contract liabilities of US$743,012 and US$2,131,875, respectively. For the three-month periods ended September 30, 2024 and 2025, the Company recognized revenue from contract liabilities is nil. For the nine-month periods ended September 30, 2024 and 2025, the Company recognized revenue from contract liabilities is nil and US$72,012, respectively.

*(n) Commitments and contingencies*

In the normal course of business, the Company is subject to commitments and contingencies, including operating lease commitments, legal proceedings and claims arising out of its business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss will occur, and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments on liability for contingencies, including historical and the specific facts and circumstances of each matter.

*(o) Revenue recognition*

The Company engages in providing engineering, procurement, and construction ("EPC") services for critical process systems across multiple industrial sectors. The Company serves clients in energy storage and battery manufacturing, renewable energy infrastructure, electronics production, advanced manufacturing, and semiconductor fabrication industries.

The Company elected to adopt Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), effective as of April 1, 2020. Accordingly, the consolidated financial statements for the three-month and nine-month periods ended September 30, 2024 and 2025 are presented under ASC 606. The Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer obtains control of that asset. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. For the accounting period, the Company has determined two revenue streams for the accounting period, which includes: (1) Revenue from EPC services and (2) Sales of equipment and others.

Revenue from contracts with clients is recognized using the five-step model defined by ASC Topic 606 which requires the Company to (1) identify its contracts with clients, (2) identify its performance obligations under those contracts, (3) determine the transaction prices of those contracts, (4) allocate the transaction prices to its performance obligations in those contracts and (5) recognize revenue when each performance obligation under those contracts is satisfied. Revenue is recognized when promised goods or services are transferred to the client in an amount that reflects the consideration expected in exchange for those goods or services.

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
(1) EPC services

The Company typically got the project through project bidding or purchase orders from its clients which will set the terms and conditions including the transaction price, services to be performed, performance obligations, and terms of payments. The terms and conditions serve as the basis of the performance obligations that the Company must fulfill in order to recognize revenue. The performance obligation is to provide engineering, procurement, and construction services to the clients. There is no implied or implicit performance obligations related to the contract and/or purchase order. The scope of work to be executed by the Company shall include all materials and equipment required by the Contract and all temporary or permanent sub-contractor's personnel, materials and other items and services required for the engineering, procurement, construction, facility equipment commissioning, training, defect remedy and acceptance.

The contract is typically fixed priced with certain exemptions, which have a variable consideration within a range of the contract price based on changing the scope of work, which is reflected in the milestone billings based upon the attainment of specific project objectives to ensure the Company meets its contractual obligation. The Company's revenue is derived from contracts where scope is adequately defined, and therefore the Company can reasonably estimate total contract value. Revenue and gross profit or loss for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. The Company estimates variable consideration based on the amount the Company expects to be entitled, and includes estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when the Company concludes that any significant uncertainty associated with the variable consideration is resolved. For the three-month and nine-month periods ended September 30, 2024 and 2025, we had no material amounts in revenue related to unapproved change orders or liquidated damages.

Customer contracts are generally represented by a contract with durations typically ranging from three months to two years. The Company uses the Percentage of Completion("POC") method, the ratio of contract costs incurred to date compared to total estimated contract costs, to recognize revenue (an input method). For these contracts, revenue is recognized over time since the customer controls the projects being constructed and renovated throughout the process, and there is a continuous transfer of control from the Company to the customer. There is typically no warranty obligation except for certain projects, of which contracts may include retentions or holdbacks, in accordance with the local requirements, to be paid one-year after the quality assurance warranty period expires to ensure that Company meets the contract obligations and to provide guarantees that the product will function as intended and meet the agreed-upon specifications. This assurance-type warranty is not accounted for as a separate performance obligation, and thus no transaction price is being allocated. According to past experience, the Company never occurred quality problems after the project was completed. The amount of warranty is nil for the nine-month periods ended September 30, 2024 and 2025. The Company does not assess whether a contract contains a significant financing component if the Company expects, at contract inception, that the period between payment by the clients and the transfer of promised services to the clients will be less than one year.

The Company uses the ratio of actual costs incurred to total estimated costs since costs incurred represent a reasonable measure of progress towards the satisfaction of a performance obligation in order to estimate the portion of revenue earned. The Company uses the input method to recognize revenue due to the outputs are difficult to measure. Input methods recognize revenue on the basis of the entity's efforts or inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation. The contract price is fully allocated to one performance obligation. Milestone billing payments are approved once the service is certified by the client at each milestone. Remaining performance obligation represents all future revenue under contract that has not yet been recognized as revenue and includes unearned revenue. The value of the transaction price allocated to remaining performance obligations under EPC service contracts as of December 31, 2024 was approximately $12.7 million. As of September 30, 2025, the Company recognized 100% of remaining performance obligations as revenue. The value of the transaction price allocated to remaining performance obligations under EPC service contracts as of September 30, 2025 was approximately $2.2 million. The Company expects to recognize 100% of remaining performance obligations as revenue in the next six months.

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#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
Contract costs typically include direct labor, subcontractor and consultant costs, materials and indirect costs related to contract performance. Changes in estimated costs to complete these obligations result in adjustments to revenue on a cumulative catch-up basis, which causes the effect of revised estimates to be recognized in the current period. Changes in estimates can routinely occur over the contract term for a variety of reasons including, changes in scope, unanticipated costs, delays or favorable or unfavorable progress than original expectations. When the outcome of the contract cannot be reasonably measured, revenue is recognized only to the extent of contract costs incurred that are expected to be recovered. This means that profit is not recognized until the outcome can be reliably measured. The stage of completion is determined through the proportion of costs incurred to total costs.

The Company's contract with the client has payment terms specified based upon certain obligations completed. The Company will submit progress billing to the client when the stage of the project is completed, and after the Company receives the certificate from client, the Company will issue a tax invoice to the client. As the clients are required to pay the Company at different billing stages over the contract period, as such, the Company believes the progress payments limit the Company's exposure to credit risk and that the Company would be able to collect substantially all of the consideration gradually at different stages. The timing of the satisfaction of the Company's performance obligations is based upon the cost-to-cost measure of progress method, which is generally different than the timing of unconditional right of payment, and is based upon certain conditions completed as specified in the contract. The timing between the satisfaction of the Company's performance obligations and the unconditional right of payment would contribute to contract assets and contract liabilities.

(2) Sales of equipment and others

Revenue from sales of equipment and others comprised of revenue mainly from equipment sales with minor installation and transportation, and other design service, which is recognized when the performance obligation is satisfied at a point in time generally as the equipment is sold or services are provided for a duration of typically less than three months. The Company typically receives purchase orders from its clients which will set for the terms and conditions including the transaction price, equipment or services to be provided or performed, performance obligations, and terms of payment. The terms and conditions serve as the basis of the performance obligations that the Company must fulfil in order to recognize revenue. The key performance obligation is the delivery or completion of the equipment or the services to the client according to the contract. The Company recognizes revenue when the following events have occurred: (a) the Company has performed the contract obligation; (b) the Company has a present right to payment; (c) the client has legal rights to the equipment or services, and (d) the client bears significant risks and rewards of ownership of the services. The completion of this revenue process is evidenced by the client acceptance on the equipment and services and the Company recognized the revenue at a point in time.

The Company is the principal for its transactions and recognizes revenue on a gross basis. The Company is the principal when it has control of the service before it is transferred to clients, which generally is established when the Company is primarily responsible for merchandising decisions, maintains the relationship with client, and has pricing discretion.

*(p) Operating leases*

The Company adopted ASC Topic 842, *Leases* ("ASC 842") on January 1, 2022, using the modified retrospective method. The Company determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. The Company's leases do not contain any material residual value guarantees or material restrictive covenants.

The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. Lastly, the Company elected the short-term lease exemption for all contracts with lease term of 12 months or less.

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#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors present and records a right-of-use ("ROU") asset and lease liability for operating lease. ROU assets acquired through lease represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. If the rate implicit in the Company's leases is not readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease terms are based on the non-cancellable term of the lease.

Leases with an initial lease term of 12 months or less are not recorded on the balance sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term.

*(q) Selling expenses*

Selling expenses include related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs.

*(r) General and administrative expenses*

General and administrative expenses mainly consist of staff cost, office supplies and upkeep expenses, travelling and entertainment, legal and professional fees, property and related expenses, other miscellaneous administrative expenses.

*(s) Income taxes*

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

Under ASC 740-10-25, "Accounting for Uncertainty in Income Taxes", a tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefits recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer satisfied. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. There were no uncertain tax positions as of December 31, 2024 and September 30, 2025. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. The Company may also be subject to the examination of the tax filings in other jurisdictions, which are not material to the financial statements.

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#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
For the three-month and nine-month periods ended September 30, 2024 and 2025, the Company did not have any interest and penalties associated with tax positions. As of December 31, 2024 and September 30, 2025, the Company did not have any significant unrecognized uncertain tax positions.

*(t) Earnings per share*

Basic earnings per share is computed by dividing net income attributable to the holders of common stock by the weighted average number of common stock outstanding during the period presented. Diluted income per share is calculated by dividing net income attributable to the holders of common stock as adjusted for the effect of dilutive common stock equivalents, if any, by the weighted average number of common stock and dilutive common stock equivalents outstanding during the period. However, common stock equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. For the nine-month periods ended September 30, 2024 and 2025, the Company did not have any dilutive shares.

*(u) Share-based compensation*

The Company applies ASC 718, Compensation — Stock Compensation ("ASC 718"), to account for its employee share-based payments. In accordance with ASC 718, the Company determines whether an award should be classified and accounted for as a liability award or equity award. All the Company's share-based awards to employees were classified as equity awards and are recognized in the financial statements based on their grant date fair values. In accordance with ASC 718, the Company recognizes share-based compensation cost for equity awards to employees with a performance condition based on the probable outcome of that performance condition. Compensation cost is recognized using the accelerated method if it is probable that the performance condition will be achieved. The Company accounts for forfeitures as they occur in accordance with ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting.

*(v) Segment Reporting*

FASB ASC 280, "*Segment Reporting"*, establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments.

The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker ("CODM") for making decisions, allocating resources and assessing performance. The Company's CODM has been identified as the CEO, who reviews results when making decisions about allocating resources and assessing the performance of the Company.

The Company's assets are substantially all located in the U.S. and substantially all of the Company's revenues and expenses are derived in the U.S. Therefore, no geographical segments are presented.

For the three-month and nine-month periods ended September 30, 2024 and 2025, the CODM reviewed the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole, and the Company has only one reportable segment.

*(w) Recent accounting pronouncements*

The Company is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.

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#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
In October 2023, the FASB issued ASU 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." This amendment incorporates certain U.S. Securities and Exchange Commission (SEC) disclosure requirements into the FASB Accounting Standards Codification. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC's regulations. For entities subject to the SEC's existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its financial statements.

In December 2023, the FASB issued ASU No.2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". This ASU requires additional quantitative and qualitative income tax disclosure to enable financial statements users better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted the new disclosures for the annual periods beginning on January 1, 2025. The Company will include the applicable and relevant required disclosures in the Income Taxes footnote in the registration statement for the year ending December 31, 2025.

In March 2024, the FASB issued ASU 2024-02, "Codification Improvements — Amendments to Remove References to the Concepts Statements". This update contains amendments to the Codification that remove references to various FASB Concepts Statements. These issues to remove references to various Concepts Statements and the amendments apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2024. Early application of the amendments in this Update is permitted for any fiscal year or interim period for which financial statements have not yet been issued (or made available for issuance). The Company adopted the standard on the required effective date beginning on January 1, 2025 using a prospective transition method for all new transactions recognized on or after the effective date. The adoption of this guidance did not have a material impact on the Company's unaudited condensed financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU 2025-01, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). The ASU requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis including purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses. ASU 2024-03, as clarified by ASU 2025-01 is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with prospective or retrospective application permitted. The Company is currently evaluating the impact of adoption on the Company's related disclosures.

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets". The ASU provides a practical expedient to assume that conditions as of the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. This guidance is effective for annual reporting periods beginning after December 15, 2025, and for interim periods within those annual reporting periods, with early adoption permitted. The amendments in ASU 2025-05 should be applied prospectively. The Company is currently evaluating the impact of adoption on the Company's related disclosures.

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#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

#### Note 3 — DISAGGREGATION OF REVENUE
The following tables present the Company's revenue disaggregated by service lines for the three-month and nine-month periods ended September 30, 2024 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods <br>ended September 30,** | **For the three-month periods <br>ended September 30,** | **For the nine-month periods <br>ended September 30,** | **For the nine-month periods <br>ended September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
|  | **US$** | **US$** | **US$** | **US$** |
|  EPC services | 41941712 | 1751457 | 66195790 | 19707106 |
|  Sales of equipment and others |  | 120920 | 71044 | 160520 |
|  | **41941712** | **1872377** | **66266834** | **19867626** |
|  – Over time | 41941712 | 1751457 | 66195790 | 19707106 |
|  – At a point in time |  | 120920 | 71044 | 160520 |
|  | **41941712** | **1872377** | **66266834** | **19867626** |

---

The Company recognizes revenue from EPC services based on the Company's effort or inputs to the satisfaction of a performance obligation over time as work progresses because of the continuous transfer of control to the client and the Company's right to bill the client as costs are incurred.

The following table present the Company's revenue disaggregated by the countries which the client is located for the three-month and nine-month periods ended September 30, 2024 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods ended <br>September 30,** | **For the three-month periods ended <br>September 30,** | **For the nine-month periods ended <br>September 30,** | **For the nine-month periods ended <br>September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
|  | **US$** | **US$** | **US$** | **US$** |
|  United States | 41941712 | 1872377 | 66266834 | 19867626 |

---

#### Note 4 — ACCOUNTS RECEIVABLES, NET
Accounts receivables, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  Accounts receivables | 970500 | 1791381 |
|  Less: Allowance for expected credit loss |  |  |
|  Accounts receivables, net | 970500 | 1791381 |

---

For the three-month and nine-month periods ended September 30, 2024 and 2025, there is no credit loss recorded.

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#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 4 — ACCOUNTS RECEIVABLES, NET (cont.)
The following table sets forth the aging analysis of accounts receivables, net, based on the invoice date as of the dates mentioned below:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  Within 30 days | 970500 | 484123 |
|  Between 31 and 60 days |  | 15821 |
|  Between 61 and 90 days |  |  |
|  Over 91 days |  | 1291437 |
|  Accounts receivables, net | 970500 | 1791381 |

---

#### Note 5 — CONTRACT ASSETS AND CONTRACT LIABILITIES
Net contract assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  Contract assets | 12665217 | 13223481 |
|  Contract liabilities | (743012) | (2131875) |
|  Contract assets, net | 11922205 | 11091606 |

---

The Company believes that none of the clients above were experiencing financial difficulties that would materially impact the collectability of the Company's total contract assets as of December 31, 2024 and September 30, 2025.

#### Note 6 — EQUIPMENT, NET

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  At cost: |  |  |
|  Vehicles | 99018 | 99018 |
|  | 99018 | 99018 |
|  Less: accumulated depreciation | (17158) | (32010) |
|  Equipment, net | 81860 | 67008 |

---

Depreciation expense for the three-month periods ended September 30, 2024 and 2025 was US$4,951 and US$4,951, respectively.

Depreciation expense for the nine-month periods ended September 30, 2024 and 2025 was US$12,207 and US$14,852, respectively.

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#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 7 — ACCOUNTS PAYABLES, ACCRUED EXPENSE AND OTHER CURRENT LIABILITIES
Accounts payables, accrued expense and other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  Accounts payables | 10605026 | 2758760 |
|  Accrued expense and other current liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Other payables | 46847 | 108198 |
| &nbsp;&nbsp;&nbsp; SBA Loan | 158900 | 158900 |
| &nbsp;&nbsp;&nbsp; Lease liabilities, current portion | 16927 | 5844 |
|  Accrued expense and other current liabilities | 222674 | 272942 |

---

#### Note 8 — INCOME TAXES
Income tax expense for the three-month and nine-month periods ended September 30, 2024 and 2025 consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods ended <br>September 30,** | **For the three-month periods ended <br>September 30,** | **For the nine-month periods ended <br>September 30,** | **For the nine-month periods ended <br>September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
|  | **US$** | **US$** | **US$** | **US$** |
|  Current income tax benefit (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Federal | (962368) | 113809 | (1477456) | (1427744) |
| &nbsp;&nbsp;&nbsp; State |  |  |  |  |
|  Deferred income tax benefit: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Federal |  |  |  |  |
| &nbsp;&nbsp;&nbsp; State |  |  |  |  |
|  Total | (962368) | 113809 | (1477456) | (1427744) |

---

The following table presents a reconciliation of the Company's income tax at statutory tax rate and income tax at effective tax rate for the nine-month periods ended September 30, 2024 and 2025.

---

| | | |
|:---|:---|:---|
|  | **For the nine-month periods ended,** | **For the nine-month periods ended,** |
|  | **2024** | **2025** |
|  | **US$** | **US$** |
|  Income before income taxes | 7035503 | 6798783 |
|  Statutory income tax rate | 21% | 21% |
|  Income tax expense at statutory rate | 1477456 | 1427744 |
|  Tax effect of non-taxable income |  |  |
|  Tax effect of non-deductible items |  |  |
|  Others |  |  |
|  Tax expenses at effective tax rate | 1477456 | 1427744 |
|  Effective tax rate | 21% | 21% |

---

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#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 8 — INCOME TAXES (cont.)
The Company is subject to state income tax and federal income tax at different tax rates, depending upon taxable income levels. The U.S. federal statutory tax rate is 21%. For the federal income tax, the federal net operating losses incurred after 2017 are limited to 80% of taxable income and do not have an expiring date. For the state income tax, there is no net operating loss as of December 31, 2024 and September 30, 2025. There is no deferred tax assets or liabilities as of December 31, 2024 and September 30, 2025.

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2024 and September 30, 2025, the Company did not have any unrecognized uncertain tax positions and the Company does not believe that its unrecognized tax benefits will change over the next twelve months. For the nine-month periods ended September 30, 2024 and 2025, the Company did not incur any interest and penalties related to potential underpaid income tax expenses. The Company is subject to taxation and files income tax returns in the United States federal jurisdiction. As of December 31, 2024, tax years for 2021, 2022 and 2023 are subject to examination by tax authorities.

#### Note 9 — EQUITY
The Company initially authorized 100 shares of common stock, par value $1 per share. In April 2025, the Company amended its Article of the Certificate of Formation to increase the number of authorized shares of common stock to 10,000 shares and change the par value to $0.01 per share.

On March 21, 2025, the Company approved the 2025 Grant Notice to issue 1,000,000 shares of Common Stock to the employee. The Award has no blackout period and any restricted, which is an immediate vesting. Please see the detail in Note 12.

On June 1, 2025, the Company declared cash dividend of $0.103 per share of common stock to all stockholders of common stock of record as of June 1, 2025. In July 2025, the Company paid an aggregate cash dividend of $1,998,200 to all stockholders.

The Holding Company has performed a series of issuances of common stock resulting in 18,400,000 and 19,400,000 shares of common stock issued and outstanding as of December 31, 2024 and September 30, 2025.The Holding Company only has one single class of common stock that is accounted for as permanent equity.

#### Note 10 — RELATED PARTY TRANSACTIONS
These related parties of the Company with whom transactions are reported in these financial statements are as follows:

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to Us** |
|  Mr. Yunlong Zhang | Director of the Company |
|  Shenzhen Best-Water S&T Co. Ltd. ("SZBW") | CEO of SZBW is the same as the Company's CEO and SZBW is wholly owned by the Company's CEO |

---

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**BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### Note 10 — RELATED PARTY TRANSACTIONS (cont.)
In the ordinary course of business, the Company was involved in certain transactions, either at cost or current market prices, and on normal commercial terms with related parties. The following table provides the transactions with these parties for the years as presented (for the portion of such period that they were considered related):

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  **Prepayment to a related party** |  |  |
|  ***<u>Name of related party</u>*** |  |  |
|  SZBW | 525000 | 625000 |
|  | 525000 | 625000 |

---

#### Note 11 — OPERATING LEASES — RIGHT-OF -USE ASSETS AND LEASE LIABILITIES
<u><u>Lease commitment</u></u>

The Company determines if a contract contains a lease at inception. US GAAP requires that the Company's leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which results in an economic penalty.

The recognized operating lease ROU assets and lease liabilities as follows:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  Operating lease ROU asset | 16888 | 5196 |

---

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>September 30, <br>2025** |
|  | **US$** | **US$** |
|  Operating lease liabilities |  |  |
|  Current portion | 16927 | 5844 |
|  Non-current portion | 1477 |  |
|  Total | 18404 | 5844 |

---

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 11 — OPERATING LEASES — RIGHT-OF -USE ASSETS AND LEASE LIABILITIES (cont.)
As of September 30, 2025, future minimum lease payments under the non-cancellable operating leases are as follows:

---

| | |
|:---|:---|
|  **Future payment** | **US$** |
| 2025 | 4430 |
| 2026 | 1477 |
|  Thereafter |  |
|  Total future lease payment | 5906 |
|  Less: imputed interest | (62) |
|  Present value of operating lease liabilities | 5844 |
|  Operating lease liabilities, current portion | 5844 |
|  Operating lease liabilities, non-current portion |  |

---

The following summarizes other supplemental information about the Company's operating lease as of September 30, 2025:

---

| | | |
|:---|:---|:---|
|  Weighted average discount rate | 8.500 | % |
|  Weighted average remaining lease term (years) | 0.333 |  |

---

#### Note 12 — SHARE-BASED COMPENSATION EXPENSE
The stockholders and Board of Directors of the Company approved the 2025 Grant Notice to issue 1,000,000 shares of Common Stock to the employee. The purpose of the 2025 Grant Notice is to award exceptionally talented and qualified individuals who provided excellent performance in the past period. The Award has no blackout period and any restricted, which is an immediate vesting.

Share-based compensation expense recognized in the statements of operations and comprehensive income was as follows:

---

| | | |
|:---|:---|:---|
|  | **For The Nine-month <br>Periods Ended <br>September 30,** | **For The Nine-month <br>Periods Ended <br>September 30,** |
|  | **2024** | **2025** |
|  | **US$** | **US$** |
|  General and administrative expenses |  | 1296619 |
|  Income tax effect |  | (272290) |
|  Share-based compensation expense, net of tax |  | 1024329 |

---

The fair value per share is approximately US$1.297. The valuation was estimated on the grant date by the discounted cash flow method ("DCF") which considers that the present value of an investment is determined by the expected future economic benefits, such as the income that generated regularly, cost savings and sales revenue. In discounted cash flow method, a discount rate that can reflect the current market yield and the inherent risk of investment is used to discount the future net cash flow and evaluate the Company.

Discount rate is used to convert the annual net cash flow into present value, and it is based on an estimated weighted average cost of capital ("WACC"). WACC consists of cost of equity and cost of debt, and it is calculated by the proportion of capital structure.

The cost of equity, or required return on equity, is estimated using the capital asset pricing model ("CAPM") which is based on the premise that an industry's capitalization rate is equal to the risk-free rate of return plus an equity risk premium adjusted by an industry risk factor based on beta. The beta is developed by analyzing the historical relationship between the return required by investors in a particular industry and the average return required by investors in the market as a whole. A small size premium is applied in estimating an appropriate cost of equity, due to the relative size of the Company. Additional adjustments may be made for company-specific factors.

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 12 — SHARE-BASED COMPENSATION EXPENSE (cont.)
The following tables summarized the small size risk premium ("SRP"), additional risk premium ("ARP"), cost of equity ("Ke"), after-tax cost of debt ("Kd"), debt-to-equity ratio and WACC as of the Valuation Date:

---

| | |
|:---|:---|
|  | **For The <br>Nine-month <br>Periods Ended <br>September 30, <br>2025** |
|  Valuation Date | March 21, 2025 |
|  SRP | 4.47% |
|  ARP | 4.00% |
|  Kd\*(1-t)\* | 4.02% |
|  Ke | 16.94% |
|  %Debt | 9.70% |
|  %Equity | 90.30% |
|  WACC | 16.00% |

---

____________

\* t = Effective tax rate

For the three-month periods ended September 30, 2024 and 2025, the Company recognized share-based compensation expense is nil.

For the nine-month periods ended September 30, 2024 and 2025, the Company recognized share-based compensation expense is nil and US$1,296,619, respectively.

#### Note 13 — SEGMENT INFORMATION
The Company operates and manages its business as a single reportable segment, which is consistent with how the Chief Operating Decision Maker ("CODM"), the Chief Executive Officer, makes operating decisions and allocates resources. The CODM assesses performance and results of operations at the Company level. The Company's operations are centralized and integrated, with financial results reviewed and managed on a consolidated basis. Accordingly, management has determined that the Company has one reportable segment under ASC Topic 280, Segment Reporting.

Measure of Segment Profit or Loss

The CODM assesses performance for the segment and decides how to allocate resources by regularly reviewing the consolidated net income from the statement of operations, after taking into account the Company's strategic priorities, its cash balance, and its expected use of cash. The following table presents the significant revenue and expense categories in the Company's single operating segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three-month periods <br>ended September 30,** | **For the three-month periods <br>ended September 30,** | **For the nine-month periods <br>ended September 30,** | **For the nine-month periods <br>ended September 30,** |
|  | **2024** | **2025**  | **2024** | **2025** |
|  | **US$** | **US$**  | **US$** | **US$** |
|  **Revenue** | 41941712 | 1872377 | 66266834 | 19867626 |
|  Cost of revenues | (36848681) | (1487849) | (57338720) | (9075285) |
|  Selling, general and administrative expenses | (532355) | (955939) | (1968801) | (4074212) |
|  Other income | 21199 | 29462 | 76190 | 80654 |
|  Income tax (expense) benefit | (962368) | 113810 | (1477456) | (1427744) |
|  **Net income (loss)** | 3619507 | (428139) | 5558047 | 5371039 |

---

[**Table of Contents**](#TOC001)

#### BW Industrial Holdings Inc.<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### Note 14 — COMMITMENTS AND CONTINGENCIES
<u><u>Contingencies</u></u>

As of December 31, 2024 and September 30, 2025, the Company had neither significant financial nor capital commitment.

In the ordinary course of business, the Company may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable, and the amount of the loss is reasonably estimable. In the opinion of management, appropriate and adequate accruals for legal matters have been made, and management believes that the probability of a material loss beyond the amounts accrued is remote. Nevertheless, the Company cannot predict the impact of future developments affecting our pending or future claims and lawsuits. The Company expense legal costs as incurred, and all recorded legal liabilities are adjusted as required as better information becomes available to us.

#### Note 15 — SUBSEQUENT EVENTS
On December 19, 2025, the Holding Company effected a one-for-two forward split of all issued and outstanding shares of 9,700,000 shares of common stock. As a result of the forward split, the Holding Company now has 19,400,000 shares of common stock issued and outstanding as of the date hereof. All share and per-share amounts in the accompanying financial statements have been retroactively adjusted to reflect the forward stock split for all period presented.

Except for the above, the Company has assessed all events from September 30, 2025, up through date which is the date that these financial statements are available to be issued, there are not any material subsequent events that require disclosure in these unaudited interim condensed consolidated financial statements.

[**Table of Contents**](#TOC001)

#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and Board of Directors of<br>BestWater USA Inc.

#### Opinion on the Financial Statements
We have audited the balance sheets of BestWater USA Inc. (the "Company") as of December 31, 2023 and 2024, the related statements of operations and comprehensive income, changes in stockholders' equity and cash flows for each of the years in the two-year period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2024, and the results of its operations and its cash flows for each of the years for each of the years in the two-year period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Marcum Asia CPAs llp

Marcum Asia CPAs llp

We have served as the Company's auditor since 2025

New York, New York

August 14, 2025

except for Note 15, as to which the date is

January 20, 2026

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>BALANCE SHEETS<br> (Expressed in U.S. dollars ("US$"), except for the number of shares)

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2023** | **As of <br>December 31,<br> 2024** |
|  | **US$** | **US$** |
|  **Assets** |  |  |
|  **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp; Cash | 9573299 | 9443799 |
| &nbsp;&nbsp;&nbsp; Accounts receivables, net | 83287 | 970500 |
| &nbsp;&nbsp;&nbsp; Contract assets | 2466530 | 12665217 |
| &nbsp;&nbsp;&nbsp; Amount due from related parties | 2303677 | 525000 |
| &nbsp;&nbsp;&nbsp; Prepayment and other current assets | 92171 | 436616 |
|  **Total current assets** | 14518964 | 24041132 |
|  **Non-current assets** |  |  |
|  Equipment, net |  | 81860 |
|  Operating lease right-of-use assets |  | 16888 |
|  Other non-current assets | 1500 | 1500 |
|  **Total non-current assets** | 1500 | 100248 |
|  **Total assets** | **14520464** | **24141380** |
|  **Liabilities and stockholders' equity** |  |  |
|  **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payables | 7016247 | 10605026 |
| &nbsp;&nbsp;&nbsp; Contract liabilities | 315000 | 743012 |
| &nbsp;&nbsp;&nbsp; Income tax payable | 1253857 | 2024259 |
| &nbsp;&nbsp;&nbsp; Accrued expense and other current liabilities | 857968 | 222674 |
|  **Total current liabilities** | 9443072 | 13594971 |
|  **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp; Other non-current liabilities |  | 1477 |
|  **Total non-current liabilities** |  | 1477 |
|  **Total liabilities** | **9443072** | **13596448** |
|  **Commitments and contingencies** |  |  |
|  **Stockholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp; Common stock, par value US$0.0001, 200,000,000 shares authorized; 18,400,000 shares issued and outstanding as of December 31, 2023 and 2024\* | 1840 | 1840 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital\* | 439896 | 439896 |
| &nbsp;&nbsp;&nbsp; Retained Earnings | 4635656 | 10103196 |
|  **Total stockholders' equity** | **5077392** | **10544932** |
|  **Total liabilities and stockholders' equity** | **14520464** | **24141380** |

---

____________

\* Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025.

The accompanying notes are an integral part of these financial statements.

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME<br> (Expressed in U.S. dollars ("US$"), except for the number of shares)

---

| | | |
|:---|:---|:---|
|  | **For the<br> year ended<br> December 31,<br> 2023** | **For the<br> year ended<br> December 31,<br> 2024** |
|  | **US$** | **US$** |
|  **Revenue** | 29075604 | 102048355 |
|  Cost of revenues | (21962790) | (88920480) |
|  **Gross profit** | **7112814** | **13127875** |
|  **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | (1899253) | (3396780) |
|  **Total operating expenses** | (1899253) | (3396780) |
|  **Income from operations** | **5213561** | **9731095** |
|  **Other income** |  |  |
|  Interest income | 271 | 105115 |
|  **Total other income** | **271** | **105115** |
|  **Income before income tax expense** | **5213832** | **9836210** |
|  Income tax expense | (1094905) | (2065604) |
|  **Net income** | **4118927** | **7770606** |
|  **Earnings per share** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted\* | 0.23 | 0.42 |
|  **Weighted average shares outstanding** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted\* | 18264109 | 18400000 |

---

____________

\* Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025.

The accompanying notes are an integral part of these financial statements.

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY<br> (Expressed in U.S. dollars ("US$"), except for the number of shares)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **<br>Common stock** | **<br>Common stock** | **Additional<br>Paid-in<br>Capital\*** | **<br>Retained<br>Earnings** | **Total<br>Stockholders'<br>Equity** |
|  | **Share\*** | **Amount\*** | **Additional<br>Paid-in<br>Capital\*** | **<br>Retained<br>Earnings** | **Total<br>Stockholders'<br>Equity** |
|  |  | **US$** | **US$** | **US$** | **US$** |
|  **Balance, December 31, 2022** | **16800000** | **1680** | **311360** | **516729** | **829769** |
|  Issuance of common stock under share-based compensation plan | 1600000 | 160 | 128536 |  | 128696 |
|  Net income |  |  |  | 4118927 | 4118927 |
|  **Balance, December 31, 2023** | **18400000** | **1840** | **439896** | **4635656** | **5077392** |
|  Dividends declared to the stockholder |  |  |  | (2303066) | (2303066) |
|  Net income |  |  |  | 7770606 | 7770606 |
|  **Balance, December 31, 2024** | **18400000** | **1840** | **439896** | **10103196** | **10544932** |

---

____________

\* Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025.

The accompanying notes are an integral part of these financial statements.

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC. <br>STATEMENTS OF CASH FLOWS<br> (Expressed in U.S. dollars ("US$"), except for the number of shares)

---

| | | |
|:---|:---|:---|
|  | **For the<br> year ended<br> December 31,<br> 2023** | **For the<br> year ended<br> December 31,<br> 2024** |
|  | **US$** | **US$** |
|  **Cash flows from operating activities** |  |  |
|  Net income | 4118927 | 7770606 |
| &nbsp;&nbsp;&nbsp; Adjustment to reconcile net income to net cash generated from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation of equipment |  | 17158 |
| &nbsp;&nbsp;&nbsp; Amortization of right-of-use assets |  | 15589 |
| &nbsp;&nbsp;&nbsp; Share-based compensation expense | 128696 |  |
|  Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Accounts receivables, net | 702160 | (887213) |
| &nbsp;&nbsp;&nbsp; Contract assets | (2209530) | (10198687) |
| &nbsp;&nbsp;&nbsp; Amount due from related party | (90000) | (435000) |
| &nbsp;&nbsp;&nbsp; Prepayment and other current assets | (48449) | (344445) |
| &nbsp;&nbsp;&nbsp; Accounts payables | 6959842 | 3588779 |
| &nbsp;&nbsp;&nbsp; Contract liabilities | 315000 | 428012 |
| &nbsp;&nbsp;&nbsp; Amount due to related party | (15027) |  |
| &nbsp;&nbsp;&nbsp; Income tax payables | 1253857 | 770402 |
| &nbsp;&nbsp;&nbsp; Accrued expense and other current liabilities | 453687 | (667771) |
| &nbsp;&nbsp;&nbsp; Other non-current liabilities |  | 1477 |
|  **Net cash provided by operating activities** | 11569163 | 58907 |
|  **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Purchase of equipment |  | (99018) |
|  **Net cash used in investing activities** |  | (99018) |
|  **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Borrowings to related party | (3544021) | (2355506) |
| &nbsp;&nbsp;&nbsp; Repayment made by related party | 1330344 | 2266117 |
|  **Net cash used in financing activities** | (2213677) | (89389) |
|  **Net change in cash** | 9355486 | (129500) |
|  **Cash as of beginning of the year** | 217813 | 9573299 |
|  **Cash as of the end of the year** | 9573299 | 9443799 |
|  **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:** |  |  |
|  Cash paid for: |  |  |
|  Income taxes | 10000 | 1295202 |
|  **NON-CASH OPERATING AND FINANCING ACTIVITIES:** |  |  |
|  Operating lease right-of-use assets |  | 32477 |
|  Non-cash dividend settlement |  | 2303066 |

---

The accompanying notes are an integral part of these financial statements.

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 1 — NATURE OF BUSINESS AND ORGANIZATION
BESTWATER USA INC. (the "Company") was incorporated in the state of Texas, U.S.A on November 21, 2016. The Company authorized 10,000 shares of common stock and initially issued 6,800 shares of common stock, par value US$0.01 each.

BW Industrial Holdings Inc. (the "Holding Company") was incorporated in Delaware on April 28, 2025, and is headquartered in Houston. The Holding Company authorized 100,000,000 shares of common stock, par value US$0.0001 each. Subsequently on June 5, 2025, the Holding Company issued an aggregate of 9,700,000 shares of common stock and the Company completed a share exchange for that the stockholders of the Company became stockholders of Holding Company with the same shareholding percentage and the Holding Company became the sole stockholder of the Company. On December 19, 2025, the Holding Company effected a one-for-two forward split of all issued and outstanding shares of 9,700,000 shares of common stock. As a result of the forward split, the Holding Company now have 19,400,000 shares of common stock issued and outstanding as of the date hereof.

The Company engages in providing engineering, procurement, and construction ("EPC") services for critical process systems across multiple industrial sectors. The Company serves clients in energy storage and battery manufacturing, renewable energy infrastructure, electronics production, advanced manufacturing, and semiconductor fabrication industries.

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES
*(a) Basis of presentation*

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC").

*(b) Use of estimates*

The preparation of financial statements in conformity with accounting principles generally accepted in U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The significant estimate in the period is revenue recognition. Actual results could vary from the estimates and assumptions that were used.

*(c) Risks and uncertainties*

The Company's business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company's operations.

*Credit Risk*

Credit risk is the potential financial loss to the Company resulting from the failure of a client or a counterparty to settle its financial and contractual obligations to the Company, as and when they fall due. As the Company does not hold any collateral, the maximum exposure to credit risk is the carrying amounts of other receivables (excluding prepayments) and cash and bank deposits presented on the balance sheets. The Company has no other financial assets which carry significant exposure to credit risk.

*Concentration of Credit Risk*

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash. The Company places its cash with financial institutions with high-credit ratings and quality. As of December 31, 2023 and 2024, the Company's cash was US$9,573,299 and US$9,443,799, respectively.

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
Accounts receivable primarily comprise of amounts receivable from the revenue from EPC services and sales of equipment. To reduce credit risk, the Company performs on-going credit evaluations of the financial condition of these service clients. The Company establishes a provision for doubtful accounts based upon estimates, factors surrounding the credit risk of specific service clients and other information.

*Concentration of demand*

The following table sets forth a summary of single clients who represent 10% or more of the Company's total accounts receivable:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client A | 46460 | 56% |  | —% |
| &nbsp;&nbsp;&nbsp; Client B | 36827 | 44% |  | —% |
| &nbsp;&nbsp;&nbsp; Client C |  | —% | 970500 | 100% |
|  **Total** | 83287 | 100% | 970500 | 100% |

---

The following table sets forth a summary of single clients who represent 10% or more of the Company's total revenue:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 27816530 | 96% | 19673476 | 19% |
| &nbsp;&nbsp;&nbsp; Client E |  | —% | 79569682 | 78% |
|  **Total** | 27816530 | 96% | 99243158 | 97% |

---

The following table sets forth a summary of single clients who represent 10% or more of the Company's total contract assets:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 2466530 | 100% | 8282006 | 65% |
| &nbsp;&nbsp;&nbsp; Client E |  | —% | 3812738 | 30% |
|  **Total** | 2466530 | 100% | 12094744 | 95% |

---

*Concentration of supply*

The following table sets forth a summary of single suppliers who represent 10% or more of the Company's total accounts payable:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier A | 2600000 | 37% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier B | 2248780 | 32% | 2757791 | 26% |
| &nbsp;&nbsp;&nbsp; Supplier C | 890504 | 13% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier D |  | —% | 3402390 | 32% |
|  **Total** | 5739284 | 82% | 6160181 | 58% |

---

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
The following table sets forth a summary of single suppliers who represent 10% or more of the Company's total cost:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier A | 2600000 | 12% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier B | 5180280 | 24% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier D |  | —% | 17188618 | 19% |
| &nbsp;&nbsp;&nbsp; Supplier E | 3081377 | 14% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier F |  | —% | 16287868 | 18% |
| &nbsp;&nbsp;&nbsp; Supplier G |  | —% | 12687903 | 14% |
| &nbsp;&nbsp;&nbsp; Supplier H |  | —% | 11144609 | 13% |
|  **Total** | 10861657 | 50% | 57308998 | 64% |

---

*Liquidity Risk*

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. The management concluded that the Company's available cash and working capital will be sufficient to support its continuous operations and to meet its payment obligations when liabilities fall due within the next twelve months from the date of issuance of these financial statements. Accordingly, management continues to prepare the Company's financial statements on a going concern basis.

*(d) Fair value measurement*

The Company applies ASC 820, *Fair Value Measurements and Disclosures*, ("ASC 820''). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.

ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of input that may be used to measure fair value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 applies to assets or liabilities for which there are quoted prices, in active markets for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

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#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Financial assets and liabilities of the Company primarily consist of cash, accounts receivable, contract assets, amount due from related parties, prepayment and other current assets, accounts payable, contract liabilities, income tax payable and accrued expense and other current liabilities which are subject to fair value measurement; however, because of their being short term in nature management believes their carrying values approximate their fair value as of December 31, 2024 and 2023.

Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

*(e) Related parties*

The Company follows the ASC 850-10, Related Party for the identification of related parties and disclosure of related party transactions.

Pursuant to section 850-10-20 the related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company December deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. The Company discloses all significant related party transactions in Note 10.

*(f) Cash*

Cash consists of cash in banks and certificate of deposit, the Company's demand deposit placed with financial institutions, which have original maturities of less than three months and unrestricted as to withdrawal and use. Deposits are held at highly liquid and well capitalized financial institutions. Risk of loss is not expected by management.

*(g) Accounts receivable*

Accounts receivables are recognized in the period when the Company has delivered service to its clients and when its right to consideration is unconditional. Accounts receivable, net are stated at the original amount less an allowance for expected credit loss on such receivables. Management reviews its accounts receivable on a regular basis to determine if the provision for credit loss is adequate, and makes provision when necessary. Accounts receivable

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#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
are considered past due based on contractual terms. In establishing the allowance, management uses probability of default method to estimate the amount of the allowance for credit losses. The allowance for expected credit loss is estimated based upon the Company's assessment of various factors including historical experience, the age of the accounts receivable balances, current general economic conditions, future expectations and client specific quantitative and qualitative factors that may affect the Company's clients' ability to pay. An allowance is also made when there is objective evidence for the Company to reasonably estimate the amount of probable loss. Account balances are charged off against the provision after all means of collection have been exhausted and the likelihood of collection is remote. As of December 31, 2023 and 2024, the Company made nil allowance for expected credit loss for accounts receivable.

*(h) Contract assets*

Projects with performance obligations recognized over time that have revenue recognized to date in excess of cumulative billings are reported on consolidated balance sheets as "Contract assets". Contract retentions, included in contract assets, represent amounts withheld by clients, in accordance with underlying contract terms, until certain conditions are met or the project is completed. Provisions for estimated losses of contract assets on uncompleted contracts are made in the period in which such losses are determined. As of December 31, 2023 and 2024, the Company made nil allowance for expected credit loss for contract assets.

*(i) Expected credit loss*

ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial assets. Using this methodology will result in earlier recognition of losses than under the current incurred loss approach, which requires waiting to recognize a loss until it is probable of having been incurred. There are other provisions within the standard that affect how impairments of other financial assets may be recorded and presented, and that expand disclosures. The Company adopted the ASU on January 1, 2022 and applied to accounts receivable, contract assets and other financial instruments. The adoption of this guidance did not materially impact the net earning and financial position and has no impact on the cash flows. As of December 31, 2023 and 2024, the Company made nil allowance for expected credit loss for accounts receivable, contract assets and other financial instruments.

*(j) Prepayment and other current assets*

Prepayments are mainly payments made to vendors or services providers for future services that have not been provided. These amounts are refundable and bear no interest. Management reviews its prepayments on a regular basis to determine if the allowance is adequate and adjusts the allowance when necessary. As of December 31, 2024 and 2023, no allowance was deemed necessary.

*(k) Equipment, net*

Equipment, net are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives are as follows:

---

| | |
|:---|:---|
|  **Category** | **Estimated <br>useful life** |
|  vehicle | 5 years |

---

Expenditure for repair and maintenance costs, which do not materially extend the useful lives of the assets, are charged to expenses as incurred, whereas the expenditure for major renewals and betterment that substantially extends the useful lives of equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the statements of operations and comprehensive loss.

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
*(l) Contract liabilities*

Contract liabilities are recorded when consideration is received from a client prior to transferring the services to the client or other conditions under the terms of a sales contract. As of December 31, 2023 and 2024, the Company recorded contract liabilities of US$315,000 and US$743,012, respectively, which was presented as contract liabilities on the accompanying balance sheets. For the years ended of December 31, 2023 and 2024, the Company recognized revenue from contract liabilities is nil.

*(m) Commitments and contingencies*

In the normal course of business, the Company is subject to commitments and contingencies, including operating lease commitments, legal proceedings and claims arising out of its business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss will occur, and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments on liability for contingencies, including historical and the specific facts and circumstances of each matter.

*(n) Revenue recognition*

The Company engages in providing engineering, procurement, and construction ("EPC") services for critical process systems across multiple industrial sectors. The Company serves clients in energy storage and battery manufacturing, renewable energy infrastructure, electronics production, advanced manufacturing, and semiconductor fabrication industries.

The Company elected to adopt Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), effective as of April 1, 2020. Accordingly, the consolidated financial statements for the year ended December 31, 2024 and 2023 are presented under ASC 606. The Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer obtains control of that asset. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. For the accounting period, the Company has determined two revenue streams for the accounting period, which includes: (1) Revenue from EPC services and (2) Sales of equipment and others.

Revenue from contracts with clients is recognized using the five-step model defined by ASC Topic 606 which requires the Company to (1) identify its contracts with clients, (2) identify its performance obligations under those contracts, (3) determine the transaction prices of those contracts, (4) allocate the transaction prices to its performance obligations in those contracts and (5) recognize revenue when each performance obligation under those contracts is satisfied. Revenue is recognized when promised goods or services are transferred to the client in an amount that reflects the consideration expected in exchange for those goods or services.

(1) EPC services

The Company typically got the project through project bidding or purchase orders from its clients which will set the terms and conditions including the transaction price, services to be performed, performance obligations, and terms of payments. The terms and conditions serve as the basis of the performance obligations that the Company must fulfill in order to recognize revenue. The performance obligation is to provide engineering, procurement, and construction services to the clients. There is no implied or implicit performance obligations related to the contract and/or purchase order. The scope of work to be executed by the Company shall include all materials and equipment required by the Contract and all temporary or permanent sub-contractor's personnel, materials and other items and services required for the engineering, procurement, construction, facility equipment commissioning, training, defect remedy and acceptance.

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#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
The contract is typically fixed priced with certain exemptions, which have a variable consideration within a range of the contract price based on changing the scope of work, which is reflected in the milestone billings based upon the attainment of specific project objectives to ensure the Company meets its contractual obligation. The Company's revenue is derived from contracts where scope is adequately defined, and therefore the Company can reasonably estimate total contract value. Revenue and gross profit or loss for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. The Company estimates variable consideration based on the amount the Company expects to be entitled, and includes estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when the Company concludes that any significant uncertainty associated with the variable consideration is resolved. For 2024 and 2023, we had no material amounts in revenue related to unapproved change orders or liquidated damages.

Customer contracts are generally represented by a contract with durations typically ranging from three months to two years. The Company uses the Percentage of Completion("POC") method, the ratio of contract costs incurred to date compared to total estimated contract costs, to recognize revenue (an input method). For these contracts, revenue is recognized overtime since the customer controls the projects being constructed and renovated throughout the process, and there is a continuous transfer of control from the Company to the customer. There is typically no warranty obligation except for certain projects, of which contracts may include retentions or holdbacks, in accordance with the local requirements, to be paid one-year after the quality assurance warranty period expires to ensure that Company meets the contract obligations and to provide guarantees that the product will function as intended and meet the agreed-upon specifications. This assurance-type warranty is not accounted for as a separate performance obligation, and thus no transaction price is being allocated. According to past experience, the Company never occurred quality problems after the project was completed. The amount of warranty is nil for the years ended December 31, 2023 and 2024. The Company does not assess whether a contract contains a significant financing component if the Company expects, at contract inception, that the period between payment by the clients and the transfer of promised services to the clients will be less than one year.

The Company uses the ratio of actual costs incurred to total estimated costs since costs incurred represent a reasonable measure of progress towards the satisfaction of a performance obligation in order to estimate the portion of revenue earned. The Company uses the input method to recognize revenue due to the outputs are difficult to measure. Input methods recognize revenue on the basis of the entity's efforts or inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation. The contract price is fully allocated to one performance obligation. Milestone billing payments are approved once the service is certified by the client at each milestone. Remaining performance obligation represents all future revenue under contract that has not yet been recognized as revenue and includes unearned revenue. The value of the transaction price allocated to remaining performance obligations under EPC service contracts as of December 31, 2023 was approximately $22.2 million. The Company recognized 89% of remaining performance as revenue in 2024. The value of the transaction price allocated to remaining performance obligations under EPC service contracts as of December 31, 2024 was approximately $12.7 million. The Company expects to recognize 100% of remaining performance obligations as revenue in the next twelve months.

Contract costs typically include direct labor, subcontractor and consultant costs, materials and indirect costs related to contract performance. Changes in estimated costs to complete these obligations result in adjustments to revenue on a cumulative catch-up basis, which causes the effect of revised estimates to be recognized in the current period. Changes in estimates can routinely occur over the contract term for a variety of reasons including, changes in scope, unanticipated costs, delays or favorable or unfavorable progress than original expectations. When the outcome of the contract cannot be reasonably measured, revenue is recognized only to the extent of contract costs incurred that are expected to be recovered. This means that profit is not recognized until the outcome can be reliably measured. The stage of completion is determined through the proportion of costs incurred to total costs.

The Company's contract with the client has payment terms specified based upon certain obligations completed. The Company will submit progress billing to the client when the stage of the project is completed, and after the Company receives the certificate from client, the Company will issue a tax invoice to the client. As the clients are required to pay

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#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
the Company at different billing stages over the contract period, as such, the Company believes the progress payments limit the Company's exposure to credit risk and that the Company would be able to collect substantially all of the consideration gradually at different stages. The timing of the satisfaction of the Company's performance obligations is based upon the cost-to-cost measure of progress method, which is generally different than the timing of unconditional right of payment, and is based upon certain conditions completed as specified in the contract. The timing between the satisfaction of the Company's performance obligations and the unconditional right of payment would contribute to contract assets and contract liabilities.

(2) Sales of equipment and others

Revenue from sales of equipment and others comprised of revenue mainly from equipment sales with minor installation and transportation, and other design service, which is recognized when the performance obligation is satisfied at a point in time generally as the equipment is sold or services are provided for a duration of typically less than three months. The Company typically receives purchase orders from its clients which will set for the terms and conditions including the transaction price, equipment or services to be provided or performed, performance obligations, and terms of payment. The terms and conditions serve as the basis of the performance obligations that the Company must fulfil in order to recognize revenue. The key performance obligation is the delivery or completion of the equipment or the services to the client according to the contract. The Company recognizes revenue when the following events have occurred: (a) the Company has performed the contract obligation; (b) the Company has a present right to payment; (c) the client has legal rights to the equipment or services, and (d) the client bears significant risks and rewards of ownership of the services. The completion of this revenue process is evidenced by the client acceptance on the equipment and services and the Company recognized the revenue at a point in time.

The Company is the principal for its transactions and recognizes revenue on a gross basis. The Company is the principal when it has control of the service before it is transferred to clients, which generally is established when the Company is primarily responsible for merchandising decisions, maintains the relationship with client, and has pricing discretion.

*(o) Operating leases*

The Company adopted ASC Topic 842, *Leases* ("ASC 842") on January 1, 2022, using the modified retrospective method. The Company determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. The Company's leases do not contain any material residual value guarantees or material restrictive covenants.

The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. Lastly, the Company elected the short-term lease exemption for all contracts with lease term of 12 months or less.

At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors present and records a right-of-use ("ROU") asset and lease liability for operating lease. ROU assets acquired through lease represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. If the rate implicit in the Company's leases is not readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease terms are based on the non-cancellable term of the lease.

Leases with an initial lease term of 12 months or less are not recorded on the balance sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term.

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#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
*(p) Selling expenses*

Selling expenses include related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs.

*(q) General and administrative expenses*

General and administrative expenses mainly consist of staff cost, office supplies and upkeep expenses, travelling and entertainment, legal and professional fees, property and related expenses, other miscellaneous administrative expenses.

*(r) Income taxes*

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

Under ASC 740-10-25, "Accounting for Uncertainty in Income Taxes", a tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefits recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer satisfied. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. There were no uncertain tax positions as of December 31, 2024 and 2023. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. The Company may also be subject to the examination of the tax filings in other jurisdictions, which are not material to the financial statements.

For the years ended December 31, 2023 and 2024, the Company did not have any interest and penalties associated with tax positions. As of December 31, 2023 and 2024, the Company did not have any significant unrecognized uncertain tax positions.

*(s) Earnings per share*

Basic earnings per share is computed by dividing net income attributable to the holders of common stock by the weighted average number of common stock outstanding during the period presented. Diluted income per share is calculated by dividing net income attributable to the holders of common stock as adjusted for the effect of dilutive common stock equivalents, if any, by the weighted average number of common stock and dilutive common stock equivalents outstanding during the period. However, common stock equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. For the years ended December 31, 2023 and 2024, the Company did not have any dilutive shares.

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#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
*(t) Share-based compensation*

The Company applies ASC 718, Compensation — Stock Compensation ("ASC 718"), to account for its employee share-based payments. In accordance with ASC 718, the Company determines whether an award should be classified and accounted for as a liability award or equity award. All the Company's share-based awards to employees were classified as equity awards and are recognized in the financial statements based on their grant date fair values. In accordance with ASC 718, the Company recognizes share-based compensation cost for equity awards to employees with a performance condition based on the probable outcome of that performance condition. Compensation cost is recognized using the accelerated method if it is probable that the performance condition will be achieved. The Company accounts for forfeitures as they occur in accordance with ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting.

*(u) Segment Reporting*

FASB ASC 280, "*Segment Reporting"*, establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments.

The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker ("CODM") for making decisions, allocating resources and assessing performance. The Company's CODM has been identified as the CEO, who reviews results when making decisions about allocating resources and assessing the performance of the Company.

The Company's assets are substantially all located in the U.S. and substantially all of the Company's revenues and expenses are derived in the U.S. Therefore, no geographical segments are presented.

For the years ended December 31, 2023 and 2024, the CODM reviewed the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole, and the Company has only one reportable segment.

*(v) Recent accounting pronouncements*

The Company is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.

In October 2023, the FASB issued ASU 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." This amendment incorporates certain U.S. Securities and Exchange Commission (SEC) disclosure requirements into the FASB Accounting Standards Codification. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC's regulations. For entities subject to the SEC's existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its financial statements.

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#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 2 — SUMMARY OF ACCOUNTING POLICIES (cont.)
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures. The amendment requires entities to report a measure of segment profit or loss that the chief operating decision maker uses to assess segment performance and make decisions about allocating resources. The amendment also requires other specified segment items and amounts, such as depreciation, amortization, and depletion expense, to be disclosure under certain circumstances. The amendment does not change or remove those disclosure requirements and also does not change how an entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. For the years ended December 31, 2023 and 2024, the Company has one reporting business segment. The adoption of ASU 2023-07 does not have a material impact on the Company's financial statements.

In December 2023, the FASB issued ASU No.2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". This ASU requires additional quantitative and qualitative income tax disclosure to enable financial statements users better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company believes the future adoption of this ASU is not expected to have a material impact on its financial statements.

In March 2024, the FASB issued ASU 2024-02, "Codification Improvements — Amendments to Remove References to the Concepts Statements". This update contains amendments to the Codification that remove references to various FASB Concepts Statements. These issues to remove references to various Concepts Statements and the amendments apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2024. Early application of the amendments in this Update is permitted for any fiscal year or interim period for which financial statements have not yet been issued (or made available for issuance). The Company believes the future adoption of this ASU is not expected to have a material impact on its financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU 2025-01, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). The ASU requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis including purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses. ASU 2024-03, as clarified by ASU 2025-01 is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with prospective or retrospective application permitted. The Company is currently evaluating the impact of adoption on the Company's related disclosures.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

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**BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS**

#### Note 3 — DISAGGREGATION OF REVENUE
The following tables present the Company's revenue disaggregated by service lines for the years ended December 31, 2023 and 2024:

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  EPC services | 28009454 | 101951758 |
|  Sales of equipment and others | 1066150 | 96597 |
|  | **29075604** | **102048355** |
|  – Over time | 28009454 | 101951758 |
|  – At a point in time | 1066150 | 96597 |
|  | **29075604** | **102048355** |

---

The Company recognizes revenue from EPC services based on the Company's effort or inputs to the satisfaction of a performance obligation over time as work progresses because of the continuous transfer of control to the client and the Company's right to bill the client as costs are incurred.

The following table present the Company's revenue disaggregated by the countries which the client is located for the years ended December 31, 2023 and 2024:

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  United States | 28192005 | 102048355 |
|  Hungary | 883599 |  |

---

#### Note 4 — ACCOUNTS RECEIVABLES, NET
Accounts receivables, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  Accounts receivables | 83287 | 970500 |
|  Less: Allowance for expected credit loss |  |  |
|  Accounts receivables, net | 83287 | 970500 |

---

For the years ended December 31, 2023 and 2024, there is no credit loss recorded.

The following table sets forth the aging analysis of accounts receivables, net, based on the invoice date as of the dates mentioned below:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  Within 30 days |  | 970500 |
|  Between 31 and 60 days |  |  |
|  Between 61 and 90 days |  |  |
|  Over 91 days | 83287 |  |
|  Accounts receivables, net | 83287 | 970500 |

---

[**Table of Contents**](#TOC001)

**BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS**

#### Note 5 — CONTRACT ASSETS AND CONTRACT LIABILITIES
Net contract assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  Contract assets | 2466530 | 12665217 |
|  Contract liabilities | (315000) | (743012) |
|  Contract assets, net | 2151530 | 11922205 |

---

The Company believes that none of the clients above were experiencing financial difficulties that would materially impact the collectability of the Company's total contract assets as of December 31, 2023 and 2024.

#### Note 6 — EQUIPMENT, NET

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  At cost: |  |  |
|  Vehicles |  | 99018 |
|  |  | 99018 |
|  Less: accumulated depreciation |  | (17158) |
|  Equipment, net |  | 81860 |

---

Depreciation expense for the years ended December 31, 2023 and 2024 was nil and US$17,158, respectively.

#### Note 7 — ACCOUNTS PAYABLES, ACCRUED EXPENSE AND OTHER CURRENT LIABILITIES
Accounts payables, accrued expense and other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  Accounts payables | 7016247 | 10605026 |
|  Accrued expense and other current liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Other payables | 699068 | 46847 |
| &nbsp;&nbsp;&nbsp; SBA Loan | 158900 | 158900 |
| &nbsp;&nbsp;&nbsp; Lease liabilities |  | 16927 |
|  Accrued expense and other current liabilities | 857968 | 222674 |

---

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 8 — INCOME TAXES
Income tax expense for the years ended December 31, 2023 and 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Current income tax expense: |  |  |
| &nbsp;&nbsp;&nbsp; Federal | 1273857 | 2065604 |
| &nbsp;&nbsp;&nbsp; State |  |  |
|  | 1273857 | 2065604 |
|  Deferred income tax benefit: |  |  |
| &nbsp;&nbsp;&nbsp; Federal | (178952) |  |
| &nbsp;&nbsp;&nbsp; State |  |  |
|  | (178952) |  |
|  Total | **1094905** | **2065604** |

---

The following table presents a reconciliation of the Company's income tax at statutory tax rate and income tax at effective tax rate for the years ended December 31, 2023 and 2024.

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Income before income taxes | 5213832 | 9836210 |
|  Statutory income tax rate | 21% | 21% |
|  Income tax expense at statutory rate | 1094905 | 2065604 |
|  Tax effect of non-taxable income |  |  |
|  Tax effect of non-deductible items |  |  |
|  Others |  |  |
|  Tax expenses at effective tax rate | 1094905 | 2065604 |
|  Effective tax rate | 21% | 21% |

---

The Company is subject to state income tax and federal income tax at different tax rates, depending upon taxable income levels. The U.S. federal statutory tax rate is 21%. For the federal income tax, the federal net operating losses incurred after 2017 are limited to 80% of taxable income and do not have an expiring date. For the state income tax, there is no net operating loss as of December 31, 2023 and 2024. There is no deferred tax assets or liabilities as of December 31, 2023 and 2024.

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2023 and 2024, the Company did not have any unrecognized uncertain tax positions and the Company does not believe that its unrecognized tax benefits will change over the next twelve months. For the years ended December 31, 2023 and 2024, the Company did not incur any interest and penalties related to potential underpaid income tax expenses. The Company is subject to taxation and files income tax returns in the United States federal jurisdiction. As of December 31, 2024, tax years for 2021, 2022 and 2023 are subject to examination by tax authorities.

#### Note 9 — EQUITY
The Company initially authorized 100 shares of common stock, par value $1 per share. In April 2025, the Company amended its Article of the Certificate of Formation to increase the number of authorized shares of common stock to 10,000 shares and change the par value to $0.01 per share.

The Company has performed a series of issuances of common stock resulting in 18,400,000 shares of common stock issued and outstanding as of December 31, 2023 and 2024. The Company only has one single class of common stock that is accounted for as permanent equity.

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 10 — RELATED PARTY TRANSACTIONS
These related parties of the Company with whom transactions are reported in these financial statements are as follows:

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to Us** |
|  Mr. Zhang Yunlong | Director of the Company |
|  Shenzhen Best-Water S&T Co. Ltd. ("SZBW") | CEO of SZBW is the same as the Company's CEO and SZBW is wholly owned by the Company's CEO |

---

In the ordinary course of business, during the years ended December 31, 2023 and 2024, the Company was involved in certain transactions, either at cost or current market prices, and on normal commercial terms with related parties. The following table provides the transactions with these parties for the years as presented (for the portion of such period that they were considered related):

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  **Amount due from a related party** |  |  |
|  ***<u>Name of related party</u>*** |  |  |
|  Mr. Zhang Yunlong | 2213677 |  |
|  | 2213677 |  |

---

In 2023, the Company entered into a loan agreement in a principal amount not to exceed $3,000,000 with a related party, the director of the Company, which carries no interest with a maturity date of December 31, 2025. During 2023, the Company lent $3,544,021 to Mr. Zhang Yunlong and received repayments of $1,330,344, resulting in a net loan of $2,213,677 outstanding. During 2024, the Company lent $2,355,506 and received repayments of $2,266,117, resulting in a net loan of $89,389. The outstanding loan balance of $2,303,066 was settled by the special dividend on December 31, 2024.

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  **Prepayment to a related party** |  |  |
|  ***<u>Name of related party</u>*** |  |  |
|  SZBW | 90000 | 525000 |
|  | 90000 | 525000 |

---

---

| | | |
|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2023** | **For the <br>year ended <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  **Construction consultancy service fee and equipment fee** |  |  |
|  ***<u>Name of related party</u>*** |  |  |
|  SZBW | 283753 | 108500 |
|  | 283753 | 108500 |

---

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 11 — OPERATING LEASES — RIGHT-OF -USE ASSETS AND LEASE LIABILITIES
<u><u>Lease commitment</u></u>

The Company determines if a contract contains a lease at inception. US GAAP requires that the Company's leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which results in an economic penalty.

The recognized operating lease ROU assets and lease liabilities as follows:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  Operating lease ROU asset |  | 16888 |

---

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2023** | **As of <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  Operating lease liabilities |  |  |
|  Current portion |  | 16927 |
|  Non-current portion |  | 1477 |
|  Total |  | 18404 |

---

As of December 31, 2024, future minimum lease payments under the non-cancellable operating leases are as follows:

---

| | |
|:---|:---|
|  **Future payment** | **US$** |
| 2025 | 17718 |
| 2026 | 1477 |
|  Thereafter |  |
|  Total future lease payment | 19195 |
|  Less: imputed interest | (791) |
|  Present value of operating lease liabilities | 18404 |
|  Operating lease liabilities, current portion | 16927 |
|  Operating lease liabilities, non-current portion | 1477 |

---

The following summarizes other supplemental information about the Company's operating lease as of December 31, 2024:

---

| | |
|:---|:---|
|  Weighted average discount rate | 8.500% |
|  Weighted average remaining lease term (years) | 1.083 |

---

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 12 — SHARE-BASED COMPENSATION EXPENSE
The stockholders and Board of Directors of the Company approved the 2023 Grant Notice to issue 1,600,000 shares of Common Stock to the employee. The purpose of the 2023 Grant Notice is to award exceptionally talented and qualified individuals who provided excellent performance in the past period. The Award has no blackout period and any restricted, which is an immediate vesting.

Share-based compensation expense recognized in the statements of operations and comprehensive income was as follows:

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  General and administrative expenses | 128696 |  |
|  Income tax effect | (27026) |  |
|  Share-based compensation expense, net of tax | **101670** |  |

---

The fair value per shares is approximately US$0.08. The valuation was estimated on the grant date by the discounted cash flow method ("DCF") which considers that the present value of an investment is determined by the expected future economic benefits, such as the income that generated regularly, cost savings and sales revenue. In discounted cash flow method, a discount rate that can reflect the current market yield and the inherent risk of investment is used to discount the future net cash flow and evaluate the Company.

Discount rate is used to convert the annual net cash flow into present value, and it is based on an estimated weighted average cost of capital ("WACC"). WACC consists of cost of equity and cost of debt, and it is calculated by the proportion of capital structure.

The cost of equity, or required return on equity, is estimated using the capital asset pricing model ("CAPM") which is based on the premise that an industry's capitalization rate is equal to the risk-free rate of return plus an equity risk premium adjusted by an industry risk factor based on beta. The beta is developed by analyzing the historical relationship between the return required by investors in a particular industry and the average return required by investors in the market as a whole. A small size premium is applied in estimating an appropriate cost of equity, due to the relative size of the Company. Additional adjustments may be made for company-specific factors.

The following tables summarized the small size risk premium ("SRP"), additional risk premium ("ARP"), cost of equity ("Ke"), after-tax cost of debt ("Kd"), debt-to-equity ratio and WACC as of the Valuation Date:

---

| | |
|:---|:---|
|  | **For The <br>Years Ended <br>December 31, <br>2023** |
|  Valuation Date | 2023/2/1 |
|  SRP | 4.70% |
|  ARP | 2.50% |
|  Kd\*(1-t)\* | 3.81% |
|  Ke | 18.07% |
|  %Debt | 12.8% |
|  %Equity | 87.20% |
|  WACC | 16.00% |

---

____________

\* t = Effective tax rate

For the year ended December 31, 2023 and 2024, the Company recognized share-based compensation expense is $128,696 and nil.

[**Table of Contents**](#TOC001)

#### BESTWATER USA INC.<br>NOTES TO FINANCIAL STATEMENTS

#### Note 13 — SEGMENT INFORMATION
The Company operates and manages its business as a single reportable segment, which is consistent with how the Chief Operating Decision Maker ("CODM"), the Chief Executive Officer, makes operating decisions and allocates resources. The CODM assesses performance and results of operations at the Company level. The Company's operations are centralized and integrated, with financial results reviewed and managed on a consolidated basis. Accordingly, management has determined that the Company has one reportable segment under ASC Topic 280, Segment Reporting.

Measure of Segment Profit or Loss

The CODM assesses performance for the segment and decides how to allocate resources by regularly reviewing the consolidated net income from the statement of operations, after taking into account the Company's strategic priorities, its cash balance, and its expected use of cash. The following table presents the significant revenue and expense categories in the Company's single operating segment:

---

| | | |
|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2023** | **For the <br>year ended <br>December 31, <br>2024** |
|  | **US$** | **US$** |
|  Revenue | 29075604 | 102048355 |
|  Cost of revenues | (21962790) | (88920480) |
|  Selling, general and administrative expenses | (1899253) | (3396780) |
|  Interest income | 271 | 105115 |
|  Income tax expense | (1094905) | (2065604) |
|  **Net Income** | **4118927** | **7770606** |

---

#### Note 14 — COMMITMENTS AND CONTINGENCIES
<u><u>Contingencies</u></u>

As of December 31, 2023 and 2024, the Company had neither significant financial nor capital commitment.

In the ordinary course of business, the Company may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable, and the amount of the loss is reasonably estimable. In the opinion of management, there were no pending or threatened claims and litigation as of December 31, 2024 and up through August 14, 2025, the issuance date of these financial statements were available to be issued.

#### Note 15 — SUBSEQUENT EVENTS
On April 28, 2025, BW Industrial Holdings Inc. was incorporated in Delaware and is headquartered in Houston. On June 5, 2025, the Company completed a share exchange for that the stockholders of the Company became stockholders of Holding Company with the same shareholding percentage and the Holding Company became the sole stockholder of the Company.

On June 1, 2025, the Company declared cash dividend of $0.103 per share of common stock to all stockholders of common stock of record as of June 1, 2025. In July 2025, the Company paid an aggregate cash dividend of $1,998,200 to all stockholders.

On December 19, 2025, the Holding Company effected a one-for-two forward split of all issued and outstanding shares of 9,700,000 shares of common stock. As a result of the forward split, the Holding Company now has 19,400,000 shares of common stock issued and outstanding as of the date hereof. All share and per-share amounts in the accompanying financial statements have been retroactively adjusted to reflect the forward stock split for all period presented.

Except for the above, the Company has assessed all events from December 31, 2024, up through date which is the date that these financial statements are available to be issued, there are not any material subsequent events that require disclosure in these financial statements.

[**Table of Contents**](#TOC001)

#### 2,625,000 Shares of Common Stock

#### BW INDUSTRIAL HOLDINGS INC.
**__________________________________________________**

Prospectus dated [•]

**__________________________________________________**

#### Eddid Securities USA Inc.

------

[**Table of Contents**](#TOC001)

#### PART II

#### INFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 13. Other Expenses of Issuance and Distribution.
The following table sets forth estimated expenses we expect to incur in connection with the sale of the shares of Common Stock being registered. All such expenses are estimated except for the SEC and FINRA registration fees.

---

| | |
|:---|:---|
|  SEC registration fee | $3752 |
|  FINRA registration fee | $4575<br><sup>(1)</sup> |
|  Entry fee for a national stock exchange | $295000 |
|  Printing expenses | $30000 |
|  Fees and expenses of counsel for the Company | $400000 |
|  Fees and expenses of accountants for Company | $140000 |
|  Underwriter Expenses | $250000<br><sup>(2)</sup> |
|  Miscellaneous | $27500 |
| &nbsp;&nbsp;&nbsp; Total Expenses | $1150827 |

---

____________

These expenses will be borne by us. Underwriting discounts and the non-accountable expense allowance will be borne by us in proportion to the numbers of shares of Common Stock sold in the Offering.

(1) This amount represents the filing fee required in connection with the proposed initial public offering.

(2) This amount represents $250,000 to Eddid acting as representative of the underwriters for its out-of-pocket expenses pursuant to the underwriting agreement to be filed as Exhibit 1.1.

#### Item 14. Indemnification of Directors and Officers.
Section 145 of the DGCL authorizes a court to award, or a corporation's board of directors to grant, indemnity to officers, directors and other corporate agents in terms sufficiently broad to permit such indemnification under certain circumstances and subject to certain limitations.

Our Certificate of Incorporation and Bylaws provide that we will indemnify our directors and officers, and may indemnify our employees and agents, to the fullest extent permitted by Delaware law, including in circumstances in which indemnification is otherwise discretionary under Delaware law.

We expect to enter into agreements to indemnify our directors and executive officers as determined by the Board. Under the terms of such indemnification agreements, we will be required to indemnify each of our directors and officers, to the fullest extent permitted by the laws of the state of Delaware, if the basis of the indemnitee's involvement was by reason of the fact that the indemnitee is or was our director or officer or was serving at our request in an official capacity for another entity. We must indemnify our officers and directors against all reasonable fees, expenses, charges and other costs of any type or nature whatsoever, including any and all expenses and obligations paid or incurred in connection with investigating, defending, being a witness in, participating in (including on appeal), or preparing to defend, be a witness or participate in any completed, actual, pending or threatened action, suit, claim or proceeding, whether civil, criminal, administrative or investigative, or establishing or enforcing a right to indemnification under the indemnification agreement. The indemnification agreements also require us, if so requested, to advance all reasonable fees, expenses, charges and other costs that such director or officer incurred, provided that such person will return any such advance if it is ultimately determined that such person is not entitled to indemnification by us. Any claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.

**Item 15. Recent Sales of Unregistered Securities.**

During the past three years, we effected the following transactions in reliance upon exemptions from registration under the Securities Act as amended. Unless stated otherwise; (i) each of the persons who received these unregistered securities had knowledge and experience in financial and business matters which allowed them to evaluate the merits and risk of the receipt of these securities, and that they were knowledgeable about our operations and financial condition; (ii) no underwriter participated in, nor did we pay any commissions or fees to any underwriter in connection

[**Table of Contents**](#TOC001)

with the transactions; (iii) the transactions did not involve a public offering; and (iv) each certificate issued for these unregistered securities contained a legend stating that the securities have not been registered under the Act and setting forth the restrictions on the transferability and the sale of the securities.

On June 5, 2025, the Company completed the Share Exchange transaction and issued 19,400,000 shares of Common Stock to the below four stockholders of Bestwater. See "*Business — History and Corporate Structure*." The issuance and sale were made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended.

---

| | | | |
|:---|:---|:---|:---|
|  **Stockholders** | **Date of Issuance** | **Shares of <br>Common Stock** | **Consideration** |
|  Yunlong Zhang | June 5, 2025 | 12,600,000 | \* |
|  Zhimin Chen | June 5, 2025 | 4,800,000 | \* |
|  Yuchen Zhang | June 5, 2025 | 1,000,000 | \* |
|  Zhou Ye | June 5, 2025 | 1,000,000 | \* |

---

____________

\* The shares of Common Stock were issued in exchange for such stockholders' equity interests of Bestwater in a share exchange transaction. No cash consideration was paid.

#### [remainder of page intentionally left blank]
**Item 16. Exhibits**

---

| | |
|:---|:---|
|  **Exhibit No.** | **Description** |
|  1.1\*\* | Form of the Underwriting Agreement |
|  2.1\*\*\* | [Share Exchange Agreement, dated June 5, 2025.](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex2-1_bwindus.htm) |
|  3.1\*\*\* | [Certificate of Incorporation of the Company, effective on June 5, 2025.](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex3-1_bwindus.htm) |
|  3.2\*\*\* | [Amended and Restated Certificate of Incorporation of the Company, effective on December 19, 2025](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex3-2_bwindus.htm) |
|  3.3\*\*\* | [By-laws of the Company, adopted on December 19, 2025.](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex3-3_bwindus.htm) |
|  5.1\* | [Form of the Opinion of Hunter Taubman Fischer & Li LLC](ea025237805ex5-1_bwindus.htm) |
|  10.1\*\*\* | [The Service Agreement by and between Bestwater and Propersys Corporation, dated August 1, 2025](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex10-1_bwindus.htm) |
|  10.2\*\*\* | [The Form of Agreement with Subcontractors](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex10-2_bwindus.htm) |
|  10.3\*\*\* | [The Form of Director Offer Letter](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex10-3_bwindus.htm) |
|  10.4\* | [The Form of 2026 Equity Incentive Plan](ea025237805ex10-4_bwindus.htm) |
|  10.5\* | [The Service Agreement by and between Bestwater and JA Solar AZ, LLC, dated March 29, 2024](ea025237805ex10-5_bwindus.htm) |
|  21.1\*\*\* | [List of Subsidiaries](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex21-1_bwindus.htm) |
|  23.1\* | [Consent of Marcum Asia CPAs LLP, Independent Registered Public Accounting Firm](ea025237805ex23-1_bwindus.htm) |
|  23.2\* | [Consent of Hunter Taubman Fischer & Li LLC (included in exhibit 5.1)](ea025237805ex5-1_bwindus.htm) |
|  99.1\*\*\* | [Consent of Director Nominee (Yuan Shi)](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-1_bwindus.htm) |
|  99.2\*\*\* | [Consent of Director Nominee (Damon Wright)](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-2_bwindus.htm) |
|  99.3\*\*\* | [Consent of Director Nominee (Marc Distefano)](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-3_bwindus.htm) |
|  99.4\*\*\* | [Consent of Director Nominee (Robert Sliva)](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-4_bwindus.htm) |
|  99.5\*\*\* | [Form of Audit Committee Charter](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-5_bwindus.htm) |
|  99.6\*\*\* | [Form of Compensation Committee Charter](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-6_bwindus.htm) |
|  99.7\*\*\* | [Form of Nominating and Governance Committee Charter](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-7_bwindus.htm) |
|  99.8\*\*\* | [Consent Letter of Frost & Sullivan](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-8_bwindus.htm) |
|  107\*\*\* | [Filing Fees Exhibit](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex-fee_bwindus.htm) |

---

____________

\* Filed herewith.

\*\* To be filed by amendment.

\*\*\* Previously filed.

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**Item 17. Undertakings.**

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

The undersigned registrant hereby undertakes to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) File, during any period in which offers or sales are being made, a post-effective amendment to this registration statement to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended (the "Securities Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Reflect in the prospectus any facts or events which, individually or together, represent a fundamental change in the information in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of the securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of a prospectus filed with the Commission pursuant to Rule 424(b) under the Securities Act if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Include any additional or changed material information on the plan of distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For determining liability under the Securities Act, treat each post-effective amendment as a new registration statement of the securities offered, and the offering of the securities at that time to be the initial bona fide offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) File a post-effective amendment to remove from registration any of the securities that remain unsold at the end of the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) For determining liability of the undersigned registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the Offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any free writing prospectus relating to the Offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any other free writing prospectus relating to the Offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the Offering made by the undersigned registrant to the purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the U.S. Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

[**Table of Contents**](#TOC001)

In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) For determining any liability under the Securities Act, treat the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act as part of this registration statement as of the time it was declared effective.

For determining any liability under the Securities Act, treat each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the Offering of such securities at that time as the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

[**Table of Contents**](#TOC001)

#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Houston, State of Texas, on January 20, 2026.

---

| | |
|:---|:---|
|  By: | */s/ Yunlong Zhang* |
|  | Yunlong Zhang |
|  | Chief Executive Officer |

---

---

| | |
|:---|:---|
|  By: | */s/ Zhimin Chen* |
|  | Zhimin Chen |
|  | Chief Financial Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates stated.

---

| | | |
|:---|:---|:---|
|  **Signature** | **Title** | **Date** |
|  */s/ Yunlong Zhang* | Chief Executive Officer and Director | January 20, 2026 |
|  Yunlong Zhang | (principal executive officer) |  |
|  */s/ Zhimin Chen* | Chief Financial Officer | January 20, 2026 |
|  Zhimin Chen | (principal accounting officer) |  |

---

## Exhibit 5.1

**Exhibit 5.1**

![](ex5-1_001.jpg)

January 20, 2025

**BW Industrial Holdings Inc.**

2825 Wilcrest Drive, Suite 421

Houston, TX 77042

Ladies and Gentlemen:

We are acting as counsel to BW Industrial Holdings Inc., a company incorporated in Delaware (the "**Company**"), in connection with the registration statement on Form S-1 initially filed by the Company with the U.S. Securities and Exchange Commission (the "**Commission**") on December 31, 2025, as amended (the "**Registration Statement**"), under the Securities Act of 1933, as amended (the "**Securities Act**"), for the registration of certain shares of common stock, par value $0.0001 per share (the **"Common Stock"**), specifically (i) 2,625,000 shares of Common Stock (the "**Shares**"), and (ii) up to 393,750 shares of Common Stock issuable upon the exercise of an over-allotment option granted to the underwriter by the Company (the "**Option Shares**" together with the Shares, the "**Offered Shares**"), pursuant to the underwriting agreement to be entered into by and between the Company and the underwriter named therein (the "**Underwriting Agreement**").

In rendering the opinion set forth below, we have assumed that (i) all information contained in all documents reviewed by us is true and correct; (ii) all signatures on all documents examined by us are genuine; (iii) all documents submitted to us as originals are authentic and all documents submitted to us as copies conform to the authentic originals of such documents; and (iv) each natural person signing any document reviewed by us had the legal capacity to do so.

In connection with this matter, we have examined the Registration Statement, including the exhibits thereto; the certificate of incorporation and the bylaws of the Company, as each of the same has been amended through the date hereof; the originals, or copies certified or otherwise identified to our satisfaction, of corporate records, including minute books and resolutions; and such other documents, corporate records, and instruments and such laws and regulations as we have deemed necessary for purposes of rendering the opinion set forth herein.

In our examination, we have assumed the completeness and authenticity of any document submitted to us as an original, the completeness and conformity to the originals of any document submitted to us as a copy, the authenticity of the originals of such copies, the genuineness of all signatures, and the legal capacity and mental competence of natural persons. With respect to certain facts, we have considered it appropriate to rely upon certificates or other comparable documents of public officials and officers or other appropriate representatives of the Company, without investigation or analysis of any underlying data contained therein. This opinion is limited to our review of the federal laws of the United States of America and the General Corporation Law of the State of Delaware as currently in effect, and we express no opinion as to the effect of any other law of the State of Delaware or the laws of any other jurisdiction.

On the basis of and in reliance upon the foregoing, we are of the opinion that (i) the Offered Shares of Common Stock have been duly authorized by the Company and, when issued and paid for in accordance with the terms of the Registration Statement and Underwriting Agreement, will be validly issued, fully paid and non-assessable.

www.htflawyers.com \| info@htflawyers.com

950 Third Avenue, 19th Floor - New York, NY 10022 \| Office: (212) 530-2210 \| Fax: (212) 202-6380

![](ex5-1_001.jpg)

This opinion letter speaks only as of the date hereof, and we assume no obligation to update or supplement this opinion letter if any applicable laws change after the date of this opinion letter or if we become aware after the date of this opinion letter of any facts, whether existing before or arising after the date hereof, that might change the opinion expressed above.

This opinion letter is furnished in connection with the filing of the Registration Statement and may not be relied upon for any other purpose without our prior written consent in each instance. Further, no portion of this opinion letter may be quoted, circulated, or referred to in any other document for any other purpose without our prior written consent.

We hereby consent to the filing of this opinion letter as an exhibit to the Registration Statement and to the reference to this firm in the Registration Statement under the caption "Legal Matters." In giving our consent, we do not hereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations thereunder.

---

| |
|:---|
| Very truly yours, |
| /s/ Hunter Taubman Fischer & Li LLC |
| Hunter Taubman Fischer & Li LLC |

---

www.htflawyers.com \| info@htflawyers.com

950 Third Avenue, 19th Floor - New York, NY 10022 \| Office: (212) 530-2210 \| Fax: (212) 202-6380

## Exhibit 10.4

**Exhibit 10.4**

**BW INDUSTRIAL HOLDINGS INC.**

**2026 EQUITY INCENTIVE PLAN**

1. Purposes of the Plan. 1

2. Shares Subject to the Plan. 1

3. Administration of the Plan. 2

4. Stock Options. 4

5. Restricted Stock. 6

6. Restricted Stock Units. 6

7. Stock Appreciation Rights. 7

8. Performance Stock Units and Performance Shares. 7

9. Performance Awards. 8

10. Outside Director Limitations. 8

11. Leaves of Absence/Transfer Between Locations/Change of Status. 8

12. Transferability of Awards. 9

13. Adjustments; Dissolution or Liquidation. 10

14. Change in Control. 10

15. Tax Matters. 12

16. Other Terms. 12

17. Term of Plan. 13

18. Amendment and Termination of the Plan. 13

19. Conditions Upon Issuance of Shares. 13

20. Stockholder Approval. 14

21. Definitions. 14

i

**1.** **Purposes of the Plan.** 

The purposes of this Plan are to attract and retain personnel for positions with the Company, to provide additional incentive to Employees, Directors, and Consultants (collectively, "Service Providers"), and to promote the success of the Company's business.

The Plan permits the grant of Incentive Stock Options to Employees and the grant of Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Stock Units, and Performance Awards to any Service Provider.

This Plan is intended to become effective upon the Company's initial public offering of its shares of Common Stock as further described in Section 17.

**2.** **Shares Subject to the Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Allocation of Shares to Plan</u>. The maximum aggregate number of Shares that may be issued under the Plan is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [ ] Shares, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any additional Shares that become available for issuance under the Plan under Sections 2(b) and 2(c). The Shares may be authorized but unissued Common Stock or Common Stock issued and then reacquired by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Automatic Share Reserve Increase</u>. The number of Shares available for issuance under the Plan will be increased on the first day of each Fiscal Year beginning with the 2027 Fiscal Year, in an amount equal to the lesser of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 5% of the total number of shares of all classes of the Company's common stock outstanding on the last day of the immediately preceding Fiscal Year, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a lower number of Shares determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Lapsed Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Options and Stock Appreciation Rights*. If an Option or Stock Appreciation Right expires or becomes unexercisable without having been exercised in full or is surrendered under an Exchange Program, the unissued Shares subject to the Option or Stock Appreciation Right will become available for future issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Stock Appreciation Rights*. Only Shares actually issued pursuant to a Stock Appreciation Right (i.e., the net Shares issued) will cease to be available under the Plan; all remaining Shares originally subject to the Stock Appreciation Right will remain available for future issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Full-Value Awards*. Shares issued pursuant to Awards of Restricted Stock, Restricted Stock Units, Performance Shares, Performance Stock Units, or stock-settled Performance Awards that are reacquired by the Company due to failure to vest or are forfeited to the Company will become available for future issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Withheld Shares*. Shares used to pay the Exercise Price of an Award or to satisfy tax withholding obligations related to an Award will become available for future issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Cash-Settled Awards*. If any portion of an Award under the Plan is paid to a Participant in cash rather than Shares, that cash payment will not reduce the number of Shares available for issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Incentive Stock Options</u>. The maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal 200% of the aggregate Share number stated in Section 2(a) plus, to the extent allowable under Code Section 422, any Shares that become available for issuance under the Plan under Sections 2(b) and 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Adjustment</u>. The numbers provided in Sections 2(a), 2(b), and 2(d) will be adjusted as a result of changes in capitalization referred to in Section 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Substitute Awards</u>. If the Committee grants Awards in substitution for equity compensation awards outstanding under a plan maintained by an entity acquired by or consolidated with the Company, the grant of those substitute Awards will not decrease the number of Shares available for issuance under the Plan.

**3.** **Administration of the Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Procedure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *General*. The Plan will be administered by the Board or a Committee (the "Administrator"). Different Administrators may administer the Plan with respect to different groups of Service Providers. The Board may retain the authority to concurrently administer the Plan with a Committee and may revoke the delegation of some or all authority previously delegated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Further Delegation*. To the extent permitted by Applicable Laws, the Board or a Committee may delegate to 1 or more Officers the authority to grant Awards to Employees of the Company or any of its Subsidiaries who are not Officers, provided that the delegation must specify any limitations on the authority required by Applicable Laws, including the total number of Shares that may be subject to the Awards granted by such Officer(s). Such delegation may be revoked at any time by the Board or Committee. Any such Awards will be granted on the form of Award Agreement most recently approved for use by the Board or a Committee made up solely of Directors, unless the resolutions delegating the authority permit the Officer(s) to use a different form of Award Agreement approved by the Board or a Committee made up solely of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Section 162(m)*. When necessary or desirable for an Award to qualify as "performance-based compensation" under Section 162(m) of the Code, the Committee shall include at least two persons who are "outside directors" (as defined under Section 162(m) of the Code) and at least two (or a majority if more than two then serve on the Committee) such "outside directors" shall approve the grant of such Award and determine (as applicable) the Performance Period and any Performance Factors upon which vesting or settlement of any portion of such Award is to be subject no later than the earlier of (a) the date 90 days after the commencement of the applicable Performance Period, and (b) the date on which 25% of the Performance Period has elapsed, and in any event at a time when the achievement of the applicable Performance Factors remains substantially uncertain. When required by Section 162(m) of the Code, prior to settlement of any such Award at least two (or a majority if more than two then serve on the Committee) such "outside directors" then serving on the Committee shall determine and certify in writing the extent to which such Performance Factors have been timely achieved and the extent to which the Shares subject to such Award have thereby been earned. Awards granted to Participants who are subject to Section 16 of the Exchange Act must be approved by two or more "non-employee directors" (as defined in the regulations promulgated under Section 16 of the Exchange Act). With respect to Participants whose compensation is subject to Section 162(m) of the Code, and provided that such adjustments are consistent with the regulations promulgated under Section 162(m) of the Code, the Committee may adjust the performance goals to account for changes in law and accounting and to make such adjustments as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships, including without limitation (i) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring charges, (ii) an event either not directly related to the operations of the Company or not within the reasonable control of the Company's management, or (iii) a change in accounting standards required by generally accepted accounting principles. No Participant will be eligible to receive more than [ ] (25% of Share Reserve Shares) in any calendar year under this Plan pursuant to the grant of Awards except that new Employees of the Company or a member of the Company Group (including new Employees who are also officers and directors of the Company or a member of the Company Group) are eligible to receive up to a maximum of [ ] (50% of Share Reserve Shares) in the calendar year in which they commence their employment, and no Participant shall be granted a cash settled award with a value greater than $2,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Powers of the Administrator</u>. Subject to the terms of the Plan, any limitations on delegations specified by the Board, and any requirements imposed by Applicable Laws, the Administrator will have the authority, in its sole discretion, to make any determinations and perform any actions deemed necessary or advisable to administer the Plan including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to determine the Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to approve forms of Award Agreements for use under the Plan (provided that all forms of Award Agreement must be approved by the Board or the Committee of Directors acting as the Administrator);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to select the Service Providers to whom Awards may be granted and grant Awards to such Service Providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to determine the number of Shares to be covered by each Award granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to determine the terms and conditions, consistent with the Plan, of any Award granted. Such terms and conditions may include, but are not limited to, the Exercise Price, the time(s) when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating to an Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to institute and determine the terms and conditions of an Exchange Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to interpret the Plan and make any decisions necessary to administer the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) to establish, amend and rescind rules relating to the Plan, including rules relating to sub-plans established to satisfy laws of jurisdictions other than the United States or to qualify Awards for favorable tax treatment under laws of jurisdictions other than the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) to interpret, modify or amend each Award (subject to Section 18), including extending the Expiration Date and the post-termination exercisability period of such modified or amended Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) to allow Participants to satisfy tax withholding obligations in any manner permitted by Section 15;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) to delegate ministerial duties to any of the Company's employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) to authorize any person to take any steps and execute, on behalf of the Company, any documents required for an Award previously granted by the Administrator to be effective; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) to allow Participants to defer the receipt of the payment of cash or the delivery of Shares otherwise due to any such Participants under an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Status</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Unless a Participant is on a leave of absence approved by the Company as set forth in Section 11, the Participant's status as a Service Provider will end at midnight at the end of the last day the Participant actively provides services for a member of the Company Group (the "Termination of Status Date"). The Administrator has the sole discretion to determine the date on which a Participant stops actively providing services and whether a Participant may still be considered to be providing services while on a leave of absence and the Administrator may delegate this decision, other than with respect to Officers, to the Company's senior human resources officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) This termination of status as a Service Provider will occur regardless of the reason for such termination even if the termination is later found to be invalid, in breach of employment laws in the jurisdiction where Participant is providing services, or in violation of the terms of Participant's employment or service agreement, if any such agreement exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Unless otherwise expressly provided in an Award Agreement or otherwise determined by the Administrator, a Participant's right to vest in any Award under the Plan will cease as of the Termination of Status Date and will not be extended by any notice period, whether arising under contract, statute or common law, including any period of "garden leave" or similar period mandated under employment laws in the jurisdiction where the Participant is providing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Grant Date</u>. The grant date of an Award ("Grant Date") will be the date that the Administrator makes the determination granting such Award or may be a later date if such later date is designated by the Administrator on the date of the determination or under an automatic grant policy. Notice of the determination will be provided to each Participant within a reasonable time after the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Waiver</u>. The Administrator may waive any terms, conditions, or restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Fractional Shares</u>. Except as otherwise provided by the Administrator, any fractional Shares that result from the adjustment of Awards will be canceled. Any fractional Shares that result from vesting percentages will be accumulated and vested on the date that an accumulated full Share is vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Electronic Delivery</u>. The Company may deliver by e-mail or other electronic means (including posting on a website maintained by the Company or by a third party under contract with the Company or another member of the Company Group) all documents relating to the Plan or any Award and all other documents that the Company is required to deliver to its security holders (including prospectuses, annual reports, and proxy statements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Choice of Law; Choice of Forum</u>. The Plan, all Awards, and all determinations made, and actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any dispute that arises under this Plan, a Participant's acceptance of an Award is his or her consent to the jurisdiction of the State of Delaware, and agreement that any such litigation will be conducted in Delaware Court of Chancery, or the federal courts for the United States for the District of Delaware, and no other courts, regardless of where a Participant's services are performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Effect of Administrator's Decision</u>. The Administrator's decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards.

**4.** **Stock Options.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Option Award Agreement</u>. Each Option will be evidenced by an Award Agreement that will specify the number of Shares subject to the Option, its per share exercise price ("Exercise Price"), its Expiration Date, and such other terms and conditions as the Administrator determines. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. An Option not designated as an Incentive Stock Option is a Nonstatutory Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. The Exercise Price for the Shares to be issued upon exercise of an Option will be determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Form of Consideration</u>. The Administrator will determine the acceptable forms of consideration for exercising an Option and those forms of consideration will be described in the Award Agreement. The consideration may consist of any combination of the following, to the extent permitted by Applicable Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) check or wire transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promissory note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) other Shares that have a fair market value on the date of surrender equal to the aggregate Exercise Price of the Shares as to which such Option will be exercised. To the extent not prohibited by the Administrator, this shall include the ability to tender Shares to exercise the Option and then use the Shares received on exercise to exercise the Option with respect to additional Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) consideration received by the Company under a cashless exercise arrangement (whether through a broker or otherwise) implemented by the Company for the exercise of Options that has been approved by the Board or a Committee of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) consideration received by the Company under a net exercise program under which Shares are withheld from otherwise deliverable Shares that has been approved by the Board or a Committee of Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other consideration or method of payment to issue Shares (provided that other forms of considerations may only be approved by the Board or a Committee of Directors).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Incentive Stock Option Limitations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Exercise Price of an Incentive Stock Option may not be less than 100% of the Fair Market Value on the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent that the aggregate fair market value of the shares with respect to which incentive stock options under Code Section 422(b) are exercisable for the first time by a Participant during any calendar year (under all plans and agreements of the Company Group) exceeds $100,000, the incentive stock options whose value exceeds $100,000 will be treated as nonstatutory stock options. Incentive stock options will be considered in the order in which they were granted. For this purpose, the fair market value of the shares subject to an option will be determined as of the grant date of each option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Expiration Date of an Incentive Stock Option will be the day prior to the 10th anniversary of the Grant Date, or any earlier date provided in the Award Agreement, subject to clause (iv) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The following rules apply to Incentive Stock Options granted to Participants who own stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Expiration Date of the Incentive Stock Option may not be after the day prior to the 5th anniversary of the Grant Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Exercise Price may not be less than 110% of the Fair Market Value on the Grant Date.

If an Option is designated in the Administrator action that granted it as an Incentive Stock Option, but the terms of the Option do not comply with Sections 4(d)(iv)(1) and 4(d)(iv)(2), then the Option will not qualify as an Incentive Stock Option. All Options granted under the Plan are Nonstatutory Stock Options unless specifically designated as Incentive Stock Options in the Award Agreement pursuant to which such Options are granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Exercise of Option</u>. An Option is exercised when the Company receives: (i) a notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable withholding taxes). Shares issued upon exercise of an Option will be issued in the name of the Participant. Until the Shares are issued (as evidenced by the entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, despite the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. An Option may not be exercised for a fraction of a Share. Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for purchase under the Option, by the number of Shares as to which the Option is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Expiration of Options</u>. Subject to Section 4(d), an Option's Expiration Date will be set forth in the Award Agreement. An Option may expire before its expiration date under Sections 14 or 16(b) or under the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Tolling of Expiration</u>. If exercising an Option prior to its expiration is not permitted because of Applicable Laws, other than the rules of any stock exchange or quotation system on which the Common Stock is listed or quoted, the Option will remain exercisable until 30 days after the first date on which exercise would no longer be prevented by such provisions. If this would result in the Option remaining exercisable past its Expiration Date, then it will remain exercisable only until the end of the later of (x) the first day on which its exercise would not be prevented by Section 19(a) and (y) its Expiration Date.

**5.** **Restricted Stock.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restricted Stock Award Agreement</u>. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction (if any), the number of Shares granted, and such other terms and conditions as the Administrator determines. Unless the Administrator determines otherwise, Shares of Restricted Stock will be held in escrow until the end of the Period of Restriction applicable to such Shares. All grants of Restricted Stock and interpretative decisions about Restricted Stock may only be made by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Restrictions</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in this Section 5 or the Award Agreement, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated until the end of the Period of Restriction applicable to such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the Period of Restriction, Service Providers holding Shares of Restricted Stock may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) During the Period of Restriction, Service Providers holding Shares of Restricted Stock will not be entitled to receive dividends and other distributions paid with respect to such Shares, unless the Administrator provides otherwise. If the Administrator provides that dividends and distributions will be received and any such dividends or distributions are paid in cash they will be subject to the same provisions regarding forfeitability as the Shares of Restricted Stock with respect to which they were paid and if such dividend or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid and, unless the Administrator determines otherwise, the Company will hold such Shares until the restrictions on the Shares of Restricted Stock with respect to which they were paid have lapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Except as otherwise provided in this Section 5 or an Award Agreement, Shares of Restricted Stock covered by each Restricted Stock Award made under the Plan will be released from escrow when practicable after the last day of the applicable Period of Restriction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Administrator may impose, prior to grant, or remove any restrictions on Shares of Restricted Stock.

**6.** **Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restricted Stock Unit Award Agreement</u>. Each Award of Restricted Stock Units will be evidenced by an Award Agreement that will specify the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting Criteria and Other Terms</u>. The Administrator will set vesting criteria that, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units paid out to the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, divisional, business unit, or individual goals (that may include continued employment or service) or any other basis determined by the Administrator in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Earning Restricted Stock Units</u>. Upon meeting the applicable vesting criteria, the Participant will have earned the Restricted Stock Units and will be paid as determined in Section 6(d). The Administrator may reduce or waive any criteria that must be met to earn the Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Form and Timing of Payment</u>. Payment of earned Restricted Stock Units will be made when practicable after the date set forth in the Award Agreement and determined by the Administrator. The Administrator may settle earned Restricted Stock Units in cash, Shares, or a combination of both.

**7.** **Stock Appreciation Rights.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Appreciation Right Award Agreement</u>. Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the Exercise Price (which may not be less than 100% of Fair Market Value on the Grant Date), its Expiration Date, the conditions of exercise, and such other terms and conditions as the Administrator determines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Stock Appreciation Right Amount</u>. When a Participant exercises a Stock Appreciation Right, he or she will be entitled to receive a payment from the Company equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the difference between the Fair Market Value on the date of exercise and the Exercise Price multiplied by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the number of Shares with respect to which the Stock Appreciation Right is exercised.

Payment upon Stock Appreciation Right exercise may be made in cash, in Shares of equivalent value, or any combination of cash and Shares, with the determination of form of payment made by the Administrator. Shares issued upon exercise of a Stock Appreciation Right will be issued in the name of the Participant. Until Shares are issued (as evidenced by the entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to a Stock Appreciation Right, despite the exercise of the Stock Appreciation Right. The Company will issue (or cause to be issued) such Shares promptly after the Stock Appreciation Right is exercised. A Stock Appreciation Right may not be exercised for a fraction of a Share.

Exercising a Stock Appreciation Right in any manner will decrease (x) the number of Shares thereafter available under the Stock Appreciation Right by the number of Shares as to which the Stock Appreciation Right is exercised and (y) the number of Shares thereafter available under the Plan by the number of Shares issued upon such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Expiration of Stock Appreciation Rights</u>. A Stock Appreciation Right's Expiration Date will be set forth in the Award Agreement. A Stock Appreciation Right may expire before its expiration date under Sections 14 or 16(b) or under the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tolling of Expiration</u>. If exercising a Stock Appreciation Right prior to its expiration is not permitted because of Applicable Laws, other than the rules of any stock exchange or quotation system on which the Common Stock is listed or quoted, the Stock Appreciation Right will remain exercisable until 30 days after the first date on which exercise would no longer be prevented by such provisions. If this would result in the Stock Appreciation Right remaining exercisable past its Expiration Date, then it will remain exercisable only until the end of the later of (x) the first day on which its exercise would not be prevented by Section 19(a) and (y) its Expiration Date.

**8.** **Performance Stock Units and Performance Shares.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Award Agreement</u>. Each Award of Performance Stock Units/Shares will be evidenced by an Award Agreement that will specify the time period during which the performance objectives or other vesting provisions will be measured which shall not exceed 5 years ("Performance Period") and the material terms of the Award. The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual goals (including, but not limited to, continued employment or service) or any other basis determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Value of Performance Stock Units/Shares</u>. Each Performance Stock Unit will have an initial value established by the Administrator on or before the Grant Date. Each Performance Share will have an initial value equal to the Fair Market Value on the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Performance Objectives and Other Terms</u>. The Administrator will set performance objectives or other vesting provisions (that may include continued employment or service). These objectives or vesting provisions may determine the number or value of Performance Stock Units/Shares paid out.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Earning of Performance Stock Units/Shares</u>. After an applicable Performance Period has ended, the holder of Performance Stock Units/Shares will be entitled to receive a payout of the number of Performance Stock Units/Shares earned by the Participant over the Performance Period. The Administrator may reduce or waive any performance objectives or other vesting provisions for such Performance Stock Unit/Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment of Performance Stock Units/Shares</u>. Payment of earned Performance Stock Units/Shares will be made when practicable after the end of the applicable Performance Period. Payment with respect to earned Performance Stock Units/Shares may be made in cash, in Shares of equivalent value, or any combination of cash and Shares, with the determination of form of payment made by the Administrator.

**9.** **Performance Awards.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Award Agreement</u>. Each Performance Award will be evidenced by an Award Agreement that will specify the Performance Period and the material terms of the Award. The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual goals (including, but not limited to, continued employment or service) or any other basis determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Value of Performance Awards</u>. Each Performance Award's threshold, target, and maximum payout values will be established by the Administrator on or before the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Performance Objectives and Other Terms</u>. The Administrator will set performance objectives or other vesting provisions (that may include continued employment or service). These objectives or vesting provisions will determine the value of the payout for the Performance Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Earning of Performance Awards</u>. After an applicable Performance Period has ended, the holder of a Performance Award will be entitled to receive a payout for the Performance Award earned by the Participant over the Performance Period. The Administrator may reduce or waive any performance objectives or other vesting provisions for such Performance Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment of Performance Awards</u>. Payment of earned Performance Awards will be made when practicable after the end of the applicable Performance Period. Payment with respect to earned Performance Awards will be made in cash, in Shares of equivalent value, or any combination of cash and Shares, with the determination of form of payment made by the Administrator at the time of payment.

**10.** **Outside Director Limitations.** 

No Outside Director may be granted, in any Fiscal Year, Awards with a grant date fair value (determined under U.S. generally accepted accounting principles) of more than $1,000,000, increased to $2,000,000 in connection with his or her initial service as an Outside Director. Awards granted to an individual while he or she was an Employee, or while he or she was a Consultant but not an Outside Director, will not count for purpose of this limitation.

**11.** **Leaves of Absence/Transfer Between Locations/Change of Status.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Unless otherwise provided by the Administrator, a Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or other member of the Company Group employing such Employee or (ii) any transfer between locations of the Company or members of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting</u>. Unless a leave policy approved by the Administrator provides otherwise or it is otherwise required by Applicable Law, vesting of Awards granted under the Plan will continue only for Participants on an approved leave of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incentive Stock Option Status</u>. If a Participant's leave of absence approved by the Company or other member of the Company Group employing such Employee exceeds 3 months and reemployment upon expiration of such leave is not guaranteed by statute or contract, then 3 months following the 1st day of such leave the Participant will no longer be an employee for incentive stock option purposes. If reemployment upon expiration of such leave of absence is not guaranteed by statute or contract, then 6 months following the 1st day of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Protected Leaves</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any leave of absence by a Participant will be subject to any Applicable Laws that apply to leaves of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For a Participant on a military leave, if required by Applicable Laws, vesting will continue for the longest period that vesting continues under any other statutory or Company-approved leave of absence. When a Participant returns from military leave (under conditions that would entitle him or her to such protection under the Uniformed Services Employment and Reemployment Rights Act), the Participant will be given vesting credit to the same extent as if the Participant had continued to provide services to the Company or other member of the Company Group, as applicable, through the military leave.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Changes in Status</u>. If a Participant who is an Employee has a reduction in hours worked, the Administrator may unilaterally:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) make a corresponding reduction in the number of Shares or cash amount subject to any portion of an Award that is scheduled to vest or become payable after the date of such extend leave or reduction in hours; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Award.

If any such reduction occurs, the Participant will have no right to any portion of the Award that is reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Determinations</u>. The effect of a Company-approved leave of absence, a transfer, or a Participant's reduction in hours of employment or service on the vesting of an Award shall be determined, under policies reviewed by the Administrator, by the Company's senior human resources officer or other person performing that function or, with respect to Directors or Officers by the Compensation Committee of the Board, and any such determination will be final.

**12.** **Transferability of Awards.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General Rule</u>. Unless determined otherwise by the Administrator, or otherwise required by Applicable Laws, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, the Award will be limited by any additional terms and conditions imposed by the Administrator. Any unauthorized transfer of an Award will be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Domestic Relations Orders</u>. If approved by the Administrator, an Award may be transferred under a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulations Section 1.421-1(b)(2). An Incentive Stock Option may be converted into a Nonstatutory Stock Option as a result of such transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Limited Transfers for the Benefit of Family Members</u>. The Administrator may permit an Award or Share issued under this Plan to be assigned or transferred subject to the applicable limitations, set forth in the General Instructions to Form S-8 Registration Statement under the Securities Act, if applicable, and any other Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Permitted Transferees</u>. Any individual or entity to whom an Award is transferred will be subject to all of the terms and conditions applicable to the Participant who transferred the Award, including the terms and conditions in this Plan and the Award Agreement. If an Award is unvested then the service of the Participant will continue to determine whether the Award will vest and any Expiration Date.

**13.** **Adjustments**; **Dissolution or Liquidation.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Adjustments</u>. If any extraordinary dividend or other extraordinary distribution (whether in cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, issuance of warrants or other rights to acquire securities of the Company, other change in the corporate structure of the Company affecting the Shares, or any similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any of its successors) affecting the Shares occurs (including, without limitation, a Change in Control), the Administrator, to prevent diminution or enlargement of the benefits or potential benefits intended to be provided under the Plan, will adjust the number and class of shares that may be delivered under the Plan and/or the number, class, and price of shares covered by each outstanding Award, and the numerical Share limits in Section 2 in such a manner as it deems equitable. Notwithstanding the foregoing, the conversion of any convertible securities of the Company and ordinary course repurchases of shares or other securities of the Company will not be treated as an event that will require adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dissolution or Liquidation</u>. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant when practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.

**14.** **Change in Control.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Administrator Discretion</u>. If a Change in Control or a merger of the Company with or into another corporation or other entity occurs, each outstanding Award will be treated as the Administrator determines, including, without limitation, that such Award be continued by the successor corporation or a Parent or Subsidiary of the successor corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Identical Treatment Not Required</u>. The Administrator need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Participants. The Administrator may take different actions with respect to the vested and unvested portions of an Award. The Administrator will not be required to treat all Awards similarly in the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Continuation</u>. An Award will be considered continued if, following the Change in Control or merger:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the transaction, the consideration (whether stock, cash, or other securities or property) received in the transaction by holders of Shares for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration received by the holders of a majority of the outstanding Shares); provided that if the consideration received in the transaction is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon exercising an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance Stock Unit, Performance Share or Performance Award, for each Share subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Award is terminated in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant's rights as of the date of the occurrence of the transaction. Any such cash or property may be subjected to any escrow applicable to holders of Common Stock in the Change of Control. If as of the date of the occurrence of the transaction the Administrator determines that no amount would have been attained upon the exercise of such Award or realization of the Participant's rights, then such Award may be terminated by the Company without payment. The amount of cash or property can be subjected to vesting and paid to the Participant over the original vesting schedule of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything in this Section 14(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant's consent; provided, however, a modification to such performance goals only to reflect the successor corporation's post-transaction corporate structure will not invalidate an otherwise valid Award assumption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrator will have authority to modify Awards in connection with a Change in Control or merger:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in a manner that causes them to lose their tax-preferred status,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to terminate any right a Participant has to exercise an Option prior to vesting in the Shares subject to the Option (i.e., "early exercise"), so that following the closing of the transaction the Option may only be exercised to the extent it is vested;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to reduce the Exercise Price subject to the Award in a manner that is disproportionate to the increase in the number of Shares subject to the Award, as long as the amount that would be received upon exercise of the Award immediately before and immediately following the closing of the transaction is equivalent and the adjustment complies with Treasury Regulation Section 1.409A-1(b)(v)(D); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to suspend a Participant's right to exercise an Option during a limited period of time preceding and or following the closing of the transaction without Participant consent if such suspension is administratively necessary or advisable to permit the closing of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-Continuation</u>. If the successor corporation does not continue for an Award (or some portion such Award), the Participant will fully vest in (and have the right to exercise) 100% of the then-unvested Shares subject to his or her outstanding Options and Stock Appreciation Rights, all restrictions on 100% of the Participant's outstanding Restricted Stock and Restricted Stock Units will lapse, and, regarding 100% of Participant's outstanding Awards with performance-based vesting, all performance goals or other vesting criteria will be treated as achieved at 100% of target levels and all other terms and conditions met. In no event will vesting of an Award accelerate as to more than 100% of the Award. If Options or Stock Appreciation Rights are not continued when a Change in Control or a merger of the Company with or into another corporation or other entity occurs, the Administrator will notify the Participant in writing or electronically that the Participant's vested Options or Stock Appreciation Rights (after considering the foregoing vesting acceleration, if any) will be exercisable for a period of time determined by the Administrator in its sole discretion and all of the Participant's Options or Stock Appreciation Rights will terminate upon the expiration of such period (whether vested or unvested).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Outside Director Awards</u>. With respect to Awards granted to an Outside Director that are continued, if on the date of or following such continuation the Participant's status as a Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant that is not at the request of the acquirer, then the Participant will fully vest in and have the right to exercise Options and/or Stock Appreciation Rights as to all of the Shares underlying such Award, including those Shares not otherwise vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be treated as achieved at 100% of target levels and all other terms and conditions met.

**15.** **Tax Matters.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Withholding Requirements</u>. Prior to the delivery of any Shares or cash under an Award (or exercise thereof) or such earlier time as any tax withholding obligations are due, the Company may deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy any taxes (including the Participant's social tax obligations) required to be withheld with respect to such Award (or exercise thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding Arrangements</u>. The Administrator, in its sole discretion and under such procedures as it may specify from time to time, may permit or may require a Participant to satisfy such tax withholding obligations, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable cash (including cash from the sale of Shares issued to Participant) or Shares having a fair market value equal to the minimum statutory amount required to be withheld or a greater amount if that would not result in unfavorable financial accounting treatment, (iii) delivering to the Company already-owned Shares having a fair market value equal to the minimum statutory amount required to be withheld, or (iv) requiring the Participant to engage in a cashless exercise transaction (whether through a broker or otherwise) implemented by the Company in connection with the Plan. The fair market value of the Shares to be withheld or delivered will be determined as of the date the taxes must be withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compliance With Code Section 409A</u>. Except as otherwise determined by the Administrator, it is intended that Awards will be designed and operated so that they are either exempt from the application of Code Section 409A or comply with any requirements necessary to avoid the imposition of additional tax under Code Section 409A(a)(1)(B) so that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A and the Plan and each Award Agreement will be interpreted consistent with this intent. This Section 15(c) is not a guarantee to any Participant of the consequences of his or her Awards.

**16.** **Other Terms.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Effect on Employment or Service</u>. Neither the Plan nor any Award will confer upon a Participant any right regarding continuing the Participant's relationship as a Service Provider with the Company or member of the Company Group, nor will they interfere with the Participant's right, or the Participant's employer's right, to terminate such relationship with or without cause, to the extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Forfeiture Events</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Awards granted under the Plan will be subject to recoupment under any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company's securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other Applicable Laws. In addition, the Administrator may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Administrator determines necessary or appropriate, including but not limited to a reacquisition right regarding previously acquired Shares or other cash or property. Unless this Section 16(b) is specifically mentioned and waived in an Award Agreement or other document, no recovery of compensation under a clawback policy or otherwise will give a Participant the right to resign for "good reason" or "constructive termination" (or similar term) under any agreement with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrator may specify in an Award Agreement that the Participant's rights, payments, and benefits with respect to an Award will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. In the event of termination of such Participant's status as Service Provider for Cause or any act by a Participant, whether before or after such Participant's Termination Status Date, that would constitute cause for termination of such Participant's status as a Service Provider, all Awards will terminate immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under securities laws, any Participant who (i) knowingly or through gross negligence engaged in the misconduct or who knowingly or through gross negligence failed to prevent the misconduct or (ii) is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, must reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document embodying such financial reporting requirement.

**17.** **Term of Plan.** 

Subject to Section 20, the Plan will become effective upon the business day immediately prior to the Registration Date. It will continue in effect until terminated under Section 18, but no Incentive Stock Options may be granted after 10 years from the date the Plan is adopted by the Board and Section 2(b) will operate only until the 10th anniversary of the date the Plan is adopted by the Board.

**18.** **Amendment and Termination of the Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment and Termination</u>. The Board or Compensation Committee of the Board may amend, alter, suspend, or terminate the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Stockholder Approval</u>. The Company will obtain stockholder approval of any Plan amendment to the extent necessary or desirable to comply with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Consent of Participants Generally Required</u>. Subject to Section 18(d) below, no amendment, alteration, suspension or termination of the Plan or an Award under it will materially impair the rights of any Participant without a signed, written agreement between the Participant and the Company. Termination of the Plan will not affect the Administrator's ability to exercise the powers granted to it regarding Awards granted under the Plan prior to such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Exceptions to Consent Requirement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A Participant's rights will not be deemed to have been impaired by any amendment, alteration, suspension, or termination if the Administrator, in its sole discretion, determines that the amendment, alteration, suspension or termination taken as a whole, does not materially impair the Participant's rights; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to any limitations of Applicable Laws, the Administrator may amend the terms of any one or more Awards without the affected Participant's consent even if it does materially impair the Participant's right if such amendment is done

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in a manner permitted under the Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to maintain the qualified status of the Award as an Incentive Stock Option under Code Section 422,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to change the terms of an Incentive Stock Option, if such change results in impairment of the Award only because it impairs the qualified status of the Award as an Incentive Stock Option under Code Section 422,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to clarify the manner of exemption from Code Section 409A or compliance with any requirements necessary to avoid the imposition of additional tax under Code Section 409A(a)(1)(B), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) to comply with other Applicable Laws.

**19.** **Conditions Upon Issuance of Shares.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Legal Compliance</u>. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws. If required by the Administrator, issuance will be further subject to the approval of counsel for the Company with respect to such compliance. The inability of the Company to obtain authority from any regulatory body having jurisdiction or to complete or comply with the requirements of any Applicable Laws will relieve the Company of any liability regarding the failure to issue or sell such Shares as to which such authority, registration, qualification or rule compliance was not obtained and the Administrator reserves the authority, without the consent of a Participant, to terminate or cancel Awards with or without consideration in such a situation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Investment Representations</u>. As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant during any such exercise that the Shares are being purchased only for investment and with no present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Failure to Accept Award</u>. If a Participant has not accepted an Award or has not taken all administrative and other steps (e.g. setting up an account with a broker designated by the Company) necessary for the Company to issue Shares upon the vesting, exercise, or settlement of the Award prior to the first date the Shares subject such Award are scheduled to vest, then the Award will be cancelled on such date and the Shares subject to such Award immediately will revert to the Plan for no additional consideration unless otherwise provided by the Administrator.

**20.** **Stockholder Approval.** 

The Plan will be subject to approval by the stockholders of the Company within 12 months after the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws.

**21.** **Definitions.** 

The following definitions are used in this Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Applicable Laws" means the requirements relating to the administration of equity-based awards and the related issuance of Shares under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and, only to the extent applicable with respect to an Award or Awards, the tax, securities or exchange control laws of any jurisdictions other than the United States where Awards are, or will be, granted under the Plan. Reference to a section of an Applicable Law or regulation related to that section shall include such section or regulation, any valid regulation issued under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Award" means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Stock Units, Performance Shares, or Performance Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Award Agreement" means the written or electronic agreement setting forth the terms applicable to an Award granted under the Plan. The Award Agreement is subject to the terms of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Board" means the sole director or the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Cause" means (i) the commission of an act of theft, embezzlement, fraud, or dishonesty, (ii) a breach of fiduciary duty to the Company or a member of the Company Group including misappropriation of any Company corporate opportunity, (iii) violation of the terms of Employee's Confidential Information, Assignment of Inventions, and Noncompetition Agreement with the Company, (iv) final conviction of a felony that adversely affects the Company (with all appeals exhausted), or (v) a failure to materially perform the customary duties of Employee's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Change in Control" means the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group ("Person"), acquires ownership of the stock of the Company that, with the stock held by such Person, constitutes more than 50% of the total voting power of the stock of the Company; provided, that for this subsection, the acquisition of additional stock by any one Person, who prior to such acquisition is considered to own more than 50% of the total voting power of the stock of the Company will not be considered a Change in Control. Further, if the stockholders of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company's voting stock immediately prior to the change in ownership, direct or indirect beneficial ownership of 50% or more of the total voting power of the stock of the Company, such event shall not be considered a Change in Control under this Section 21(e)(i). For this purpose, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A change in the effective control of the Company which occurs on the date a majority of members of the Board is replaced during any 12-month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the appointment or election. For this Section 21(e)(ii), if any Person is in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A change in the ownership of a substantial portion of the Company's assets which occurs on the date that any Person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, that for this Section 21(e)(iii), the following will not constitute a change in the ownership of a substantial portion of the Company's assets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a transfer to an entity controlled by the Company's stockholders immediately after the transfer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a transfer of assets by the Company to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company's stock,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) a Person, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a Person described in subsections 21(e)(iii)(2)(A) to 21(e)(iii)(2)(C).

For this definition, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. For this definition, persons will be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

A transaction will not be a Change in Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) unless the transaction qualifies as a change in control event within the meaning of Code Section 409A; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if its sole purpose is to (1) change the state of the Company's incorporation, or (2) create a holding company owned in substantially the same proportions by the persons who held the Company's securities immediately before such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Code" means the Internal Revenue Code of 1986. Reference to a section of the Code or regulation related to that section shall include such section or regulation, any valid regulation issued under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "Committee" means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Common Stock" means the common stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "Company" means BW Industrial Holdings Inc., a Delaware corporation, or any of its successors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "Company Group" means the Company, any Parent or Subsidiary of the Company, and any entity that, from time to time and at the time of any determination, directly or indirectly, is in control of, is controlled by or is under common control with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "Consultant" means any natural person engaged by a member of the Company Group to render bona fide services to such entity, provided the services (i) are not in connection with the offer or sale of securities in a capital raising transaction, and (ii) do not directly promote or maintain a market for the Company's securities. A Consultant must be a person to whom the issuance of Shares registered on Form S-8 under the Securities Act is permitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Director" means a member of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "Disability" means, with respect to a Participant, the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months, as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and will be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "Employee" means any person, including Officers and Directors, employed by the Company or any member of the Company Group. However, with respect to Incentive Stock Options, an Employee must be employed by the Company or any Parent or Subsidiary of the Company at the time of grant. Notwithstanding Stock Options granted to individuals not providing services to the Company or a subsidiary of the Company should be carefully structured to comply with the payment timing rule of Code Section 409A. Neither service as a Director nor payment of a director's fee by the Company will constitute "employment" by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "Exchange Act" means the U.S. Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "Exchange Program" means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for awards of the same type (which may have higher or lower Exercise Prices and different terms), awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the Exercise Price of an outstanding Award is increased or reduced. The Administrator will determine the terms and conditions of any Exchange Program in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "Expiration Date" means the last possible day on which an Option or Stock Appreciation Right may be exercised. Any exercise must be completed by midnight Central Time between the Expiration Date and the following date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "Fair Market Value" means, as of any date, the value of a Share, determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New York Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market of The NASDAQ Stock Market, the Fair Market Value will be the closing sales price for a Share (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported by such source as the Administrator determines to be reliable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that date on the last Trading Day such bids and asks were reported), as reported by such source as the Administrator determines to be reliable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) For any Awards granted on the Registration Date, the Fair Market Value will be the initial price to the public set forth in the final prospectus included within the registration statement in Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Company's Common Stock; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Absent an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.

Notwithstanding the foregoing, if the determination date for the Fair Market Value occurs on a weekend, holiday or other non-Trading Day, the Fair Market Value will be the price as determined under subsections (i) or (ii) above on the immediately preceding Trading Day, unless otherwise determined by the Administrator. In addition, for purposes of determining the fair market value of shares for any reason other than the determination of the Exercise Price of Options or Stock Appreciation Rights, fair market value will be determined by the Administrator in a manner compliant with Applicable Laws and applied consistently for such purpose. Note that the determination of fair market value for purposes of tax withholding may be made in the Administrator's sole discretion subject to Applicable Laws and is not required to be consistent with the determination of Fair Market Value for other purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "Fiscal Year" means a fiscal year of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "Incentive Stock Option" means an Option that is intended to qualify and does qualify as an incentive stock option within the meaning of Code Section 422.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "Nonstatutory Stock Option" means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "Option" means a stock option to acquire Shares granted under Section 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "Outside Director" means a Director who is not an Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "Parent" means a "parent corporation," whether now or hereafter existing, as defined in Code Section 424(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "Participant" means the holder of an outstanding Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "Performance Awards" means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which will be settled for cash, Shares or other securities or a combination of the foregoing under Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "Performance Factors" means one or more of the following: (1) earnings (including earnings per share and net earnings); (2) earnings before interest, taxes and depreciation; (3) earnings before interest, taxes, depreciation and amortization; (4) earnings before interest, taxes, depreciation, amortization and legal settlements; (5) earnings before interest, taxes, depreciation, amortization, legal settlements and other income (expense); (6) earnings before interest, taxes, depreciation, amortization, legal settlements, other income (expense) and stock-based compensation; (7) earnings before interest, taxes, depreciation, amortization, legal settlements, other income (expense), stock-based compensation and changes in deferred revenue; (8) earnings before interest, taxes, depreciation, amortization, legal settlements, other income (expense), stock-based compensation, other non-cash expenses and changes in deferred revenue; (9) total stockholder return; (10) return on equity or average stockholder's equity; (11) return on assets, investment, or capital employed; (12) stock price; (13) margin (including gross margin); (14) income (before or after taxes); (15) operating income; (16) operating income after taxes; (17) pre-tax profit; (18) operating cash flow; (19) sales or revenue targets; (20) increases in revenue or product revenue; (21) expenses and cost reduction goals; (22) improvement in or attainment of working capital levels; (23) economic value added (or an equivalent metric); (24) market share; (25) cash flow; (26) cash flow per share; (27) cash balance; (28) cash burn; (29) cash collections; (30) share price performance; (31) debt reduction; (32) implementation or completion of projects or processes (including, without limitation, discovery of a preclinical drug candidate, recommendation of a drug candidate to enter a clinical trial, clinical trial initiation, clinical trial enrollment and dates, clinical trial results, regulatory filing submissions (such as IND, BLA and NDA), regulatory filing acceptances, regulatory or advisory committee interactions, regulatory approvals, and product supply); (33) stockholders' equity; (34) capital expenditures; (35) financings; (36) operating profit or net operating profit; (37) workforce diversity; (38) growth of net income or operating income; (39) employee retention; (40) initiation of studies by specific dates; (41) budget management; (42) submission to, or approval by, a regulatory body (including, but not limited to the FDA) of an applicable filing or a product; (43) regulatory milestones; (44) progress of internal research or development programs; (45) progress of partnered programs; (46) partner satisfaction; (47) timely completion of clinical trials; (48) milestones related to research development (including, but not limited to, preclinical and clinical studies), product development and manufacturing; (49) expansion of sales in additional geographies or markets; (50) research progress, including the development of programs; (51) strategic partnerships or transactions (including in-licensing and out-licensing of intellectual property; (52) filing of patent applications and granting of patents; and (53) and to the extent that an award is not intended to comply with Section 162(m) of the Code, other measures of performance selected by our board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "Performance Share" means an Award denominated in Shares which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine under Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "Performance Stock Units" means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing under Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "Period of Restriction" means the period during which the transfer of Shares of Restricted Stock is subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "Plan" means this 2025 Equity Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "Registration Date" means the effective date of the first registration statement filed by the Company and declared effective under Section 12(b) of the Exchange Act, with respect to any class of the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Restricted Stock" means Shares issued under an Award granted under Section 5 or issued as a result of the early exercise of an Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "Restricted Stock Unit" means a bookkeeping entry representing an amount equal to the Fair Market Value, granted under Section 6. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "Securities Act" means Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "Service Provider" means an Employee, Director, or Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "Share" means a share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "Stock Appreciation Right" means an Award granted (alone or in connection with an Option) under Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "Subsidiary" means a "subsidiary corporation" as defined in Code Section 424(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "Trading Day" means a day on which the applicable stock exchange or national market system is open for trading.

**BW INDUSTRIAL HOLDINGS INC.<br> 2025 EQUITY INCENTIVE PLAN**

**NOTICE OF STOCK OPTION GRANT AND STOCK OPTION AGREEMENT**

Capitalized terms that are not defined in this Notice of Stock Option Grant and Stock Option Agreement (the "**Notice of Grant**"), the Terms and Conditions of Stock Option Grant, or any of the exhibits to these documents (all together, the "**Agreement**") have the meanings given to them in the BW Industrial Holdings Inc. 2026 Equity Incentive Plan (the "**Plan**").

The Participant has been granted an Option according to the terms below and subject to the terms and conditions of the Plan and this Agreement:

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| | |
|:---|:---|
| Participant |  |
| Grant Number |  |
| Grant Date |  |
| Vesting Start Date |  |
| Number of Shares Granted |  |
| Exercise Price per Share |  |
| Total Exercise Price |  |
| Type of Option | _ Incentive Stock Option<br> _ Nonstatutory Stock Option |
| Expiration Date |  |

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<u>Vesting Schedule</u>:

Unless the vesting is accelerated, this Option will be exercisable to the extent vested on the following schedule:

If the Participant continues to be a Service Provider through each such date, 25% of this Option will vest on the 1-year anniversary of the Vesting Start Date, and 1/48th of this Option will vest each month after that anniversary on the same day of the month as the Vesting Start Date (or if there is no corresponding day in a given month, then on the last day of that month). All vesting will be rounded in accordance with Section 3(f) of the Plan.

If the Participant ceases to be a Service Provider for any or no reason before he or she fully vests in this Option, the unvested portion of this Option will terminate according to the terms of Section 4 of this Agreement.

<u>Exercise of Option</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Participant dies or his or her status as a Service Provider is terminated due to his or her Disability, the vested portion of this Option will remain exercisable for 12 months after the Termination of Status Date. For any other termination of status as a Service Provider, the vested portion of this Option will remain exercisable for [3 months][12 months][5 years]\* after the Termination of Status Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If there is a Change in Control or merger of the Company, Section 14 of the Plan may further limit this Option's exercisability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Option will not be exercisable after the Expiration Date, unless Section 4(g) of the Plan (which tolls expiration in very limited cases when there are legal restrictions on exercise) permits later exercise.

The Participant's signature below indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) He or she agrees that this Option is granted under and governed by the terms and conditions of the Plan and this Agreement, including their exhibits and appendices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) He or she understands that the Company is not providing any tax, legal, or financial advice and is not making any recommendations regarding his or her participation in the Plan or his or her acquisition or sale of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) He or she has reviewed the Plan and this Agreement, has had an opportunity to obtain the advice of personal tax, legal, and financial advisors prior to signing this Agreement, and fully understands all provisions of the Plan and Agreement. He or she will consult with his or her own personal tax, legal, and financial advisors before taking any action related to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) He or she has read and agrees to each provision of Section 11 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) He or she will notify the Company of any change to the contact address below.

PARTICIPANT

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| |
|:---|
| Signature |
| Address: |

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*\** *The post-service termination expiration date on vested stock options has varied historically in the Form Of stock option grant agreement over the years and depending on title/role of the Participant within the Company.*

**<u>EXHIBIT A</u>**

**TERMS AND CONDITIONS OF STOCK OPTION GRANT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant</u>. The Company grants the Participant an Option to purchase Shares of Common Stock as described in the Notice of Grant. If there is a conflict between the Plan, this Agreement, or any other agreement with the Participant governing this Option, those documents will take precedence and prevail in the following order: (a) the Plan, (b) the Agreement, and (c) any other agreement between the Company and the Participant governing this Option.

If the Notice of Grant designates this Option as an Incentive Stock Option ("**ISO**"), this Option is intended to qualify as an ISO under Code Section 422. Even if this Option is designated an ISO, to the extent it first become exercisable as to more than $100,000 in any calendar year, the portion in excess of $100,000 is not an ISO under Code Section 422(d) and that portion will be a Nonstatutory Stock Option ("**NSO**"). In addition, if the Participant exercises the Option after 3 months have passed since he or she ceased to be an employee of the Company or a Parent or Subsidiary of the Company, it will no longer be an ISO. If there is any other reason this Option (or a portion of it) will not qualify as an ISO, to the extent of such nonqualification, the Option will be an NSO. The Participant understands that he or she will have no recourse against the Administrator, any member of the Company Group, or any officer or director of a member of the Company Group if any portion of this Option is not an ISO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Vesting</u>. This Option will only be exercisable (also referred to as vested) under the Vesting Schedule in the Notice of Grant, Section 3 of this Agreement, or Section 14 of the Plan. Shares scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest unless the Participant continues to be a Service Provider until the time such vesting is scheduled to occur. The Administrator may modify the Vesting Schedule according to its authority under the Plan if the Participant takes a leave of absence or has a reduction in hours worked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Administrator Discretion</u>. The Administrator may accelerate the vesting of any portion of this Option. In that case, this Option will be vested as of the date and to the extent specified by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Forfeiture upon Termination of Status as a Service Provider</u>. Upon the Participant's termination as a Service Provider for any reason other than death or Disability, this Option will immediately stop vesting, and on the day that is [3 months][12 months][5 years]\* following the Termination of Status Date (or any earlier date on or following the Termination of Status Date determined by the Administrator), any portion of this Option that has not been exercised will be immediately forfeited for no consideration, subject to Applicable Laws. In the event of a Participant's Disability, vested Options shall be exercisable for 12 months after the Participants termination as a Service Provider (or until the Expiration Date if earlier), and in the event of a Participant's death, vested Options shall be exercisable for 18 months after the Participant's termination as a Service Provider (or until the Expiration Date if earlier). The date of the Participant's termination as a Service Provider is detailed in Section 3(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Death of Participant</u>. Any distribution or delivery to be made to the Participant under this Agreement will, if he or she is then deceased, be made to the administrator or executor of his or her estate or, if the Administrator permits, his or her designated beneficiary. Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations that apply to the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Exercise of Option</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Right to Exercise.** This Option may be exercised only before its Expiration Date and only under the Plan and this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Method of Exercise**. To exercise this Option, the Participant must deliver and the Administrator must receive an exercise notice according to procedures determined by the Administrator. The exercise notice must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) state the number of Shares as to which this Option is being exercised ("**Exercised Shares**"),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) make any representations or agreements required by the Company,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) be accompanied by a payment of the total exercise price for all Exercised Shares, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) be accompanied by a payment of all required Tax-Related Items (defined in Section 8(a) of this Agreement) for all Exercised Shares.

The Option is exercised when both the exercise notice and payments due under Sections 6(b)(iii) and 6(b)(iv) have been received by the Company for all Exercised Shares. The Administrator may designate a particular exercise notice to be used, but until a designation is made, the exercise notice attached to this Agreement as <u>Exhibit C</u> may be used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Method of Payment</u>. The Participant may pay the exercise price for Exercised Shares by any of the following methods or a combination of methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) wire transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) consideration received by the Company under a formal cashless exercise program adopted by the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) surrender of other Shares, as long as the Company determines that accepting such Shares does not result in any adverse accounting consequences to the Company. If Shares are surrendered, the value of those Shares will be the Fair Market Value for those Shares on the date they are surrendered.

A non-U.S. resident's methods of exercise may be restricted by the terms and condition of any appendix to this Agreement for the Participant's country (the "**Appendix**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Tax Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Tax Withholding.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Shares will be issued to the Participant until he or she makes satisfactory arrangements (as determined by the Administrator) for the payment of income, employment, social security, payroll tax, fringe benefit tax, payment on account, or other tax-related items related to his or her participation in the Plan and legally applicable to him or her that the Administrator determines must be withheld ("**Tax-Related Items**"), including those that result from the grant, vesting, or exercise of this Option, the subsequent sale of Shares acquired under this Option or the receipt of any dividends. If the Participant is a non-U.S. employee, the method of payment of Tax-Related Items may be restricted by any Appendix. If the Participant fails to make satisfactory arrangements for the payment of any Tax-Related Items under this Agreement at the time of an attempted Option exercise, the Company may refuse to honor the exercise and refuse to deliver the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company has the right (but not the obligation) to satisfy any Tax-Related Items by withholding from proceeds of a sale of Shares acquired upon the exercise of this Option arranged by the Company (on the Participant's behalf pursuant to this authorization without further consent), and this will be the method by which such tax withholding obligations are satisfied until the Company determines otherwise, subject to Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company has the right (but not the obligation) to satisfy any Tax-Related Items by reducing the number of Shares otherwise deliverable to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Participant authorizes the Company and/or any member(s) of the Company Group for whom he or she is performing services (each, an "**Employer**") to withhold any Tax-Related Items legally payable by the Participant from his or her wages or other cash compensation paid to the Participant by the Company and/or the Employer(s) or from proceeds of the sale of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Further, if the Participant is subject to taxation in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, the Company and/or the Employer(s) or former Employer(s) may withhold or account for tax in greater than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Regardless of any action of the Company or the Employer(s), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains his or her responsibility and may exceed the amount actually withheld by the Company or the Employer(s). The Participant further acknowledges that the Company and the Employer(s) (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option; and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of this Option to reduce or eliminate his or her liability for Tax-Related Items or achieve any particular tax result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Tax Reporting.** This Section 8(b) applies if the Participant is a U.S. taxpayer. If this Option is partially or wholly an ISO, and if the Participant sells or otherwise disposes of any the Shares acquired by exercising the ISO portion on or before the later of (i) the date 2 years after the Grant Date, or (ii) the date 1 year after the date of exercise, he or she may be subject to reporting of Tax-Related Items by the Company on the compensation income recognized by him or her and must immediately notify the Company in writing of the disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Forfeiture or Clawback</u>. This Option (including any proceeds, gains or other economic benefit received by the Participant from any subsequent sale of Shares resulting from the exercise) will be subject to any compensation recovery or clawback policy implemented by the Company before or after the date of this Agreement. This includes any clawback policy adopted to comply with the requirements of Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Rights as Stockholder</u>. The Participant's rights as a stockholder of the Company (including the right to vote and to receive dividends and distributions) will not begin until Shares have been issued and recorded on the records of the Company or its transfer agents or registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Acknowledgements and Agreements</u>. The Participant's signature on the Notice of Grant accepting this Option indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) HE OR SHE ACKNOWLEDGES AND AGREES THAT THE VESTING OF THIS OPTION IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AND THAT BEING HIRED, GRANTED THIS OPTION, AND EXERCISING THE OPTION WILL NOT RESULT IN VESTING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) HE OR SHE FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AND AGREEMENT DO NOT CREATE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND DOES NOT INTERFERE IN ANY WAY WITH HIS OR HER RIGHT OR THE RIGHT OF THE EMPLOYER(S) TO TERMINATE HIS OR HER RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE, SUBJECT TO APPLICABLE LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Participant agrees that this Agreement and its incorporated documents reflect all agreements on its subject matters and that he or she is not accepting this Agreement based on any promises, representations, or inducements other than those reflected in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Participant understands that exercise of this Option is governed strictly by Sections 6, 7, and 8 of this Agreement and that failure to comply with those Sections could result in the expiration of this Option, even if an attempt was made to exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Participant agrees that the Company's delivery of any documents related to the Plan or this Option (including the Plan, the Agreement, the Plan's prospectus and any reports of the Company provided generally to the Company's stockholders) to him or her may be made by electronic delivery, which may include the delivery of a link to a Company intranet or the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail, or any other means of electronic delivery specified by the Company. If the attempted electronic delivery of such documents fails, the Participant will be provided with a paper copy of the documents. The Participant acknowledges that he or she may receive from the Company a paper copy of any documents that were delivered electronically at no cost to him or her by contacting the Company by telephone or in writing. The Participant may revoke his or her consent to the electronic delivery of documents or may change the electronic mail address to which such documents are to be delivered (if the Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Participant may deliver any documents related to the Plan or this Option to the Company by e-mail or any other means of electronic delivery approved by the Administrator, but he or she must provide the Company or any designated third party administrator with a paper copy of any documents if his or her attempted electronic delivery of such documents fails.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Participant accepts that all good faith decisions or interpretations of the Administrator regarding the Plan and Awards under the Plan are binding, conclusive, and final. No member of the Administrator will be personally liable for any such decisions or interpretations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Participant agrees that the Plan is established voluntarily by the Company, is discretionary in nature, and may be amended, suspended, or terminated by the Company at any time, to the extent permitted by the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant agrees that the grant of this Option is voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted in the past.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Participant agrees that any decisions regarding future Awards will be in the Company's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Participant agrees that he or she is voluntarily participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Participant agrees that this Option and any Shares acquired under the Plan are not intended to replace any pension rights or compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Participant agrees that this Option, any Shares acquired under the Plan, and their income and value of same are not part of normal or expected compensation for any purpose, including for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits, or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Participant agrees that the future value of the Shares underlying this Option is unknown, indeterminable, and cannot be predicted with certainty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Participant understands that if the underlying Shares do not increase in value, this Option will have no intrinsic monetary value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Participant understands that if this Option is exercised, the value of each Share received on exercise may increase or decrease in value, even below the Exercise Price per Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Participant agrees that, for purposes of this Option, his or her engagement as a Service Provider is terminated as of the Termination of Status Date (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), unless otherwise expressly provided in this Agreement or determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Participant agrees that any right to vest in this Option terminates as of the Termination of Status Date and will not be extended by any notice period (e.g., the period that he or she is a Service Provider would not include any contractual notice period or any period of "garden leave" or similar period mandated under employment laws (including common law, if applicable) in the jurisdiction where he or she is a Service Provider or by his or her service agreement or employment agreement, if any, unless he or she is providing bona fide services during such time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The Participant agrees that the period during which the Participant may exercise the vested portion of this Option after a termination of his or her status as a Service Provider (if any) will start as of the Termination of Status Date (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), unless otherwise expressly provided in this Agreement or determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The Participant agrees that the Administrator has the exclusive discretion to determine when he or she is no longer actively providing services for purposes of this Option (including whether he or she is still considered to be providing services while on a leave of absence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Participant agrees that no member of the Company Group is liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of this Option or of any amounts due to him or her from the exercise of this Option or the subsequent sale of any Shares acquired upon exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Participant agrees that he or she has no claim or entitlement to compensation or damages from any forfeiture of this Option resulting from the termination of his or her status as a Service Provider (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), and in consideration of the grant of this Option to which he or she is otherwise not entitled, he or she irrevocably agrees never to institute any claim against the Company or any member of the Company Group, waives his or her ability (if any) to bring any such claim, and releases the Company and all members of the Company Group from any such claim. If any such claim is nevertheless allowed by a court of competent jurisdiction, then the Participant's participation in the Plan constitutes his or her irrevocable agreement to not pursue such claim and to execute any and all documents necessary to request dismissal or withdrawal of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Miscellaneous</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Address for Notices.** Any notice to be given to the Company under the terms of this Agreement must be addressed to the Company at BW Industrial Holdings Inc., 2825 Wilcrest Dr. Ste 421, Houston TX 77042 until the Company designates another address in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Non-Transferability of Option.** This Option may not be transferred other than by will or the laws of descent or distribution and may be exercised during the lifetime of the Participant only by him or her or his or her representative following a Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Binding Agreement.** If this Option is transferred, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors, and assigns of the parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Additional Conditions to Issuance of Stock.** If the Company determines that the listing, registration, qualification, or rule compliance of the Common Stock on any securities exchange or under any state, federal, or foreign law or the tax code and related regulations or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate), the Company will try to meet the requirements of any such state, federal, or foreign law or securities exchange and to obtain any such consent or approval of any such governmental authority or securities exchange, but the Shares will not be issued until such conditions have been met in a manner acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Captions.** Captions provided in this Agreement are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Agreement Severable.** If any provision of this Agreement is held invalid or unenforceable, that provision will be severed from the remaining provisions of this Agreement and the invalidity or unenforceability will have no effect on the remainder of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Non-U.S. Appendix.** This Option is subject to any special terms and conditions set forth in any Appendix. If the Participant relocates to a country included in the Appendix, the special terms and conditions for that country will apply to him or her to the extent the Company determines that applying such terms and conditions is necessary or advisable for legal or administrative reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Choice of Law**; **Choice of Forum.** The Plan, this Agreement, this Option, and all determinations made and actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any dispute that arises under the Plan, the Participant's acceptance of this Option is his or her consent to the jurisdiction of the State of Delaware and his or her agreement that any such litigation will be conducted in the Delaware Court of Chancery or the federal courts for the United States for the District of Delaware and no other courts, regardless of where he or she is performing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Modifications to the Agreement.** The Plan and this Agreement constitute the entire understanding of the parties on the subjects covered. The Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company. The Company reserves the right to revise the Agreement as it deems necessary or advisable, in its sole discretion and without the consent of the Participant, to comply with Code Section 409A, to otherwise avoid imposition of any additional tax or income recognition under Code Section 409A in connection with this Option, or to comply with other Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Waiver.** The Participant acknowledges that a waiver by the Company of a breach of any provision of this Agreement will not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of this Agreement by him or her.

**<u>EXHIBIT B</u>**

**APPENDIX TO STOCK OPTION AGREEMENT**

***Terms and Conditions***

This Appendix to Stock Option Agreement (the "**Appendix**") includes additional terms and conditions that govern this Option granted to the Participant under the Plan if he or she resides in one of the countries listed below on the Grant Date or he or she moves to one of the listed countries.

***Notifications***

This Appendix may also include information regarding exchange controls and certain other issues of which the Participant should be aware with respect to participation in the Plan. The information is based on the securities, exchange control, and other Applicable Laws in effect in the respective countries as of September 1, 2017. Such Applicable Laws are often complex and change frequently. As a result, the Company strongly recommends that the Participant not rely on the information in this Appendix as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at the time the Participant sells Shares acquired under the Plan.

In addition, the information contained in this Appendix is general in nature and may not apply to the Participant's particular situation, and the Company is not in a position to assure him or her of a particular result. The Participant is advised to seek appropriate professional advice as to how the Applicable Laws in his or her country may apply to his or her situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which he or she is currently working, transfers employment after this Option is granted, or is considered a resident of another country for local law purposes, the information in this Appendix may not apply to him or her, and the Administrator will determine to what extent the terms and conditions in this Appendix apply.

**<u>EXHIBIT C</u>**

**BW INDUSTRIAL HOLDINGS INC.**

**2026 EQUITY INCENTIVE PLAN**

**EXERCISE NOTICE**

BW Industrial Holdings Inc.

2825 Wilcrest Dr. Ste 421

Houston TX 77042

Attention: Stock Administration

Purchaser Name:

Grant Date of Stock Option (the "**Option**"):

Exercise Date:

Number of Shares Exercised:

Per Share Exercise Price:

Total Exercise Price:

Exercise Price Payment Method:

Tax-Related Items Payment Method:

The information in the table above is incorporated in this Exercise Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Exercise of Option.** Effective as the Exercise Date, I elect to purchase the Number of Shares Exercised ("**Exercised Shares**") under the Stock Option Agreement for the Option (the "**Agreement**") for the Total Exercise Price. Capitalized terms used but not defined in this Exercise Notice have the meanings given to them in the 2025 Equity Incentive Plan (the "**Plan**") and/or the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Delivery of Payment.** With this Exercise Notice, I am delivering the Total Exercise Price and any required Tax-Related Items to be paid in connection with purchase of the Exercised Shares. I am paying my total purchase price by the Exercise Price Payment Method and the Tax-Related Items by the Tax-Related Items Payment Method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Representations of Purchaser.** I acknowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) I have received, read, and understood the Plan and the Agreement and agree to be bound by their terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The exercise will not be completed until this Exercise Notice, Total Exercise Price, and all Tax-Related Payments are received by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) I have no rights as a stockholder of the Company (including the right to vote and receive dividends and distributions) on the Exercised Shares until the Exercised Shares have been issued and recorded on the records of the Company or its transfer agents or registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No adjustment will be made for a dividend or other right for which the record date is before the date of issuance, except for adjustments under Section 13 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There may be adverse tax consequences to exercising the Option, and I am not relying on the Company for tax advice and have had an opportunity to obtain the advice of personal tax, legal, and financial advisors prior to exercising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The modification and choice of law provisions of the Agreement also govern this Exercise Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Entire Agreement**; **Governing Law.** The Plan and the Agreement are incorporated by reference. This Exercise Notice, the Plan, and the Agreement are the entire agreement of the parties with respect to the Options and this exercise and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser with respect to their subject matter.

Submitted by:

PURCHASER

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| Signature |
| Address: |

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**BW INDUSTRIAL HOLDINGS INC.**

**2026 EQUITY INCENTIVE PLAN**

**NOTICE OF RESTRICTED STOCK AWARD<br> AND RESTRICTED STOCK AGREEMENT**

Capitalized terms that are not defined in this Notice of Restricted Stock Award and Restricted Stock Agreement (the "**Notice of Grant**"), the Terms and Conditions of Restricted Stock Award, or any of the exhibits to these documents (all together, the "**Agreement**") have the meanings given to them in the BW Industrial Holdings Inc. 2026 Equity Incentive Plan (the "**Plan**").

The Participant has been granted this Restricted Stock award according to the terms below and subject to the terms and conditions of the Plan and this Agreement, as follows:

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|:---|
| Participant |
| Grant Number |
| Grant Date |
| Vesting Start Date |
| Number of Shares Granted |

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<u>Vesting Schedule</u>:

Unless the vesting is accelerated, these Shares of Restricted Stock will vest on the following schedule:

If the Participant continues to be a Service Provider through each such date, 25% of these Shares of Restricted Stock will vest on the 1-year anniversary of the Vesting Start Date, and 1/16th of these Shares of Restricted Stock will vest each quarter thereafter on the same day of the month as the Vesting Start Date (or if there is no corresponding day in a given month, then on the last day of that month). All vesting will be rounded in accordance with Section 3(f) of the Plan.

If the Participant ceases to be a Service Provider for any or no reason before he or she fully vests in these Shares of Restricted Stock, the unvested Shares of Restricted Stock will terminate according to the terms of Section 5 of this Agreement.

The Participant's signature below indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) He or she agrees that this Restricted Stock award is granted under and governed by the terms and conditions of the Plan and this Agreement, including their exhibits and appendices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) He or she understands that the Company is not providing any tax, legal, or financial advice and is not making any recommendations regarding his or her participation in the Plan or his or her acquisition or sale of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) He or she has reviewed the Plan and this Agreement, has had an opportunity to obtain the advice of personal tax, legal, and financial advisors prior to signing this Agreement, and fully understands all provisions of the Plan and Agreement. He or she will consult with his or her own personal tax, legal, and financial advisors before taking any action related to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) He or she has read and agrees to each provision of Section 10 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) He or she will notify the Company of any change to the contact address below.

PARTICIPANT

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|:---|
| Signature |
| Address: |

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**<u>EXHIBIT A</u>**

**TERMS AND CONDITIONS OF RESTRICTED STOCK AWARD**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant</u>. The Company grants the Participant an award of Restricted Stock as described in the Notice of Grant. If there is a conflict between the Plan, this Agreement, or any other agreement with the Participant governing these Shares of Restricted Stock, those documents will take precedence and prevail in the following order: (a) the Plan, (b) the Agreement, and (c) any other agreement between the Company and the Participant governing these Shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Escrow of Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Once the Participant signs this Agreement, all of these Shares of Restricted Stock will be delivered to an escrow holder designated by the Company (the "Escrow Holder") and will be held by the Escrow Holder until these Shares of Restricted Stock vest or the Participant ceases to be a Service Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Escrow Holder is not liable for any act it does or does not do for purposes of holding these Shares of Restricted Stock in escrow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Escrow Holder will transfer any vested Shares of Restricted Stock to the Participant at his or her request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Participant has no right to receive cash dividends on any of these Shares of Restricted Stock that are held in escrow but has all other rights of a stockholder for such Shares, including the right to vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) These Shares of Restricted Stock will be subject to any adjustments made according to Section 13(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company may instruct the transfer agent for the Common Stock to record the restrictions on transfer in this Agreement by placing a legend on the certificates representing the Restricted Stock or otherwise noting its records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Vesting</u>. These Shares of Restricted Stock will vest only under the Vesting Schedule in the Notice of Grant, Section 4 of this Agreement, or Section 14 of the Plan. Shares of Restricted Stock scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest unless the Participant continues to be a Service Provider until the time such vesting is scheduled to occur. The Administrator may modify the Vesting Schedule according to its authority under the Plan if the Participant takes a leave of absence or has a reduction in hours worked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Administrator Discretion</u>. The Administrator has the discretion to accelerate the vesting of any number of unvested Shares of Restricted Stock at any time, subject to the terms of the Plan. In that case, those Shares of Restricted Stock will be vested as of the date specified by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Forfeiture upon Termination of Status as a Service Provider</u>. Upon the Participant's termination as a Service Provider for any reason, these Shares of Restricted Stock will immediately stop vesting, and any of these Shares of Restricted Stock that have not yet vested will be forfeited by the Participant and automatically transferred by the Escrow Holder to the Company at no cost to the Company, subject to Applicable Laws. The Participant will not be refunded any price paid for such Shares and will have no further rights under this Agreement. The Participant appoints the Escrow Holder with full power of substitution (as the Participant's true and lawful attorney-in-fact with irrevocable power and authority in the name and on behalf of the Participant) to take any action and execute all documents and instruments, including stock powers necessary to transfer the certificate(s) evidencing such unvested Shares of Restricted Stock to the Company upon such termination. The date of the Participant's termination as a Service Provider is detailed in Section 3(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Death of Participant</u>. Any distribution or delivery to be made to the Participant under this Agreement will, if he or she is then deceased, be made to the administrator or executor of his or her estate or, if the Administrator permits, his or her designated beneficiary. Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations that apply to the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Tax Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Shares of Restricted Stock may be released from escrow until the Participant makes satisfactory arrangements (as determined by the Administrator) for the payment of income, employment, social security, payroll tax, fringe benefit tax, payment on account, or other tax-related items related to his or her participation in the Plan and legally applicable to him or her that the Administrator determines must be withheld ("**Tax-Related Items**"), including those that result from the grant, vesting, or subsequent sale of Shares of Restricted Stock or the receipt of any dividends. If the Participant is a non-U.S. employee, the method of payment of Tax-Related Items may be restricted by any Appendix. If the Participant fails to make satisfactory arrangements for the payment of any Tax-Related Items under this Agreement when any of these Shares of Restricted Stock otherwise are supposed to vest or Tax-Related Items related to these Shares of Restricted Stock otherwise are due, he or she will permanently forfeit the applicable Shares of Restricted Stock and such Shares of Restricted Stock will be returned to the Company at no cost to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has the right (but not the obligation) to satisfy any Tax-Related Items by withholding from proceeds of a sale of any of these Shares of Restricted Stock that have vested arranged by the Company (on the Participant's behalf pursuant to this authorization without further consent), and this will be the method by which such tax withholding obligations are satisfied until the Company determines otherwise, subject to Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company also has the right (but not the obligation) to satisfy any Tax-Related Items by reducing the number of Shares otherwise deliverable to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Further, if the Participant is subject to taxation in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, the Company and/or any member of the Company Group for whom he or she is performing services (each, an "Employer") or former Employer(s) may withhold or account for tax in more than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Regardless of any action of the Company or the Employer(s), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains his or her responsibility and may exceed the amount actually withheld by the Company or the Employer(s). The Participant further acknowledges that the Company and the Employer(s) (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of these Shares of Restricted Stock and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of these Shares of Restricted Stock to reduce or eliminate his or her liability for Tax-Related Items or achieve any particular tax result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Forfeiture or Clawback</u>. These Shares of Restricted Stock (including any proceeds, gains or other economic benefit received by the Participant from their subsequent sale) will be subject to any compensation recovery or clawback policy implemented by the Company before or after the date of this Agreement. This includes any clawback policy adopted to comply with the requirements of Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Rights as Stockholder</u>. The Participant's rights as a stockholder of the Company (including the right to vote and to receive dividends and distributions) will not begin until these Shares of Restricted Stock have been issued and recorded on the records of the Company or its transfer agents or registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Acknowledgements and Agreements</u>. The Participant's signature on the Notice of Grant accepting these Shares of Restricted Stock indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) HE OR SHE ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE SHARES OF RESTRICTED STOCK IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AND THAT BEING HIRED OR BEING GRANTED THESE SHARES OF RESTRICTED STOCK DO NOT RESULT IN VESTING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) HE OR SHE FURTHER ACKNOWLEDGES AND AGREES THAT THESE SHARES OF RESTRICTED STOCK AND THIS AGREEMENT DO NOT CREATE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL AND DOES NOT INTERFERE IN ANY WAY WITH HIS OR HER RIGHT OR THE RIGHT OF THE EMPLOYER(S) TO TERMINATE HIS OR HER RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE, SUBJECT TO APPLICABLE LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Participant agrees that this Agreement and its incorporated documents reflect all agreements on its subject matters and that he or she is not accepting this Agreement based on any promises, representations, or inducements other than those reflected in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Participant agrees that the Company's delivery of any documents related to the Plan or these Shares of Restricted Stock (including the Plan, the Agreement, the Plan's prospectus, and any reports of the Company provided generally to the Company's stockholders) to him or her may be made by electronic delivery, which may include the delivery of a link to a Company intranet or to the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail, or any other means of electronic delivery specified by the Company. If the attempted electronic delivery of such documents fails, the Participant will be provided with a paper copy of the documents. The Participant acknowledges that he or she may receive from the Company a paper copy of any documents that were delivered electronically at no cost to him or her by contacting the Company by telephone or in writing. The Participant may revoke his or her consent to the electronic delivery of documents or may change the electronic mail address to which such documents are to be delivered (if the Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Participant may deliver any documents related to the Plan or these Shares of Restricted Stock to the Company by e-mail or any other means of electronic delivery approved by the Administrator, but he or she must provide the Company or any designated third party administrator with a paper copy of any documents if his or her attempted electronic delivery of such documents fails.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Participant accepts that all good faith decisions or interpretations of the Administrator regarding the Plan and Awards under the Plan are binding, conclusive, and final. No member of the Administrator will be personally liable for any such decisions or interpretations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Participant agrees that the Plan is established voluntarily by the Company, is discretionary in nature, and may be amended, suspended, or terminated by the Company at any time, to the extent permitted by the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Participant agrees that the grant of these Shares of Restricted Stock is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock or benefits in lieu of restricted stock, even if restricted stock has been granted in the past.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant agrees that any decisions regarding future Awards will be in the Company's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Participant agrees that he or she is voluntarily participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Participant agrees that these Shares of Restricted Stock are not intended to replace any pension rights or compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Participant agrees that these Shares of Restricted Stock and their income and value are not part of normal or expected compensation for any purpose, including for calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits, or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Participant agrees that the future value of these Shares of Restricted Stock is unknown, indeterminable, and cannot be predicted with certainty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Participant agrees that, for purposes of these Shares of Restricted Stock, his or her engagement as a Service Provider is terminated as of the Termination of Status Date (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), unless otherwise expressly provided in this Agreement or determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Participant agrees that any right to vest in these Shares of Restricted Stock terminates as of the Termination of Status Date and will not be extended by any notice period (e.g., the period that he or she is a Service Provider would not include any contractual notice period or any period of "garden leave" or similar period mandated under employment laws (including common law, if applicable) in the jurisdiction where he or she is a Service Provider or by his or her service agreement or employment agreement, if any, unless he or she is providing bona fide services during such time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Participant agrees that the Administrator has the exclusive discretion to determine when he or she is no longer actively providing services for purposes of these Shares of Restricted Stock (including whether he or she is still considered to be providing services while on a leave of absence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Participant agrees that no member of the Company Group is liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of these Shares of Restricted Stock or of any amounts due to him or her upon the sale of any of these Shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Participant agrees that he or she has no claim or entitlement to compensation or damages from any forfeiture of these Shares of Restricted Stock resulting from the termination of his or her status as a Service Provider (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), and in consideration of the grant of these Shares of Restricted Stock to which he or she is otherwise not entitled, he or she irrevocably agrees never to institute any claim against the Company or any member of the Company Group, waives his or her ability (if any) to bring any such claim, and releases the Company and all members of the Company Group from any such claim. If any such claim is nevertheless allowed by a court of competent jurisdiction, then the Participant's participation in the Plan constitutes his or her irrevocable agreement to not pursue such claim and to execute any and all documents necessary to request dismissal or withdrawal of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Address for Notices.** Any notice to be given to the Company under the terms of this Agreement must be addressed to the Company at BW Industrial Holdings Inc., 2825 Wilcrest Dr. Ste 421, Houston TX 77042 until the Company designates another address in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Non-Transferability of Restricted Stock.** These Shares of Restricted Stock may not be transferred other than by will or the laws of descent or distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Binding Agreement.** If any Shares of Restricted Stock are transferred, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors, and assigns of the parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Additional Conditions to Issuance of Stock and Release from Escrow.** If the Company determines that the listing, registration, qualification, or rule compliance of the Common Stock on any securities exchange or under any state, federal, or foreign law or the tax code and related regulations or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of these Shares of Restricted Stock or their release from escrow to the Participant (or his or her estate), the Company will try to meet the requirements of any such state, federal, or foreign law or securities exchange and to obtain any such consent or approval of any such governmental authority or securities exchange, but these Shares of Restricted Stock will not be issued until such conditions have been met in a manner acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Captions.** Captions provided in this Agreement are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Agreement Severable.** If any provision of this Agreement is held invalid or unenforceable, that provision will be severed from the remaining provisions of this Agreement and the invalidity or unenforceability will have no effect on the remainder of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Non-U.S. Appendix.** These Shares of Restricted Stock are subject to any special terms and conditions set forth in any appendix to this Agreement for the Participant's country (the "Appendix"). If the Participant relocates to a country included in the Appendix, the special terms and conditions for that country will apply to him or her to the extent the Company determines that applying such terms and conditions is necessary or advisable for legal or administrative reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Choice of Law**; **Choice of Forum.** The Plan, this Agreement, these Shares of Restricted Stock, and all determinations made and actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any dispute that arises under the Plan, the Participant's acceptance of these Shares of Restricted Stock is his or her consent to the jurisdiction of the State of Delaware and his or her agreement that any such litigation will be conducted in the Delaware Court of Chancery or the federal courts for the United States for the District of Delaware and no other courts, regardless of where he or she is performing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Modifications to the Agreement.** The Plan and this Agreement constitute the entire understanding of the parties on the subjects covered. The Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company. The Company reserves the right to revise the Agreement as it deems necessary or advisable, in its sole discretion and without the consent of the Participant, to comply with other Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Waiver.** The Participant acknowledges that a waiver by the Company of a breach of any provision of this Agreement will not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of this Agreement by him or her.

**EXHIBIT B**

**APPENDIX TO RESTRICTED STOCK AGREEMENT**

***Terms and Conditions***

This Appendix to Restricted Stock Agreement (the "Appendix") includes additional terms and conditions that govern these Shares of Restricted Stock granted to the Participant under the Plan if he or she resides in one of the countries listed below on the Grant Date or he or she moves to one of the listed countries.

***Notifications***

This Appendix may also include information regarding exchange controls and certain other issues of which the Participant should be aware with respect to participation in the Plan. The information is based on the securities, exchange control, and other Applicable Laws in effect in the respective countries as of __________, 20__. Such Applicable Laws are often complex and change frequently. As a result, the Company strongly recommends that the Participant not rely on the information in this Appendix as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at the time the Participant sells Shares acquired under the Plan.

In addition, the information contained in this Appendix is general in nature and may not apply to the Participant's particular situation, and the Company is not in a position to assure him or her of a particular result. The Participant is advised to seek appropriate professional advice as to how the Applicable Laws in his or her country may apply to his or her situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which he or she is currently working, transfers employment after these Shares of Restricted Stock are granted, or is considered a resident of another country for local law purposes, the information in this Appendix may not apply to him or her, and the Administrator will determine to what extent the terms and conditions in this Appendix apply.

**BW INDUSTRIAL HOLDINGS INC.<br> 2026 EQUITY INCENTIVE PLAN**

**NOTICE OF RESTRICTED STOCK UNIT AWARD<br> AND RESTRICTED STOCK UNIT AGREEMENT**

Capitalized terms that are not defined in this Notice of Restricted Stock Unit Award and Restricted Stock Unit Agreement (the "Notice of Grant"), the Terms and Conditions of Restricted Stock Unit Award, or any of the exhibits to these documents (all together, the "Agreement") have the meanings given to them in the BW Industrial Holdings Inc. 2026 Equity Incentive Plan (the "Plan").

The Participant has been granted this Restricted Stock Unit ("RSU") award according to the terms below and subject to the terms and conditions of the Plan and this Agreement, as follows:

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| |
|:---|
| Participant |
| Grant Number |
| Grant Date |
| Vesting Start Date |
| Number of RSUs Granted |

---

<u>Vesting Schedule</u>:

Unless the vesting is accelerated, these RSUs will vest on the following schedule:

If the Participant continues to be a Service Provider through each such date, 25% of these RSUs will vest on the 1-year anniversary of the Vesting Start Date, and 1/16th of these RSUs will vest each quarter thereafter on the same day of the month as the Vesting Start Date (or if there is no corresponding day in a given month, then on the last day of that month). All vesting will be rounded in accordance with Section 3(f) of the Plan.

If the Participant ceases to be a Service Provider for any or no reason before he or she fully vests in these RSUs, the unvested RSUs will terminate according to the terms of Section 5 of this Agreement.

The Participant's signature below indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) He or she agrees that this Restricted Stock Unit award is granted under and governed by the terms and conditions of the Plan and this Agreement, including their exhibits and appendices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) He or she understands that the Company is not providing any tax, legal, or financial advice and is not making any recommendations regarding his or her participation in the Plan or his or her acquisition or sale of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) He or she has reviewed the Plan and this Agreement, has had an opportunity to obtain the advice of personal tax, legal, and financial advisors prior to signing this Agreement, and fully understands all provisions of the Plan and Agreement. He or she will consult with his or her own personal tax, legal, and financial advisors before taking any action related to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) He or she has read and agrees to each provision of Section 10 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) He or she will notify the Company of any change to the contact address below.

PARTICIPANT

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| |
|:---|
| Signature |
| Address: |

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**<u>EXHIBIT A</u>**

**TERMS AND CONDITIONS OF RESTRICTED STOCK UNIT AWARD**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant</u>. The Company grants the Participant an award of RSUs as described in the Notice of Grant. If there is a conflict between the Plan, this Agreement, or any other agreement with the Participant governing these RSUs, those documents will take precedence and prevail in the following order: (a) the Plan, (b) the Agreement, and (c) any other agreement between the Company and the Participant governing these RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Company's Obligation to Pay</u>. Each RSU is a right to receive a Share on the date it vests. Until an RSU vests, the Participant has no right to payment of the Share. Before a vested RSU is paid, the RSU is an unsecured obligation of the Company, payable (if at all) only from the Company's general assets. A vested RSU will be paid to the Participant (or in the event of his or her death, to his or her estate) in whole Shares as soon as practicable after vesting (but no later than 60 days following the vesting date), subject to him or her satisfying any obligations for Tax-Related Items (as defined in Section 7 of this Agreement) and any delay in payment required under Section 7 of this Agreement. The Participant cannot specify (directly or indirectly) the taxable year of the payment of any vested RSU under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Vesting</u>. These RSUs will vest only under the Vesting Schedule in the Notice of Grant, Section 4 of this Agreement, or Section 14 of the Plan. RSUs scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest unless the Participant continues to be a Service Provider until the time such vesting is scheduled to occur. The Administrator may modify the Vesting Schedule according to its authority under the Plan if the Participant takes a leave of absence or has a reduction in hours worked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Administrator Discretion</u>. The Administrator has the discretion to accelerate the vesting of any RSUs at any time, subject to the terms of the Plan. In that case, those RSUs will be vested as of the date specified by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Forfeiture upon Termination of Status as a Service Provider</u>. Upon the Participant's termination as a Service Provider for any reason, these RSUs will immediately stop vesting, and on the 30th day following the Termination of Status Date (or any earlier date on or following the Termination of Status Date determined by the Administrator), any of these RSUs that have not yet vested will be forfeited by the Participant, subject to Applicable Laws. The date of the Participant's termination as a Service Provider is detailed in Section 3(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Death of Participant</u>. Any distribution or delivery to be made to the Participant under this Agreement will, if he or she is then deceased, be made to the administrator or executor of his or her estate or, if the Administrator permits, his or her designated beneficiary. Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations that apply to the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Tax Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Tax Withholding.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Shares will be issued to the Participant until he or she makes satisfactory arrangements (as determined by the Administrator) for the payment of income, employment, social security, payroll tax, fringe benefit tax, payment on account, or other tax-related items related to his or her participation in the Plan and legally applicable to him or her that the Administrator determines must be withheld ("Tax-Related Items"), including those that result from the grant, vesting, or payment of these RSUs, the subsequent sale of Shares acquired pursuant to such payment, or the receipt of any dividends. If the Participant is a non-U.S. employee, the method of payment of Tax-Related Items may be restricted by any Appendix. If the Participant fails to make satisfactory arrangements for the payment of any Tax-Related Items under this Agreement when any of these RSUs otherwise are supposed to vest or Tax-Related Items related to RSUs otherwise are due, he or she will permanently forfeit the applicable RSUs and any right to receive Shares under such RSUs, and such RSUs will be returned to the Company at no cost to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company has the right (but not the obligation) to satisfy any Tax-Related Items by withholding from proceeds of a sale of Shares acquired upon payment of these RSUs arranged by the Company (on the Participant's behalf pursuant to this authorization without further consent), and this will be the method by which such tax withholding obligations are satisfied until the Company determines otherwise, subject to Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company also has the right (but not the obligation) to satisfy any Tax-Related Items by reducing the number of Shares otherwise deliverable to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Further, if the Participant is subject to taxation in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, the Company and/or any member of the Company Group for whom he or she is performing services (each, an "Employer") or former Employer(s) may withhold or account for tax in more than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Regardless of any action of the Company or the Employer(s), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains his or her responsibility and may exceed the amount actually withheld by the Company or the Employer(s). The Participant further acknowledges that the Company and the Employer(s) (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of these RSUs and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of these RSUs to reduce or eliminate his or her liability for Tax-Related Items or achieve any particular tax result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Code Section 409A.** This Section 7(b) does not apply if the Participant is not a U.S. taxpayer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the vesting of any RSUs is accelerated in connection with a termination of the Participant's status as a Service Provider that is a "separation from service" within the meaning of Code Section 409A and (x) the Participant is a "specified employee" within the meaning of Code Section 409A at that time and (y) the payment of such accelerated RSUs would result in the imposition of additional tax under Code Section 409A if paid to the Participant within the 6-month period following such termination, then the accelerated RSUs will not be paid until the first day after the 6-month period ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Participant's status as a Service Provider terminates due to death or the Participant dies after he or she stops being a Service Provider, the delay under Section 7(b)(i) of this Agreement will not apply, and these RSUs will be paid in Shares to the Participant's estate as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All payments and benefits under this Agreement are intended to be exempt from Code Section 409A or comply with any requirements necessary to avoid the imposition of additional tax under Code Section 409A(a)(1)(B) so that none of these RSUs or Shares issuable upon the vesting of RSUs will be subject to the additional tax imposed under Code Section 409A, and any ambiguities will be interpreted according to that intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each payment under this Agreement is a separate payment under Treasury Regulations Section 1.409A-2(b)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Forfeiture or Clawback</u>. These RSUs (including any proceeds, gains or other economic benefit received by the Participant from any subsequent sale of Shares issued upon payment of the RSUs) will be subject to any compensation recovery or clawback policy implemented by the Company before or after the date of this Agreement. This includes any clawback policy adopted to comply with the requirements of Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Rights as Stockholder</u>. The Participant's rights as a stockholder of the Company (including the right to vote and to receive dividends and distributions) will not begin until Shares have been issued and recorded on the records of the Company or its transfer agents or registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Acknowledgements and Agreements</u>. The Participant's signature on the Notice of Grant accepting these RSUs indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) HE OR SHE ACKNOWLEDGES AND AGREES THAT THE VESTING OF THESE RSUS IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AND THAT BEING HIRED OR BEING GRANTED THESE RSUS WILL NOT RESULT IN VESTING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) HE OR SHE FURTHER ACKNOWLEDGES AND AGREES THAT THESE RSUS AND THIS AGREEMENT DO NOT CREATE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL AND DOES NOT INTERFERE IN ANY WAY WITH HIS OR HER RIGHT OR THE RIGHT OF THE EMPLOYER(S) TO TERMINATE HIS OR HER RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE, SUBJECT TO APPLICABLE LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Participant agrees that this Agreement and its incorporated documents reflect all agreements on its subject matters and that he or she is not accepting this Agreement based on any promises, representations, or inducements other than those reflected in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Participant agrees that the Company's delivery of any documents related to the Plan or these RSUs (including the Plan, the Agreement, the Plan's prospectus, and any reports of the Company provided generally to the Company's stockholders) to him or her may be made by electronic delivery, which may include the delivery of a link to a Company intranet or to the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail, or any other means of electronic delivery specified by the Company. If the attempted electronic delivery of such documents fails, the Participant will be provided with a paper copy of the documents. The Participant acknowledges that he or she may receive from the Company a paper copy of any documents that were delivered electronically at no cost to him or her by contacting the Company by telephone or in writing. The Participant may revoke his or her consent to the electronic delivery of documents or may change the electronic mail address to which such documents are to be delivered (if the Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Participant may deliver any documents related to the Plan or these RSUs to the Company by e-mail or any other means of electronic delivery approved by the Administrator, but he or she must provide the Company or any designated third party administrator with a paper copy of any documents if his or her attempted electronic delivery of such documents fails.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Participant accepts that all good faith decisions or interpretations of the Administrator regarding the Plan and Awards under the Plan are binding, conclusive, and final. No member of the Administrator will be personally liable for any such decisions or interpretations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Participant agrees that the Plan is established voluntarily by the Company, is discretionary in nature, and may be amended, suspended, or terminated by the Company at any time, to the extent permitted by the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Participant agrees that the grant of these RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock units or benefits in lieu of restricted stock units, even if restricted stock units have been granted in the past.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant agrees that any decisions regarding future Awards will be in the Company's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Participant agrees that he or she is voluntarily participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Participant agrees that these RSUs and any Shares acquired under these RSUs are not intended to replace any pension rights or compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Participant agrees that these RSUs, any Shares acquired under these RSUs, and their income and value are not part of normal or expected compensation for any purpose, including for calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits, or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Participant agrees that the future value of the Shares underlying these RSUs is unknown, indeterminable, and cannot be predicted with certainty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Participant agrees that, for purposes of these RSUs, his or her engagement as a Service Provider is terminated as of the Termination of Status Date (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), unless otherwise expressly provided in this Agreement or determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Participant agrees that any right to vest in these RSUs terminates as of the Termination of Status Date and will not be extended by any notice period (e.g., the period that he or she is a Service Provider would not include any contractual notice period or any period of "garden leave" or similar period mandated under employment laws (including common law, if applicable) in the jurisdiction where he or she is a Service Provider or by his or her service agreement or employment agreement, if any, unless he or she is providing bona fide services during such time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Participant agrees that the Administrator has the exclusive discretion to determine when he or she is no longer actively providing services for purposes of these RSUs (including whether he or she is still considered to be providing services while on a leave of absence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Participant agrees that no member of the Company Group is liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of these RSUs or of any amounts due to him or her from the payment of these RSUs or the subsequent sale of any Shares acquired upon such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Participant agrees that he or she has no claim or entitlement to compensation or damages from any forfeiture of these RSUs resulting from the termination of his or her status as a Service Provider (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), and in consideration of the grant of these RSUs to which he or she is otherwise not entitled, he or she irrevocably agrees never to institute any claim against the Company or any member of the Company Group, waives his or her ability (if any) to bring any such claim, and releases the Company and all members of the Company Group from any such claim. If any such claim is nevertheless allowed by a court of competent jurisdiction, then the Participant's participation in the Plan constitutes his or her irrevocable agreement to not pursue such claim and to execute any and all documents necessary to request dismissal or withdrawal of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Address for Notices.** Any notice to be given to the Company under the terms of this Agreement must be addressed to the Company at BW Industrial Holdings Inc., 2825 Wilcrest Dr. Ste 421, Houston TX 77042 until the Company designates another address in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Non-Transferability of RSUs.** These RSUs may not be transferred other than by will or the laws of descent or distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Binding Agreement.** If any RSUs are transferred, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors, and assigns of the parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Additional Conditions to Issuance of Stock.** If the Company determines that the listing, registration, qualification, or rule compliance of the Common Stock on any securities exchange or under any state, federal, or foreign law or the tax code and related regulations or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate), the Company will try to meet the requirements of any such state, federal, or foreign law or securities exchange and to obtain any such consent or approval of any such governmental authority or securities exchange, but the Shares will not be issued until such conditions have been met in a manner acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Captions.** Captions provided in this Agreement are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Agreement Severable.** If any provision of this Agreement is held invalid or unenforceable, that provision will be severed from the remaining provisions of this Agreement and the invalidity or unenforceability will have no effect on the remainder of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Non-U.S. Appendix.** These RSUs are subject to any special terms and conditions set forth in any appendix to this Agreement for the Participant's country (the "**Appendix**"). If the Participant relocates to a country included in the Appendix, the special terms and conditions for that country will apply to him or her to the extent the Company determines that applying such terms and conditions is necessary or advisable for legal or administrative reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Choice of Law**; **Choice of Forum.** The Plan, this Agreement, these RSUs, and all determinations made and actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any dispute that arises under the Plan, the Participant's acceptance of these RSUs is his or her consent to the jurisdiction of the State of Delaware and his or her agreement that any such litigation will be conducted in the Delaware Court of Chancery or the federal courts for the United States for the District of Delaware and no other courts, regardless of where he or she is performing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Modifications to the Agreement.** The Plan and this Agreement constitute the entire understanding of the parties on the subjects covered. The Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company. The Company reserves the right to revise the Agreement as it deems necessary or advisable, in its sole discretion and without the consent of the Participant, to comply with Code Section 409A, to otherwise avoid imposition of any additional tax or income recognition under Code Section 409A in connection with these RSUs, or to comply with other Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Waiver.** The Participant acknowledges that a waiver by the Company of a breach of any provision of this Agreement will not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of this Agreement by him or her.

**<u>EXHIBIT B</u>**

**APPENDIX TO RESTRICTED STOCK UNIT AGREEMENT**

***Terms and Conditions***

This Appendix to Restricted Stock Unit Agreement (the "**Appendix**") includes additional terms and conditions that govern these RSUs granted to the Participant under the Plan if he or she resides in one of the countries listed below on the Grant Date or he or she moves to one of the listed countries.

***Notifications***

This Appendix may also include information regarding exchange controls and certain other issues of which the Participant should be aware with respect to participation in the Plan. The information is based on the securities, exchange control, and other Applicable Laws in effect in the respective countries as of September 1, 2017. Such Applicable Laws are often complex and change frequently. As a result, the Company strongly recommends that the Participant not rely on the information in this Appendix as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at the time the Participant sells Shares acquired under the Plan.

In addition, the information contained in this Appendix is general in nature and may not apply to the Participant's particular situation, and the Company is not in a position to assure him or her of a particular result. The Participant is advised to seek appropriate professional advice as to how the Applicable Laws in his or her country may apply to his or her situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which he or she is currently working, transfers employment after these RSUs are granted, or is considered a resident of another country for local law purposes, the information in this Appendix may not apply to him or her, and the Administrator will determine to what extent the terms and conditions in this Appendix apply.

## Exhibit 10.5

**Exhibit 10.5**

**AIA<sup>®</sup> Document A101<sup>®</sup> – 2017**

***Standard Form of Agreement Between Owner and Contractor***

*where the basis of payment is a Stipulated Sum*

 

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| | |
|:---|:---|
| **AGREEMENT** made as of the 29<sup>th</sup> day of March in the year 2024:<br> *(In words, indicate day, month and year.)* | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
|  | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
| **BETWEEN** the Owner:<br> *(Name, legal status, address and other information)* | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
|  | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
| LLC<br> Phoenix AZ*,* 85353 | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
|  | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
| and the Contractor:<br> *(Name, legal status, address and other information)* | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
|  | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
| BestWater USA Inc.<br> 2825 Wilcrest Dr., Ste421, Houston TX, 77042 | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
|  | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
| for the following Project:<br> *(Name, location and detailed description)* | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
|  | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
| Phoenix, AZ 85353<br> New 760,000 of solar panel manufacture facility Tenant Improvement | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
|  | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |
| The Owner and Contractor agree as follows. | **ADDITIONS AND DELETIONS:**<br>The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and Deletions Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>The parties should complete Al0l<sup>®</sup>-2017, Exhibit A, Insurance and Bonds, contemporaneously with this Agreement. AIA Document A201<sup>®</sup>-2017, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. |

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**ELECTRONIC COPYING** of any portion of this AIA<sup>®</sup> Document to another electronic file is prohibited and constitutes a violation of copyright laws as set forth in the footer of this document.

 

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|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>1</sub> |
| **User Notes:** | (2050125654) |

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**TABLE OF ARTICLES**

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| | |
|:---|:---|
| **1** | **THE CONTRACT DOCUMENTS** |
| **2** | **THE WORK OF THIS CONTRACT** |
| **3** | **DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION** |
| **4** | **CONTRACT SUM** |
| 5 | **PAYMENTS** |
| **6** | **DISPUTE RESOLUTION** |
| **7** | **TERMINATION OR SUSPENSION** |
| **8** | **MISCELLANEOUS PROVISIONS** |
| **9** | **ENUMERATION OF CONTRACT DOCUMENTS** |

---

**EXHIBIT A INSURANCE AND BONDS**

**ARTICLE 1 THE CONTRACT DOCUMENTS**

The Contract Documents consist of the documents enumerated in Article 9 and Modifications issued after execution of this Agreement, all of which form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations, or agreements, either written or oral. An enumeration of the Contract Documents, other than a Modification, appears in Article 9.

Owner and Contractor are herein after referred to collectively as the "Parties" and each individually a "Party"

**ARTICLE 2 THE WORK OF THIS CONTRACT**

&nbsp;&nbsp;&nbsp;&nbsp;a) Drawings
 (Drawings dated on Nov. 17<sup>th</sup>, 2023, for office area and Dec. 8<sup>th</sup>, 2023,
 for production area)

&nbsp;&nbsp;&nbsp;&nbsp;b) Scope
 of Work Narrative, i.e. Exhibit I

&nbsp;&nbsp;&nbsp;&nbsp;c) Clarification
 document, i.e. Exhibit II

&nbsp;&nbsp;&nbsp;&nbsp;d) AIA
 Document A101-2017

&nbsp;&nbsp;&nbsp;&nbsp;e) AIA
 Document A201-2017

The above documents are to be taken as mutually explanatory of one another. For the purpose of interpretation, the priority of the documents shall be in accordance with the sequence above. In the event of conflicts or discrepancies among the documents, the Owner shall issue any necessary clarification or instruction and the Contractor shall comply with such clarification or instruction, For the avoidance of doubt, such clarification or instruction shall not relieve the Contractor of any of his obligations under this Contract and the Contractors shall not be entitled to any increase in Contract Sum or extension of Milestone Dates in connection therewith.

The scope of the Work to be executed by the Contractor shall include all the whole work as stated under the Contract Documents, including materials, equipment and Contractor's documents required by the Contract and all temporary or permanent Contractor's personnel, goods, consumables and other items and services required for the engineering design, construction, procurement, facility equipment commissioning, training, defect remedy, acceptance and warranty.

Except for the work expressly excluded by the Contract Documents, all the work implied by the Contract Documents necessary for the efficiency, stability and completeness of the Work, in accordance with industry practice, are considered to be included in the Work and covered by the Contract Sum even if such work is not clearly displayed.

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| | |
|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>2</sub> |
| **User Notes:** | (2050125654) |

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**ARTICLE 3 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION**

***§* 3.1** *The date of commencement of the Work shall be:(Check one of the following boxes.)*

 

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| | |
|:---|:---|
| ☐ | The date of this Agreement. |
| ☑ | A date set forth in a written notice to proceed issued by the Owner. |
| ☐ | Established as follows: |

---

(Insert a date or a means to determine the date of commencement of the Work.)

If a notice to proceed is not issued by the Owner before the date of this Agreement, then the date of commencement shall be the date of this Agreement.

**§ 3.2** The Contract Time as well as Milestones Dates under the Contract Documents shall be measured from the date of commencement of the Work. The Contractor shall perform and complete the Work by the following 5 key Milestone Dates:

1) Complete the electric power expansion by [May 14, 2024]

2) Achieve TCO of and obtain relevant formalities required for operation of the first line by [August 16, 2024]

3) Achieve TCO of and obtain relevant formalities required for operation of the second line by [October 20, 2024]

4) Achieve TCO of the office work by [September 30, 2024]

5) Achieve Substantial Completion by [November 30, 2024]

It shall be a pre-condition to the granting of extension of the Contract Time or Milestone Dates that the Contractor shall have demonstrated, to the Owner's reasonable satisfaction, that the relevant delay suffered by the Contractor is due to an event on the critical path contained and shown in the most recent schedules approved by the Owner, and is demonstrable on an assessment of the actual and the then current critical path to achieving the Contract Time or Milestone Dates.

The Contractor must organize the construction and perform the Work according to the most recent schedules approved by the Owner and accept the Owner's inspection and supervision on the progress. If the Owner raises objections to the content of the progress reports, schedules and/or other documents submitted by the Contractor, the Owner may require the Contractor to resubmit appropriately revised documents.

The Contractor shall at its own cost promptly submit proposals for the improvement measures at the Owner's requirements and implement them upon the Owner's approval when the actual progress of the Work does not comply with the schedules approved by the Owner. Without prejudice to the liquidated damages under Section 4.5, the Contractor shall take reasonable improvement measures that may at the Owner's requests, so as to accelerate the progress of the Work. The Contractor shall not be entitled to any increase in Contract Sum or extension of Milestone Dates for the improvement measures if the actual progress is inconsistent with the schedule due to reasons other than those listed under Section 8.3.1 of AIA Document A201-2017

Notwithstanding anything else provided in the Contract Documents, the Contractor shall not be responsible or liable for or deemed in breach of the Contract Documents because of any failure or delay in completing the Work in accordance with the Project schedule to the extent that such failure has been caused by one or more Owner-Caused Delays. "Owner-Caused Delay" means a delay in Contractor's or its contractor or subcontractor's performance of the Work or an increase in Contractor's or its contractor or subcontractor's costs, in each case that has been caused, in whole or in part, by: (i) the failure of Owner, or its affiliates or other contractors, to meet any of Owner's obligations under the Contract Documents, including but not limited to the inability of Owner or Owner parties to obtain necessary rights of access to the Project site, (ii) the acts or omissions of Owner, or its affiliates or other contractors, (iii) the failure of Owner to obtain or maintain any permits, (iv) material errors in any written documents or drawings provided by Owner regarding the Project or Project site; or (v) defects in any equipment provided by Owner, which in each case of causes an actual delay in, and/or an increase in the direct costs of, Contractor's or its contractor or subcontractor's performance of the Work under the Agreement.

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| | |
|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>3</sub> |
| **User Notes:** | (2050125654) |

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**§** 3.3 Substantial Completion**

**§** **3.3.1** Subject to adjustments of the Contract Time as provided in the Contract Documents, the Contractor shall achieve Substantial Completion of the entire Work:

(Check one of the following boxes and complete the necessary information.

☐ Not later than« » (« ») calendar days from the date of commencement of the Work. <br>☑ By the following date: November 30, 2024

**§ 3.3.2** Subject to adjustments of the Contract Time as provided in the Contract Documents, if portions of the Work are to be completed prior to Substantial Completion of the entire Work, the Contractor shall achieve Substantial Completion of such portions by the applicable dates set forth in Exhibit III - Project Schedule and Key Milestones.

**§ 3.3.3** If the Contractor fails to achieve key Milestone Dates and Substantial Completion as provided in Section 3.2 and 3.3, liquidated damages, if any, shall be assessed as set forth in Section 4.5. For clarity, as set forth in Exhibit III – Project Schedule and Key Milestones, the Work includes the following four (4) Key Milestones: Substantial Completion of the entire Work, and Substantial Completion of three (3) separate portions of the Work, for which Certificate of Temporary Completion Occupancy (TCO) may be issued in connection therewith, as set forth in Section 9.9.4 of the AIA Document A201-2017,

**§ 3.3.4.** Intentionally Omitted

**§** **3.3.5.** If a Party believes that an event constituting a Force Majeure Event has occurred that has or will prevent or delay the performance of its obligations under the Contract Documents, such Party shall give the other Party prompt written or electronic notice describing the alleged Force Majeure Event (the "Force Majeure Notice"). The Force Majeure Notice shall be given to the other Party and its on-site manager or supervisor. Within five (5) Business Days after delivery of the Force Majeure Notice, the Party claiming a Force Majeure Event shall, to the extent known or ascertainable: (a) specify the length of the delay occasioned by, and the additional costs incurred by reason of, such Force Majeure Event; (b) describe the particulars of the cause and nature of the Force Majeure Event; (c) provide evidence of the occurrence of such Force Majeure Event; and (d) provide its plans for the remedy of the Force Majeure Event. At all times after the Force Majeure Notice, the affected Party shall continue to furnish weekly reports with respect thereto during the continuation of the Force Majeure Event notifying the other Party of (i) the steps which have been taken to remedy the Force Majeure Event and (ii) the expected remaining duration of its inability to perform hereunder.

Except with regard to payment obligations, neither Party shall be responsible or liable for or deemed in breach of the Contract Documents because of any failure or delay in complying with its obligations under or pursuant to the Contract Documents to the extent that such failure has been caused, or contributed to, by one or more Force Majeure Events or its effects or by any combination thereof; *provided* that in such event: (a) any liability of either Party which arose before the occurrence of the Force Majeure Event causing the suspension of performance shall not be excused as a result of the occurrence; (b) the affected Party shall exercise all commercially reasonable efforts to alleviate and mitigate the cause and effect of such Force Majeure Event, remedy its inability to perform, and limit damages to the other Party; (c) the affected Party shall use all reasonable efforts to continue to perform its obligations hereunder and to correct or cure the event or condition excusing performance; and (d) when the affected Party is able to resume performance of the affected obligations under the Contract Documents, that Party shall give the other Party written notice to that effect, and the affected Party promptly shall resume performance under the Contract Documents.

As used herein, "Force Majeure Event" means any act, event or circumstance, or combination of acts, events or circumstances that is not caused by and is beyond the reasonable control of the Party claiming the Force Majeure Event, and could not be prevented or overcome by the reasonable efforts and due diligence of the Party claiming the Force Majeure Event. Force Majeure Events include by way of example and not limitation: acts of God, natural disasters, wildfires, earthquakes, tornadoes, lightning, floods, marine accident, civil disturbances, riots, war, military invasion, warlike acts, cyber-attack, national, regional and area-wide strikes and other national, regional and area-wide labor disputes (including collective bargaining disputes and lockouts) involving Contractor or its contractor or subcontractors and not directed exclusively at Contractor and/or such contractor or subcontractor, epidemic/pandemic (including COVID-19) and quarantine restriction, acts of the public enemy, blockades, acts of terrorism, insurrections, riots or revolutions, sabotage, vandalism, and embargoes, any change in applicable law.

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| | |
|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>4</sub> |
| **User Notes:** | (2050125654) |

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**ARTICLE 4 CONTRACT SUM**

**§ 4.1** The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor's performance of the Contract. The Contract Sum shall be $88,240,804.61 wherein the tax is $4,679,436.61 subject to additions and deductions as provided in the Contract Documents.

The Contract Sum stated under this Section is the total amount payable by the Owner to the Contractor for performance of the Work under the Contract. The Contractor shall be deemed to be satisfied as to the correctness and sufficiency of the Contract Sum stated under this Section. Unless otherwise stated in the Contract, the Contract Sum stated under this Section shall be deemed to cover all the Contractor's obligations under the Contract and all things necessary for the proper execution of the Works in accordance with the Contract.

Without prejudice to the above provision, the parties agree that the portions that are not specifically showed in the drawings but implied by the Contract Documents are also covered by the Contract Sum, including the followings:

a) Electric
 power line construction;

b) Tap
 water and drainage pipe expansion;

c) Minor
 Changes in drawings caused by municipal review;

d) Factory
 structure modification involved in the Project, such as roof reinforcement and pipe hoisting
 support;

e) Pipes,
 installation and equipment foundation from the propane storage tank to the RIO equipment
 (including partially buried pipes).

**§ 4.2 Alternates**

**§** 4.2.1 Alternates, if any, included in the Contract Sum:

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| | |
|:---|:---|
| **Item** | **Price** |

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**§** 4.2.2 Subject to the conditions noted below, the following alternates may be accepted by the Owner following execution of this Agreement. Upon acceptance, the Owner shall issue a Modification to this Agreement.

*(Insert below each alternate and the conditions that must be met for the Owner to accept the alternate.)*

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| | | |
|:---|:---|:---|
| **Item** | **Price** | **Conditions for Acceptance** |

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**§ 4.3** Allowances, if any, included in the Contract Sum:

*(Identify each allowance.)*

 

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| | |
|:---|:---|
| **Item** | **Price** |

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**§ 4.4** Unit prices, if any:

*(Identify the item and state the unit price and quantity limitations, if any, to which the unit price will be applicable.)*

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| | | |
|:---|:---|:---|
| **Item** | **Units and Limitations** | **Price per Unit ($0.00)** |

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**§ 4.5** *Liquidated damages, if any:(Insert terms and conditions for liquidated damages, if any.)*

 

If the Contractor fails to achieve any Milestone Date on or before the scheduled Milestone Dates set out under Section 3.2, the Contractor shall be liable for the sum specified below as liquidated damages for each day of delay beginning on the first day after the Contractor fails to achieve such scheduled Milestone Date until the date that such Milestone is achieved, provided that under no circumstances shall the total amount of liquidated damages not exceed one million US dollars ($1,000,000).

$2,500 per day from the 1<sup>st</sup> day after the Contractor fails to achieve any scheduled Milestone Date until the date that such Milestone is achieved.

The liquidated damages for each occurrence of the situations under Section 10.5.4 of AIA Document A201-2017.

The Parties have been properly advised by professional advisors and agree the liquidated damages referenced in this Section 4.5 are commercially justified, reasonable and proportionate to the legitimate interests of the Owner and that these liquidated damages are not extravagant, exorbitant or unconscionable and do not constitute a penalty.

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| | |
|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>5</sub> |
| **User Notes:** | (2050125654) |

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**ARTICLE 5 PAYMENTS**

**§** 5.1 Progress Payments**

**§ 5.1.1** Based upon Applications for Payment submitted to the Owner by the Contractor and Certificates for Payment issued by the Owner, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents.

The first progress payment is a start-up payment of USD $3,000,000. The Contractor shall provide the invoice in the amount equal to the start-up payment and a demand guarantee in amount equal to the start-up payment and with a validity period of at least three months which shall be issued by the bank and in the form as approved by the Owner. The Owner shall pay the start-up payment to the Contractor within seven (7) business days upon receipt of the invoice and the demand guarantee provided by the Contractor. The start-up payment shall be deducted from the progress payments for the first three months after the date of commencement.

**§ 5.1.2** The period covered by each Application for Payment shall be one calendar month ending on the last day of the month.

**§ 5.1.3** Provided that an Application for Payment for a month is received by the Owner not later than the 5th day of the next month, the Owner shall make the payment in such amount as set forth in such Application for Payment, or otherwise provide its response concerning any invoiced amount that is in dispute and the basis for such dispute within 14 days after the receipt of the Application for Payment from the Contractor. To the extent the Owner disputes any invoiced amount, Owner and Contractor shall work in good faith to resolve any such dispute within 7 days after Owner's notice of such dispute to Contractor. For clarity, if there is any dispute about any amount or portion of the amount invoiced by Contractor, the amount not in dispute shall be paid by Contractor in accordance with the terms of this Agreement.

Other than the monthly invoice described above, the Contractor may issue separate invoices for the payment of materials and equipment purchased by the Contractor that are required to be procured by Contractor under the Contract Documents, after the Owner approves the procurement, which approval shall not be unreasonably withheld or delayed. Any funds advanced by Owner for the payment of such payment for materials and equipment shall be deposited by Owner to a bank account under joint supervision of the Contractor's finance department and the Owner's finance department and paid to the applicable vendors from such account. For clarity, the bank account under joint supervision shall be closed out upon the expiration of such six (6) month period.

The joint bank account information are as follows:

Bank:

Account Number

Routing Number: (Wire Transfer)

**§ 5.1.4** Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Contract Sum among the various portions of the Work. The schedule of values shall be prepared in such form, and supported by such data to substantiate its accuracy, as the Owner may require. This schedule of values shall be used as a basis for reviewing the Contractor's Applications for Payment. If the Contractor fails to achieve any Milestone Date or complete any Work, the Owner shall be entitled to reject the Contractor's Application for Payment according to the schedule of values approved by the Owner and require the Contractor to resubmit the Application for Payment according to the actual progress and requirements of schedule of values.

**§ 5.1.5** Applications for Payment shall show the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment.

**§ 5.1.6** In accordance with AIA Document A201™-2017, General Conditions of the Contract for Construction, and subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows:

**§ 5.1.6.1** The amount of each progress payment shall first include:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** That
 portion of the Contract Sum properly allocable to completed Work; and

&nbsp;&nbsp;&nbsp;&nbsp;**2.** That
 portion of the Contract Sum properly allocable to materials and equipment delivered and suitably
 stored at the site for subsequent incorporation in the completed construction, or, if approved
 in advance by the Owner, suitably stored off the site at a location agreed upon in writing

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| | |
|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>6</sub> |
| **User Notes:** | (2050125654) |

---

**§ 5.1.6.2** The amount of each progress payment shall then be reduced by:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** The
 aggregate of any amounts previously paid by the Owner;

&nbsp;&nbsp;&nbsp;&nbsp;**2.** The
 amount, if any, for Work that remains uncorrected and for which the Owner has previously
 withheld a Certificate for Payment as provided in Article 9 of AIA Document A201–2017;

&nbsp;&nbsp;&nbsp;&nbsp;**3.** Any
 amount for which the Contractor does not intend to pay a Subcontractor or material supplier,
 unless the Work has been performed by others the Contractor intends to pay;

&nbsp;&nbsp;&nbsp;&nbsp;**4.** For
 Work performed or defects discovered since the last payment application, any amount for which
 the Owner may withhold payment, or nullify a Certificate of Payment in whole or in part,
 as provided in Article 9 of AIA Document A201–2017; and

&nbsp;&nbsp;&nbsp;&nbsp;**5.** Retainage
 withheld pursuant to Section 5.1.7.

**§** 5.1.7 Retainage**

**§ 5.1.7.1** For each progress payment made prior to Substantial Completion of the Work, the Owner may withhold the following amount, as retainage, from the payment otherwise due:

*(Insert a percentage or amount to be withheld as retainage from each Application for Payment. The amount of retainage may be limited by governing law.)*

 

The Owner may withhold 10% of each progress payment as retainage.

**§** 5.1.7.2 Intentionally omitted**

**§ 5.1.7.3** Except as set forth in this Section 5.1.7.3, upon Substantial Completion of the Work, the Contractor may submit an Application for Payment that includes the retainage withheld from prior Applications for Payment pursuant to this Section 5.1.7.

*(Insert any other conditions for release of retainage upon Substantial Completion.)*

« »

**§ 5.1.8** If final completion of the Work is materially delayed through no fault of the Contractor, the Owner shall pay the Contractor any additional amounts in accordance with Article 9 of AIA Document A201-2017.

**§ 5.1.9** Except with the Owner's prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site.

**§** 5.2 Final Payment**

**§ 5.2.1** Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when

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| | |
|:---|:---|
| 1 | the Contractor has fully performed the Contract except for the Contractor's responsibility to correct Work as provided in Article 12 of AIA Document A201-2017, and to satisfy other requirements, if any, which extend beyond final payment; and |

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&nbsp;&nbsp;&nbsp;&nbsp;2. a
 final Certificate for Payment has been issued by the Owner.

**§ 5.2.2** The Owner's final payment to the Contractor shall be made no later than 21 days after the issuance of the Owner's final Certificate for Payment, or as follows:

**§** 5.3 Interest**

Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located.

*(Insert rate of interest agreed upon, if any.)*

 

one and half percent 1.5 % per month

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| | |
|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>7</sub> |
| **User Notes:** | (2050125654) |

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**ARTICLE 6 DISPUTE RESOLUTION**

**§ 6.1 Intentionally Omitted**

**§ 6.2 Binding Dispute Resolution**

For any Claim subject to, but not resolved by, mediation pursuant to Article 15 of AIA Document A201–2017, the method of binding dispute resolution shall be as follows:

(Check the appropriate box.)

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| | |
|:---|:---|
| ☑ | Arbitration pursuant to Section 15.4 of AIA Document A201-2017 |
| ☐ | Litigation in a court of competent jurisdiction |
| ☐ | Other (Specify) |

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If the Owner and Contractor do not select a method of binding dispute resolution, or do not subsequently agree in writing to a binding dispute resolution method other than litigation, Claims will be resolved by litigation in a court of competent jurisdiction.

**ARTICLE 7 TERMINATION OR SUSPENSION**

**§ 7.1** The Contract may be terminated by the Owner, or the Contractor as provided in Article 14 of AIA Document A201-2017.

**§ 7.1.1** If the Contract is terminated for the Owner's convenience in accordance with Article 14 of AIA Document A201-2017, then the Owner shall pay the Contractor payment (the "Termination Payment"), which shall equal the sum of the following, without duplication: (a) that portion of the Contract Sum that is applicable to Work performed up to the date of termination that has not previously been paid to Contractor; (b) the expenses reasonably incurred by Contractor in withdrawing Contractor's equipment and personnel from the project site and in otherwise demobilizing,; (c) the expenses reasonably incurred by Contractor in terminating contracts with Subcontractors pertaining to the Work, and including the reasonably cost of satisfying obligations, commitments, or claims which Contractor entered into in good faith with third parties and which are not otherwise covered herein and (d) other all actual and reasonable out-of-pocket direct costs incurred by Contractor as a direct result of such termination.

**§ 7.2** The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201-2017.

**ARTICLE 8 MISCELLANEOUS PROVISIONS**

**§ 8.1** Where reference is made in this Agreement to a provision of AIA Document A201–2017 or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents.

**§ 8.2** The Owner's representative:

(Name, address, email address, and other information)

 

Zhang , Sr. Project Manager, zhang @

Carl La Sr. Project Manager, carl.la @j

Notwithstanding any provision to the contrary contained in the Contract Documents, the Owner hereby elects to replace the role of the Architect, as defined under and as specifically referred to throughout the Contract Documents, with the Owner. The Owner shall assume all roles, responsibilities, duties, and authorities assigned to the Architect under the Contract Documents, except as otherwise expressly stated in the Contract Documents, which includes:

the Architect's role under Section 4.2.1 of AIA Document A201-2017.

**§ 8.3** The Contractor's representative:

(Name, address, email address, and other information)

Yunlong Zhang, President, Yunlong.Zhang@bsw-epc.com

---

| | |
|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>8</sub> |
| **User Notes:** | (2050125654) |

---

The Contractor's representative shall serve as the project manager of the Contractor and be responsible for all affairs of the Work from the date of this Agreement to the completion of the Work. During the construction period, the Contractor's representative shall work at the site and be responsible for the comprehensive management of the project and necessary coordination between the Owner and the Contractor. If he or she leaves the project site under special circumstances, the Contractor shall inform the Owner in writing for his or her leave and obtain the Owner's written approval in advance, and the Contractor shall designate a delegate project manager during his or her leave.

Without submitting any written explanation and proposal of the substitutes (including the resumes of all proposed substitutes) and obtainment of the Owner's approval, not to be unreasonably withheld or delayed, the Contractor shall not replace the Contractor's representative /project manager.

If the Contractor needs to replace the Contractor's representative, the Contractor shall inform the Owner in writing at least 7 days in advance and obtain the Owner's approval.

**§ 8.4** If the Owner, in its sole discretion, determines that the performance, conduct, or competence of the Contractor's Representative or other personnel is unsatisfactory and adversely affects the Project's progress, quality, safety, or the working relationship among the Project's stakeholders, the Owner is entitle to issue a written request, upon which Contractor shall promptly change the Contractor's Representative and other personnel for the performance of the Contract.

**§** 8.5 Insurance and Bonds**

**§ 8.5.1** The Owner and the Contractor shall purchase and maintain insurance as set forth in AIA Document Al01™–2017, Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum, and elsewhere in the Contract Documents.

**§ 8.5.2** The Contractor shall provide a payment and performance bond as required by the Owner and Landlord. The cost of this bond will be added as a change to the Contract Sum once it's mutually approved by both Parties.

**§ 8.6** Notice in electronic format, pursuant to Article 1 of AIA Document A201-2017, may be given in accordance with AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, if completed, or as otherwise set forth below:

*(If other than in accordance with AIA Document E203-2013, insert requirements for delivering notice in electronic format such as name, title, and email address of the recipient and whether and how the system will be required to generate a read receipt for the transmission.)*

 

« »

**ARTICLE 9 ENUMERATION OF CONTRACT DOCUMENTS**

**§ 9.1** This Agreement is comprised of the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** AIA
 Document A101™–C2017, Standard Form of Agreement Between Owner and Contractor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** AIA
 Document A201™–2017, General Conditions of the Contract for Construction

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** Exhibit
 I - Scope of Work Narrative

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** Exhibit
 II - Clarifications

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** Exhibit
 III - Project Schedule and Key Milestones

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** Exhibit
 IV - Schedule of Value (First version, need to be updated as project progresses)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Other
 Exhibits

● master equipment list

● Owner equipment Owner installation sequence markup

● incoming power scope map

● List of main materials brand

● Water and sewer scope drawing

● RTO approval package

● Bill of Quantities template

---

| | |
|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>9</sub> |
| **User Notes:** | (2050125654) |

---

This Agreement entered into as of the day and year first written above.

---

| | |
|:---|:---|
| | /s/ Zhang Yunlong |
| **OWNER** *(Signature)* | **CONTRACTOR** *(Signature)* |
| *(Mr. GM)* | *(Mr. Zhang Yunlong, President)* |

---

---

| | |
|:---|:---|
| AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A101 - 2017. Copyright© 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:07:52 ET on 01/08/2024 under Order No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents<sup>®</sup> Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>10</sub> |
| **User Notes:** | (2050125654) |

---

**AIA<sup>®</sup> Document A201<sup>®</sup> 2017**

**General Conditions of the Contract for Construction**

 ****

---

| | |
|:---|:---|
| **for the following PROJECT:**<br> *(Name and location or address)* | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
|  | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
| , LLC<br> Phoenix, AZ 85353<br> New 760,000 sf solar panel manufacture facility Tenant Improvement | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
|  | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
| **THE OWNER:**<br> *(Name, legal status and address)* | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
|  | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
| , LLC<br> Phoenix AZ, 85353 | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
|  | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
| **THE CONTRACTOR**<br> *(Name, legal status and address)* | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
|  | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
| BestWater USA Inc.<br> 2825 Wilcrest Dr., Ste421, Houston TX, 77042 | **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |
| **ADDITIONS AND DELETIONS:**<br> ****<br> The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An *Additions and* Deletions *Report* that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.<br>This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.<br>For guidance in modifying this document to include supplementary conditions, see AIA Document A503<sup>TM</sup> Guide for Supplementary Conditions.<br> **** |  |

---

 ****

**TABLE OF ARTICLES**

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| | | |
|:---|:---|:---|
| **1** | **GENERAL PROVISIONS** |  |
| **2** | **OWNER** |  |
| **3** | **CONTRACTOR** |  |
| **4** | **ARCHITECT** |  |
| **5** | **SUBCONTRACTORS** |  |
| **6** | **CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS** |  |
| **7** | **CHANGES IN THE WORK** |  |
| **8** | **TIME** |  |
| **9** | **PAYMENTS AND COMPLETION** |  |
| **10** | **PROTECTION OF PERSONS AND PROPERTY** |  |
| **11** | **INSURANCE AND BONDS** |  |
| **12** | **UNCOVERING AND CORRECTION OF WORK** |  |
|  |  | **ELECTRONIC COPYING** of any portion of this AIA<sup>®</sup> Document to another electronic file is prohibited and constitutes a violation of copyright laws as set forth in the footer of this document. |
| **13** | **MISCELLANEOUS PROVISIONS** | **ELECTRONIC COPYING** of any portion of this AIA<sup>®</sup> Document to another electronic file is prohibited and constitutes a violation of copyright laws as set forth in the footer of this document. |
|  |  | **ELECTRONIC COPYING** of any portion of this AIA<sup>®</sup> Document to another electronic file is prohibited and constitutes a violation of copyright laws as set forth in the footer of this document. |
| **14** | **TERMINATION OR SUSPENSION OF THE CONTRACT** | **ELECTRONIC COPYING** of any portion of this AIA<sup>®</sup> Document to another electronic file is prohibited and constitutes a violation of copyright laws as set forth in the footer of this document. |
|  |  | **ELECTRONIC COPYING** of any portion of this AIA<sup>®</sup> Document to another electronic file is prohibited and constitutes a violation of copyright laws as set forth in the footer of this document. |
| **15** | **CLAIMS AND DISPUTES** | **ELECTRONIC COPYING** of any portion of this AIA<sup>®</sup> Document to another electronic file is prohibited and constitutes a violation of copyright laws as set forth in the footer of this document. |

---

---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>1</sub> |
| **User Notes:** | (1684368744) |

---

**INDEX**

(Topics and numbers in bold are Section headings.)

**Acceptance of Nonconforming Work**

9.6.6, 9.9.3, **12.3**

Acceptance of Work

9.6.6, 9.8.2, 9.9.3, 9.10.1, 9.10.3, 12.3

**Access to Work**

**3.16**, 6.2.1, 12.1

Accident Prevention

Acts and Omissions

3.2, 3.3.2, 3.12.8, 3.18, 4.2.3, 8.3.1, 9.5.1, 10.2.5,

10.2.8, 13.3.2, 14.1, 15.1.2, 15.2

Addenda

1.1.1 Additional Costs, Claims for

3.7.4, 3.7.5, 10.3.2, 15.1.5

**Additional Inspections and Testing**

9.4.2, 9.8.3, 12.2.1, **13.4**

**Additional Time, Claims for**

3.2.4, 3.7.4, 3.7.5, 3.10.2, 8.3.2, **15.1.6**

**Administration of the Contract**

3.1.3, **4.2,** 9.4, 9.5

Advertisement or Invitation to Bid

1.1.1 Aesthetic Effect

4.2.13 **Allowances**

**3.8** **Applications for Payment**

4.2.5, 7.3.9, 9.2, **9.3,** 9.4, 9.5.1, 9.5.4, 9.6.3, 9.7, 9.10

Approvals

2.1.1, 2.3.1, 2.5, 3.1.3, 3.10.2, 3.12.8, 3.12.9,

3.12.10.1, 4.2.7, 9.3.2, 13.4.1

**Arbitration**

8.3.1, 15.3.2, **15.4**

**ARCHITECT**

**4**

**Architect,** Definition of

**4.1.1** Architect, Extent of Authority

2.5, 3.12.7, 4.1.2, 4.2, 5.2, 6.3, 7.1.2, 7.3.4, 7.4, 9.2,

9.3.1, 9.4, 9.5, 9.6.3, 9.8, 9.10.1, 9.10.3, 12.1, 12.2.1,

13.4.1, 13.4.2, 14.2.2, 14.2.4, 15.1.4, 15.2.1

Architect, Limitations of Authority and Responsibility

2.1.1, 3.12.4, 3.12.8, 3.12.10, 4.1.2, 4.2.1, 4.2.2,

4.2.3, 4.2.6, 4.2.7, 4.2.10, 4.2.12, 4.2.13, 5.2.1, 7.4,

9.4.2, 9.5.4, 9.6.4, 15.1.4, 15.2

Architect's Additional Services and Expenses

2.5, 12.2.1, 13.4.2, 13.4.3, 14.2.4

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| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>2</sub> |
| **User Notes:** | (1684368744) |

---

Architect's Administration of the Contract

3.1.3, 3.7.4, 15.2, 9.4.1, 9.5

Architect's Approvals

2.5, 3.1.3, 3.5, 3.10.2, 4.2.7

Architect's Authority to Reject Work

3.5, 4.2.6, 12.1.2, 12.2.1

Architect's Copyright

1.1.7, 1.5

Architect's Decisions

3.7.4, 4.2.6, 4.2.7, 4.2.11, 4.2.12, 4.2.13, 4.2.14, 6.3,

7.3.4, 7.3.9, 8.1.3, 8.3.1, 9.2, 9.4.1, 9.5, 9.8.4, 9.9.1,

13.4.2, 15.2

Architect's Inspections

3.7.4, 4.2.2, 4.2.9, 9.4.2, 9.8.3, 9.9.2, 9.10.1, 13.4

Architect's Instructions

3.2.4, 3.3.1, 4.2.6, 4.2.7, 13.4.2

Architect's Interpretations

4.2.11, 4.2.12

Architect's Project Representative

4.2.10 Architect's Relationship with Contractor

1.1.2, 1.5, 2.3.3, 3.1.3, 3.2.2, 3.2.3, 3.2.4, 3.3.1, 3.4.2,

3.5, 3.7.4, 3.7.5, 3.9.2, 3.9.3, 3.10, 3.11, 3.12, 3.16,

3.18, 4.1.2, 4.2, 5.2, 6.2.2, 7, 8.3.1, 9.2, 9.3, 9.4, 9.5,

9.7, 9.8, 9.9, 10.2.6, 10.3, 11.3, 12, 13.3.2, 13.4, 15.2

Architect's Relationship with Subcontractors

1.1.2, 4.2.3, 4.2.4, 4.2.6, 9.6.3, 9.6.4, 11.3

Architect's Representations

9.4.2, 9.5.1, 9.10.1

Architect's Site Visits

3.7.4, 4.2.2, 4.2.9, 9.4.2, 9.5.1, 9.9.2, 9.10.1, 13.4

Asbestos

10.3.1 Attorneys' Fees

3.18.1, 9.6.8, 9.10.2, 10.3.3

Award of Separate Contracts

6.1.1, 6.1.2

**Award of Subcontracts and Other Contracts for Portions of the Work**

**5.2** **Basic Definitions**

**1.1** Bidding Requirements

1.1.1 Binding Dispute Resolution

8.3.1, 9.7, 11.5, 13.1, 15.1.2, 15.1.3, 15.2.1, 15.2.5,

15.2.6.1, 15.3.1, 15.3.2, 15.3.3, 15.4.1

Bonds, Lien

7.3.4.4, 9.6.8, 9.10.2, 9.10.3

**Bonds, Performance, and Payment**

7.3.4.4, 9.6.7, 9.10.3, **11.1.2,** 11.1.3, **11.5**

**Building Information Models Use and Reliance**

1.8 Building Permit

3.7.1 ---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>3</sub> |
| **User Notes:** | (1684368744) |

---

**Capitalization 1.3**

Certificate of Substantial Completion

9.8.3, 9.8.4, 9.8.5

**Certificates for Payment**

4.2.1, 4.2.5, 4.2.9, 9.3.3, **9.4,** 9.5, 9.6.1, 9.6.6, 9.7,

9.10.1, 9.10.3, 14.1.1.3, 14.2.4, 15.1.4

Certificates of Inspection, Testing or Approval

13.4.4 Certificates of Insurance

9.10.2 **Change Orders**

1.1.1, 3.4.2, 3.7.4, 3.8.2.3, 3.11, 3.12.8, 4.2.8, 5.2.3,

7.1.2, 7.1.3, **7.2,** 7.3.2, 7.3.7, 7.3.9, 7.3.10, 8.3.1,

9.3.1.1, 9.10.3, 10.3.2, 11.2, 11.5, 12.1.2

**Change Orders,** Definition of

**7.2.1** **CHANGES IN THE WORK**

2.2.2, 3.11, 4.2.8, **7,** 7.2.1, 7.3.1, 7.4, 8.3.1, 9.3.1.1,

11.5 **Claims,** Definition of

**15.1.1** Claims, Notice of 1.6.2, 15.1.3

**CLAIMS AND DISPUTES**

3.2.4, 6.1.1, 6.3, 7.3.9, 9.3.3, 9.10.4, 10.3.3, **15,** 15.4

Claims and Timely Assertion of Claims

15.4.1 **Claims for Additional Cost**

3.2.4, 3.3.1, 3.7.4, 7.3.9, 9.5.2, 10.2.5, 10.3.2, **15.1.5**

**Claims for Additional Time**

3.2.4, 3.3.1, 3.7.4, 6.1.1, 8.3.2, 9.5.2, 10.3.2, **15.1.6**

**Concealed or Unknown Conditions, Claims for**

3.7.4 Claims for Damages

3.2.4, 3.18, 8.3.3, 9.5.1, 9.6.7, 10.2.5, 10.3.3, 11.3,

11.3.2, 14.2.4, 15.1.7

Claims Subject to Arbitration

15.4.1 **Cleaning Up 3.15, 6.3**

Commencement of the Work, Conditions Relating to 2.2.1, 3.2.2, 3.4.1, 3.7.1, 3.10.1, 3.12.6, 5.2.1, 5.2.3,

6.2.2, 8.1.2, 8.2.2, 8.3.1, 11.1, 11.2, **15.1.5**

**Commencement of the Work,** Definition of **8.1.2**

**Communications**

3.9.1, **4.2.4**

Completion, Conditions Relating to

3.4.1, 3.11, 3.15, 4.2.2, 4.2.9, 8.2, 9.4.2, 9.8, 9.9.1,

9.10, 12.2, 14.1.2, 15.1.2

**COMPLETION, PAYMENTS AND**

**9**

Completion, Substantial

3.10.1, 4.2.9, 8.1.1, 8.1.3, 8.2.3, 9.4.2, 9.8, 9.9.1,

9.10.3, 12.2, 15.1.2

---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>4</sub> |
| **User Notes:** | (1684368744) |

---

Compliance with Laws

2.3.2, 3.2.3, 3.6, 3.7, 3.12.10, 3.13, 9.6.4, 10.2.2,

13.1, 13.3, 13.4.1, 13.4.2, 13.5, 14.1.1, 14.2.1.3,

15.2.8, 15.4.2, 15.4.3

Concealed or Unknown Conditions

3.7.4, 4.2.8, 8.3.1, 10.3

Conditions of the Contract

1.1.1, 6.1.1, 6.1.4

Consent, Written

3.4.2, 3.14.2, 4.1.2, 9.8.5, 9.9.1, 9.10.2, 9.10.3, 13.2,

15.4.4.2 **Consolidation or Joinder 15.4.4**

**CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS**

1.1.4, 6

**Construction Change Directive,** Definition of

**7.3.1** **Construction Change Directives**

1.1.1, 3.4.2, 3.11, 3.12.8, 4.2.8, 7.1.1, 7.1.2, 7.1.3,

**7.3,** 9.3.1.1

Construction Schedules, Contractor's

3.10, 3.11, 3.12.1, 3.12.2, 6.1.3, 15.1.6.2

**Contingent Assignment of Subcontracts**

**5.4, 14**.2.2.2

**Continuing Contract Performance**

15.1.4 **Contract,** Definition of **1.1.2**

**CONTRACT, TERMINATION OR SUSPENSION OF THE**

5.4.1.1, 5.4.2, 11.5, **14**

Contract Administration

3.1.3, 4, 9.4, 9.5

Contract Award and Execution, Conditions Relating to

3.7.1, 3.10, 5.2, 6.1

Contract Documents, Copies Furnished and Use of

1.5.2, 2.3.6, 5.3

**Contract Documents,** Definition of **1.1.1**

**Contract Sum**

2.2.2, 2.2.4, 3.7.4, 3.7.5, 3.8, 3.10.2, 5.2.3, 7.3, 7.4,

**9.1,** 9.2, 9.4.2, 9.5.1.4, 9.6.7, 9.7, 10.3.2, 11.5, 12.1.2,

12.3, 14.2.4, 14.3.2, 15.1.4.2, **15.1.5, 15.2.5**

**Contract Sum,** Definition of **9.1**

Contract Time

1.1.4, 2.2.1, 2.2.2, 3.7.4, 3.7.5, 3.10.2, 5.2.3, 6.1.5,

7.2.1.3, 7.3.1, 7.3.5, 7.3.6, 7, 7, 7.3.10, 7.4, 8.1.1,

8.2.1, 8.2.3, 8.3.1, 9.5.1, 9.7, 10.3.2, 12.1.1, 12.1.2,

14.3.2, 15.1.4.2, 15.1.6.1, 15.2.5

**Contract Time,** Definition of

8.1.1 ---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>5</sub> |
| **User Notes:** | (1684368744) |

---

**CONTRACTOR**

**3**

Contractor, Definition of **3.1, 6.1.2**

**Contractor's Construction and Submittal Schedules**

**3.10,** 3.12.1, 3.12.2, 4.2.3, 6.1.3, 15.1.6.2

Contractor's Employees

2.2.4, 3.3.2, 3.4.3, 3.8.1, 3.9, 3.18.2, 4.2.3, 4.2.6,

10.2, 10.3, 11.3, 14.1, 14.2.1.1

**Contractor's Liability Insurance**

11.1 Contractor's Relationship with Separate Contractors and Owner's Forces

3.12.5, 3.14.2, 4.2.4, 6, 11.3, 12.2.4

Contractor's Relationship with Subcontractors

1.2.2, 2.2.4, 3.3.2, 3.18.1, 3.18.2, 4.2.4, 5, 9.6.2,

9.6.7, 9.10.2, 11.2, 11.3, 11.4

Contractor's Relationship with the Architect

1.1.2, 1.5, 2.3.3, 3.1.3, 3.2.2, 3.2.3, 3.2.4, 3.3.1, 3.4.2,

3.5.1, 3.7.4, 3.10, 3.11, 3.12, 3.16, 3.18, 4.2, 5.2,

6.2.2, 7, 8.3.1, 9.2, 9.3, 9.4, 9.5, 9.7, 9.8, 9.9, 10.2.6,

10.3, 11.3, 12, 13.4, 15.1.3, 15.2.1

Contractor's Representations

3.2.1, 3.2.2, 3.5, 3.12.6, 6.2.2, 8.2.1, 9.3.3, 9.8.2

Contractor's Responsibility for Those Performing the Work

3.3.2, 3.18, 5.3, 6.1.3, 6.2, 9.5.1, 10.2.8

Contractor's Review of Contract Documents 3.2

Contractor's Right to Stop the Work 2.2.2, 9.7

Contractor's Right to Terminate the Contract

14.1 Contractor's Submittals

3.10, 3.11, 3.12, 4.2.7, 5.2.1, 5.2.3, 9.2, 9.3, 9.8.2,

9.8.3, 9.9.1, 9.10.2, 9.10.3

Contractor's Superintendent

3.9, 10.2.6

Contractor's Supervision and Construction Procedures

1.2.2, 3.3, 3.4, 3.12.10, 4.2.2, 4.2.7, 6.1.3, 6.2.4,

7.1.3, 7.3.4, 7.3.6, 8.2, 10, 12, 14, 15.1.4

Coordination and Correlation

1.2, 3.2.1, 3.3.1, 3.10, 3.12.6, 6.1.3, 6.2.1

Copies Furnished of Drawings and Specifications

1.5, 2.3.6, 3.11

Copyrights

1.5, **3.17**

Correction of Work

2.5, 3.7.3, 9.4.2, 9.8.2, 9.8.3, 9.9.1, 12.1.2, **12.2,** 12.3,

15.1.3.1, 15.1.3.2, 15.2.1

**Correlation and Intent of the Contract Documents**

1.2 **Cost,** Definition of **7.3.4**

Costs

2.5, 3.2.4, 3.7.3, 3.8.2, 3.15.2, 5.4.2, 6.1.1, 6.2.3,

7.3.3.3, 7.3.4, 7.3.8, 7.3.9, 9.10.2, 10.3.2, 10.3.6,

11.2, 12.1.2, 12.2.1, 12.2.4, 13.4, 14

---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>6</sub> |
| **User Notes:** | (1684368744) |

---

**Cutting and Patching**

**3.14, 6.2.5**

Damage to Construction of Owner or Separate Contractors

3.14.2, 6.2.4, 10.2.1.2, 10.2.5, 10.4, 12.2.4

Damage to the Work

3.14.2, 9.9.1, 10.2.1.2, 10.2.5, 10.4, 12.2.4

Damages, Claims for

3.2.4, 3.18, 6.1.1, 8.3.3, 9.5.1, 9.6.7, 10.3.3, 11.3.2,

11.3, 14.2.4, 15.1.7

Damages for Delay

6.2.3, 8.3.3, 9.5.1.6, 9.7, 10.3.2, 14.3.2

**Date of Commencement of the Work,** Definition of **8.1.2**

**Date of Substantial Completion,** Definition of **8.1.3**

**Day,** Definition of **8.1.4**

Decisions of the Architect

3.7.4, 4.2.6, 4.2.7, 4.2.11, 4.2.12, 4.2.13, 6.3, 7.3.4,

7.3.9, 8.1.3, 8.3.1, 9.2, 9.4, 9.5.1, 9.8.4, 9.9.1, 13.4.2,

14.2.2, 14.2.4, 15.1, 15.2

**Decisions to Withhold Certification**

9.4.1, **9.5,** 9.7, 14.1.1.3

Defective or Nonconforming Work, Acceptance, Rejection and Correction of

2.5, 3.5, 4.2.6, 6.2.3, 9.5.1, 9.5.3, 9.6.6, 9.8.2, 9.9.3,

9.10.4, 12.2.1

Definitions

1.1, 2.1.1, 3.1.1, 3.5, 3.12.1, 3.12.2, 3.12.3, 4.1.1, 5.1,

6.1.2, 7.2.1, 7.3.1, 8.1, 9.1, 9.8.1, 15.1.1

**Delays and Extensions of Time**

**3.2, 3.7.4,** 5.2.3, 7.2.1, 7.3.1, **7.4, 8.3,** 9.5.1, **9.7,**

10.3.2, **10.4,** 14.3.2, **15.1.6,** 15.2.5

**Digital Data Use and Transmission**

1.7 Disputes

6.3, 7.3.9, 15.1, 15.2

**Documents and Samples at the Site**

3.11 **Drawings,** Definition of **1.1.5**

Drawings and Specifications, Use and Ownership of

3.11 Effective Date of Insurance

8.2.2 **Emergencies**

**10.4,** 14.1.1.2, **15.1.5**

Employees, Contractor's

3.3.2, 3.4.3, 3.8.1, 3.9, 3.18.2, 4.2.3, 4.2.6, 10.2,

10.3.3, 11.3, 14.1, 14.2.1.1

Equipment, Labor, or Materials

1.1.3, 1.1.6, 3.4, 3.5, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1,

4.2.6, 4.2.7, 5.2.1, 6.2.1, 7.3.4, 9.3.2, 9.3.3, 9.5.1.3,

9.10.2, 10.2.1, 10.2.4, 14.2.1.1, 14.2.1.2

---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>7</sub> |
| **User Notes:** | (1684368744) |

---

Execution and Progress of the Work

1.1.3, 1.2.1, 1.2.2, 2.3.4, 2.3.6, 3.1, 3.3.1, 3.4.1, 3.7.1,

3.10.1, 3.12, 3.14, 4.2, 6.2.2, 7.1.3, 7.3.6, 8.2, 9.5.1,

9.9.1, 10.2, 10.3, 12.1, 12.2, 14.2, 14.3.1, 15.1.4

Extensions of Time

3.2.4, 3.7.4, 5.2.3, 7.2.1, 7.3, 7.4, 9.5.1, 9.7, 10.3.2,

10.4, 14.3, 15.1.6, **15.2.5**

**Failure of Payment**

9.5.1.3, **9.7,** 9.10.2, 13.5, 14.1.1.3, 14.2.1.2

Faulty Work

(See Defective or Nonconforming Work)

**Final Completion and Final Payment** 

4.2.1, 4.2.9, 9.8.2, **9.10,** 12.3, 14.2.4, 14.4.3

Financial Arrangements, Owner's

2.2.1, 13.2.2, 14.1.1.4

**GENERAL PROVISIONS**

**1**

**Governing Law**

**13.1** Guarantees (See Warranty)

**Hazardous Materials and Substances**

10.2.4, **10.3**

Identification of Subcontractors and Suppliers

5.2.1 **Indemnification**

3.17, **3.18,** 9.6.8, 9.10.2, 10.3.3, 11.3

**Information and Services Required of the Owner**

2.1.2, **2.2,** 2.3, 3.2.2, 3.12.10.1, 6.1.3, 6.1.4, 6.2.5,

9.6.1, 9.9.2, 9.10.3, 10.3.3, 11.2, 13.4.1, 13.4.2,

14.1.1.4, 14.1.4, 15.1.4

**Initial Decision**

15.2 **Initial Decision Maker, Definition of 1.1.8**

Initial Decision Maker, Decisions

14.2.4, 15.1.4.2, 15.2.1, 15.2.2, 15.2.3, 15.2.4, 15.2.5

Initial Decision Maker, Extent of Authority

14.2.4, 15.1.4.2, 15.2.1, 15.2.2, 15.2.3, 15.2.4, 15.2.5

**Injury or Damage to Person or Property**

**10.2.8, 10.4**

Inspections

3.1.3, 3.3.3, 3.7.1, 4.2.2, 4.2.6, 4.2.9, 9.4.2, 9.8.3,

9.9.2, 9.10.1, 12.2.1, 13.4

Instructions to Bidders

1.1.1 Instructions to the Contractor

3.2.4, 3.3.1, 3.8.1, 5.2.1, 7, 8.2.2, 12, 13.4.2

---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>8</sub> |
| **User Notes:** | (1684368744) |

---

**Instruments of Service,** Definition of **1.1.7**

Insurance

6.1.1, 7.3.4, 8.2.2, 9.3.2, 9.8.4, 9.9.1, 9.10.2, 10.2.5,

**11**

Insurance, Notice of Cancellation or Expiration

11.1.4, 11.2.3

**Insurance, Contractor's Liability**

**11.1** Insurance, Effective Date of

8.2.2, 14.4.2

**Insurance, Owner's Liability 11.2**

**Insurance, Property**

**10.2.5,** 11.2, 11.4, 11.5

Insurance, Stored Materials

9.3.2 **INSURANCE AND BONDS**

**11**

Insurance Companies, Consent to Partial Occupancy

9.9.1 Insured loss, Adjustment and Settlement of

11.5 Intent of the Contract Documents

1.2.1, 4.2.7, 4.2.12, 4.2.13

**Interest**

13.5 **Interpretation**

1.1.8, 1.2.3, **1.4,** 4.1.1, 5.1, 6.1.2, 15.1.1

Interpretations, Written

4.2.11, 4.2.12

Judgment on Final Award

15.4.2 **Labor and Materials, Equipment**

1.1.3, 1.1.6, **3.4,** 3.5, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1,

5.2.1, 6.2.1, 7.3.4, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2, 10.2.1,

10.2.4, 14.2.1.1, 14.2.1.2

Labor Disputes

8.3.1 Laws and Regulations

1.5, 2.3.2, 3.2.3, 3.2.4, 3.6, 3.7, 3.12.10, 3.13, 9.6.4,

9.9.1, 10.2.2, 13.1, 13.3.1, 13.4.2, 13.5, 14, 15.2.8,

15.4 Liens

2.1.2, 9.3.1, 9.3.3, 9.6.8, 9.10.2, 9.10.4, 15.2.8

Limitations, Statutes of

12.2.5, 15.1.2, 15.4.1.1

Limitations of Liability

3.2.2, 3.5, 3.12.10, 3.12.10.1, 3.17, 3.18.1, 4.2.6,

4.2.7, 6.2.2, 9.4.2, 9.6.4, 9.6.7, 9.6.8, 10.2.5, 10.3.3,

11.3, 12.2.5, 13.3.1

Limitations of Time

2.1.2, 2.2, 2.5, 3.2.2, 3.10, 3.11, 3.12.5, 3.15.1, 4.2.7,

5.2, 5.3, 5.4.1, 6.2.4, 7.3, 7.4, 8.2, 9.2, 9.3.1, 9.3.3,

9.4.1, 9.5, 9.6, 9.7, 9.8, 9.9, 9.10, 12.2, 13.4, 14, 15,

15.1.2, 15.1.3, 15.1.5

---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>9</sub> |
| **User Notes:** | (1684368744) |

---

**Materials, Hazardous**

10.2.4, **10.3**

Materials, Labor, Equipment and

1.1.3, 1.1.6, 3.4.1, 3.5, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1,

5.2.1, 6.2.1, 7.3.4, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2,

10.2.1.2, 10.2.4, 14.2.1.1, 14.2.1.2

Means, Methods, Techniques, Sequences and Procedures of Construction

3.3.1, 3.12.10, 4.2.2, 4.2.7, 9.4.2

Mechanic's Lien

2.1.2, 9.3.1, 9.3.3, 9.6.8, 9.10.2, 9.10.4, 15.2.8

**Mediation**

8.3.1, 15.1.3.2, 15.2.1, 15.2.5, 15.2.6, **15.3,** 15.4.1,

15.4.1.1 **Minor Changes in the Work**

1.1.1, 3.4.2, 3.12.8, 4.2.8, 7.1, **7.4**

**MISCELLANEOUS PROVISIONS**

**13**

**Modifications,** Definition of **1.1.1**

Modifications to the Contract

1.1.1, 1.1.2, 2.5, 3.11, 4.1.2, 4.2.1, 5.2.3, 7, 8.3.1, 9.7,

10.3.2 **Mutual Responsibility**

6.2 **Nonconforming Work, Acceptance of**

9.6.6, 9.9.3, **12.3**

Nonconforming Work, Rejection and Correction of

2.4, 2.5, 3.5, 4.2.6, 6.2.4, 9.5.1, 9.8.2, 9.9.3, 9.10.4,

12.2 **Notice**

**1.6,** 1.6.1, 1.6.2, 2.1.2, 2.2.2., 2.2.3, 2.2.4, 2.5, 3.2.4,

3.3.1, 3.7.4, 3.7.5, 3.9.2, 3.12.9, 3.12.10, 5.2.1, 7.4,

8.2.2 9.6.8, 9.7, 9.10.1, 10.2.8, 10.3.2, 11.5, 12.2.2.1,

13.4.1, 13.4.2, 14.1, 14.2.2, 14.4.2, 15.1.3, 15.1.5,

15.1.6, 15.4.1

Notice of Cancellation or Expiration of Insurance

11.1.4, 11.2.3

**Notice of Claims**

1.6.2, 2.1.2, 3.7.4, 9.6.8, 10.2.8, **15.1.3,** 15.1.5,

15.1.6, 15.2.8, 15.3.2, 15.4.1

Notice of Testing and Inspections

13.4.1, 13.4.2

Observations, Contractor's

3.2, 3.7.4

Occupancy

2.3.1, 9.6.6, 9.8

Orders, Written

1.1.1, 2.4, 3.9.2, 7, 8.2.2, 11.5, 12.1, 12.2.2.1, 13.4.2,

14.3.1 ---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>10</sub> |
| **User Notes:** | (1684368744) |

---

**OWNER**

**2**

**Owner,** Definition of

**2.1.1** **Owner, Evidence of Financial Arrangements**

**2.2,** 13.2.2, 14.1.1.4

**Owner, Information and Services Required of the**

2.1.2, **2.2,** 2.3, 3.2.2, 3.12.10, 6.1.3, 6.1.4, 6.2.5,

9.3.2, 9.6.1, 9.6.4, 9.9.2, 9.10.3, 10.3.3, 11.2, 13.4.1,

13.4.2, 14.1.1.4, 14.1.4, 15.1.4

Owner's Authority

1.5, 2.1.1, 2.3.32.4, 2.5, 3.4.2, 3.8.1, 3.12.10, 3.14.2,

4.1.2, 4.2.4, 4.2.9, 5.2.1, 5.2.4, 5.4.1, 6.1, 6.3, 7.2.1,

7.3.1, 8.2.2, 8.3.1, 9.3.2, 9.5.1, 9.6.4, 9.9.1, 9.10.2,

10.3.2, 11.4, 11.5, 12.2.2, 12.3, 13.2.2, 14.3, 14.4,

15.2.7 **Owner's Insurance**

11.2 Owner's Relationship with Subcontractors 1.1.2, 5.2, 5.3, 5.4, 9.6.4, 9.10.2, 14.2.2

**Owner's Right to Carry Out the Work**

**2.5,** 14.2.2

**Owner's Right to Clean Up**

**6.3** **Owner's Right to Perform Construction and to**

**Award Separate Contracts**

**6.1** **Owner's Right to Stop the Work**

**2.4** Owner's Right to Suspend the Work

14.3 Owner's Right to Terminate the Contract

14.2, 14.4

**Ownership and Use of Drawings, Specifications and Other Instruments of Service**

1.1.1, 1.1.6, 1.1.7, **1.5,** 2.3.6, 3.2.2, 3.11, 3.17, 4.2.12,

5.3 **Partial Occupancy or Use**

9.6.6, **9.9**

**Patching, Cutting and**

**3.14, 6.2.5**

Patents 3.17

**Payment, Applications for**

4.2.5, 7.3.9, 9.2, **9.3,** 9.4, 9.5, 9.6.3, 9.7, 9.8.5, 9.10.1,

14.2.3, 14.2.4, 14.4.3

**Payment, Certificates for**

4.2.5, 4.2.9, 9.3.3, **9.4,** 9.5, 9.6.1, 9.6.6, 9.7, 9.10.1,

9.10.3, 14.1.1.3, 14.2.4

---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>11</sub> |
| **User Notes:** | (1684368744) |

---

**Payment, Failure of**

9.5.1.3, **9.7,** 9.10.2, 13.5, 14.1.1.3, 14.2.1.2

Payment, Final

4.2.1, 4.2.9, **9.10,** 12.3, 14.2.4, 14.4.3

**Payment Bond, Performance Bond and**

7.3.4.4, 9.6.7, 9.10.3, **11.1.2**

**Payments, Progress**

9.3, **9.6,** 9.8.5, 9.10.3, 14.2.3, 15.1.4

**PAYMENTS AND COMPLETION**

**9**

Payments to Subcontractors

5.4.2, 9.5.1.3, 9.6.2, 9.6.3, 9.6.4, 9.6.7, 14.2.1.2

PCB 10.3.1

**Performance Bond and Payment Bond**

7.3.4.4, 9.6.7, 9.10.3, **11.1.2**

**Permits, Fees, Notices and Compliance with Laws**

2.3.1, **3.7,** 3.13, 7.3.4.4, 10.2.2

**PERSONS AND PROPERTY, PROTECTION OF**

Polychlorinated Biphenyl

10.3.1 **Product Data,** Definition of **3.12.2**

**Product Data and Samples, Shop Drawings**

3.11, **3.12,** 4.2.7

**Progress and Completion**

4.2.2, **8.2,** 9.8, 9.9.1, 14.1.4, 15.1.4

**Progress Payments**

9.3, 9.6, 9.8.5, 9.10.3, 14.2.3, 15.1.4

**Project,** Definition of

**1.1.4** Project Representatives

4.2.10 **Property Insurance**

10.2.5, **11.2**

**Proposal Requirements**

1.1.1 ---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>12</sub> |
| **User Notes:** | (1684368744) |

---

**PROTECTION OF PERSONS AND PROPERTY**

**10**

Regulations and Laws

1.5, 2.3.2, 3.2.3, 3.6, 3.7, 3.12.10, 3.13, 9.6.4, 9.9.1,

10.2.2, 13.1, 13.3, 13.4.1, 13.4.2, 13.5, 14, 15.2.8,

15.4 Rejection of Work

4.2.6, 12.2.1

Releases and Waivers of Liens

9.3.1, 9.10.2

Representations

3.2.1, 3.5, 3.12.6, 8.2.1, 9.3.3, 9.4.2, 9.5.1, 9.10.1

Representatives

2.1.1, 3.1.1, 3.9, 4.1.1, 4.2.10, 13.2.1

Responsibility for Those Performing the Work

3.3.2, 3.18, 4.2.2, 4.2.3, 5.3, 6.1.3, 6.2, 6.3, 9.5.1, 10

Retainage

9.3.1, 9.6.2, 9.8.5, 9.9.1, 9.10.2, 9.10.3

**Review of Contract Documents and Field Conditions by Contractor**

**3.2,** 3.12.7, 6.1.3

Review of Contractor's Submittals by Owner and Architect

3.10.1, 3.10.2, 3.11, 3.12, 4.2, 5.2, 6.1.3, 9.2, 9.8.2

Review of Shop Drawings, Product Data and Samples by Contractor

3.12 **Rights and Remedies**

1.1.2, 2.4, 2.5, 3.5, 3.7.4, 3.15.2, 4.2.6, 5.3, 5.4, 6.1,

6.3, 7.3.1, 8.3, 9.5.1, 9.7, 10.2.5, 10.3, 12.2.1, 12.2.2,

12.2.4, **13.3,** 14, 15.4

**Royalties, Patents and Copyrights**

3.17 Rules and Notices for Arbitration

15.4.1 **Safety of Persons and Property**

**10.2, 10.4**

**Safety Precautions and Programs**

3.3.1, 4.2.2, 4.2.7, 5.3, **10.1,** 10.2, 10.4

**Samples,** Definition of

**3.12.3** **Samples, Shop Drawings, Product Data and**

3.11, **3.12,** 4.2.7

**Samples at the Site, Documents and**

3.11 **Schedule of Values**

**9.2,** 9.3.1

Schedules, Construction

3.10, 3.12.1, 3.12.2, 6.1.3, 15.1.6.2

Separate Contracts and Contractors

1.1.4, 3.12.5, 3.14.2, 4.2.4, 4.2.7, 6, 8.3.1, 12.1.2

---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>13</sub> |
| **User Notes:** | (1684368744) |

---

**Separate Contractors,** Definition of **6.1.1**

**Shop Drawings,** Definition of **3.12.1**

**Shop Drawings, Product Data and Samples**

3.11, **3.12,** 4.2.7

**Site, Use of 3.13,** 6.1.1, 6.2.1

Site Inspections

3.2.2, 3.3.3, 3.7.1, 3.7.4, 4.2, 9.9.2, 9.4.2, 9.10.1, 13.4

Site Visits, Architect's

3.7.4, 4.2.2, 4.2.9, 9.4.2, 9.5.1, 9.9.2, 9.10.1, 13.4

Special Inspections and Testing 4.2.6, 12.2.1, 13.4

**Specifications,** Definition of **1.1.6**

**Specifications**

1.1.1, **1.1.6,** 1.2.2, 1.5, 3.12.10, 3.17, 4.2.14

Statute of Limitations 15.1.2, 15.4.1.1

Stopping the Work 2.2.2, 2.4, 9.7, 10.3, 14.1

Stored Materials

6.2.1, 9.3.2, 10.2.1.2, 10.2.4

**Subcontractor,** Definition of

**5.1.1** **SUBCONTRACTORS**

**5**

Subcontractors, Work by

1.2.2, 3.3.2, 3.12.1, 3.18, 4.2.3, 5.2.3, 5.3, 5.4,

9.3.1.2, 9.6.7

**Subcontractual Relations**

**5.3,** 5.4, 9.3.1.2, 9.6, 9.10, 10.2.1, 14.1, 14.2.1

Submittals

3.10, 3.11, 3.12, 4.2.7, 5.2.1, 5.2.3, 7.3.4, 9.2, 9.3,

9.8, 9.9.1, 9.10.2, 9.10.3

Submittal Schedule 3.10.2, 3.12.5, 4.2.7

**Subrogation, Waivers of**

6.1.1, **11.3**

**Substances, Hazardous**

10.3 **Substantial Completion**

4.2.9, 8.1.1, 8.1.3, 8.2.3, 9.4.2, **9.8,** 9.9.1, 9.10.3,

12.2, 15.1.2

**Substantial Completion,** Definition of **9.8.1**

Substitution of Subcontractors 5.2.3, 5.2.4

Substitution of Architect

2.3.3 Substitutions of Materials

3.4.2, 3.5, 7.3.8

---

| | |
|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com.<sub>14</sub> |
| **User Notes:** | (1684368744) |

---

**Sub-subcontractor,** Definition of

**5.1.2** Subsurface Conditions

3.7.4 **Successors and Assigns**

**13.2** **Superintendent**

**3.9,** 10.2.6

**Supervision and Construction Procedures**

1.2.2, **3.3,** 3.4, 3.12.10, 4.2.2, 4.2.7, 6.1.3, 6.2.4,

7.1.3, 7.3.4, 8.2, 8.3.1, 9.4.2, 10, 12, 14, 15.1.4

Suppliers

1.5, 3.12.1, 4.2.4, 4.2.6, 5.2.1, 9.3, 9.4.2, 9.5.4, 9.6,

9.10.5, 14.2.1

Surety

5.4.1.2, 9.6.8, 9.8.5, 9.10.2, 9.10.3, 11.1.2, 14.2.2,

15.2.7 Surety, Consent of

9.8.5, 9.10.2, 9.10.3

Surveys

1.1.7, 2.3.4

**Suspension by the Owner for Convenience**

14.3 Suspension of the Work

3.7.5, 5.4.2, 14.3

Suspension or Termination of the Contract

5.4.1.1, 14

**Taxes**

3.6, 3.8.2.1, 7.3.4.4

**Termination by the Contractor**

**14.1, 15.1.7**

**Termination by the Owner for Cause**

5.4.1.1, **14.2,** 15.1.7

**Termination by the Owner for Convenience**

14.4 Termination of the Architect

2.3.3 Termination of the Contractor Employment

14.2.2 **TERMINATION OR SUSPENSION OF THE CONTRACT**

**14**

**Tests and Inspections**

3.1.3, 3.3.3, 3.7.1, 4.2.2, 4.2.6, 4.2.9, 9.4.2, 9.8.3,

9.9.2, 9.10.1, 10.3.2, 12.2.1, **13.4**

**TIME**

**8**

**Time, Delays and Extensions of**

3.2.4, 3.7.4, 5.2.3, 7.2.1, 7.3.1, 7.4, **8.3,** 9.5.1, 9.7,

10.3.2, 10.4, 14.3.2, 15.1.6, 15.2.5

---

| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 15 |
| **User Notes:** | (1684368744) |  |

---

Time Limits

2.1.2, 2.2, 2.5, 3.2.2, 3.10, 3.11, 3.12.5, 3.15.1, 4.2,

5.2, 5.3, 5.4, 6.2.4, 7.3, 7.4, 8.2, 9.2, 9.3.1, 9.3.3,

9.4.1, 9.5, 9.6, 9.7, 9.8, 9.9, 9.10, 12.2, 13.4, 14,

15.1.2, 15.1.3, 15.4

**Time Limits on Claims**

3.7.4, 10.2.8, 15.1.2, 15.1.3

Title to Work 9.3.2, 9.3.3

**UNCOVERING AND CORRECTION OF **WORK**

**12**

**Uncovering of Work**

12.1 Unforeseen Conditions, Concealed or Unknown

3.7.4, 8.3.1, 10.3

Unit Prices 7.3.3.2, 9.1.2

Use of Documents

1.1.1, 1.5, 2.3.6, 3.12.6, 5.3

**Use of Site**

**3.13,** 6.1.1, 6.2.1

**Values, Schedule of**

**9.2, 9.3.1**

Waiver of Claims by the Architect

13.3.2 Waiver of Claims by the Contractor

9.10.5, 13.3.2, **15.1.7**

Waiver of Claims by the Owner

9.9.3, 9.10.3, 9.10.4, 12.2.2.1, 13.3.2, 14.2.4, **15.1.7**

Waiver of Consequential Damages

14.2.4, 15.1.7

Waiver of Liens

9.3, 9.10.2, 9.10.4

**Waivers of Subrogation**

6.1.1, **11.3**

**Warranty**

**3.5,** 4.2.9, 9.3.3, 9.8.4, 9.9.1, 9.10.2, 9.10.4, 12.2.2,

15.1.2 Weather Delays

8.3, 15.1.6.2

**Work,** Definition of **1.1.3**

Written Consent

1.5.2, 3.4.2, 3.7.4, 3.12.8, 3.14.2, 4.1.2, 9.3.2, 9.10.3,

13.2, 13.3.2, 15.4.4.2

Written Interpretations

4.2.11, 4.2.12

Written Orders

1.1.1, 2.4, 3.9, 7, 8.2.2, 12.1, 12.2, 13.4.2, 14.3.1

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 16 |
| **User Notes:** | (1684368744) |  |

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**ARTICLE 1 GENERAL PROVISIONS**

**§** 1.1 Basic Definitions**

**§ 1.1.1 The Contract Documents**

These General Conditions of the Contract for Construction (AIA® Document A201® – 2017) set forth herein, together with any Modifications issued after execution of this Contract, between Owner (as defined on the cover page) and Contractor (as defined on the cover page), are part of the "Contract Documents" as defined in that certain Standard Form of Agreement Between Owner and Contractor (AIA Document A101™–2017). A Modification is **(1)** a written amendment to the Contract Documents signed by Owner and Contractor or (2) a Change Order. Unless specifically enumerated in the Agreement, the Contract Documents do not include the advertisement or invitation to bid, Instructions to Bidders, sample forms, other information furnished by the Owner in anticipation of receiving bids or proposals, the Contractor's bid or proposal, or portions of Addenda relating to bidding or proposal requirements. Owner and Contractor are herein after referred to collectively as the "Parties" and each individually a "Party"

**§** 1.1.2 The Contract**

The Contract Documents form the Contract for Construction. The Contract represents the entire and integrated agreement between the Parties and supersedes prior negotiations, representations, or agreements, either written or oral. The Contract may be amended or modified only by a Modification. The Contract Documents shall not be construed to create a contractual relationship of any kind (1) between the Contractor and the Architect or the Architect's consultants, (2) between the Owner and a Subcontractor or a Sub-subcontractor, (3) between the Owner and the Architect or the Architect's consultants, or (4) between any persons or entities other than the Owner and the Contractor.

**§** 1.1.3 The Work**

The term "Work" means the construction and services required by the Contract Documents, whether completed or partially completed, and includes all other labor, materials, equipment, and services provided or to be provided by the Contractor to fulfill the Contractor's obligations. The Work may constitute the whole or a part of the Project.

**§** 1.1.4 The Project**

The Project is the project described in Standard Form of Agreement Between Owner and Contractor (AIA Document A101™–2017).

**§** 1.1.5 The Drawings**

The Drawings are the graphic and pictorial portions of the Contract Documents showing the design, location and dimensions of the Work, generally including plans, elevations, sections, details, schedules, and diagrams.

**§** 1.1.6 The Specifications**

The Specifications are that portion of the Contract Documents consisting of the written requirements for materials, equipment, systems, standards and workmanship for the Work, and performance of related services.

**§** 1.1.7 Instruments of Service**

Instruments of Service are representations, in any medium of expression now known or later developed, of the tangible and intangible creative work performed by the Architect and the Architect's consultants under their respective professional services agreements. Instruments of Service may include, without limitation, studies, surveys, models, sketches, drawings, specifications, and other similar materials.

**§** 1.2 Correlation and Intent of the Contract Documents**

**§ 1.2.1** The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work by the Contractor. The Contract Documents are complementary, and what is required by one shall be as binding as if required by all; performance by the Contractor shall be required only to the extent consistent with the Contract Documents and reasonably inferable from them as being necessary to produce the indicated results.

**§ 1.2.1.1** The invalidity of any provision of the Contract Documents shall not invalidate the Contract or its remaining provisions. If it is determined that any provision of the Contract Documents violates any law, or is otherwise invalid or unenforceable, then that provision shall be revised to the extent necessary to make that provision legal and enforceable. In such case the Contract Documents shall be construed, to the fullest extent permitted by law, to give effect to the parties' intentions and purposes in executing the Contract.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 17 |
| **User Notes:** | (1684368744) |  |

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**§ 1.2.2** Organization of the Specifications into divisions, sections and articles, and arrangement of Drawings shall not control the Contractor in dividing the Work among Subcontractors or in establishing the extent of Work to be performed by any trade.

**§ 1.2.3** Unless otherwise stated in the Contract Documents, words that have well-known technical or construction industry meanings are used in the Contract Documents in accordance with such recognized meanings.

**§** 1.3 Capitalization**

Terms capitalized in these General Conditions include those that are (1) specifically defined, (2) the titles of numbered articles, or (3) the titles of other documents published by the American Institute of Architects.

**§** 1.4 Interpretation**

In the interest of brevity the Contract Documents frequently omit modifying words such as "all" and "any" and articles such as "the" and "an," but the fact that a modifier or an article is absent from one statement and appears in another is not intended to affect the interpretation of either statement.

**§** 1.5 Ownership and Use of Drawings, Specifications, and Other Instruments of Service**

**§ 1.5.1** The Architect and the Architect's consultants shall be deemed the authors and owners of their respective Instruments of Service, including the Drawings and Specifications, and retain all common law, statutory, and other reserved rights in their Instruments of Service, including copyrights. The Contractor, Subcontractors, Sub-subcontractors, and suppliers shall not own or claim a copyright in the Instruments of Service. Submittal or distribution to meet official regulatory requirements or for other purposes in connection with the Project is not to be construed as publication in derogation of the Architect's or Architect's consultants' reserved rights.

**§ 1.5.2** The Contractor, Subcontractors, Sub-subcontractors, and suppliers are authorized to use and reproduce the Instruments of Service provided to them, subject to any protocols established pursuant to Sections 1.7 and 1.8, solely and exclusively for execution of the Work. All copies made under this authorization shall bear the copyright notice, if any, shown on the Instruments of Service. The Contractor, Subcontractors, Sub-subcontractors, and suppliers may not use the Instruments of Service on other projects or for additions to the Project outside the scope of the Work without the specific written consent of the Owner, Architect, and the Architect's consultants.

**§** 1.6 Notice**

**§ 1.6.1** Except as otherwise provided in Section 1.6.2, where the Contract Documents require one Party to notify or give notice to the other Party, such notice shall be provided in writing to the designated representative of the Party to whom the notice is addressed and shall be deemed to have been duly served if delivered in person, by mail, by courier, or by electronic transmission if a method for electronic transmission is set forth in the Agreement.

**§ 1.6.2** Notice of Claims as provided in Section 15.1.3 shall be provided in writing and shall be deemed to have been duly served only if delivered to the designated representative of the Party to whom the notice is addressed by certified or registered mail, or by courier providing proof of delivery.

**§ 1.7 Intentionally Omitted**

**§ 1.8 Intentionally Omitted**

**ARTICLE 2 OWNER**

**§ 2.1 General**

**§ 2.1.1** The Owner is the person or entity identified as such in the Agreement and is referred to throughout the Contract Documents as if singular in number. The Owner shall designate in writing a representative who shall have express authority to bind the Owner with respect to all matters requiring the Owner's approval or authorization. Except as otherwise provided in Section 4.2.1, the Architect does not have such authority. The term "Owner" means the Owner or the Owner's authorized representative.

**§ 2.1.2** The Owner shall furnish to the Contractor, within fifteen days after receipt of a written request, information necessary and relevant for the Contractor to evaluate, give notice of, or enforce mechanic's lien rights. Such information shall include a correct statement of the record legal title to the property on which the Project is located, usually referred to as the site, and the Owner's interest therein.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 18 |
| **User Notes:** | (1684368744) |  |

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**§** 2.2 Evidence of the Owner's Financial Arrangements**

**§ 2.2.1** Prior to commencement of the Work and upon written request by the Contractor, the Owner shall furnish to the Contractor reasonable evidence that the Owner has made financial arrangements to fulfill the Owner's obligations under the Contract. The Contractor shall have no obligation to commence the Work until the Owner provides such evidence. If commencement of the Work is delayed under this Section 2.2.1, the Contract Time shall be extended appropriately.

**§ 2.2.2** Following commencement of the Work and upon written request by the Contractor, the Owner shall furnish to the Contractor reasonable evidence that the Owner has made financial arrangements to fulfill the Owner's obligations under the Contract only if (1) the Owner fails to make payments to the Contractor as the Contract Documents require; (2) the Contractor identifies in writing a reasonable concern regarding the Owner's ability to make payment when due; or (3) a change in the Work materially changes the Contract Sum. If the Owner fails to provide such evidence, as required, within fourteen days of the Contractor's request, the Contractor may immediately stop the Work and, in that event, shall notify the Owner that the Work has stopped. However, if the request is made because a change in the Work materially changes the Contract Sum under (3) above, the Contractor may immediately stop only that portion of the Work affected by the change until reasonable evidence is provided. If the Work is stopped under this Section 2.2.2, the Contract Time shall be extended appropriately and the Contract Sum shall be increased by the amount of the Contractor's reasonable costs of shutdown, delay and start-up, plus interest as provided in the Contract Documents.

**§ 2.2.3** After the Owner furnishes evidence of financial arrangements under this Section 2.2, the Owner shall not materially vary such financial arrangements without prior notice to the Contractor.

**§ 2.2.4** Where the Owner has designated information furnished under this Section 2.2 as "confidential," the Contractor shall keep the information confidential and shall not disclose it to any other person. However, the Contractor may disclose "confidential" information, after seven (7) days' notice to the Owner, where disclosure is required by law, including a subpoena or other form of compulsory legal process issued by a court or governmental entity, or by court or arbitrator(s) order. The Contractor may also disclose "confidential" information to its employees, consultants, sureties, Subcontractors and their employees, Sub-subcontractors, and others who need to know the content of such information solely and exclusively for the Project and who agree to maintain the confidentiality of such information.

**§** 2.3 Information and Services Required of the Owner**

**§ 2.3.1** Except for permits and fees that are the responsibility of the Contractor under the Contract Documents, including those required under Section 3.7.1, the Owner shall secure and pay for necessary approvals, easements, assessments and charges required for construction, use or occupancy of permanent structures or for permanent changes in existing facilities.

**§ 2.3.2** The Owner shall retain an architect lawfully licensed to practice architecture, or an entity lawfully practicing architecture, in the jurisdiction where the Project is located. That person or entity is identified as the Architect in the Agreement and is referred to throughout the Contract Documents as if singular in number.

**§ 2.3.3** If the employment of the Architect terminates, the Owner shall employ a successor to whom the Contractor has no reasonable objection and whose status under the Contract Documents shall be that of the Architect.

**§ 2.3.4** The Owner shall furnish surveys describing physical characteristics, legal limitations and utility locations for the site of the Project, and a legal description of the site. The Contractor shall be entitled to rely on the accuracy of information furnished by the Owner but shall exercise proper precautions relating to the safe performance of the Work.

**§ 2.3.5** The Owner shall furnish information or services required of the Owner by the Contract Documents with reasonable promptness. The Owner shall also furnish any other information or services under the Owner's control and relevant to the Contractor's performance of the Work with reasonable promptness after receiving the Contractor's written request for such information or services.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 19 |
| **User Notes:** | (1684368744) |  |

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**§ 2.3.6** Unless otherwise provided in the Contract Documents, the Owner shall furnish to the Contractor one copy of the Contract Documents for purposes of making reproductions pursuant to Section 1.5.2.

**§** 2.4 Owner's Right to Stop the Work**

If the Contractor fails to correct Work that is not in accordance with the requirements of the Contract Documents as required by Section 12.2 or repeatedly fails to carry out Work in accordance with the Contract Documents, the Owner may issue a written order to the Contractor to stop the Work, or any portion thereof, until the cause for such order has been eliminated; however, the right of the Owner to stop the Work shall not give rise to a duty on the part of the Owner to exercise this right for the benefit of the Contractor or any other person or entity, except to the extent required by Section 6.1.3.

**§** 2.5 Owner's Right to Carry Out the Work**

If the Contractor defaults or neglects to carry out the Work in accordance with the Contract Documents and fails within a ten-day period after receipt of notice from the Owner to commence and continue correction of such default or neglect with diligence and promptness, the Owner may, without prejudice to other remedies the Owner may have, correct such default or neglect and the Owner may, pursuant to Section 9.5.1, withhold or nullify a Certificate for Payment in whole or in part, to the extent reasonably necessary to reimburse the Owner for the reasonable cost of correcting such deficiencies, including Owner's expenses and compensation for additional services made necessary by such default, neglect, or failure. If current and future payments are not sufficient to cover such amounts, the Contractor shall pay the difference to the Owner. If the Contractor disagrees with the actions of the Owner, or the amounts claimed as costs to the Owner, the Contractor may file a Claim pursuant to Article 15.

**ARTICLE 3 CONTRACTOR**

**§** 3.1 General**

**§ 3.1.1** The Contractor is the person or entity identified as such in the Agreement and is referred to throughout the Contract Documents as if singular in number. The Contractor shall be lawfully licensed, if required in the jurisdiction where the Project is located. The Contractor shall designate in writing a representative who shall have express authority to bind the Contractor with respect to all matters under this Contract. The term "Contractor" means the Contractor or the Contractor's authorized representative.

**§ 3.1.2** The Contractor shall perform the Work in accordance with the Contract Documents.

**§ 3.1.3** The Contractor shall not be relieved of its obligations to perform the Work in accordance with the Contract Documents either by activities or duties of the Architect, or by tests, inspections or approvals required or performed by persons or entities other than the Contractor.

**§** 3.2 Review of Contract Documents and Field Conditions by Contractor**

**§ 3.2.1** Execution of the Contract by the Contractor is a representation that the Contractor has visited the site, become generally familiar with local conditions under which the Work is to be performed, and correlated personal observations with requirements of the Contract Documents.

**§ 3.2.2** Because the Contract Documents are complementary, the Contractor shall, before starting each portion of the Work, carefully study and compare the various Contract Documents relative to that portion of the Work, as well as the information furnished by the Owner pursuant to Section 2.3.4, shall take field measurements of any existing conditions related to that portion of the Work, and shall observe any conditions at the site affecting it. These obligations are for the purpose of facilitating coordination and construction by the Contractor and are not for the purpose of discovering errors, omissions, or inconsistencies in the Contract Documents; however, the Contractor shall promptly report to the Owner any errors, inconsistencies or omissions discovered by or made known to the Contractor as a request for information in such form as the Owner may require. It is recognized that the Contractor's review is made in the Contractor's capacity as a contractor and not as a licensed design professional, unless otherwise specifically provided in the Contract Documents.

**§ 3.2.3** The Contractor is not required to ascertain that the Contract Documents are in accordance with applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities, but the Contractor shall promptly report to the Owner any nonconformity actually discovered by or made known to the Contractor as a request for information in such form as the Owner may reasonably require.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 20 |
| **User Notes:** | (1684368744) |  |

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**§ 3.2.4** If the Contractor believes that additional cost or time is involved because of clarifications or instructions in response to the Contractor's notices or requests for information pursuant to Sections 3.2.2 or 3.2.3, the Contractor shall submit Claims as provided in Article 15. If the Contractor fails to perform the obligations of Sections 3.2.2 or 3.2.3, the Contractor shall pay such costs and damages to the Owner, subject to Section 15.1.7, as would have been avoided if the Contractor had performed such obligations. If the Contractor performs those obligations, the Contractor shall not be liable to the Owner for damages resulting from errors, inconsistencies or omissions in the Contract Documents, for differences between field measurements or conditions and the Contract Documents, or for nonconformities of the Contract Documents to applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities.

**§** 3.3 Supervision and Construction Procedures**

**§ 3.3.1** The Contractor shall supervise and direct the Work, using the Contractor's best skill and attention. The Contractor shall be solely responsible for, and have control over, construction means, methods, techniques, sequences, and procedures, and for coordinating all portions of the Work under the Contract. If the Contract Documents give specific instructions concerning construction means, methods, techniques, sequences, or procedures, the Contractor shall evaluate the jobsite safety thereof and shall be solely responsible for the jobsite safety of such means, methods, techniques, sequences, or procedures. If the Contractor determines that such means, methods, techniques, sequences or procedures may not be safe, the Contractor shall give timely notice to the Owner, and shall propose alternative means, methods, techniques, sequences, or procedures.

**§ 3.3.2** The Contractor shall be responsible to the Owner for acts and omissions of the Contractor's employees, Subcontractors and their agents and employees, and other persons or entities performing portions of the Work for, or on behalf of, the Contractor or any of its Subcontractors.

**§ 3.3.3** The Contractor shall be responsible for inspection of portions of Work already performed to determine that such portions are in proper condition to receive subsequent Work.

**§** 3.4 Labor and Materials**

**§ 3.4.1** Unless otherwise provided in the Contract Documents, the Contractor shall provide and pay for labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation, and other facilities and services necessary for proper execution and completion of the Work, only to the extent they have been expressly provided in the Contract Documents.

**§ 3.4.2** Except in the case of minor changes in the Work approved in accordance with Section 3.12.8 or ordered in accordance with Section 7.4, the Contractor may make substitutions only with the consent of the Owner, and in accordance with a Change Order or Construction Change Directive.

**§ 3.4.3** The Contractor shall enforce strict discipline and good order among the Contractor's employees and other persons carrying out the Work. The Contractor shall not permit employment of unfit persons or persons not properly skilled in tasks assigned to them.

**§** 3.4.4 Procurement of Materials and Equipment**

**§ 3.4.4.1 Contractor Provided Materials and Equipment.**

Except for the materials and equipment provided by the Owner, the Contractor shall be responsible for purchasing, transporting, unloading and storing all materials and equipment required for completion of the Work. The Contractor shall carry out the procurement according to, if applicable, the brand scope and standards as set out in Exhibits to the Contract. In case of any change, the Contractor shall obtain the Owner's written consent before implement any change, not to be unreasonably withheld or delayed.

Before procurement of equipment and material, the Contractor shall submit to the Owner with the technical parameters, specifications and quantity of the equipment and materials, and samples and certificates of conformity issued by the manufacturer which the Owner deemed to be necessary. The Contractor shall only place orders after written approval from the Owner has been obtained.

The Contractor shall be responsible for the quality of materials and equipment purchased by the Contractor. Before the materials and equipment purchased by the Contractor are used in the Work, the Contractor shall inspect and test the purchased the materials and equipment based on the requirements set forth in the Contract Documents. Any equipment and material failing to pass the test shall not be used in the Work and the inspection or test expenses shall be borne by the Contractor and the Contractor shall promptly remove them from the site, repurchase materials and equipment that meet the requirements and bear the expenses arising therefrom without impact to the construction progress.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 21 |
| **User Notes:** | (1684368744) |  |

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If the brands of any equipment or materials are inconsistent with the requirements under the Contract, such equipment or materials can only be used in the Work upon the Owner's approval. The increase and decrease of the Contract Sum therefrom shall be determined based on negotiation and consent of the Parties in writing.

**§** 3.4.4.2 Owner Provided Materials and Equipment**

The materials and equipment identified on the Exhibit - Owner Supplied Equipment and Materials (collectively "Owner Provided Equipment"), shall be provided by Owner in accordance with the schedules set forth therein. Any late delivery of Owner Provided Equipment, plans, specifications or approvals, or by inaccurate plans or specifications provided by Owner; or defects in the Owner Provided Equipment or the Owner Provided Equipment otherwise fails to conform with the requirements of the Contract Documents, to the extent such incident causes, in whole or in part, a delay in Contractor's or its contractor or subcontractor's performance of the Work or an increase in Contractor's or its contractor or subcontractor's costs, it shall constitute an "Owner-Caused Delay", as such term is defined Standard Form of Agreement Between Owner and Contractor (AIA Document A101™–2017).

Owner shall give to Contractor reasonable notice of Owner Provided Equipment approaching their scheduled delivery dates in accordance with Exhibit - Owner Supplied Equipment and Materials and shall coordinate with Contractor when delivery will be made for the purpose of minimizing the impact on Contractor's performance of the Work and limiting the need for storage of Owner Provided Equipment by Contractor to that necessary for the efficient performance of the Work. To the extent the deliveries occur during the regular work hours, Contractor is responsible for unloading and storing the Owner Provided Equipment in accordance with the specifications provided by Owner in advance or industry practice. Promptly upon Contractor's receipt of any Owner Provided Equipment at the Project site Contractor shall (i) perform a visual inspection of such Owner Provided Equipment, and (ii) notify Owner and Owner's representative of the receipt of each Owner Provided Equipment.

For clarity, Contractor is not responsible for the inspection, inventorying, documentation or installation or any other services with respect to any of the Owner Supplied Equipment Materials, except for the unloading and storage services described above or otherwise expressly set forth in the Contract Documents.

**§** 3.5 Warranty**

**§ 3.5.1** The Contractor warrants to the Owner that materials and equipment furnished by Contractor under the Contract will be of good quality and new unless the Contract Documents require or permit otherwise. The Contractor further warrants that the Work will conform to the requirements of the Contract Documents and will be free from defects, except for those inherent in the quality of the Work the Contract Documents require or permit. Work, materials, or equipment not conforming to these requirements may be considered defective.. The Contractor's warranty excludes remedy for damage or defect caused by abuse, alterations to the Work not executed by the Contractor, improper or insufficient maintenance, improper operation, or normal wear and tear and normal usage. If required by the Owner, the Contractor shall furnish reasonably satisfactory evidence as to the kind and quality of materials and equipment.

**§ 3.5.2** All material, equipment, or other special warranties required by the Contract Documents shall be issued in the name of the Owner, or shall be transferable to the Owner, and shall commence in accordance with Section 9.8.4.

**§** 3.6 Taxes**

The Contractor shall pay sales, consumer, use and similar taxes for the Work provided by the Contractor that are legally enacted when bids are received or negotiations concluded, whether or not yet effective or merely scheduled to go into effect.

**§** 3.7 Permits, Fees, Notices and Compliance with Laws**

**§ 3.7.1** Unless otherwise provided in the Contract Documents, the Contractor shall secure and pay for the building permit as well as for other permits, fees, licenses, and inspections by government agencies necessary for proper execution and completion of the Work that are customarily secured after execution of the Contract and legally required at the time bids are received or negotiations concluded.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 22 |
| **User Notes:** | (1684368744) |  |

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**§ 3.7.2** The Contractor shall comply with and give notices required by applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities applicable to performance of the Work.

**§ 3.7.3** If the Contractor performs Work knowing it to be contrary to applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities, the Contractor shall assume appropriate responsibility for such Work and shall bear the costs attributable to correction.

**§** 3.7.4 Concealed or Unknown Conditions**

If the Contractor encounters conditions at the site that are (1) subsurface or otherwise concealed physical conditions that differ materially from those indicated in the Contract Documents or (2) unknown physical conditions of an unusual nature that differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the Contract Documents, the Contractor shall promptly provide notice to the Owner before conditions are disturbed and in no event later than 14 days after first observance of the conditions. The Owner will promptly investigate such conditions and, if the Owner determines that they differ materially and cause an increase or decrease in the Contractor's cost of, or time required for, performance of any part of the Work, will recommend that an equitable adjustment be made in the Contract Sum or Contract Time, or both. If the Owner determines that the conditions at the site are not materially different from those indicated in the Contract Documents and that no change in the terms of the Contract is justified, the Owner shall promptly notify the Owner and Contractor, stating the reasons.

**§ 3.7.5** If, in the course of the Work, the Contractor encounters human remains or recognizes the existence of burial markers, archaeological sites or wetlands not indicated in the Contract Documents, the Contractor shall immediately suspend any operations that would affect them and shall notify the Owner. Upon receipt of such notice, the Owner shall promptly take any action necessary to obtain governmental authorization required to resume the operations. The Contractor shall continue to suspend such operations until otherwise instructed by the Owner but shall continue with all other operations that do not affect those remains or features. Requests for adjustments in the Contract Sum and Contract Time arising from the existence of such remains or features may be made as provided in Article 15.

**§** 3.8 Intentionally Omitted**

**§ 3.9 Superintendent**

**§ 3.9.1** The Contractor shall employ a competent superintendent and necessary assistants who shall be in attendance at the Project site during performance of the Work. The superintendent shall represent the Contractor, and communications given to the superintendent shall be as binding as if given to the Contractor.

**§ 3.9.2** The Contractor, as soon as practicable after award of the Contract, shall notify the Owner of the name and qualifications of a proposed superintendent. Within 14 days of receipt of the information, the Owner may notify the Contractor, stating whether the Owner has reasonable objection to the proposed superintendent or requires additional time for review. Failure of the Owner to provide notice within the 14-day period shall constitute notice of no reasonable objection.

**§ 3.9.3** The Contractor shall not employ a proposed superintendent to whom the Owner has made reasonable and timely objection. The Contractor shall not change the superintendent without the Owner's consent, which shall not unreasonably be withheld or delayed.

**§** 3.10 Contractor's Construction and Submittal Schedules**

**§ 3.10.1** The Contractor, promptly after being awarded the Contract, shall submit for the Owner's information a Contractor's construction schedule for the Work. The schedule shall contain detail appropriate for the Project, including (1) the date of commencement of the Work, interim schedule milestone dates, and the date of Substantial Completion; (2) an apportionment of the Work by construction activity; and (3) the time required for completion of each portion of the Work. The schedule shall provide for the orderly progression of the Work to completion and shall not exceed time limits current under the Contract Documents. The schedule shall be revised at appropriate intervals as required by the conditions of the Work and Project.

**§ 3.10.2** The Contractor, promptly after being awarded the Contract and thereafter as necessary to maintain a current submittal schedule, shall submit a submittal schedule for the Owner's approval. The Owner's approval shall not be unreasonably delayed or withheld. The submittal schedule shall (1) be coordinated with the Contractor's construction schedule, and (2) allow the Owner reasonable time to review submittals. If the Contractor fails to submit a submittal schedule, or fails to provide submittals in accordance with the approved submittal schedule, the Contractor shall not be entitled to any increase in Contract Sum or extension of Contract Time based on the time required for review of submittals.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 23 |
| **User Notes:** | (1684368744) |  |

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**§ 3.10.3** The Contractor shall perform the Work in general accordance with the most recent schedules submitted to the Owner.

**§** 3.11 Documents and Samples at the Site**

The Contractor shall make available, at the Project site, the Contract Documents, including Change Orders, Construction Change Directives, and other Modifications, in good order and marked currently to indicate field changes and selections made during construction, and the approved Shop Drawings, Product Data, Samples, and similar required submittals. These shall be in electronic form or paper copy, available to the Owner, and delivered to the Owner for submittal upon completion of the Work as a record of the Work as constructed.

**§** 3.12 Shop Drawings, Product Data and Samples**

**§ 3.12.1** Shop Drawings are drawings, diagrams, schedules, and other data specially prepared for the Work by the Contractor or a Subcontractor, Sub-subcontractor, manufacturer, supplier, or distributor to illustrate some portion of the Work.

**§ 3.12.2** Product Data are illustrations, standard schedules, performance charts, instructions, brochures, diagrams, and other information furnished by the Contractor to illustrate materials or equipment for some portion of the Work.

**§ 3.12.3** Samples are physical examples that illustrate materials, equipment, or workmanship, and establish standards by which the Work will be judged.

**§ 3.12.4** Shop Drawings, Product Data, Samples, and similar submittals are not Contract Documents. Their purpose is to demonstrate how the Contractor proposes to conform to the information given and the design concept expressed in the Contract Documents for those portions of the Work for which the Contract Documents require submittals. Review by the Architect is subject to the limitations of Section 4.2.7. Informational submittals upon which the Architect is not expected to take responsive action may be so identified in the Contract Documents. Submittals that are not required by the Contract Documents may be returned by the Architect without action.

**§ 3.12.5** The Contractor shall review for compliance with the Contract Documents, approve, and submit to the Architect, Shop Drawings, Product Data, Samples, and similar submittals required by the Contract Documents, in accordance with the submittal schedule approved by the Architect or, in the absence of an approved submittal schedule, with reasonable promptness and in such sequence as to cause no delay in the Work or in the activities of the Owner or of Separate Contractors.

**§ 3.12.6** By submitting Shop Drawings, Product Data, Samples, and similar submittals, the Contractor represents to the Owner that the Contractor has (1) reviewed and approved them, (2) determined and verified materials, field measurements and field construction criteria related thereto, or will do so, and (3) checked and coordinated the information contained within such submittals with the requirements of the Work and of the Contract Documents.

**§ 3.12.7** The Contractor shall perform no portion of the Work for which the Contract Documents require submittal and review of Shop Drawings, Product Data, Samples, or similar submittals, until the respective submittal has been approved by the Architect.

**§ 3.12.8** The Work shall be in accordance with approved submittals except that the Contractor shall not be relieved of responsibility for deviations from the requirements of the Contract Documents by the Owner's approval of Shop Drawings, Product Data, Samples, or similar submittals, unless the Contractor has specifically notified the Owner of such deviation at the time of submittal and (1) the Owner has given written approval to the specific deviation as a minor change in the Work, or (2) a Change Order or Construction Change Directive has been issued authorizing the deviation. The Contractor shall not be relieved of responsibility for errors or omissions in Shop Drawings, Product Data, Samples, or similar submittals, by the Owner's approval thereof.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 24 |
| **User Notes:** | (1684368744) |  |

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**§ 3.12.9** The Contractor shall direct specific attention, in writing or on resubmitted Shop Drawings, Product Data, Samples, or similar submittals, to revisions other than those requested by the Owner on previous submittals. In the absence of such notice, the Owner's approval of a resubmission shall not apply to such revisions.

**§ 3.12.10** The Contractor shall not be required to provide professional services that constitute the practice of architecture or engineering unless such services are specifically required by the Contract Documents for a portion of the Work or unless the Contractor needs to provide such services in order to carry out the Contractor's responsibilities for construction means, methods, techniques, sequences, and procedures. The Contractor shall not be required to provide professional services in violation of applicable law.

**§ 3.12.10.1** If professional design services or certifications by a design professional related to systems, materials, or equipment are specifically required of the Contractor by the Contract Documents, the Owner will specify all performance and design criteria that such services must satisfy. The Contractor shall be entitled to rely upon the adequacy and accuracy of the performance and design criteria provided in the Contract Documents. The Contractor shall cause such services or certifications to be provided by an appropriately licensed design professional, whose signature and seal shall appear on all drawings, calculations, specifications, certifications, Shop Drawings, and other submittals prepared by such professional. Shop Drawings, and other submittals related to the Work, designed or certified by such professional, if prepared by others, shall bear such professional's written approval when submitted to the Architect. The Owner shall be entitled to rely upon the adequacy and accuracy of the services, certifications, and approvals performed or provided by such design professionals, provided the Owner have specified to the Contractor the performance and design criteria that such services must satisfy. Pursuant to this Section 3.12.10, the Owner will review and approve or take other appropriate action on submittals only for the limited purpose of checking for conformance with information given and the design concept expressed in the Contract Documents.

**§ 3.12.10.2** If the Contract Documents require the Contractor's design professional to certify that the Work has been performed in accordance with the design criteria, the Contractor shall furnish such certifications to the Owner at the time and in the form specified by the Owner.

**§** 3.13 Use of Site**

The Contractor shall confine operations at the site to areas permitted by applicable laws, statutes, ordinances, codes, rules and regulations, lawful orders of public authorities, and the Contract Documents and shall not unreasonably encumber the site with materials or equipment.

The Contractor shall connect temporary water and electricity from the connection points designated by the Owner to the site. The connection points shall be provided by the Owner, and the connection expenses shall be borne by the Contractor. The Contractor shall at its own cost provide any apparatus necessary for the Contractor's use of the water, electricity or other resources provided by the Owner and for measuring the quantities consumed.

The Contractor shall provide the Owner and on-site construction worker with trailers, toilets, water points, trash cans and other necessary facilities as required in connection with execution of the Work, but not otherwise.

The Contractor shall be responsible for providing and maintaining all lights, boards, fences and warning signals at its own expenses at the time and place required, under the requirements of applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities, and shall be responsible for security and the protection of the Work and provision of safety and convenience for the public.

The Contractor shall keep the site and the Work clean and ensure that the site is in a state of safety and orderly management to the satisfaction of the Owner. During the construction period, the Contractor shall remove all remaining materials and garbage out of the site on daily basis. Upon Substantial Completion, the Contractor needs to remove all of its equipment out of the site, and the expenses have been covered in the Contract Sum.

**§** 3.14 Cutting and Patching**

**§ 3.14.1** The Contractor shall be responsible for cutting, fitting, or patching required to complete the Work or to make its parts fit together properly. All areas requiring cutting, fitting, or patching shall be restored to the condition existing prior to the cutting, fitting, or patching, unless otherwise required by the Contract Documents.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 25 |
| **User Notes:** | (1684368744) |  |

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**§ 3.14.2** The Contractor shall not damage or endanger a portion of the Work or fully or partially completed construction of the Owner or Separate Contractors by cutting, patching, or otherwise altering such construction, or by excavation. The Contractor shall not cut or otherwise alter construction by the Owner or a Separate Contractor except with written consent of the Owner and of the Separate Contractor. Consent shall not be unreasonably withheld. The Contractor shall not unreasonably withhold, from the Owner or a Separate Contractor, its consent to cutting or otherwise altering the Work.

**§** 3.15 Cleaning Up**

**§ 3.15.1** The Contractor shall keep the premises and surrounding area free from accumulation of waste materials and rubbish caused by operations under the Contract. At completion of the Work, the Contractor shall remove waste materials, rubbish, the Contractor's tools, construction equipment, machinery, and surplus materials from and about the Project.

**§ 3.15.2** If the Contractor fails to clean up as provided in the Contract Documents, the Owner may do so and the Owner shall be entitled to reimbursement from the Contractor.

**§** 3.16 Access to Work**

The Contractor shall provide the Owner and Architect with access to the Work in preparation and progress wherever located.

**§** 3.17 Royalties, Patents and Copyrights**

The Contractor shall pay all royalties and license fees. The Contractor shall defend suits or claims for infringement of copyrights and patent rights and shall hold the Owner and Architect harmless from loss on account thereof, but shall not be responsible for defense or loss when a particular design, process, or product of a particular manufacturer or manufacturers is required by the Contract Documents, or where the copyright violations are contained in Drawings, Specifications, or other documents prepared by the Owner or Architect. However, if an infringement of a copyright or patent is discovered by, or made known to, the Contractor, the Contractor shall be responsible for the loss unless the information is promptly furnished to the Architect.

**§** 3.18 Indemnification**

**§ 3.18.1** To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Owner from and against claims, damages, losses, and expenses, including but not limited to attorneys' fees, arising out of or resulting from performance of the Work, provided that such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), but only to the extent caused by the negligent acts or omissions of the Contractor, a Subcontractor, anyone directly or indirectly employed by them, or anyone for whose acts they may be liable, regardless of whether or not such claim, damage, loss, or expense is caused in part by a party indemnified hereunder. Such obligation shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist as to a party or person described in this Section 3.18.

**§ 3.18.2** In claims against any person or entity indemnified under this Section 3.18 by an employee of the Contractor, a Subcontractor, anyone directly or indirectly employed by them, or anyone for whose acts they may be liable, the indemnification obligation under Section 3.18.1 shall not be limited by a limitation on amount or type of damages, compensation, or benefits payable by or for the Contractor or a Subcontractor under workers' compensation acts, disability benefit acts, or other employee benefit acts.

**ARTICLE 4 ARCHITECT**

**§** 4.1 General**

**§ 4.1.1** The Architect is the person or entity retained by the Owner pursuant to Section 2.3.2 and identified as such in the Agreement.

**§ 4.1.2** Duties, responsibilities, and limitations of authority of the Architect as set forth in the Contract Documents shall not be restricted, modified, or extended without written consent of the Owner, Contractor, and Architect. Consent shall not be unreasonably withheld.

**§ 4.2** Architect's Limited Role During Construction

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 26 |
| **User Notes:** | (1684368744) |  |

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**§ 4.2.1** The Architect will review and respond to requests for information about the Contract Documents. The Architect's response to such requests will be made in writing within any time limits agreed upon or otherwise with reasonable promptness. If appropriate, the Architect will prepare and issue supplemental Drawings and Specifications in response to the requests for information.

**ARTICLE 5 SUBCONTRACTORS**

**§** 5.1 Definitions**

**§ 5.1.1** A Subcontractor is a person or entity who has a direct contract with the Contractor to perform a portion of the Work at the site. The term "Subcontractor" is referred to throughout the Contract Documents as if singular in number and means a Subcontractor or an authorized representative of the Subcontractor. The term "Subcontractor" does not include a Separate Contractor or the subcontractors of a Separate Contractor.

**§ 5.1.2** A Sub-subcontractor is a person or entity who has a direct or indirect contract with a Subcontractor to perform a portion of the Work at the site. The term "Sub-subcontractor" is referred to throughout the Contract Documents as if singular in number and means a Sub-subcontractor or an authorized representative of the Sub-subcontractor.

**§** 5.2 Award of Subcontracts and other Contracts for Portions of the Work**

**§ 5.2.1** Unless otherwise stated in the Contract Documents, the Contractor, as soon as practicable after award of the Contract, shall notify the Owner of the persons or entities proposed for each principal portion of the Work, including those who are to furnish materials or equipment fabricated to a special design. Within 14 days of receipt of the information, the Owner may notify the Contractor whether the Owner (1) has reasonable objection to any such proposed person or entity or (2) requires additional time for review. Failure of the Owner to provide notice within the 14-day period shall constitute notice of no reasonable objection.

**§ 5.2.2** The Contractor shall not contract with a proposed person or entity to whom the Owner has made reasonable and timely objection. The Contractor shall not be required to contract with anyone to whom the Contractor has made reasonable objection.

**§ 5.2.3** If the Owner has reasonable objection to a person or entity proposed by the Contractor, the Contractor shall propose another to whom the Owner has no reasonable objection. If the proposed but rejected Subcontractor was reasonably capable of performing the Work, the Contract Sum and Contract Time shall be increased or decreased by the difference, if any, occasioned by such change, and an appropriate Change Order shall be issued before commencement of the substitute Subcontractor's Work. However, no increase in the Contract Sum or Contract Time shall be allowed for such change unless the Contractor has acted promptly and responsively in submitting names as required.

**§ 5.2.4** The Contractor shall not substitute a Subcontractor, person, or entity for one previously selected if the Owner makes reasonable objection to such substitution.

**§** 5.3 Subcontractual Relations**

By appropriate written agreement, the Contractor shall require each Subcontractor, to the extent of the Work to be performed by the Subcontractor, to be bound to the Contractor by terms of the Contract Documents, and to assume toward the Contractor all the obligations and responsibilities, including the responsibility for safety of the Subcontractor's Work that the Contractor, by these Contract Documents, assumes toward the Owner. Each subcontract agreement shall preserve and protect the rights of the Owner under the Contract Documents with respect to the Work to be performed by the Subcontractor so that subcontracting thereof will not prejudice such rights, and shall allow to the Subcontractor, unless specifically provided otherwise in the subcontract agreement, the benefit of all rights, remedies, and redress against the Contractor that the Contractor, by the Contract Documents, has against the Owner. Where appropriate, the Contractor shall require each Subcontractor to enter into similar agreements with Sub-subcontractors. The Contractor shall make available to each proposed Subcontractor, prior to the execution of the subcontract agreement, portions of the Contract Documents that are relevant for the Work to be performed by the Subcontractor and identify to the Subcontractor terms and conditions of the proposed subcontract agreement that may be at variance with the Contract Documents. Subcontractors will similarly make copies of applicable portions of such documents available to their respective proposed Sub-subcontractors.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 27 |
| **User Notes:** | (1684368744) |  |

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**§** 5.4 Contingent Assignment of Subcontracts**

**§ 5.4.1** Each subcontract agreement for a portion of the Work is assigned by the Contractor to the Owner, provided that

&nbsp;&nbsp;&nbsp;&nbsp;**1.** assignment
 is effective only after termination of the Contract by the Owner for cause pursuant to Section
 14.2 and only for those subcontract agreements that the Owner accepts by notifying the Subcontractor
 and Contractor; and

&nbsp;&nbsp;&nbsp;&nbsp;**2.** assignment
 is subject to the prior rights of the surety, if any, obligated under bond relating to the
 Contract.

When the Owner accepts the assignment of a subcontract agreement, the Owner assumes the Contractor's rights and obligations under the subcontract.

**§ 5.4.2** Upon such assignment, if the Work has been suspended for more than 30 days, the Subcontractor's compensation shall be equitably adjusted for increases in cost resulting from the suspension.

**§ 5.4.3** Upon assignment to the Owner under this Section 5.4, the Owner may further assign the subcontract to a successor contractor or other entity. If the Owner assigns the subcontract to a successor contractor or other entity, the Owner shall nevertheless remain legally responsible for all of the successor contractor's obligations under the subcontract.

**ARTICLE 6 CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS**

**§** 6.1 Owner's Right to Perform Construction and to Award Separate Contracts**

**§ 6.1.1** The term "Separate Contractor(s)" shall mean other contractors retained by the Owner under separate agreements. The Owner reserves the right to perform construction or operations related to the Project with the Owner's own forces, and with Separate Contractors retained under Conditions of the Contract substantially similar to those of this Contract, including those provisions of the Conditions of the Contract related to insurance and waiver of subrogation. Between Owner and Contractor, Owner shall be responsible for the actions and omissions of Separate Contractors of Owner.

**§ 6.1.2** Intentionally Omitted

**§ 6.1.3** The Owner shall provide for coordination of the activities of the Owner's own forces and of each Separate Contractor with the Work of the Contractor, who shall cooperate with them. The Contractor shall participate with any Separate Contractors and the Owner in reviewing their construction schedules. The Contractor shall make any revisions to its construction schedule deemed necessary after a joint review and mutual agreement. The construction schedules shall then constitute the schedules to be used by the Contractor, Separate Contractors, and the Owner until subsequently revised.

**§ 6.1.4** Unless otherwise provided in the Contract Documents, when the Owner performs construction or operations related to the Project with the Owner's own forces or with Separate Contractors, the Owner or its Separate Contractors shall have the same obligations and rights that the Contractor has under the Conditions of the Contract, including, without excluding others, those stated in Article 3, this Article 6, and Articles 10, 11, and 12.

**§** 6.2 Mutual Responsibility**

**§ 6.2.1** The Contractor shall afford the Owner and Separate Contractors reasonable opportunity for introduction and storage of their materials and equipment and performance of their activities, and shall connect and coordinate the Contractor's construction and operations with theirs as required by the Contract Documents.

**§ 6.2.2** If part of the Contractor's Work depends for proper execution or results upon construction or operations by the Owner or a Separate Contractor, the Contractor shall, prior to proceeding with that portion of the Work, promptly notify the Owner of apparent discrepancies or defects in the construction or operations by the Owner or Separate Contractor that would render it unsuitable for proper execution and results of the Contractor's Work. Failure of the Contractor to notify the Owner of apparent discrepancies or defects prior to proceeding with the Work shall constitute an acknowledgment that the Owner's or Separate Contractor's completed or partially completed construction is fit and proper to receive the Contractor's Work. The Contractor shall not be responsible for discrepancies or defects in the construction or operations by the Owner or Separate Contractor that are not apparent.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 28 |
| **User Notes:** | (1684368744) |  |

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**§ 6.2.3** The Contractor shall reimburse the Owner for costs the Owner incurs that are payable to a Separate Contractor because of the Contractor's delays, improperly timed activities or defective construction. The Owner shall be responsible to the Contractor for costs the Contractor incurs because of a Separate Contractor's delays, improperly timed activities, damage to the Work or defective construction.

**§ 6.2.4** The Contractor shall promptly remedy damage that the Contractor wrongfully causes to completed or partially completed construction or to property of the Owner or Separate Contractor as provided in Section 10.2.5.

**§ 6.2.5** The Owner and each Separate Contractor shall have the same responsibilities for cutting and patching as are described for the Contractor in Section 3.14.

**§** 6.3 Owner's Right to Clean Up**

If a dispute arises among the Contractor, Separate Contractors, and the Owner as to the responsibility under their respective contracts for maintaining the premises and surrounding area free from waste materials and rubbish, the Owner may clean up and allocate the cost among those responsible on an equitable basis.

**ARTICLE 7 CHANGES IN THE WORK**

**§** 7.1 General**

**§ 7.1.1** Changes in the Work may be accomplished after execution of the Contract, and without invalidating the Contract, by Change Order, Construction Change Directive or order for a minor change in the Work, subject to the limitations stated in this Article 7 and elsewhere in the Contract Documents.

**§ 7.1.2** A Change Order shall be based upon agreement among the Owner and Contractor. A Construction Change Directive requires agreement by the Owner and may or may not be agreed to by the Contractor. An order for a minor change in the Work may be issued by the Owner alone.

**§ 7.1.3** Changes in the Work shall be performed under applicable provisions of the Contract Documents. The Contractor shall proceed promptly with changes in the Work, unless otherwise provided in the Change Order, Construction Change Directive, or order for a minor change in the Work.

**§** 7.2 Change Orders**

**§ 7.2.1** A Change Order is a written instrument prepared by the Owner and shall be consented and signed by the Owner, and the Contractor stating their agreement upon all of the following:

1) there is change of the scope of Work hereunder due to the change initiated by the Owner;

2) the completed Work needs to be reconstructed due to the Owner's instruction in the implementation of the Project;

3) the Contractor submit written proposal of reasonable value engineering during the process of construction and the Owner gives consent to such proposal.

The parties agree that, if any portion of the Work completed by the Contractor does not meet the quality standards, specifications and other requirements of the Contract or the Owner, it shall not be deemed as change in the Work and the Contractor shall not be entitled to any increase in Contract Sum or extension of Milestone Dates.

Before the commencement of any Work, if the Contractor believes that a change to such Work in the Construction Change Directive involves increase or decrease in the Contract Sum, the Contractor shall notify the Owner within three days after receiving such Construction Change Directive. Upon written permission is issued by the Owner, the Contractor shall promptly proceed with the change without delay.

If during the construction the Owner needs to change the original Drawings, the Owner shall issue the Construction Change Order to the Contractor at least three days in advance. The Owner shall report to the local municipal authority for review and approval when the change is beyond the original design standard or the approved construction size. If the change constitutes deletion or reduction of the original scope of the Work, the saved engineering cost therefrom shall be deducted from the Contract Sum.

If any proposal of reasonable value engineering submitted by the Contractor during construction involves change in design drawings or construction organization or replacement of materials and equipment, the Contractor shall first report to the Owner and such change can only be implemented if the Owner has issued notice of no-objection. If the Contractor implement such change without the Owner's notice of no-objection, the Contractor shall be liable to the expenses and the Owner's direct losses arising therefrom and the Contractor shall not be entitled to any increase in Contract Sum or extension of Milestone Dates.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 29 |
| **User Notes:** | (1684368744) |  |

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If the Owner requires change in engineering quality standards or other essential changes occur during the performance of the Contract, both parties shall settle it through negotiation.

**§ 7.2.2** If the Change Order provides for an adjustment to the Contract Sum, the adjustment shall be [determined by the Owner] based on the following methods:

1) For Change Order amount less than 50,000 USD, the Contractor shall validate the price from Subcontractor and provide the original quotation to the Owner. The Change Order amount shall be calculated as Subcontractor's price plus the Contractor's management fee [7.5%].

2) For Change Order amount equal to or higher than 50,000 USD, each item of work forming part (or all) of the change, the appropriate rate or price for the item shall be the rate or price specified in the Bill of Quantities provided by Contractor or, if there is no such item, the rate or price specified for similar work; If no rate or price for this item is specified in the Bill of Quantities and no specified rate or price is appropriate because the item of work is not of similar character, or is not executed under similar conditions, as any item in the Contract, then the quantities of the work shall be measured and determined [by the Owner] and unit price shall be determined by the parties, which shall be recorded in the Change Order. The unit price for change shall be determined based on the formula of (material cost + labor cost) \* (1+contractor management fee proportion), the Contractor shall provide the unit price for different types of labor cost before the commencement of the construction, and for the purpose of this Section 7.2.2 the contractor management fee proportion shall be [7.5%].

Notwithstanding any provision to the contrary contained in the Contract, the Contractor undertakes that the increase of Contract Sum for all the changes initiated by both parties during the construction period in any situation shall not exceed 10% of the Contract Sum, and any additional cost beyond this amount shall be solely borne by the Contractor itself.

**§ 7.3** Construction Change Directives

**§ 7.3.1** A Construction Change Directive is a written order issued by the Owner, directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum or Contract Time, or both. The Owner may by Construction Change Directive, without invalidating the Contract, order changes in the Work within the general scope of the Contract consisting of additions, deletions, or other revisions.

**§ 7.3.2** A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Order.

**§ 7.3.3** Intentionally Omitted

**§ 7.3.4** Intentionally Omitted

**§ 7.3.5** If the Contractor disagrees with the adjustment in the Contract Time, the Contractor may make a Claim in accordance with applicable provisions of Article 15.

**§ 7.3.6** Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the Work involved and advise the Owner of the Contractor's agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in the Contract Sum or Contract Time.

**§ 7.3.7** A Construction Change Directive signed by the Contractor indicates the Contractor's agreement therewith, including adjustment in Contract Sum and Contract Time or the method for determining them. Such agreement shall be effective immediately and shall be recorded as a Change Order.

**§ 7.3.8** The amount of credit to be allowed by the Contractor to the Owner for a deletion or change that results in a net decrease in the Contract Sum shall be actual net cost as confirmed by the Owner. When both additions and credits covering related Work or substitutions are involved in a change, the allowance for overhead and profit shall be figured on the basis of net increase, if any, with respect to that change.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 30 |
| **User Notes:** | (1684368744) |  |

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**§ 7.3.9** Pending final determination of the total cost of a Construction Change Directive to the Owner, the Contractor may request payment for Work completed under the Construction Change Directive in Applications for Payment. The Owner will make an interim determination for purposes of monthly certification for payment for those costs and certify for payment the amount that the Owner determines to be reasonably justified. The Owner's interim determination of cost shall adjust the Contract Sum on the same basis as a Change Order, subject to the right of Contractor to disagree and assert a Claim in accordance with Article 15.

**§ 7.3.10** When the Owner and Contractor agree with a determination concerning the adjustments in the Contract Sum and Contract Time, or otherwise reach agreement upon the adjustments, such agreement shall be effective immediately and the Owner or Contractor will prepare a Change Order. Change Orders may be issued for all or any part of a Construction Change Directive.

**§** 7.4 Minor Changes in the Work**

The Owner may order minor changes in the Work that are consistent with the intent of the Contract Documents and do not involve an adjustment in the Contract Sum or an extension of the Contract Time. The Owner's order for minor changes shall be in writing. If the Contractor believes that the proposed minor change in the Work will affect the Contract Sum or Contract Time, the Contractor shall notify the Owner and shall not proceed to implement the change in the Work. If the Contractor performs the Work set forth in the Owner's order for a minor change without prior notice to the Owner that such change will affect the Contract Sum or Contract Time, the Contractor waives any adjustment to the Contract Sum or extension of the Contract Time.

**ARTICLE 8 TIME**

**§** 8.1 Definitions**

**§ 8.1.1** Unless otherwise provided, Contract Time is the period of time, including authorized adjustments, allotted in the Contract Documents for Substantial Completion of the Work.

**§ 8.1.2** The date of commencement of the Work is the NIP Date (as defined in AIA Document A101-2017)

**§ 8.1.3** The date of Substantial Completion is the date determined in accordance with Section 9.8.

**§ 8.1.4** The term "day" as used in the Contract Documents shall mean calendar day unless otherwise specifically defined.

**§** 8.2 Progress and Completion**

**§ 8.2.1** Time limits stated in the Contract Documents are of the essence of the Contract. By executing the Agreement, the Contractor confirms that the Contract Time is a reasonable period for performing the Work.

**§ 8.2.2** The Contractor shall not knowingly, except by agreement or instruction of the Owner in writing, commence the Work prior to the effective date of insurance required to be furnished by the Contractor and Owner.

**§ 8.2.3** The Contractor shall proceed expeditiously with adequate forces and shall achieve Substantial Completion within the Contract Time.

**§** 8.3 Delays and Extensions of Time**

**§ 8.3.1** If the Contractor is delayed at any time in the commencement or progress of the Work by (1) an act or neglect of the Owner or of a Separate Contractor; (2) by changes ordered in the Work; (3) by labor disputes, fire, unusual delay in deliveries, unavoidable casualties, adverse weather conditions documented in accordance with Section 15.1.6.2, or other causes beyond the Contractor's control; (4) by delay authorized by the Owner pending mediation and binding dispute resolution; or (5) by other causes that the Contractor asserts, and the Owner determines, justify delay, then the Contract Time shall be extended for such reasonable time as the Owner may determine.

**§ 8.3.2** Claims relating to time shall be made in accordance with applicable provisions of Article 15.

**§ 8.3.3** This Section 8.3 does not preclude recovery of damages for delay by either Party under other provisions of the Contract Documents.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 31 |
| **User Notes:** | (1684368744) |  |

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**ARTICLE 9 PAYMENTS AND COMPLETION**

**§** 9.1 Contract Sum**

**§ 9.1.1** The Contract Sum is stated in the Standard Form of Agreement Between Owner and Contractor (AIA Document A101™–2017) and, including authorized adjustments, is the total amount payable by the Owner to the Contractor for performance of the Work under the Contract Documents.

**§ 9.1.2** If unit prices are stated in the Contract Documents or subsequently agreed upon, and if quantities originally contemplated are materially changed so that application of such unit prices to the actual quantities causes substantial inequity to the Owner or Contractor, the applicable unit prices shall be equitably adjusted.

**§ 9.2** Schedule of Values Since the Contract Sum is a stipulated sum, the Contractor shall submit a schedule of values to the Owner for review and approval, allocating the entire Contract Sum to the various portions of the Work. The schedule of values shall be prepared in the form, and supported by the data to substantiate its accuracy, required by the Owner. Upon approval of the Owner, the schedule of values shall be included in the Contract as annex.

This schedule of values of the Work, as set forth in Exhibit IV – Schedule of Value, shall be used as a basis for reviewing the Contractor's Applications for Payment. The Contractor shall promptly update the schedule of values according to the progress of the Work. Any changes to the schedule of values shall be submitted to the Owner for review and approval and supported by such data to reasonably substantiate its accuracy as the Owner may require. Upon approval of the Owner, the schedule of values shall be used as a basis for reviewing the Contractor's subsequent Applications for Payment.

The Owner may check and verify the schedule of values by checking the progress visually. To facilitate the verification, the Contractor shall promptly submit the following documents to the Owner:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the
 progress report of the completed Work before the 5<sup>th</sup> day of every month<sup>1</sup>, for Work conducted in the immediate
 prior month, according to the project schedule; and

&nbsp;&nbsp;&nbsp;&nbsp;(2) supporting
 materials on which progress reports are based, including but not limited to photos and descriptions
 on any deviations to the schedule.

**§** 9.3 Applications for Payment**

**§ 9.3.1** At least ten days before the date established for each progress payment, the Contractor shall submit to the Owner an itemized Application for Payment prepared in accordance with the schedule of values, if required under Section 9.2, for completed portions of the Work. The application shall be notarized, if required, and supported by all data substantiating the Contractor's right to payment that the Owner requires, such as copies of requisitions, and releases and waivers of liens from Subcontractors and suppliers, and shall reflect retainage if provided for in the Contract Documents.

**§ 9.3.1.1** As provided in Section 7.3.9, such applications may include requests for payment on account of changes in the Work that have been properly authorized by Construction Change Directives, or by interim determinations of the Owner, but not yet included in Change Orders.

**§ 9.3.1.2** Applications for Payment shall not include requests for payment for portions of the Work for which the Contractor does not intend to pay a Subcontractor or supplier, unless such Work has been performed by others whom the Contractor intends to pay.

**§ 9.3.2** Unless otherwise provided in the Contract Documents, payments shall be made on account of materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work. If approved in advance by the Owner, payment may similarly be made for materials and equipment suitably stored off the site at a location agreed upon in writing. Payment for materials and equipment stored on or off the site shall be conditioned upon compliance by the Contractor with procedures satisfactory to the Owner to establish the Owner's title to such materials and equipment or otherwise protect the Owner's interest, and shall include the costs of applicable insurance, storage, and transportation to the site, for such materials and equipment stored off the site.

**§ 9.3.3** The Contractor warrants that title to all Work covered by an Application for Payment will pass to the Owner no later than the time of payment. The Contractor further warrants that upon submittal of an Application for Payment all Work for which Certificates for Payment have been previously issued and payments received from the Owner shall, to the best of the Contractor's knowledge, information, and belief, be free and clear of liens, claims, security interests, or encumbrances, in favor of the Contractor, Subcontractors, suppliers, or other persons or entities that provided labor, materials, and equipment relating to the Work.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 32 |
| **User Notes:** | (1684368744) |  |

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**§** 9.4 Certificates for Payment**

**§ 9.4.1** The Owner will, within fourteen days after receipt of the Contractor's Application for Payment, either (1) issue a Certificate for Payment in the full amount of the Application for Payment, with a copy to the Contractor; or (2) issue a Certificate for Payment for such amount as the Owner determines is properly due, and notify the Contractor of the Owner's reasons for withholding certification in part as provided in Section 9.5.1; or (3) withhold certification of the entire Application for Payment, and notify the Contractor of the Owner's reason for withholding certification in whole as provided in Section 9.5.1. The Owner may also seek certification from the Architect as appropriate to satisfy Owner's obligations to its landlord for reimbursement under the lease between Owner and its landlord.

**§ 9.4.2** The issuance of a Certificate for Payment will not be a representation that the Owner has (1) made exhaustive or continuous on-site inspections to check the quality or quantity of the Work; (2) reviewed construction means, methods, techniques, sequences, or procedures; (3) reviewed copies of requisitions received from Subcontractors and suppliers and other data requested by the Owner to substantiate the Contractor's right to payment; or (4) made examination to ascertain how or for what purpose the Contractor has used money previously paid on account of the Contract Sum.

**§ 9.5** Decisions to Withhold Certification

**§ 9.5.1** The Owner may withhold a Certificate for Payment in whole or in part, to the extent reasonably necessary to protect the Owner. The Owner may also withhold a Certificate for Payment or, because of subsequently discovered evidence, may nullify the whole or a part of a Certificate for Payment previously issued, to such extent as may be necessary to protect the Owner from loss for which the Contractor is responsible, including loss resulting from acts and omissions described in Section 3.3.2, because of

&nbsp;&nbsp;&nbsp;&nbsp;1. defective
 Work not remedied;

&nbsp;&nbsp;&nbsp;&nbsp;2. third
 party claims filed or reasonable evidence indicating probable filing of such claims, unless
 security acceptable to the Owner is provided by the Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;3. failure
 of the Contractor to make payments properly to Subcontractors or suppliers for labor, materials
 or equipment;

&nbsp;&nbsp;&nbsp;&nbsp;4. reasonable
 evidence that the Work cannot be completed for the unpaid balance of the Contract Sum;

&nbsp;&nbsp;&nbsp;&nbsp;5. damage
 to the Owner or a Separate Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;6. reasonable
 evidence that the Work will not be completed within the Contract Time, and that the unpaid
 balance would not be adequate to cover actual or liquidated damages for the anticipated delay;
 or

&nbsp;&nbsp;&nbsp;&nbsp;7. repeated
 failure to carry out the Work in accordance with the Contract Documents.

**§ 9.5.2** When the Contractor disputes the Owner's decision regarding a Certificate for Payment under Section 9.5.1, in whole or in part, that party may submit a Claim in accordance with Article 15.

**§ 9.5.3** When the reasons for withholding certification are removed, certification will be made for amounts previously withheld.

**§ 9.5.4** If the Owner withholds certification for payment under Section 9.5.1.3, the Owner may, at its sole option, issue joint checks to the Contractor and to any Subcontractor or supplier to whom the Contractor failed to make payment for Work properly performed or material or equipment suitably delivered. If the Owner makes payments by joint check, the Owner shall notify the Contractor and the Contractor shall reflect such payment on its next Application for Payment.

**§** 9.6 Progress Payments**

**§ 9.6.1** After the Owner has issued a Certificate for Payment, the Owner shall make payment in the manner and within the time provided in the Contract Documents.

**§ 9.6.2** The Contractor shall pay each Subcontractor, no later than ten days after receipt of payment from the Owner, the amount to which the Subcontractor is entitled, reflecting percentages actually retained from payments to the Contractor on account of the Subcontractor's portion of the Work. The Contractor shall, by appropriate agreement with each Subcontractor, require each Subcontractor to make payments to Sub-subcontractors in a similar manner.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 33 |
| **User Notes:** | (1684368744) |  |

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**§ 9.6.3** The Owner will, on request, furnish to a Subcontractor, if practicable, information regarding percentages of completion or amounts applied for by the Contractor and action taken thereon by the Owner on account of portions of the Work done by such Subcontractor.

**§ 9.6.4** The Owner has the right to request written evidence from the Contractor that the Contractor has properly paid Subcontractors and suppliers amounts paid by the Owner to the Contractor for subcontracted Work. If the Contractor fails to furnish such evidence within seven days, the Owner shall have the right to contact Subcontractors and suppliers to ascertain whether they have been properly paid. The Owner shall have no obligation to pay, or to see to the payment of money to, a Subcontractor or supplier, except as may otherwise be required by law.

**§ 9.6.5** The Contractor's payments to suppliers shall be treated in a manner similar to that provided in Sections 9.6.2, 9.6.3 and 9.6.4.

**§ 9.6.6** A Certificate for Payment, a progress payment, or partial or entire use or occupancy of the Project by the Owner shall not constitute acceptance of Work not in accordance with the Contract Documents.

**§ 9.6.7** Unless the Contractor provides the Owner with a payment bond in the full penal sum of the Contract Sum, payments received by the Contractor for Work properly performed by Subcontractors or provided by suppliers shall be held by the Contractor for those Subcontractors or suppliers who performed Work or furnished materials, or both, under contract with the Contractor for which payment was made by the Owner. Nothing contained herein shall require money to be placed in a separate account and not commingled with money of the Contractor, create any fiduciary liability or tort liability on the part of the Contractor for breach of trust, or entitle any person or entity to an award of punitive damages against the Contractor for breach of the requirements of this provision.

**§ 9.6.8** Provided the Owner has fulfilled its payment obligations under the Contract Documents, the Contractor shall defend and indemnify the Owner from all loss, liability, damage or expense, including reasonable attorney's fees and litigation expenses, arising out of any lien claim or other claim for payment by any Subcontractor or supplier of any tier. Upon receipt of notice of a lien claim or other claim for payment, the Owner shall notify the Contractor. If approved by the applicable court, when required, the Contractor may substitute a surety bond for the property against which the lien or other claim for payment has been asserted.

**§** 9.7 Failure of Payment**

If the Owner does not issue a Certificate for Payment, through no fault of the Contractor, within seven days after receipt of the Contractor's Application for Payment, or if the Owner does not pay the Contractor within seven days after the date established in the Contract Documents, the amount certified by the Owner or awarded by binding dispute resolution, then the Contractor may, upon seven additional days' notice to the Owner, stop the Work until payment of the amount owing has been received. The Contract Time shall be extended appropriately and the Contract Sum shall be increased by the amount of the Contractor's reasonable costs of shutdown, delay and start-up, plus interest as provided for in the Contract Documents.

**§** 9.8 Substantial Completion**

**§ 9.8.1** Substantial Completion is the stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work for its intended use.

**§ 9.8.2** When the Contractor considers that the Work, or a portion thereof which the Owner agrees to accept separately, is substantially complete, the Contractor shall prepare and submit to the Owner a comprehensive list of items to be completed or corrected prior to final payment. Contractor may include additional items in such list as it deems appropriate. Failure to include an item on such list does not alter the responsibility of the Contractor to complete all Work in accordance with the Contract Documents.

**§ 9.8.3** Upon receipt of the Contractor's list, the Owner will make an inspection to determine whether the Work or designated portion thereof is substantially complete. If the Owner inspection discloses any item, whether or not included on the Contractor's list, which is not sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work or designated portion thereof for its intended use, the Contractor shall, before issuance of the Certificate of Substantial Completion, complete or correct such item upon notification by the Owner. In such case, the Contractor shall then submit a request for another inspection by the Owner to determine Substantial Completion. Owner shall act promptly and in any event within seven days upon receipt of Contractor's list, provide Contractor with such notification or issue the Certificate of Substantial Completion.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 34 |
| **User Notes:** | (1684368744) |  |

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**§ 9.8.4** When the Work or designated portion thereof is substantially complete, the Owner will prepare a Certificate of Substantial Completion that shall establish the date of Substantial Completion; establish responsibilities of the Owner and Contractor for security, maintenance, heat, utilities, damage to the Work and insurance; and fix the time within which the Contractor shall finish all items on the list accompanying the Certificate. Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Work or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion.

**§ 9.8.5** The Certificate of Substantial Completion shall be submitted to the Owner and Contractor for their written acceptance of responsibilities assigned to them in the Certificate. Upon such acceptance, and consent of surety if any, the Owner shall make payment of retainage applying to the Work or designated portion thereof. Such payment shall be adjusted for Work that is incomplete or not in accordance with the requirements of the Contract Documents.

**§** 9.9 Partial Occupancy or Use**

**§ 9.9.1** The Owner may occupy or use any completed or partially completed portion of the Work at any stage when such portion is designated by separate agreement with the Contractor, provided such occupancy or use is consented to by the insurer and authorized by public authorities having jurisdiction over the Project. Such partial occupancy or use may commence whether or not the portion is substantially complete, provided the Owner and Contractor have accepted in writing the responsibilities assigned to each of them for payments, retainage, if any, security, maintenance, heat, utilities, damage to the Work and insurance, and have agreed in writing concerning the period for correction of the Work and commencement of warranties required by the Contract Documents. When the Contractor considers a portion substantially complete, the Contractor shall prepare and submit a list to the Owner and/or Architect as provided under Section 9.8.2. Consent of the Contractor to partial occupancy or use shall not be unreasonably withheld. The stage of the progress of the Work shall be determined by written agreement between the Owner and Contractor or, if no agreement is reached, by decision of the Owner.

**§ 9.9.2** Immediately prior to such partial occupancy or use, the Owner, and Contractor shall jointly inspect the area to be occupied or portion of the Work to be used in order to determine and record the condition of the Work.

**§ 9.9.3** Unless otherwise agreed upon, partial occupancy or use of a portion or portions of the Work shall not constitute acceptance of Work not complying with the requirements of the Contract Documents.

**§** 9.9.4 Requirements for Temporary Completion (TCO) and Completion Acceptance**

When the Contractor considers that the relevant portion of the Work is ready for the Completion Acceptance for the purpose of Temporary Completion (TCO), the Contractor shall send a notice to the Owner. If the Completion Acceptance test is delayed by the Contractor with no reason, the Owner may inform the Contractor to carry out the test within 14 days after receiving of the aforementioned notice. If the Contractor fails to cooperate with the Owner to carry out the Completion Acceptance test within the aforesaid time, the Owner may perform the test without the Contractor's presence at the Contractor's expenses.

If the relevant portion of the Work fails to pass the Completion Acceptance test (including any repeated test to be carried out within 14 days as planned), the Contractor shall promptly remedy such portion of the Work according to the Owner's opinions and requirements at its own cost until such portion passes the Completion Acceptance test.

If there is any item that has not been completed for specific reasons when the Owner agrees on Completion Acceptance, the parties shall enter into a Completion Acceptance agreement which provides the parties' responsibilities and the terms for the payment regarding the uncompleted items.

The Contractor shall contact municipal and relevant authorities on its own to inspect and accept the Work and shall be responsible for any delay in Milestone Dates caused by failing to timely inspect and accept the Work, under this situation the Contractor shall not be entitled to any increase in Contract Sum or extension of Milestone Dates. If the municipal and relevant authorities imposes any penalty due to the failure to meet the requirements for inspection and acceptance, the Contractor shall be responsible for any damages and losses arising thereof.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 35 |
| **User Notes:** | (1684368744) |  |

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If the Owner cannot attend the Completion Acceptance on time, the Owner shall send a request for postponing to the Contractor in writing at least 24 hours before the Completion Acceptance, and the postponed period shall not exceed 48 hours. If the quality of the Work meets the standards, specifications, design drawings and other requirements upon the Owner's Completion Acceptance, the Owners representative shall sign the acceptance records after the Completion Acceptance.

If the parties agree that on having a test run, the test run shall be consistent with the installation scope of work of the Contractor. When the conditions of single no-load test run for equipment installation work has achieved, the Contractor shall organize a test run and inform the Owner in writing at least 48 hours before the test run. The notice shall include the scope, time and place of the test run. The Contractor shall prepare test run records, and the Owner shall provide necessary conditions for the test run at the Contractor's request. If the test run is passed, the Owner's representative shall sign the test run records.

If the Owner cannot attend the test run on time, the Owner shall send a request for postponing to the Contractor in writing at least 24 hours before the trial run, and the postponed period shall not exceed 48 hours.

**§** 9.10 Final Completion and Final Payment**

**§ 9.10.1** Upon receipt of the Contractor's notice that the Work is ready for final inspection and acceptance and upon receipt of a final Application for Payment, the Owner will promptly make such inspection. When the Owner finds the Work acceptable under the Contract Documents and the Contract fully performed, the Owner will promptly issue a final Certificate for Payment stating that to the best of their knowledge, information and belief, the Work has been completed in accordance with the Contract Documents and that the entire balance found to be due the Contractor and noted in the final Certificate is due and payable. The final Certificate for Payment will constitute a further representation that conditions listed in Section 9.10.2 as precedent to the Contractor's being entitled to final payment have been fulfilled.

**§ 9.10.2** Neither final payment nor any remaining retained percentage shall become due until the Contractor submits to the Owner (1) an affidavit that payrolls, bills for materials and equipment, and other indebtedness connected with the Work for which the Owner or the Owner's property might be responsible or encumbered (less amounts withheld by Owner) have been paid or otherwise satisfied, (2) a certificate evidencing that insurance required by the Contract Documents to remain in force after final payment is currently in effect, (3) a written statement that the Contractor knows of no reason that the insurance will not be renewable to cover the period required by the Contract Documents, (4) consent of surety, if any, to final payment, (5) documentation of any special warranties, such as manufacturers' warranties or specific Subcontractor warranties, if applicable, and (6) if required by the Owner, other data establishing payment or satisfaction of obligations, such as receipts and releases and waivers of liens, claims, security interests, or encumbrances arising out of the Contract, to the extent and in such form as may be designated by the Owner. If a Subcontractor refuses to furnish a release or waiver required by the Owner, the Contractor may furnish a bond satisfactory to the Owner to indemnify the Owner against such lien, claim, security interest, or encumbrance. If a lien, claim, security interest, or encumbrance remains unsatisfied after payments are made, the Contractor shall refund to the Owner all money that the Owner may be compelled to pay in discharging the lien, claim, security interest, or encumbrance, including all costs and reasonable attorneys' fees.

**§ 9.10.3** If, after Substantial Completion of the Work, final completion thereof is materially delayed through no fault of the Contractor or by issuance of Change Orders affecting final completion, and the Owner so confirms, the Owner shall, upon application by the Contractor and certification by the Owner, and without terminating the Contract, make payment of the balance due for that portion of the Work fully completed, corrected, and accepted. If the remaining balance for Work not fully completed or corrected is less than retainage stipulated in the Contract Documents, and if bonds have been furnished, the written consent of the surety to payment of the balance due for that portion of the Work fully completed and accepted shall be submitted by the Contractor to the Owner prior to certification of such payment. Such payment shall be made under terms and conditions governing final payment, except that it shall not constitute a waiver of Claims.

**§ 9.10.4** The making of final payment shall constitute a waiver of Claims by the Owner except those arising from

&nbsp;&nbsp;&nbsp;&nbsp;**1.** liens,
 Claims, security interests, or encumbrances arising out of the Contract and unsettled;

&nbsp;&nbsp;&nbsp;&nbsp;**2.** failure
 of the Work to comply with the requirements of the Contract Documents;

&nbsp;&nbsp;&nbsp;&nbsp;**3.** terms
 of special warranties required by the Contract Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;**4.** audits
 performed by the Owner, if permitted by the Contract Documents, after final payment.

**§ 9.10.5** Acceptance of final payment by the Contractor, a Subcontractor, or a supplier, shall constitute a waiver of claims by that payee except those previously made in writing and identified by that payee as unsettled at the time of final Application for Payment.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 36 |
| **User Notes:** | (1684368744) |  |

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**ARTICLE 10 PROTECTION OF PERSONS AND PROPERTY**

**§** 10.1 Safety Precautions and Programs**

The Contractor shall be responsible for initiating, maintaining, and supervising all safety precautions and programs in connection with the performance of the Contract.

**§** 10.2 Safety of Persons and Property**

**§ 10.2.1** The Contractor shall take reasonable precautions for safety of, and shall provide reasonable protection to prevent damage, injury, or loss to

&nbsp;&nbsp;&nbsp;&nbsp;**1.** employees
 on the Work and other persons who may be affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;**2.** the
 Work and materials and equipment to be incorporated therein, whether in storage on or off
 the site, under care, custody, or control of the Contractor, a Subcontractor, or a Sub-subcontractor;
 and

&nbsp;&nbsp;&nbsp;&nbsp;**3.** other
 property at the site or adjacent thereto, such as trees, shrubs, lawns, walks, pavements,
 roadways, structures, and utilities not designated for removal, relocation, or replacement
 in the course of construction.

**§ 10.2.2** The Contractor shall comply with, and give notices required by applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities, bearing on safety of persons or property or their protection from damage, injury, or loss.

**§ 10.2.3** The Contractor shall implement, erect, and maintain, as required by existing conditions and performance of the Contract, reasonable safeguards for safety and protection, including posting danger signs and other warnings against hazards; promulgating safety regulations; and notifying the owners and users of adjacent sites and utilities of the safeguards.

**§ 10.2.4** When use or storage of explosives or other hazardous materials or equipment, or unusual methods are necessary for execution of the Work, the Contractor shall exercise utmost care and carry on such activities under supervision of properly qualified personnel.

**§ 10.2.5** The Contractor shall promptly remedy damage and loss (other than damage or loss insured under property insurance required by the Contract Documents) to property referred to in Sections 10.2.1.2 and 10.2.1.3 caused in whole or in part by the Contractor, a Subcontractor, a Sub-subcontractor, or anyone directly or indirectly employed by any of them, or by anyone for whose acts they may be liable and for which the Contractor is responsible under Sections 10.2.1.2 and 10.2.1.3. The Contractor may make a Claim for the cost to remedy the damage or loss to the extent such damage or loss is attributable to acts or omissions of the Owner, and not attributable to the fault or negligence of the Contractor. The foregoing obligations of the Contractor are in addition to the Contractor's obligations under Section 3.18.

**§ 10.2.6** The Contractor shall designate a responsible member of the Contractor's organization at the site whose duty shall be the prevention of accidents. This person shall be the Contractor's representative unless otherwise designated by the Contractor in writing to the Owner.

**§ 10.2.7** The Contractor shall not permit any part of the construction or site to be loaded so as to cause damage or create an unsafe condition.

**§** 10.2.8 Injury or Damage to Person or Property**

If either Party suffers injury or damage to person or property because of an act or omission of the other Party, or of others for whose acts such Party is legally responsible, notice of the injury or damage, whether or not insured, shall be given to the other Party within a reasonable time not exceeding 21 days after discovery. The notice shall provide sufficient detail to enable the other Party to investigate the matter.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 37 |
| **User Notes:** | (1684368744) |  |

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**§** 10.3 Hazardous Materials and Substances**

**§ 10.3.1** The Contractor is responsible for compliance with any requirements included in the Contract Documents regarding hazardous materials or substances. If the Contractor encounters a hazardous material or substance not addressed in the Contract Documents and if reasonable precautions will be inadequate to prevent foreseeable bodily injury or death to persons resulting from a material or substance, including but not limited to asbestos or polychlorinated biphenyl (PCB), encountered on the site by the Contractor, the Contractor shall, upon recognizing the condition, immediately stop Work in the affected area and notify the Owner of the condition.

**§ 10.3.2** Upon receipt of the Contractor's notice, the Owner shall obtain the services of a licensed laboratory to verify the presence or absence of the material or substance reported by the Contractor and, in the event such material or substance is found to be present, to cause it to be rendered harmless. Unless otherwise required by the Contract Documents, the Owner shall furnish in writing to the Contractor the names and qualifications of persons or entities who are to perform tests verifying the presence or absence of the material or substance or who are to perform the task of removal or safe containment of the material or substance. The Contractor will promptly reply to the Owner in writing stating whether or not it has reasonable objection to the persons or entities proposed by the Owner. If the Contractor has an objection to a person or entity proposed by the Owner, the Owner shall propose another to whom the Contractor has no reasonable objection. When the material or substance has been rendered harmless, Work in the affected area shall resume upon written agreement of the Owner and Contractor. By Change Order, the Contract Time shall be extended appropriately and the Contract Sum shall be increased by the amount of the Contractor's reasonable additional costs of shutdown, delay, and start-up.

**§ 10.3.3** To the fullest extent permitted by law, the Owner shall indemnify and hold harmless the Contractor, Subcontractors, and agents and employees of any of them from and against claims, damages, losses, and expenses, including but not limited to attorneys' fees, arising out of or resulting from performance of the Work in the affected area if in fact the material or substance presents the risk of bodily injury or death as described in Section 10.3.1 and has not been rendered harmless, provided that such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), except to the extent that such damage, loss, or expense is due to the fault or negligence of the Party seeking indemnity.

**§ 10.3.4** The Owner shall not be responsible under this Section 10.3 for hazardous materials or substances the Contractor brings to the site unless such materials or substances are required by the Contract Documents. The Owner shall be responsible for hazardous materials or substances required by the Contract Documents, except to the extent of the Contractor's fault or negligence in the use and handling of such materials or substances.

**§ 10.3.5** The Contractor shall reimburse the Owner for the cost and expense the Owner incurs (1) for remediation of hazardous materials or substances the Contractor brings to the site and negligently handles, or (2) where the Contractor fails to perform its obligations under Section 10.3.1, except to the extent that the cost and expense are due to the Owner's fault or negligence.

**§ 10.3.6** If, without negligence on the part of the Contractor, the Contractor is held liable by a government agency for the cost of remediation of a hazardous material or substance solely by reason of performing Work as required by the Contract Documents, the Owner shall reimburse the Contractor for all cost and expense thereby incurred.

**§** 10.4 Emergencies**

In an emergency affecting safety of persons or property, the Contractor shall act, at the Contractor's discretion, to prevent threatened damage, injury, or loss. Additional compensation or extension of time claimed by the Contractor on account of an emergency shall be determined as provided in Article 15 and Article 7.

**§** 10.5 Requirements for Safe Construction**

**§ 10.5.1** The Contractor shall comply with the safety requirements of the Contract Documents and applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities. The Contractor shall organize construction in strict accordance with safety standards, organize regular safety inspections and report to the Owner, accept the supervision and inspection implemented by the Owner and public authority at any time and take necessary safety protection measures to eliminate hidden accident dangers. The Contractor shall bear any liabilities and expenses arising from the accidents caused by the Contractor's or its Subcontractor's failure to take safety measures in accordance with the Contract Documents, except to the extent that the liabilities and expenses are due to the Owner's fault or negligence.

**§ 10.5.2** The Contractor shall carry out safety training on its personnel and labor at the site and be responsible for their safety.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 38 |
| **User Notes:** | (1684368744) |  |

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**§ 10.5.3** The Contractor shall provide all safety protective articles, appliances and signs according to the safety requirements of the Contract Documents and applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities. The Contractor shall inform the Owner in advance of any high risk activities, such as climbing, fire and confined space and such activities can only be implemented after completing the relevant formalities as required.

**§ 10.5.4** The Owner has the right to carry out safety inspections on the site regularly. If it is discovered that any safety management requirement is violated or there is any hidden safety danger, the Owner may require the Contractor to rectify, and the Contractor shall complete the rectifications within 24 hours. If the circumstance is serious, the Owner may order suspension of the Work for rectifications In the event that the Contractor violates the same safety management requirements for the second time or has the same hidden safety dangers or the hidden safety dangers is not rectified as scheduled, the Contractor shall pay liquidated damages to the Owner in accordance with Section 4.5 of the Agreement and the Owner has the right to order the suspension of the Work until the rectifications are completed. For any suspension ordered by the Owner under this Section 10.5, the Contractor shall be liable for any damages resulting therefrom and shall not be entitled to extension of Milestone Dates.

**§ 10.5.5** In the whole process of construction, completion and warranty period, the Contractor shall be responsible for the safety of all personnel and construction equipment at site. Except for the injury and losses caused by the gross negligence or willful act of the Owner or the Owner's personnel, the Owner shall not be liable for any damages or losses arising from the Contractor or its subcontractor's injury or construction equipment losses.

**§ 10.5.6** When a major casualty and other safety accidents occur, the Contractor shall immediately report to the relevant public authorities and inform the Owner according to the applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities, and deal with them according to the requirements of relevant public authorities. The party liable for such accident shall bear the expenses incurred.

**ARTICLE 11 INSURANCE AND BONDS**

**§ 11.1 Contractor's Insurance and Bonds**

**§ 11.1.1** The Contractor shall purchase and maintain insurance of the types and limits of liability, containing the endorsements, and subject to the terms and conditions, as described in the Agreement or elsewhere in the Contract Documents. The Contractor shall purchase and maintain the required insurance from an insurance company or insurance companies lawfully authorized to issue insurance in the jurisdiction where the Project is located. The Owner shall be named as additional insureds under the Contractor's commercial general liability policy or as otherwise described in the Contract Documents.

**§ 11.1.2** The Contractor shall provide surety bonds of the types, for such penal sums, and subject to such terms and conditions as required by the Contract Documents. The Contractor shall purchase and maintain the required bonds from a company or companies lawfully authorized to issue surety bonds in the jurisdiction where the Project is located.

**§ 11.1.3** Upon the request of any person or entity appearing to be a potential beneficiary of bonds covering payment of obligations arising under the Contract, the Contractor shall promptly furnish a copy of the bonds or shall authorize a copy to be furnished.

**§ 11.1.4 Notice of Cancellation or Expiration of Contractor's Required Insurance.** Within three (3) business days of the date the Contractor becomes aware of an impending or actual cancellation or expiration of any insurance required by the Contract Documents, the Contractor shall provide notice to the Owner of such impending or actual cancellation or expiration. Upon receipt of notice from the Contractor, the Owner shall, unless the lapse in coverage arises from an act or omission of the Owner, have the right to stop the Work until the lapse in coverage has been cured by the procurement of replacement coverage by the Contractor. The furnishing of notice by the Contractor shall not relieve the Contractor of any contractual obligation to provide any required coverage.

**§ 11.2 Owner's Insurance**

**§ 11.2.1** The Owner shall purchase and maintain insurance of the types and limits of liability, containing the endorsements, and subject to the terms and conditions, as described in the Agreement or elsewhere in the Contract Documents. The Owner shall purchase and maintain the required insurance from an insurance company or insurance companies lawfully authorized to issue insurance in the jurisdiction where the Project is located.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 39 |
| **User Notes:** | (1684368744) |  |

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**§ 11.2.2 Failure to Purchase Required Property Insurance.** If the Owner fails to purchase and maintain the required property insurance, with all of the coverages and in the amounts described in the Agreement or elsewhere in the Contract Documents, the Owner shall inform the Contractor in writing prior to commencement of the Work. Upon receipt of notice from the Owner, the Contractor may delay commencement of the Work and may obtain insurance that will protect the interests of the Contractor, Subcontractors, and Sub-Subcontractors in the Work. When the failure to provide coverage has been cured or resolved, the Contract Sum and Contract Time shall be equitably adjusted. In the event the Owner fails to procure coverage, the Owner waives all rights against the Contractor, Subcontractors, and Sub-subcontractors to the extent the loss to the Owner would have been covered by the insurance to have been procured by the Owner. The cost of the insurance shall be charged to the Owner by a Change Order. If the Owner does not provide written notice, and the Contractor is damaged by the failure or neglect of the Owner to purchase or maintain the required insurance, the Owner shall reimburse the Contractor for all reasonable costs and damages attributable thereto.

**§ 11.2.3 Notice of Cancellation or Expiration of Owner's Required Property Insurance.** Within three (3) business days of the date the Owner becomes aware of an impending or actual cancellation or expiration of any property insurance required by the Contract Documents, the Owner shall provide notice to the Contractor of such impending or actual cancellation or expiration. Unless the lapse in coverage arises from an act or omission of the Contractor: (1) the Contractor, upon receipt of notice from the Owner, shall have the right to stop the Work until the lapse in coverage has been cured by the procurement of replacement coverage by either the Owner or the Contractor; (2) the Contract Time and Contract Sum shall be equitably adjusted; and (3) the Owner waives all rights against the Contractor, Subcontractors, and Sub-subcontractors to the extent any loss to the Owner would have been covered by the insurance had it not expired or been cancelled. If the Contractor purchases replacement coverage, the cost of the insurance shall be charged to the Owner by an appropriate Change Order. The furnishing of notice by the Owner shall not relieve the Owner of any contractual obligation to provide required insurance.

**§ 11.3 Waivers of Subrogation**

**§ 11.3.1** The Owner and Contractor waive all rights against (1) each other and any of their subcontractors, sub-subcontractors, agents, and employees, each of the other; (2) the Architect and Architect's consultants; and (3) Separate Contractors, if any, and any of their subcontractors, sub-subcontractors, agents, and employees, for damages caused by fire, or other causes of loss, to the extent those losses are covered by property insurance required by the Agreement or other property insurance applicable to the Project, except such rights as they have to proceeds of such insurance. The Owner or Contractor, as appropriate, shall require similar written waivers in favor of the individuals and entities identified above from the Architect, Architect's consultants, Separate Contractors, subcontractors, and sub-subcontractors. The policies of insurance purchased and maintained by each person or entity agreeing to waive claims pursuant to this section 11.3.1 shall not prohibit this waiver of subrogation. This waiver of subrogation shall be effective as to a person or entity (1) even though that person or entity would otherwise have a duty of indemnification, contractual or otherwise, (2) even though that person or entity did not pay the insurance premium directly or indirectly, or (3) whether or not the person or entity had an insurable interest in the damaged property.

**§ 11.3.2** If during the Project construction period the Owner insures properties, real or personal or both, at or adjacent to the site by property insurance under policies separate from those insuring the Project, or if after final payment property insurance is to be provided on the completed Project through a policy or policies other than those insuring the Project during the construction period, to the extent permissible by such policies, the Owner waives all rights in accordance with the terms of Section 11.3.1 for damages caused by fire or other causes of loss covered by this separate property insurance.

**§ 11.4 Loss of Use, Business Interruption, and Delay in Completion Insurance**

The Owner, at the Owner's option, may purchase and maintain insurance that will protect the Owner against loss of use of the Owner's property, or the inability to conduct normal operations, due to fire or other causes of loss.

**§**11.5 Adjustment and Settlement of Insured Loss**

**§ 11.5.1** A loss insured under the property insurance required by the Agreement shall be adjusted by the Owner as fiduciary and made payable to the Owner as fiduciary for the insureds, as their interests may appear, subject to requirements of any applicable mortgagee clause and of Section 11.5.2. The Owner shall pay the Contractor its share of insurance proceeds received by the Owner on an equitable basis, and by appropriate agreements the Contractor shall make payments to its Subcontractors in similar manner.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 40 |
| **User Notes:** | (1684368744) |  |

---

**§ 11.5.2** Prior to settlement of an insured loss, the Owner shall notify the Contractor of the terms of the proposed settlement as well as the proposed allocation of the insurance proceeds. The Contractor shall have 14 days from receipt of notice to object to the proposed settlement or allocation of the proceeds. If the Contractor does not object, the Owner shall settle the loss and the Contractor shall be bound by the settlement and allocation. Upon receipt, the Owner shall deposit the insurance proceeds in a separate account and make the appropriate distributions. Thereafter, if no other agreement is made or the Owner does not terminate the Contract for convenience, the Owner and Contractor shall execute a Change Order for reconstruction of the damaged or destroyed Work in the amount allocated for that purpose. If the Contractor timely objects to either the terms of the proposed settlement or the allocation of the proceeds, the Owner may proceed to settle the insured loss, and any dispute between the Owner and Contractor arising out of the settlement or allocation of the proceeds shall be resolved pursuant to Article 15.

**ARTICLE 12 UNCOVERING AND CORRECTION OF WORK**

**§ 12.1 Uncovering of Work**

**§ 12.1.1** If a portion of the Work is covered contrary to the Owner's request or to requirements specifically expressed in the Contract Documents, it must, if requested in writing by the Owner, be uncovered for the Owner's examination and be replaced at the Contractor's expense without change in the Contract Time.

**§ 12.1.2** If a portion of the Work has been covered that the Owner has not specifically requested to examine prior to its being covered, the Owner may request to see such Work and it shall be uncovered by the Contractor. If such Work is in accordance with the Contract Documents, the Contractor shall be entitled to an equitable adjustment to the Contract Sum and Contract Time as may be appropriate. If such Work is not in accordance with the Contract Documents, the costs of uncovering the Work, and the cost of correction, shall be at the Contractor's expense and the Contractor shall not be entitled to any increase in Contract Sum or extension of Milestone Dates.

**§ 12.2 Correction of Work**

**§ 12.2.1 Before Substantial Completion**

The Contractor shall promptly correct Work rejected by the Owner or failing to conform to the requirements of the Contract Documents, discovered before Substantial Completion and whether or not fabricated, installed or completed. Costs of correcting such rejected Work, including additional testing and inspections and the cost of uncovering and replacement, shall be at the Contractor's expense.

**§ 12.2.2 After Substantial Completion**

**§ 12.2.2.1** In addition to the Contractor's obligations under Section 3.5, if, within one year after the date of Substantial Completion of the Work or designated portion thereof or after the date for commencement of warranties established under Section 9.9.1, or by terms of any applicable special warranty required by the Contract Documents, any of the Work is found to be not in accordance with the requirements of the Contract Documents, the Contractor shall correct it promptly after receipt of notice from the Owner to do so, unless the Owner has previously given the Contractor a written acceptance of such condition. The Owner shall give such notice promptly after discovery of the condition. During the one-year period for correction of Work, if the Owner fails to notify the Contractor and give the Contractor an opportunity to make the correction, the Owner waives the rights to require correction by the Contractor and to make a claim for breach of this correction obligation. If the Contractor fails to correct nonconforming Work within a reasonable time during that period after receipt of notice from the Owner, the Owner may correct it in accordance with Section 2.5.

**§ 12.2.2.2** The one-year period for correction of Work shall be extended with respect to portions of Work first performed after Substantial Completion by the period of time between Substantial Completion and the actual completion of that portion of the Work.

**§ 12.2.2.3** The one-year period for correction of Work shall not be extended by corrective Work performed by the Contractor pursuant to this Section 12.2.

**§ 12.2.3** The Contractor shall remove from the site portions of the Work that are not in accordance with the requirements of the Contract Documents and are neither corrected by the Contractor nor accepted by the Owner.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 41 |
| **User Notes:** | (1684368744) |  |

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**§ 12.2.4** The Contractor shall bear the cost of correcting destroyed or damaged construction of the Owner or Separate Contractors, whether completed or partially completed, caused by the Contractor's correction or removal of Work that is not in accordance with the requirements of the Contract Documents.

**§ 12.2.5** Nothing contained in this Section 12.2 shall be construed to establish a period of limitation with respect to other obligations the Contractor has under the Contract Documents. Establishment of the one-year period for correction of Work as described in Section 12.2.2 relates only to the specific obligation of the Contractor to correct the Work, and has no relationship to the time within which the obligation to comply with the Contract Documents may be sought to be enforced, nor to the time within which proceedings may be commenced to establish the Contractor's liability with respect to the Contractor's obligations other than specifically to correct the Work.

**§ 12.2.6 Quality Management and Warranty**

1) The quality standards and specifications for the Work as approved by both Parties refer to The Owner's specifications and technical requirements specified in the Contract Documents

2) The applicable construction industrial standards and specifications concerning buildings and installations in location of the Project;

3) If there are conflicts among the content of the technical requirements in the Contract Documents, priority shall be given to the content ensuring the efficiency, stability and integrity of the Work, or otherwise determined by the parties through negotiation.

4) Government acceptance refers to the acceptance required by the applicable laws and local public authorities, the form of which can be a third-party inspection and acceptance or the Owner's inspection and acceptance.

If the Owner finds that the Work fails to meet the above quality standards at any stage, upon the Owner's reasonable request, the Contractor shall at its ow cost dismantle and re-construct at the Owner's request until the standards are met. Unless the failure is attributable to the Owner's gross negligence or willful act, the Owner may choose to hire a third party to conduct the demolition and re-construction and offset all the expenses for from the Contract Sum due to the Contractor, and in this situation the Contractor shall not be entitled to any increase in Contract Sum or extension of Milestone Dates.

If there is any dispute over the quality of the Work, the Owner may submit **it** to an independent third party accepted by the Contractor for investigation and analysis. The third party shall issue a quality test report for the Work. The test report shall be deemed as the basis for determine whether the Contractor shall be held liable. If the investigation result affirms that the Contractor is responsible, the Contractor shall bear the relevant expenses and losses.

The Contractor shall actively cooperate with the quality inspection carried out by any third parties appointed by the Owner at the site and take necessary measures of rectification.

**§ 12.3 Acceptance of Nonconforming Work**

If the Owner prefers to accept Work that is not in accordance with the requirements of the Contract Documents, the Owner may do so instead of requiring its removal and correction, in which case the Contract Sum will be reduced as appropriate and equitable. Such adjustment shall be effected whether or not final payment has been made.

**ARTICLE 13 MISCELLANEOUS PROVISIONS**

**§ 13.1 Governing Law**

The Contract shall be governed by the law of the place where the Project is located, excluding that jurisdiction's choice of law rules. If the parties have selected arbitration as the method of binding dispute resolution, the Federal Arbitration Act shall govern Section 15.4.

**§ 13.2 Successors and Assigns**

**§ 13.2.1** The Owner and Contractor respectively bind themselves, their partners, successors, assigns, and legal representatives to covenants, agreements, and obligations contained in the Contract Documents. Except as provided in Section 13.2.2, neither Party to the Contract shall assign the Contract as a whole without written consent of the other. If either Party attempts to make an assignment without such consent, that Party shall nevertheless remain legally responsible for all obligations under the Contract.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 42 |
| **User Notes:** | (1684368744) |  |

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**§ 13.2.2** The Owner may, without consent of the Contractor, assign the Contract to a lender providing construction financing for the Project, if the lender assumes the Owner's rights and obligations under the Contract Documents. The Contractor shall execute all consents reasonably required to facilitate the assignment.

**§ 13.3 Rights and Remedies**

**§ 13.3.1** Duties and obligations imposed by the Contract Documents and rights and remedies available thereunder shall be in addition to and not a limitation of duties, obligations, rights, and remedies otherwise imposed or available by law.

**§ 13.3.2** No action or failure to act by the Owner or Contractor shall constitute a waiver of a right or duty afforded them under the Contract, nor shall such action or failure to act constitute approval of or acquiescence in a breach thereunder, except as may be specifically agreed upon in writing.

**§ 13.4 Tests and Inspections**

**§ 13.4.1** Tests, inspections, and approvals of portions of the Work shall be made as required by the Contract Documents and by applicable laws, statutes, ordinances, codes, rules, and regulations or lawful orders of public authorities. Unless otherwise provided, the Contractor shall make arrangements for such tests, inspections, and approvals with an independent testing laboratory or entity acceptable to the Owner, or with the appropriate public authority, and shall bear all related costs of tests, inspections, and approvals. The Contractor shall give the Owner timely notice of when and where tests and inspections are to be made so that the Owner may be present for such procedures. The Owner shall bear costs of tests, inspections, or approvals that do not become requirements until after bids are received or negotiations concluded. The Owner shall directly arrange and pay for tests, inspections, or approvals where building codes or applicable laws or regulations so require.

**§ 13.4.2** If the Owner, or public authorities having jurisdiction determine that portions of the Work require additional testing, inspection, or approval not included under Section 13.4.1, the Owner will instruct the Contractor to make arrangements for such additional testing, inspection, or approval, by an entity acceptable to the Owner, and the Contractor shall give timely notice to the Owner of when and where tests and inspections are to be made so that the Owner may be present for such procedures. Such costs, except as provided in Section 13.4.3, shall be at the Owner's expense.

**§ 13.4.3** If procedures for testing, inspection, or approval under Sections 13.4.1 and 13.4.2 reveal failure of the portions of the Work to comply with requirements established by the Contract Documents, all costs made necessary by such failure shall be at the Contractor's expense.

**§ 13.4.4** Required certificates of testing, inspection, or approval shall, unless otherwise required by the Contract Documents, be secured by the Contractor and promptly delivered to the Owner.

**§ 13.4.5** If the Owner is to observe tests, inspections, or approvals required by the Contract Documents, the Owner will do so promptly and, where practicable, at the normal place of testing.

**§ 13.4.6** Tests or inspections conducted pursuant to the Contract Documents shall be made promptly to avoid unreasonable delay in the Work.

**§ 13.5 Interest**

Payments due and unpaid under the Contract Documents shall bear interest from the date payment is due at the rate the Parties agree upon in writing or, in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located.

**ARTICLE 14 TERMINATION OR SUSPENSION OF THE CONTRACT**

**§ 14.1 Termination by the Contractor**

**§ 14.1.1** The Contractor may terminate the Contract if the Work is stopped for a period of 30 consecutive days through no act or fault of the Contractor, a Subcontractor, a Sub-subcontractor, their agents or employees, or any other persons or entities performing portions of the Work, for any of the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** Issuance
 of an order of a court or other public authority having jurisdiction that requires all Work
 to be stopped;

&nbsp;&nbsp;&nbsp;&nbsp;**2.** An
 act of government, such as a declaration of national emergency, that requires all Work to
 be stopped;

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 43 |
| **User Notes:** | (1684368744) |  |

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&nbsp;&nbsp;&nbsp;&nbsp;**3.** Because
 the Owner has not issued a Certificate for Payment and has not notified the Contractor of
 the reasonable reason for withholding certification as provided in Section 9.4.1, or because
 the Owner has not made payment on a Certificate for Payment within the time stated in the
 Contract Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;**4.** The
 Owner has failed to furnish to the Contractor reasonable evidence as required by Section
 2.2.

**§ 14.1.2** The Contractor may terminate the Contract if, through no act or fault of the Contractor, a Subcontractor, a Sub-subcontractor, their agents or employees, or any other persons or entities performing portions of the Work, repeated suspensions, delays, or interruptions of the entire Work by the Owner as described in Section 14.3, constitute in the aggregate more than 100 percent of the total number of days scheduled for completion, or 120 days in any 365-day period, whichever is less.

**§ 14.1.3** If one of the reasons described in Section 14.1.1 or 14.1.2 exists, the Contractor may, upon seven days' notice to the Owner, terminate the Contract and recover from the Owner payment for Work executed, as well as reasonable overhead and profit on Work not executed, and costs incurred by reason of such termination.

**§ 14.1.4** If the Work is stopped for a period of 60 consecutive days through no act or fault of the Contractor, a Subcontractor, a Sub-subcontractor, or their agents or employees or any other persons or entities performing portions of the Work because the Owner has repeatedly failed to fulfill the Owner's obligations under the Contract Documents with respect to matters important to the progress of the Work, the Contractor may, upon seven additional days' notice to the Owner, terminate the Contract and recover from the Owner as provided in Section 14.1.3.

**§ 14.2 Termination by the Owner for Cause**

**§ 14.2.1** The Owner may terminate the Contract if the Contractor

&nbsp;&nbsp;&nbsp;&nbsp;**1.** repeatedly
 refuses or fails to supply enough properly skilled workers or proper materials, and the impacts
 of such condition remain unremedied for fifteen (15) Business Days following written notice
 thereof to Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;**2.** repeatedly
 fails to make payment to Subcontractors or suppliers in accordance with the respective agreements
 between the Contractor and the Subcontractors or suppliers, and the impacts of such condition
 remain unremedied for fifteen (15) Business Days following written notice thereof to Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;**3.** repeatedly
 disregards applicable laws, statutes, ordinances, codes, rules and regulations, or lawful
 orders of a public authority, and the impacts of such condition remain unremedied for fifteen
 (15) Business Days following written notice thereof to Contractor; or

&nbsp;&nbsp;&nbsp;&nbsp;**4.** otherwise
 is guilty of material breach of a material provision of the Contract Documents, and the effects
 of which have not been cured to Owner's reasonable satisfaction within fifteen (15)
 Business Days after notice from Owner, provided, if such failure to comply is not capable
 of being cured within fifteen (15) Business Days, Contractor shall not be in default so long
 as Contractor commences to cure within fifteen (15) Business Days and thereafter diligently
 proceeds to cure such breach in a manner reasonably satisfactory to Owner.

**§ 14.2.2** When any of the reasons described in Section 14.2.1 exist the Owner may, without prejudice to any other rights or remedies of the Owner and after giving the Contractor and the Contractor's surety, if any, seven days' notice, terminate employment of the Contractor and may, subject to any prior rights of the surety:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** Exclude
 the Contractor from the site and take possession of all materials, equipment, tools, and
 construction equipment and machinery thereon owned by the Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;**2.** Accept
 assignment of subcontracts pursuant to Section 5.4; and

&nbsp;&nbsp;&nbsp;&nbsp;**3.** Finish
 the Work by whatever reasonable method the Owner may deem expedient. Upon written request
 of the Contractor, the Owner shall furnish to the Contractor a detailed accounting of the
 costs incurred by the Owner in finishing the Work.

**§ 14.2.3** When the Owner terminates the Contract for one of the reasons stated in Section 14.2.1, the Contractor shall not be entitled to receive further payment until the Work is finished.

**§ 14.2.4** If the unpaid balance of the Contract Sum exceeds costs of finishing the Work, and other damages incurred by the Owner and not expressly waived, such excess shall be paid to the Contractor. If such costs and damages exceed the unpaid balance, the Contractor shall pay the difference to the Owner. The obligation for payment shall survive termination of the Contract.

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| | | |
|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 44 |
| **User Notes:** | (1684368744) |  |

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**§ 14.3 Suspension by the Owner for Convenience**

**§ 14.3.1** The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work, in whole or in part for such period of time as the Owner may determine.

**§ 14.3.2** The Contract Sum and Contract Time shall be adjusted for increases in the cost and time caused by suspension, delay, or interruption under Section 14.3.1. Adjustment of the Contract Sum shall include profit. No adjustment shall be made to the extent

&nbsp;&nbsp;&nbsp;&nbsp;**1.** that
 performance is, was, or would have been, so suspended, delayed, or interrupted, by another
 cause for which the Contractor is responsible; or

&nbsp;&nbsp;&nbsp;&nbsp;**2.** that
 an equitable adjustment is made or denied under another provision of the Contract.

**§ 14.4 Termination by the Owner for Convenience**

**§ 14.4.1** The Owner may, at any time, terminate the Contract for the Owner's convenience and without cause by reasonably advance written notice to Contractor.

**§ 14.4.2** Upon receipt of written notice from the Owner of such termination for the Owner's convenience, the Contractor shall

&nbsp;&nbsp;&nbsp;&nbsp;**1.** cease
 operations as directed by the Owner in the notice;

&nbsp;&nbsp;&nbsp;&nbsp;**2.** take
 actions necessary, or that the Owner may direct, for the protection and preservation of the
 Work; and

&nbsp;&nbsp;&nbsp;&nbsp;**3.** except
 for Work directed to be performed prior to the effective date of termination stated in the
 notice, terminate all existing subcontracts and purchase orders and enter into no further
 subcontracts and purchase orders.

**§ 14.4.3** In case of such termination for the Owner's convenience, the Owner shall pay the Contractor the Termination Payment, in accordance with Section 7.1 of Standard Form of Agreement Between Owner and Contractor (AIA Document Al 01™–2017).

**ARTICLE 15 CLAIMS AND DISPUTES**

**§ 15.1 Claims**

**§ 15.1.1 Definition**

A Claim is a demand or assertion by one of the Parties seeking, as a matter of right, payment of money, a change in the Contract Time, or other relief with respect to the terms of the Contract. The term "Claim" also includes other disputes and matters in question between the Owner and Contractor arising out of or relating to the Contract. The responsibility to substantiate Claims shall rest with the Party making the Claim. This Section 15.1.1 does not require the Owner to file a Claim in order to impose liquidated damages in accordance with the Contract Documents.

**§ 15.1.2 Time Limits on Claims**

The Owner and Contractor shall commence all Claims and causes of action against the other and arising out of or related to the Contract, whether in contract, tort, breach of warranty or otherwise, in accordance with the requirements of the binding dispute resolution method selected in the Agreement and within the period specified by applicable law, but in any case not more than four years after the date of Substantial Completion of the Work. The Owner and Contractor waive all Claims and causes of action not commenced in accordance with this Section 15.1.2.

**§ 15.1.3 Notice of Claims**

**§ 15.1.3.1** Claims by either the Owner or Contractor, where the condition giving rise to the Claim is first discovered prior to expiration of the period for correction of the Work set forth in Section 12.2.2, shall be initiated by notice to the other Party. Claims by either Party under this Section 15.1.3.1 shall be initiated within 21 days after occurrence of the event giving rise to such Claim or within 21 days after the claimant first recognizes the condition giving rise to the Claim, whichever is later.

**§ 15.1.3.2** Claims by either the Owner or Contractor, where the condition giving rise to the Claim is first discovered after expiration of the period for correction of the Work set forth in Section 12.2.2, shall be initiated by notice to the other Party.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 45 |
| **User Notes:** | (1684368744) |  |

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**§ 15.1.4 Continuing Contract Performance**

**§ 15.1.4.1** Pending final resolution of a Claim, except as otherwise agreed in writing or as provided in Section 9.7 and Article 14, the Contractor shall proceed diligently with performance of the Contract and the Owner shall continue to make payments in accordance with the Contract Documents.

**§ 15.1.5 Claims for Additional Cost**

If the Contractor wishes to make a Claim for an increase in the Contract Sum, notice as provided in Section 15.1.3 shall be given before proceeding to execute the portion of the Work that is the subject of the Claim. Prior notice is not required for Claims relating to an emergency endangering life or property arising under Section 10.4.

**§ 15.1.6 Claims for Additional Time**

**§ 15.1.6.1** If the Contractor wishes to make a Claim for an increase in the Contract Time, notice as provided in Section 15.1.3 shall be given. The Contractor's Claim shall include an estimate of cost and of probable effect of delay on progress of the Work. In the case of a continuing delay, only one Claim is necessary.

**§ 15.1.6.2** If adverse weather conditions are the basis for a Claim for additional time, such Claim shall be documented by data substantiating that weather conditions were abnormal for the period of time, could not have been reasonably anticipated, and had an adverse effect on the scheduled construction.

**§ 15.1.7 Waiver of Claims for Consequential Damages**

The Contractor and Owner waive Claims against each other for consequential damages arising out of or relating to this Contract. This mutual waiver includes

&nbsp;&nbsp;&nbsp;&nbsp;**1.** damages
 incurred by the Owner for rental expenses, for losses of use, income, profit, financing,
 business and reputation, and for loss of management or employee productivity or of the services
 of such persons; and

&nbsp;&nbsp;&nbsp;&nbsp;**2.** damages
 incurred by the Contractor for principal office expenses including the compensation of personnel
 stationed there, for losses of financing, business and reputation, and for loss of profit,
 except anticipated profit arising directly from the Work.

This mutual waiver is applicable, without limitation, to all consequential damages due to either Party's termination in accordance with Article 14. Nothing contained in this Section 15.1.7 shall be deemed to preclude assessment of liquidated damages, when applicable, in accordance with the requirements of the Contract Documents.

**§ 15.2 Additional Terms Regarding Claims**

**§ 15.2.1** In the event of a Claim against the Contractor, the Owner may, but is not obligated to, notify the surety, if any, of the nature and amount of the Claim. If the Claim relates to a possibility of a Contractor's default, the Owner may, but is not obligated to, notify the surety and request the surety's assistance in resolving the controversy.

**§ 15.2.2** If a Claim relates to or is the subject of a mechanic's lien, the party asserting such Claim may proceed in accordance with applicable law to comply with the lien notice or filing deadlines.

**§ 15.3 Intentionally Omitted**

**§ 15.4 Arbitration**

**§ 15.4.1** If the Parties have selected arbitration as the method for binding dispute resolution in the Agreement, any Claim subject to, but not resolved by, mediation shall be subject to arbitration which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with its Construction Industry Arbitration Rules in effect on the date of the Agreement. The Arbitration shall be conducted in the place where the Project is located, unless another location is mutually agreed upon. A demand for arbitration shall be made in writing, delivered to the other party to the Contract, and filed with the person or entity administering the arbitration. The party filing a notice of demand for arbitration must assert in the demand all Claims then known to that party on which arbitration is permitted to be demanded.

**§ 15.4.1.1** A demand for arbitration shall be made no earlier than concurrently with the filing of a request for mediation, but in no event shall it be made after the date when the institution of legal or equitable proceedings based on the Claim would be barred by the applicable statute of limitations. For statute of limitations purposes, receipt of a written demand for arbitration by the person or entity administering the arbitration shall constitute the institution of legal or equitable proceedings based on the Claim.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 46 |
| **User Notes:** | (1684368744) |  |

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**§ 15.4.2** The award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.

**§ 15.4.3** The foregoing agreement to arbitrate and other agreements to arbitrate with an additional person or entity duly consented to by Parties to the Agreement, shall be specifically enforceable under applicable law in any court having jurisdiction thereof.

**§ 15.4.4** Consolidation or Joinder**

**§ 15.4.4.1** Subject to the rules of the American Arbitration Association or other applicable arbitration rules, either party may consolidate an arbitration conducted under this Agreement with any other arbitration to which it is a party provided that (1) the arbitration agreement governing the other arbitration permits consolidation, (2) the arbitrations to be consolidated substantially involve common questions of law or fact, and (3) the arbitrations employ materially similar procedural rules and methods for selecting arbitrator(s).

**§ 15.4.4.2** Subject to the rules of the American Arbitration Association or other applicable arbitration rules, either party may include by joinder persons or entities substantially involved in a common question of law or fact whose presence is required if complete relief is to be accorded in arbitration, provided that the party sought to be joined consents in writing to such joinder. Consent to arbitration involving an additional person or entity shall not constitute consent to arbitration of any claim, dispute or other matter in question not described in the written consent.

**§ 15.4.4.3** The Owner and Contractor grant to any person or entity made a party to an arbitration conducted under this Section 15.4, whether by joinder or consolidation, the same rights of joinder and consolidation as those of the Owner and Contractor under this Agreement.

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|:---|:---|:---|
| AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | AIA Document A201 - 2017. Copyright© 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This draft was produced at 11:08:20 ET on 01/08/2024 under Oreder No.3104239901 which expires on 01/08/2025, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA contract Documents<sup>®</sup> Terms of service. To report copyright violations, e-mail docinfo@aiacontracts.com. | 47 |
| **User Notes:** | (1684368744) |  |

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## Exhibit 23.1

**Exhibit 23.1**

**<u>Independent Registered Public Accounting Firm's Consent</u>**

We consent to the use in this Registration Statement on Form S-1 of our report dated August 14, 2025, except for Note 15, as to which the date is January 20, 2026, relating to the financial statements of BESTWATER USA INC. appearing in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Marcum Asia CPAs LLP

New York

January 20, 2026